Finance (No. 2) Act 1975

• (3) The amount, if any, which would otherwise be disregarded under paragraph 14(1) of the said Schedule 16 (legal restrictions on distributions) shall be reduced by an amount equal to the appropriate amount in cash.

• (4) For the purposes of the definition of " apportioned amount" in paragraph 7(1) of the said Schedule 16 (consequences of apportionment: advance corporation tax), the amount of the company's income apportioned under paragraph 1 of that Schedule shall be treated as reduced by an amount equal to the appropriate amount in cash.

4

Where a close company issues any share capital to which the principal section applies as mentioned in subsection (4), (5) or (6) of the principal section or paragraph 3(1) above (read in each case with subsection (3) of that section), the company shall be treated for the purposes of paragraph 10(1) of Schedule 16 to the Finance Act 1972 (definition of " distributions " of a close company)—

• (a) as if a dividend of an amount equal to the appropriate amount in cash had been paid on the due date of issue ; and

• (b) where, in relation to that share capital, " the appropriate amount in cash" has the meaning given by paragraph 1(2) above, as if that dividend had been declared in respect of the accounting period (if any) in respect of which the relevant cash dividend (as defined in paragraph 1(4) above) was declared.

Capital gains tax

5

In applying paragraph 4(3) of Schedule 7 to the Finance Act 1965 (chargeable gains: reorganisation of share capital) in relation to the issue of any share capital to which the principal section applies, as involving a re-organisation of the company's share capital, there shall be allowed, as consideration given for so much of the new holding as was issued as mentioned in subsection (4), (5) or (6) of the principal section, or paragraph 3(1) above (read in each case with subsection (3) of that section), an amount equal to what is, for that much of the new holding, the appropriate amount in cash ; and this paragraph shall have effect notwithstanding the proviso to the said paragraph 4(3).

Company distributions

6

Any share capital to which the principal section applies which is issued by a company as mentioned in subsection (4), (5) or (6) of that section or paragraph 3(1) above (read in each case with subsection (3) of that section)—

• (a) shall, notwithstanding paragraph (c) of subsection (2) of section 233 of the Taxes Act (definition of " distribution "), not constitute a distribution within the meaning of that subsection; and

• (b) for the purposes of section 234(1) and 235(1) of that Act (bonus issues following repayment of share capital, and matters to be treated or not treated as repayments of share capital) shall not be treated as issued " as paid up otherwise than by the receipt of new consideration ".

Returns of issues of share capital to which the principal section applies

7

• (1) A company shall for each of its accounting periods make, in accordance with this paragraph, returns to the inspector of all share capital to which the principal section applies which was issued by it in that period.

• (2) The provisions of paragraph 1(2) and (3) of Schedule 14 to the Finance Act 1972 (periods for which returns are to be made, and meaning of " a return period ") shall apply for the purposes of this paragraph as they apply for the purposes of that Schedule, but with the substitution of " thirty days " for " fourteen days" in paragraph 1(3):

Provided that, in the case of a return period ending before the date of the passing of this Act, the said paragraph 1(3) as applied by this sub-paragraph shall be read as requiring a company to deliver a return for that period not later than the end of the period of thirty days beginning with that date.

• (3) No return need be made under this paragraph by a company for any period in which it has issued no share capital to which the principal section applies.

• (4) The return made by a company for any return period shall state—

• (a) the date on which any share capital to which the principal section applies issued by it in the period was issued and, if different, the date on which the company was first required to issue it;

• (b) particulars of the terms on which any such share capital so issued by it was issued ; and

• (c) what is, in relation to any such share capital so issued, the appropriate amount in cash.

• (5) If it appears to the inspector that a company ought to have, but has not, made a return for any return period, he may (notwithstanding sub-paragraph (3) above) by notice in writing require the company to make a return for that period within such time (not being less than thirty days) as may be specified in the notice; and a return required to be made under this sub-paragraph shall, if such be the case, state that no share capital to which the principal section applies was issued in the period in question.

• (6) As regards any share capital included in a return made under this paragraph by a company, the inspector may, by notice in writing, require the company to furnish him within such time (not being less than thirty days) as may be specified in the notice with such further information relating thereto as he may reasonably require for the purposes of the principal section and this Schedule.

• (7) For the purposes of this paragraph (including the provisions applied by sub-paragraph (2) above) an accounting period of a company beginning before 6th April 1975 and ending on or after that date shall be deemed to have begun on that date.

8

In the Table, in section 98 of the Taxes Management Act 1970 (penalty for failure to make returns etc.) the following shall be added in the first column—

Paragraph 7(5) and (6) of Schedule 8 to the Finance (No. 2) Act 1975

and the following shall be added in the second column—

Paragraph 7(1) to (4) of Schedule 8 to the Finance (No. 2) Act 1975

.

SCHEDULE 9

PART I — Amendments of Friendly Societies Act 1974

1

The Friendly Societies Act 1974 shall be amended in accordance with the following provisions of this Part of this Schedule.

2

For subsection (3) of section 7 (societies which may be registered) substitute—

(3) A friendly society or branch thereof may not be registered under this Act— (a) if it contracts with any person for the assurance under tax exempt life or endowment business of more than £104 a year by way of annuity or more than £500 by way of gross sum ; or (b) if it contracts with any person for the assurance of an annuity or of a gross sum in excess of the limits in section 64 below. (3A) In the case of a registered friendly society or branch whose rales 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, subsection (3)(a) above shall have effect with the substitution of references to £208 and £1,000 respectively for the references to £104 and £500.

3

In section 7, at the end add—

(5) In this section ' life or endowment business' and ' tax exempt life or endowment business ' have the meanings assigned to them by subsections (2) and (3) respectively of section 337 of the Income and Corporation Taxes Act 1970 ; and subsection (2) of section 64 below shall apply in relation to the limits in subsection (3) above (including, where applicable, those limits as modified by subsection (3A) above) as it applies in relation to the limits in section 64 below.

4

In section 64(1) (maximum benefits), for the references to £500 and £104 in paragraphs (a) and (b) substitute references to £1,000 and £208 respectively.

PART II — Amendments of Friendly Societies Act (Northern Ireland) 1970

5

The Friendly Societies Act (Northern Ireland) 1970 shall be amended in accordance with the following provisions of this Part of this Schedule.

6

For subsection (3) of section 1 (societies which may be registered), make the same substitution as is provided for in paragraph 2 above, but with the omission of the words " below " and " above ".

7

In section 1, at the end make the same addition as is provided for in paragraph 3 above, but with the substitution of the words " section 55 " for the words " section 64 below" in both places where they occur, and the omission of the word " above " in both places where it occurs.

8

In section 55(1) (maximum benefits), for the references to £500 and £104 in paragraphs (a) and (b) substitute references to £1,000 and £208 respectively.

9

In section 55(2), after " gross sum or annuity " insert " , any approved annuities as defined in section 226(13) of the Income and Corporation Taxes Act 1970 ".

10

For section 55(9)(a) substitute—

(a) ' life or endowment business' has the meaning assigned to it by subsection (2) of section 337 of the Income and Corporation Taxes Act 1970.

SCHEDULE 10

PART I — Income Tax

Entitlement to relief

1

• (1) Where a person carries on a trade in respect of which he is chargeable to income tax under Case I of Schedule D and—

• (a) the value of his trading stock at the end of his base period (in this Schedule referred to as his " closing stock value ") exceeds

• (b) the value of his trading stock at the beginning of that period (in this Schedule referred to as his " opening stock value "),

he shall, subject to the provisions of this Schedule, be entitled to relief under this paragraph by reference to the amount of that excess ; and in the following provisions of this Schedule the amount of that excess is referred to as his " base period increase ".

• (2) For the purposes of the Income Tax Acts other than this Schedule, in any case in which a person is entitled to relief under this paragraph—

• (a) that person's closing stock value shall be treated as reduced by—

• (i) an amount equal to his base period increase less 10 per cent, of his relevant income for his base period; and

• (ii) if he began to carry on the trade before the year 1973-74 or has a period of account ending in that year, an amount equal to 5 per cent, of the amount referred to in sub-paragraph (i) above ; and

• (b) the value of his trading stock at the beginning of the period of account which begins on the day following that as at which the closing stock value is determined shall be treated as reduced by the amount referred to in paragraph (a)(i) above ;

and all such adjustments shall be made in any assessment to income tax for any relevant year of assessment as are necessary to give effect to any relief under this paragraph.

• (3) A person shall not be entitled to relief under this paragraph unless a claim for the relief is made within two years after the end of the year 1974-75.

• (4) In this Part of this Schedule "period of account" means a period for which an account is made up in relation to the trade in question.

Base period

2

• (1) A person has a base period for the purposes of relief under paragraph 1 above if—

• (a) he began to carry on the trade before the beginning of the year 1974-75 and has one or more periods of account ending in that year or in the year 1975-76 ; or

• (b) he began to carry on the trade in the year 1974-75 and has one or more periods of account ending in that year.

• (2) A person's base period ends with the last day of—

• (a) the period or the last of the periods of account ending in the year 1974-75 ; or

• (b) if there is no period within paragraph (a) above, the period or the first of the periods of account ending in the year 1975-76.

• (3) A person's base period begins 24 months before the day on which it ends except that—

• (a) if the base period ends after the year 1974-75, the base period begins 24 months before the end of that year ;

• (b) if the date which would be the beginning of the base period under the foregoing provisions is not the first day of a period of account, the base period begins with the first day of the period of account which is current on that date ; and

• (c) if the person began to carry on the trade after the date on which the base period would begin under the foregoing provisions, that period begins on the day on which he began to carry on the trade.

3

• (1) If a person began to carry on the trade before 6th April 1973 and his base period is longer than 24 months, then, for the purposes of paragraph 1 above—

• (a) his base period increase ; and

• (b) his relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is 24 and the denominator is the number of months in the base period.

• (2) If a person began to carry on the trade after 5th April 1973 and his base period ends after 5th April 1975, then, for the purposes of paragraph 1 above—

• (a) his base period increase ; and

• (b) his relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is the number of months in the period beginning with the day on which he began to carry on the trade and ending with 5th April 1975 and the denominator is the number of months in the base period.

Commencement of trade

4

• (1) Subject to the provisions of this paragraph, where a person claims relief under paragraph 1 above and, immediately before the beginning of his base period, he was not carrying on the trade to which the relief relates, he shall be treated for the purposes of that paragraph as having at the beginning of that period trading stock of such value as appears to the inspector to be reasonable and just.

• (2) In determining, for the purposes specified in sub-paragraph (1) above, the value of trading stock to be attributed to a person at the beginning of his base period the inspector shall have regard to all the relevant circumstances of the case and, in particular—

• (a) to movements during the person's base period in the costs of items of a kind comprised in his trading stock during that period; and

• (b) to changes during that period in the volume of the trade in question carried on by that person.

• (3) Any Commissioners dealing with an appeal from the decision of an inspector on a claim in a case where, in accordance with sub-paragraph (1) above, the inspector has attributed to a person at the beginning of his base period trading stock of a particular value shall, in hearing and determining the appeal, in so far as it relates to the value of the trading stock to be so attributed, determine such value as appears to them to be reasonable and just, having regard to those factors to which the inspector is required to have regard by virtue of sub-paragraph (2) above.

• (4) This paragraph does not apply where the claimant acquired the initial trading stock of the trade in question on a sale or transfer from another person on that person's ceasing to carry on that trade and the stock so acquired is brought in at not less than market value at the beginning of the claimant's base period.

Cessation of trade

5

A person shall not be entitled to relief under paragraph 1 above in respect of any trade if he ceases to carry it on at or before the end of his base period.

PART II — Corporation Tax

Entitlement to relief

6

• (1) Where a company carries on a trade in respect of which it is within the charge to corporation tax under Case I of Schedule D and—

• (a) the value of its trading stock at the end of its base period (in this Schedule referred to as its " closing stock value ") exceeds

• (b) the value of its trading stock at the beginning of that period (in this Schedule referred to as its " opening stock value "),

the company shall, subject to the provisions of this Schedule, be entitled to relief under this paragraph by reference to the amount of that excess; and in the following provisions of this Schedule the amount of that excess is referred to as the company's " base period increase ".

• (2) For the purposes of the Corporation Tax Acts other than this Schedule, in any case in which a company is entitled to relief under this paragraph—

• (a) the company's closing stock value shall be treated as reduced by—

• (i) an amount equal to its base period increase less 10 per cent, of its relevant income for its base period ; and

• (ii) if it was excluded from section 18 of the Finance Act 1975 by virtue of subsection (5)(a) of that section (companies with closing stock value under £25,000), an amount equal to 5 per cent, of the amount mentioned in sub-paragraph (i) above ; or

• (iii) if relief under that section was excluded wholly or in part by virtue of subsection (9)(b) of that section (" trading stock" not to include work in progress), an amount equal to 5 per cent, or, as the case may be, a corresponding part of 5 per cent, of the amount mentioned in sub-paragraph (i) above ; and

• (b) the value of its trading stock at the beginning of the period of account which begins on the day following that as at which the closing stock value is determined shall be treated as reduced by the amount referred to in paragraph (a)(i) above;

and all such adjustments shall be made in any assessment to corporation tax for any relevant accounting period as are necessary to give effect to any relief under this paragraph.

• (3) A company shall not be entitled to relief under this paragraph unless a claim for the relief is made within two years after the end of the accounting period, or the last of the accounting periods, ending in the financial year 1974.

Base period

7

• (1) A company has a base period for the purposes of relief under paragraph 6 above if it has one or more accounting periods ending in the financial year 1974.

• (2) A company's base period ends—

• (a) if the accounting period, or the first of the accounting periods, ending in the financial year 1974 ends on the same day as a period of account, with that day ;

• (b) in any other case, with the last day of the period of account which is current at the end of that accounting period.

• (3) A company's base period begins 24 months before the day on which it ends except that—

• (a) if the base period ends after the financial year 1974, the base period begins 24 months before the end of the accounting period ending in that year ;

• (b) if the date which would be the beginning of the base period under the foregoing provisions is not the first day of a period of account, the base period begins with the first day of the period of account which is current on that date; and

• (c) if the company began to carry on the trade after the date on which the base period would begin under the foregoing provisions, that period begins on the day on which it began to carry on the trade.

8

• (1) If a company began to carry on the trade before 1st April 1973 and its base period is longer than 24 months, then, for the purposes of paragraph 6 above—

• (a) its base period increase ; and

• (b) its relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is 24 and the denominator is the number of months in the base period.

• (2) If a company began to carry on the trade after 31st March 1973, then, for the purposes of paragraph 6 above—

• (a) its base period increase ; and

• (b) its relevant income for that period,

shall each be reduced by multiplying them by the fraction of which the numerator is the number of months in the period beginning with the day on which it began to carry on the trade and ending with the last day of the accounting period, or the first of the accounting periods, ending in the financial year 1974 and the denominator is the number of months in the base period.

• (3) Where a company's 1973 increase in stock value fell to be determined under Schedule 3 to the Finance Act 1975 by reference to the 1973 reference period as defined in that Schedule, and its base period ends on the same day as that reference period, the amount of the reduction under paragraph 6(2)(a)(i) above shall be diminished by the amount of the reduction under section 18(4)(a) of that Act.

Extra period of account following base period

9

• (1) This paragraph has effect where a company has two or more periods of account ending in the financial year 1974.

• (2) Without prejudice to the application of the foregoing provisions in relation to the company's base period as determined in accordance with paragraph 7(2) and (3) above, those provisions shall also apply as if the company had a further base period, or further base periods, ending with the last day of each of those periods of account other than the first and beginning at the same time as its base period as determined under paragraph 7(2) and (3).

• (3) In the case of any such further base period the reduction to be made in the company's closing stock value shall be only such as is provided for by sub-paragraph (a)(i) of paragraph 6(2) above and its relevant income shall be computed without regard to any reduction under that paragraph.

Commencement of trade

10

Paragraph 4 above shall, with the necessary modifications, have effect in relation to companies claiming relief under paragraph 6 above as it has effect in respect of persons clairning relief under paragraph 1 above.

Cessation of trade

11

A company shall not be entitled to relief under paragraph 6 above if any accounting period ending in or at the same time as its base period ends by virtue of the company—

• (a) ceasing to trade or to be, in respect of the trade concerned or of all the trades carried on by the company, within the charge to corporation tax ; or

• (b) ceasing to be resident in the United Kingdom ; or

• (c) ceasing to be within the charge to corporation tax.

PART III — General

Partnerships

12

• (1) For the purposes of this Schedule a person shall be treated as ceasing to carry on a trade if there is a change in the persons engaged in carrying it on notwithstanding that he continues to be so engaged immediately after the change.

• (2) Where a trade is carried on by persons in partnership and one or more but not all of them are companies, the base period shall be determined in accordance with paragraph 2 above.

• (3) Any claim for relief under this Schedule in relation to a trade carried on by persons in partnership shall be a single claim made in the partnership name.

• (4) Subsection (7) of section 154 of the Taxes Act (meaning of change in persons carrying on trade) shall apply for the purposes of this paragraph as it applies for the purpose of that section.

Successions

13

• (1) Where a company (" the predecessor ") ceases to carry on a trade during the financial year 1973 or 1974 and, on that company so ceasing, another company (" the successor ") begins to carry on that trade, then, if section 252 of the Taxes Act (company reconstructions) has effect in relation to that event, the successor shall be treated for the purposes of this Schedule as having carried on the trade since the predecessor began (or would be treated by virtue of this paragraph as having begun) to do so.

• (2) Where there is a change in the persons engaged in carrying on a trade and—

• (a) a person engaged in carrying it on immediately before the change continues to be so engaged immediately after the change; and

• (b) the trading stock of the trade immediately before the change is the trading stock immediately after the change,

the person or persons engaged in carrying it on immediately after the change shall be treated for the purposes of this Schedule as having carried on the trade since the person or persons so engaged immediately before the change began (or would themselves be treated by virtue of this paragraph as having begun) to do so.

• (3) Where at any time an individual ceases, or persons in partnership cease, to carry on a trade and a company begins to carry it on, then, if at that time not less than three-quarters of the ordinary share capital of the company is held by that individual or those persons, the company shall be treated for the purposes of this Schedule as having carried on the trade since that individual or those persons began (or would be treated by virtue of this paragraph as having begun) to do so.

• (4) Subsection (7) of section 154 of the Taxes Act (meaning of change in persons carrying on trade) shall apply for the purposes of this paragraph as it applies for the purposes of that section.

Adjustments for special circumstances

14

Where a person has acquired or disposed of trading stock otherwise than in the normal conduct of the trade in question he shall be treated for the purposes of this Schedule as having, at the beginning or end of his base period, trading stock of such value as appears to the inspector (or, on appeal, to the Commissioners) to be reasonable and just having regard to all the relevant circumstances of the case.

Application to professions

15

The foregoing provisions of this Schedule shall, with the necessary modifications, have effect in relation to professions and vocations chargeable under Case II of Schedule D as they have effect in relation to trades chargeable under Case I of that Schedule.

Interpretation

16

• (1) Subject to the provisions of this paragraph, "trading stock " means property of any description, whether real or personal, being either—

• (a) property such as is sold in the ordinary course of the trade, profession or vocation in question, or would be so sold if it were mature or if its manufacture, preparation or construction were complete ; or

• (b) materials such as are used in the manufacture, preparation or construction of any such property as is referred to in paragraph (a) above,

and includes work in progress.

• (2) Sub-paragraph (1) above does not apply to—

• (a) securities, which for this purpose includes shares and stock ; or

• (b) land other than such as is ordinarily sold in the course of the trade, profession or vocation only—

• (i) after being developed by the person carrying on the trade, profession or vocation, or

• (ii) in the case of a company which is a member of a group, for the purpose of being developed by another company in that group ; or

• (c) goods which the person carrying on the trade, profession or vocation has let on hire or hire-purchase.

• (3) In sub-paragraph (2) above, references to development are references to the construction or substantial reconstruction of buildings on the land in question and " group " shall be construed in accordance with section 272 of the Taxes Act.

• (4) For the purposes of this Schedule the value of a person's trading stock at any time shall be reduced to the extent to which payments on account have been received by that person at or before that time in respect of that stock.

• (5) Where the value of a person's trading stock at the beginning of his base period is not calculated on the basis used for the calculation of the value of his trading stock at the end of that period, the value of his trading stock at the beginning of that period shall, for the purposes of this Schedule, be treated as what it would have been if it had been calculated on that basis.

• (6) Animals treated as trading stock under Schedule 6 to the Taxes Act (farm animals) shall be so treated for the purposes of this Schedule except that, where a person makes an election for the herd basis under that Schedule which takes effect during the base period or immediately after it, animals forming part of any herd or herds with respect to which the election has effect shall be treated as not having been trading stock of that person at any time during that period.

17

In this Schedule " work in progress " means—

• (a) any services performed in the ordinary course of the trade, profession or vocation, the performance of which was wholly or partly completed at the material time and for which it would be reasonable to expect that a charge will subsequently be made ; and

• (b) any article produced, and any such material as is used, in the performance of any such services.

18

• (1) Subject to sub-paragraph (2) below, in this Schedule " relevant income " means, in relation to a person carrying on a trade, profession or vocation, the income from that trade, profession or vocation computed in accordance with the rules applicable to Case I or, as the case may be, Case II of Schedule D.

• (2) In computing relevant income for the purposes of this Schedule—

• (a) no account shall be taken of any set-off or reduction of income by virtue of section 168, 171, 174, 177 or 178 of the Taxes Act (losses) ;

• (b) no deduction or addition shall be made by virtue of section 73, 74 or 91 of the Capital Allowances Act 1968 (corporation tax allowances and charges and allowances for capital expenditure on scientific research); and

• (c) no account shall be taken of any reduction in the value of trading stock under section 18(4) of the Finance Act 1975.

19

In any case where a base period consists of a number of complete months and a fraction of a month, or consist only of a fraction of a month, any reference in this Schedule to the number of months in that period shall be construed as including that fraction or as a reference to that fraction, as the case may be.

20

Any reference in this Schedule to a period of account or accounting period ending in any year includes a reference to a period of account or accounting period ending on the same day as that year.

SCHEDULE 11

The Government of the United Kingdom of Great Britain and Northern Ireland and the Government of the Republic of Ireland ;

With a view to extending for a further year the arrangements concerning dividends provided by the Agreement made between them on 2nd May 1973 which amended certain provisions of the Agreement made on 14th April 1926 between the British Government and the Government of the Irish Free State in respect of Double Income Tax;

Have agreed as follows:

ARTICLE 1

Notwithstanding the provisions of Article 4 of the Agreement made on 2nd May 1973 the amendments made by paragraph (2) of Article 1 and Article 2 of that Agreement to paragraphs (a) and (b) of Article 1 of the Agreement made on 14th April 1926 shall have effect as respects dividends paid on or after 6th April 1975 and not later than 5th April 1976.

ARTICLE 2

This Agreement shall enter into force on the exchange of Notes confirming that the necessary steps have been taken to give it the force of law in the United Kingdom and the Republic of Ireland.

In witness whereof the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement. Done in two originals at London this 3rd day of June 1975.

SCHEDULE 12

PART I — Conditions to be Satisfied by Individuals

1

The applicant must be carrying on a business in the United Kingdom which satisfies the following conditions, that is to say—

• (a) the business consists of or includes the carrying out of construction operations or the furnishing or arranging for the furnishing of labour in carrying out construction operations;

• (b) the business is, to a substantial extent, carried on by means of an account with a bank;

• (c) the business is carried on with proper records and in particular with records which are proper having regard to the obligations referred to in paragraphs 3 and 4 below; and

• (d) the business is carried on from proper premises and with proper equipment, stock and other facilities.

2

The applicant, unless he is the holder of a certificate which is in force under section 30 of the Finance Act 1971 or under section 70 of this Act, must throughout the period of three years ending with the date of his application for a certificate under section 70 of this Act (in this Part of this Schedule referred to as " the qualifying period "), have been employed in the United Kingdom as the holder of an office or employment or as a person carrying on a trade, profession or vocation.

3

• (1) The applicant must, subject to sub-paragraph (2) below, have complied with all obligations imposed on him by or under the Income Tax Acts or the Taxes Management Act 1970 in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, any business of his in respect of periods so ending.

• (2) An applicant who has failed to comply with such an obligation or request as is referred to in sub-paragraph (1) above shall nevertheless be treated as satisfying this condition as regards that obligation or request if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of his application for a certificate under section 70 of this Act.

4

The applicant must, if any contribution has at any time during the qualifying period become due from him under Part I of the National Insurance Act 1965 or Part I of the National Insurance Act (Northern Ireland) 1966, as the case may be, or under Part I of the Social Security Act 1975 or Part I of the Social Security (Northern Ireland) Act 1975, as the case may be, have paid the contribution when the contribution became due.

5

The applicant must, if he is required to be registered under the Registration of Business Names Act 1916 in respect of the business referred to in paragraph 1 above, have been duly registered under that Act in respect of that business.

6

• (1) Subject to sub-paragraph (2) below, there must be in force a policy or policies of insurance covering the applicant's relevant public liability in respect of the business referred to in paragraph 1 above and effected by him with an authorised insurer or insurers in a sum not less or not less in the aggregate than £250,000.

• (2) Sub-paragraph (1) above does not apply to an applicant whose business consists of the furnishing or arranging for the furnishing of labour in carrying out construction operations or whose business includes any of those activities but does not also include the carrying out of construction operations.

7

There must be reason to expect that the applicant will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in paragraphs 3 and 4 above and with such requests as are referred to in paragraph 3 above.

PART II — Conditions to be Satisfied by Partners Who are Individuals

1

The partner, unless he is the holder of a certificate in force under section 30 of the Finance Act 1971 or under section 70 of this Act, must throughout the period of three years ending with the date of his application for a certificate under section 70 of this Act (in this Part of this Schedule referred to as " the qualifying period ") have been employed in the United Kingdom as the holder of an office or employment or as a person carrying on a trade, profession or vocation.

2

• (1) The partner must, subject to sub-paragraph (2) below, have complied with all obligations imposed on him by or under the Income Tax Acts or the Taxes Management Act 1970 in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, any business of his in respect of periods so ending.

• (2) A partner who has failed to comply with such an obligation or request as is referred to in sub-paragraph (1) above shall nevertheless be treated as satisfying this condition as regards that obligation or request if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of his application for a certificate under section 70 of this Act.

3

The partner must, if any contribution has at any time during the qualifying period become due from him under Part I of the National Insurance Act 1965 or Part I of the National Insurance Act (Northern Ireland) 1966, as the case may be, or under Part I of the Social Security Act 1975 or Part I of the Social Security (Northern Ireland) Act 1975, as the case may be, have paid the contribution when the contribution became due.

4

There must be reason to expect that the partner will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in paragraphs 2 and 3 above and with such requests as are referred to in paragraph 2 above.

PART III — Conditions to be Satisfied by Firms

1

The firm's business must be carried on in the United Kingdom and must satisfy the conditions mentioned in paragraph 1(a) to (d) of Part I of this Schedule.

2

• (1) Subject to sub-paragraph (2) below, any income tax or corporation tax which became due from any partner in the firm in respect of the firm's business at any time in the period of three years ending with the date of the application for a certificate under section 70 of this Act (in this Part of this Schedule referred to as "the qualifying period ") must have been paid when the tax was demanded.

• (2) Where the obligation referred to in sub-paragraph (1) above has not been complied with in the case of any firm, the firm shall nevertheless be treated as satisfying this condition as regards that tax if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of the application under section 70 of this Act.

3

The firm must, if it is required to be registered under the Registration of Business Names Act 1916 in respect of the business referred to in paragraph 1 above, have been duly registered under that Act in respect of that business.

4

• (1) Subject to sub-paragraph (2) below, there must be in force a policy or policies of insurance covering the relevant public liability of every partner in the firm in respect of the business referred to in paragraph 1 above and effected on behalf of the firm with an authorised insurer or insurers in a sum not less or not less in the aggregate than £250,000.

• (2) Sub-paragraph (1) above does not apply to a firm whose business consists of the furnishing or arranging for the furnishing of labour in carrying out construction operations or whose business includes any of those activities but does not also include the carrying out of construction operations.

5

There must be reason to expect that income tax or corporation tax becoming due in respect of the firm's business in respect of periods ending after the end of the qualifying period will be paid when it is demanded.

PART IV — Conditions to be Satisfied by Companies

1

The company must be carrying on (whether or not in partnership) a business in the United Kingdom and that business must satisfy the conditions mentioned in paragraph 1(a) to (d) of Part I of this Schedule.

2

• (1) The company must, subject to sub-paragraph (2) below, have complied with all obligations imposed on it by or under the Income Tax Acts, the Corporation Tax Acts or the Taxes Management Act 1970 in respect of periods ending within the qualifying period and with all requests to supply to an inspector accounts of, or other information about, the business of the company in respect of periods so ending.

• (2) A company which has failed to comply with such an obligation or request as is referred to in sub-paragraph (1) above shall nevertheless be treated as satisfying this condition as regards that obligation or request if the Board are of the opinion that in all the circumstances the failure ought to be disregarded for the purposes of the company's application for a certificate under section 70 of this Act.

• (3) "Qualifying period ", in this Part of this Schedule, means the period of three years ending with the date of the company's application for a certificate under section 70 of this Act.

3

The company must, if any contribution has at any time during the qualifying period become due from the company under Part I of the National Insurance Act 1965 or Part I of the National Insurance Act (Northern Ireland) 1966, as the case may be, or under Part I of the Social Security Act 1975 or Part I of the Social Security (Northern Ireland) Act 1975, as the case may be, have paid the contribution when the contribution became due.

4

The company must, if it is required to be registered under the Registration of Business Names Act 1916 in respect of the business referred to in paragraph 1 above, have been duly registered under that Act in respect of that business.

5

• (1) Subject to sub-paragraphs (2) and (3) below, there must be in force a policy or policies of insurance covering the company's relevant public liability in respect of the business referred to in paragraph 1 above and effected by the company with an authorised insurer or insurers in a sum not less or not less in the aggregate than £250,000.

• (2) Sub-paragraph (1) above does not apply to a company whose business consists of the furnishing or arranging for the furnishing of labour in carrying out construction operations or whose business includes any of those activities but does not also include the carrying out of construction operations.

• (3) Sub-paragraph (1) above does not apply where—

• (a) the company carries on the business referred to in paragraph 1 above in partnership with another person;

• (b) the company's application for the issue of a certificate under section 70 of this Act is for its issue to the company as a partner in that firm ; and

• (c) there is in force a policy or policies of insurance covering the relevant public liability of every partner in that firm in respect of the firm's business in so far as it is required by paragraph 4 of Part III of this Schedule.

6

• (1) The company must have complied with any obligations imposed on the company by the following provisions of the Companies Act 1948 or by the corresponding provisions of the Companies Act (Northern Ireland) 1960, as the case may be, in so far as those obligations fell to be complied with within the qualifying period, that is to say—

• (a) section 107 (registered office and notification of changes therein);

• (b) section 124 (annual return of company having a share capital);

• (c) section 125 (annual return of company not having a share capital);

• (d) section 126 (time for completion of annual return);

• (e) section 127 (documents to be annexed to annual return);

• (f) section 200(4) (return of directors and secretary and notification of changes therein);

• (g) section 407 (registration of constitutional documents and list of directors and secretary of oversea company);

• (h) section 409 (notification of changes in constitution or directors or secretary of oversea company);

• (i) section 410 (accounts of oversea company);

• (j) section 411 (oversea company to state its name and country of incorporation);

• (k) section 416 (obligations of companies incorporated in Channel Islands or Isle of Man).

• (2) In this paragraph " the corresponding provisions of the Companies Act (Northern Ireland) 1960 " means the following provisions of that Act, that is to say, sections 104, 119, 120, 121, 122, 191(6), 356, 358, 359 and 360.

7

There must be reason to expect that the company will, in respect of periods ending after the end of the qualifying period, comply with such obligations as are referred to in paragraphs 2, 3 and 6 above and with such requests as are referred to in paragraph 2 above.

SCHEDULE 13

PART I — Operations Included

PART II — Operations Excluded

SCHEDULE 14

Part I — Conversion of Revenue Duties

Part II — Other Customs and Excise Repeals

Part III — Payment of Tax

Part IV — Miscellaneous

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

Chapter I

General

Payment of tax pending appeal.

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

Chapter II

Citation, interpretation, construction and repeals.

SCHEDULES 4—5

SCHEDULES 12—13

1

These repeals take effect on 1st January 1976.

2

So far as these repeals relate to any drawback or other relief from a duty replaced by sections 9 to 15 of this Act they shall not have effect in relation to any duty charged before 1st January 1976.

1

The repeals in the Vehicles (Excise) Act 1971 have effect as from 16th April 1975.

2

The repeals of paragraphs 18 and 19 of Schedule 2 to the Betting and Gaming Duties Act 1972 and of section 59 of the Finance Act 1972 do not have effect in relation to gaming licences for a period ending before 1st October 1975.

These repeals do not have effect in relation to tax charged by assessments notice of which was issued before the passing of this Act.

1

The repeals in section 98 of the Taxes Management Act 1970 and the repeals of sections 29 to 31 of and Schedule 5 to the Finance Act 1971, of section 25 of the Finance Act 1974, and of section 39 of the Finance (No. 2) Act 1975 take effect on the day which is appointed under section 68 of this Act for the purposes of Chapter II of Part III of this Act except in relation to sums payable before that day under the said section 29.

2

The repeal in section 76(3) of the Finance Act 1972 has effect in relation to interest paid or income arising after 29th April 1975.

Editorial notes