Finance Act 1985

• (1) Stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) shall not be chargeable on an instrument by which property is conveyed or transferred from one party to a marriage to the other if the instrument—

• (a) is executed in pursuance of an order of a court made on granting in respect of the parties of an order or decree for their divorce, the annulment of the marriage or their judicial separation, or

• (b) is executed in pursuance of an order of a court which is made in connection with the dissolution or annulment of the marriage or the parties’ judicial separation and which is made at any time after the granting of such an order or decree for divorce, annulment or judicial separation as is mentioned in paragraph (a), or

• (c) is executed at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the marriageor their judicial separation..

• (1A) Stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 shall not be chargeable on an instrument by which property is conveyed or transferred from one party to a civil partnership to the other if the instrument —

• (a) is executed in pursuance of an order of a court made on granting in respect of the parties an order or decree for the dissolution or annulment of the civil partnership or their judicial separation;

• (b) is executed in pursuance of an order of a court which is made in connection with the dissolution or annulment of the civil partnership or the parties' judicial separation and which is made at any time after the granting of such an order or decree for dissolution, annulment or judicial separation as mentioned in paragraph (a);

• (c) is executed in pursuance of an order of a court which is made at any time under any provision of Schedule 5 to the Civil Partnership Act 2004 that corresponds to section 22A, 23A or 24A of the Matrimonial Causes Act 1973; or

• (d) is executed at any time in pursuance of an agreement of the parties made in contemplation of or otherwise in connection with the dissolution or annulment of the civil partnership, their judicial separation or the making of a separation order in respect of them.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) This section applies to instruments executed on or after 26th March 1985 and shall be deemed to have come into operation on that date.

Death: varying dispositions, and appropriations

84

• (1) Where, within the period of two years after a person’s death, any of the dispositions (whether effected by will, under the law relating to intestacy or otherwise) of the property of which he was competent to dispose are varied by an instrument executed by the persons or any of the persons who benefit or would benefit under the dispositions, stamp duty under Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale) shall not be chargeable on the instrument.

• (2) Subsection (1) above does not apply where the variation is made for any consideration in money or money’s worth other than consideration consisting of the making of a variation in respect of another of the dispositions.

• (3) Subsection (1) above applies whether or not the administration of the estate is complete or the property has been distributed in accordance with the original dispositions.

• (4) Where property is appropriated by a personal representative in or towards satisfaction of a general legacy of money, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

• (5) Where on an intestacy property is appropriated by a personal representative in or towards satisfaction of any interest of a surviving spouse or civil partner in the intestate’s estate, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

• (6) The reference in subsection (5) above to an interest in the intestate’s estate—

• (a) includes a reference to the capital value of a life interest which the surviving spouse or civil partner has under the Intestates’ Estates Act 1952 elected to have redeemed, and

• (b) in Scotland, includes a reference to prior rights (within the meaning of the Succession (Scotland) Act 1964) but, without prejudice to subsection (7) below, not to such rights as are mentioned in that subsection.

• (7) Where in Scotland, on an intestacy or otherwise, property is appropriated by a personal representative in or towards satisfaction of the right of a husband to jus relicti, of a wife to relictae, of issue to legitim or rights under section 131 of the Civil Partnership Act 2004, or of a civil partner to rights under section 131 of that Act, stamp duty under the heading mentioned in subsection (1) above shall not be chargeable on an instrument giving effect to the appropriation.

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) Subject to subsection (11) below, this section applies to instruments executed on or after 26th March 1985 and shall be deemed to have come into operation on that date.

• (11) Subsections (5) to (7) above ... apply to instruments executed on or after 1st August 1985.

Repeal of certain fixed duties

85

• (1) The headings which are specified in Schedule 1 to the Stamp Act 1891 and are mentioned in Schedule 24 to this Act shall be omitted.

• (2) In section 7 of the Finance Act 1907 (stamping of hirepurchase agreements) for the words from “shall only be charged” to the end there shall be substituted “shall not be charged with any stamp duty.”

• (3) This section and that Schedule apply to—

• (a) instruments executed on or after 26th March 1985, and

• (b) instruments executed on or after 19th March 1985 which are not stamped before 26th March 1985.

• (4) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument falling within subsection (3) (b) above shall be deemed to be that as varied in accordance with this section.

• (5) This section and that Schedule shall be deemed to have come into operation on 26th March 1985.

Abolition of duty on contract notes

86

• (1) Subsections (1) and (2) of section 77 of the Finance (1909-10) Act 1910 (duty on contract notes) shall cease to have effect.

• (2) This section applies to contract notes made and executed on or after 26th March 1985, and shall be deemed to have come into operation on that date.

Certificates

87

• (1) The Commissioners may make regulations providing that an instrument which is of a kind specified in them—

• (a) shall be certified to be an instrument of that kind, and

• (b) shall not be treated as duly stamped if it is not so certified.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) Certification under this section shall be by such method as the regulations may specify, and in particular they may provide for a certificate to be borne by or attached to or otherwise associated with an instrument in such manner as they may specify.

• (4) A certificate under this section shall be in such form and signed by such person as the regulations may specify.

• (5) Regulations under this section may contain such incidental or consequential provisions as the Commissioners ... think fit.

• (6) Regulations under this section may make different provision for different cases or descriptions of case.

• (7) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

Exchange rates

88

Section 12 of the Finance Act 1899 (fixed exchange rate for foreign currency) shall not apply to instruments executed on or after 1st August 1985, and section 6 of the Stamp Act 1891 (exchange rate at date of instrument) shall apply to instruments to which section 12 of the 1899 Act would apply if this Act had not been passed.

Exemption from section 28 of Finance Act 1931

89

• (1) Section 28 of the Finance Act 1931 (production to Commissioners of instruments transferring land and furnishing of particulars) shall not apply in relation to any instrument (an “exempt instrument”) which falls within any class prescribed for the purposes of this section by regulations made by the Commissioners.

• (2) Regulations under this section may—

• (a) provide that the particulars mentioned in Schedule 2 to the 1931 Act shall be furnished to the Commissioners, in accordance with the requirements of the regulations, in respect of exempt instruments or such descriptions of exempt instruments as may be prescribed by the regulations;

• (b) make different provision in relation to different cases or kinds of case and in respect of different parts of Great Britain.

• (3) Any person who fails to comply with any requirement imposed by regulations made under this section shall be liable on summary conviction to a fine not exceeding level 3 on the standard scale . . ..

• (4) The power to make regulations under this section shall be exercisable by statutory instrument; and a statutory instrument containing regulations under this section shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (5) Section 35(x) of the 1931 Act (which gives power by regulations to exempt certain instruments in Scotland where particulars are obtained through the General Register of Sasines and which is superseded by the power given by this section) shall cease to have effect.

• (6) Regulations made under section 35(x) shall have effect after the commencement of this section as if they were made under this section and as if they imposed on the Keeper of the Registers of Scotland the duty mentioned in section 35(x).

Part IV — Oil Taxation

Limitations on relief for exploration and appraisal expenditure

90

• (1) With respect to expenditure incurred on or after 19th March 1985, section 5A of the Oil Taxation Act 1975 (allowance of exploration and appraisal expenditure) shall be amended in accordance with subsections (3) to (5) below.

• (2) with respect to expenditure incurred on or after 1st April 1986, in subsection (2) of the said section 5A (the purposes for which expenditure is to be incurred to quality for relief), for the words “the United Kingdom, the territorial sea thereof”, in each place where they occur, there shall be substituted “the territorial sea of the United Kingdom”.

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

(2A) Any reference in subsection (2) above to a designated area does not include a sector which, by virtue of subsection (3)(b) of section 107 of the Finance Act 1980 (transmedian fields), is deemed to be a designated area

• (4) In subsection (5) (which modifies the application of certain provisions of section 5 of the Oil Taxation Act 1975 in relation to section 5A) in paragraph (c) (which excludes certain receipts from being taken into account under subsection (6) of section 5 of that Act and thereby prevents the expenditure which qualifies for relief being reduced on account of those receipts) for the words from “does not include” onwards there shall be substituted—

(i) includes a reference to a sum received, or treated by virtue of subsection (5A) below as received, from the disposal of oil won in the course of operations carried out for any of the purposes in paragraphs (a) to (c) of subsection (2) of this section; but (ii) does not include a reference to a sum received for the assignment of any of the rights conferred by a licence or of any interest in a licensed area

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

(5A) Subsection (5B) below applies in any case where— (a) oil which is won as mentioned in paragraph (c)(i) of subsection (5) above is either disposed of otherwise than in sales at arm’s length or appropriated to refining or to any use except for production purposes of an oil field, and (b) if that oil had been disposed of in a sale at arm’s length, then, by virtue of section 5(6) of this Act as applied by subsection (5) above, certain expenditure would have been reduced by reference to the receipt of a sum from that disposal. (5B) Where this subsection applies, the oil concerned shall be treated for the purposes of subsection (5)(c)(i) above and section 5(6) of this Act as having been disposed of for a sum equal to its market value at the material time in the calendar month in which it was disposed of or appropriated as mentioned in subsection (5A)(a) above and, accordingly, for those purposes— (a) a sum equal to that market value shall be treated as having been received from that disposal; and (b) no account shall be taken of any sum actually received from the disposal of any of that oil. (5C) In the application of Schedule 3 to this Act for the purpose of ascertaining the market value of oil as mentioned in subsection (5B) above,— (a) in paragraph 2, in paragraph (c) of sub-paragraph (2) for the words from the beginning to “paragraph in question” there shall be substituted “the contract is for the sale of the whole quantity of oil whose market value falls to be ascertained for the purposes of section 5A(5B) of this Act”; (b) sub-paragraph (3) and (4) of paragraph 2 shall be omitted; and (c) any reference in paragraphs 2 and 2A to oil being relevantly appropriated shall be construed as a reference to its being appropriated as mentioned in subsection (5A)(a) above

Chargeable periods relevant to limit on tax payable and expenditure supplement

91

• (1) In subsection (1A) of section 9 of the Oil Taxation Act 1975 (the chargeable periods in respect of which the tax payable is limited under that section) in paragraph (b) (chargeable periods after the net profit period), for the words “included in paragraph (a) above” there shall be substituted “which are included in paragraph (a) above and in which the amount of oil won and saved from the field exceeds 1,000 metric tonnes”; and at the end of that subsection there shall be added the words “and for the purposes of paragraph (b) above 1,100 cubic metres of gas at a temperature of 15 degrees centigrade and pressure of one atmosphere shall be counted as equivalent to one metric tonne”.

• (2) The amendments made by subsection (1) above has effect with respect to any oil field in respect of which the first chargeable period ends after 30th June 1985.

• (3) In section 111 of the Finance Act 1981 (restriction of expenditure supplement by reference to net profit period), in subsection (1) for the words from “in which” onwards there shall be substituted

which is the earliest chargeable period ending after a development decision has been made for the field in which— (a) the amount of oil won and saved from the field exceeds 1,000 metric tonnes (counting 1,100 cubic metres of gas at a temperature of 15 degrees centigrade and pressure of one atmosphere as equivalent to one metric tonne); and (b) a net profit from the field accrues to the participator; and subsection (7) of section 5A of the principal Act (time when development decision is made) shall apply for the purposes of this subsection as it applies for the purposes of subsection (1)(c) of that section.

• (4) The amendment made by subsection (3) above has effect with respect to chargeable periods ending after 30th June 1985.

Qualifying assets: exclusion of land and certain buildings

92

• (1) In subsection (1) of section 8 of the Oil Taxation Act 1983 (meaning of “qualifying asset”) after the word “means” there shall be inserted “subject to subsection (1A) below”.

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

(1A) Notwithstanding anything in subsection (1) above, the following assets are not qualifying assets for the purposes of this Act, namely,— (a) land or an interest in land; and (b) a building or structure which is situated on land and which does not fall within any of sub-paragraphs (i) to (iv) of paragraph (c) of subsection (4) of section 3 of the principal Act.

• (3) In section 15(3) of the Oil Taxation Act 1983 (interpretation) in the definition of “qualifying asset” for the words “section 8(1)” there shall be substituted “section 8”.

• (4) In paragraph 4 of Schedule 2 to that Act (cases where all the oil is exempt gas) at the end of sub-paragraph (2) (modifications of section 8(1)) there shall be inserted the following subparagraph—

(2A) In any case where this paragraph applies, paragraph (b) of subsection (1A) of section 8 of this Act shall have effect in relation to the participator as if— (a) for the words “does not” there were substituted “would not”; and (b) at the end there were added the words “even if section 10(2) of the principal Act were disregarded”

• (5) This section has effect for determining whether any consideration which is received or receivable after 19th March 1985 constitutes tariff receipts or disposal receipts within the meaning of the Oil Taxation Act 1983.

Part V — Miscellaneous and Supplementary

Abolition of development land tax and tax on development gains

93

• (1) Development land tax shall not be charged in respect of any disposal taking place on or after 19th March 1985; and for this purpose “disposal” includes a deemed disposal within the meaning of the Development Land Tax Act 1976 (in this section referred to as “the 1976 Act”) and any other event which, but for the repeals effected by Part X of Schedule 27 to this Act, would constitute a disposal of an interest in land for the purposes of that Act.

• (2) Without prejudice to subsection (1) above, no realised development value, within the meaning of the 1976 Act, shall accrue to any person on or by reason of any event occurring on or after 19th March 1985.

• (3) In any case where, immediately before 19th March 1985, liability for development land tax stands for the time being deferred as mentioned in section 27 of the 1976 Act, that liability shall be extinguished with effect from that date.

• (4) In any case where—

• (a) by virtue of paragraph 52 of Schedule 8 to the 1976 Act (postponement of tax on incorporation disposal) an amount of tax is not payable until a time determined in accordance with sub-paragraphs (4) to (6) of that paragraph, and

• (b) that amount of tax has not become payable before 19th March 1985,

that amount of tax shall be remitted with effect from that date.

• (5) Part I of Schedule 25 to this Act shall have effect for supplementing the preceding provisions of this section.

• (6) No part of a chargeable gain which accrues to any person on the disposal of an interest in land on or after 19th March 1985 shall be a development gain by virtue of Chapter 1 of Part III of the Finance Act 1974; and for this purpose “disposal of an interest in land” means any event which, but for the repeals effected by Part X of Schedule 27 to this Act, would be (or be deemed to be) a disposal of an interest in land to which section 38 of that Act would apply.

• (7) In consequence of the preceding provisions of this section and of the repeals effected by Part X of Schedule 27 to this Act, the enactments specified in Part II of Schedule 25 to this Act shall have effect subject to the amendments in that Part; but those amendments do not affect the operation of the enactments concerned in relation to—

• (a) a disposal, as defined in subsection (1) above, taking place before 19th March 1985; or

• (b) a disposal of an interest in land, as defined in subsection (6) above, taking place before that date.

Capital transfer tax: conditional exemption

94

• (1) Schedule 26 to this Act (which contains amendments about conditional exemption) shall have effect.

• (2) Those amendments have effect in relation to events on or after 19th March 1985.

The national heritage: transfer of Treasury functions to Board

95

• (1) The functions of the Treasury under—

• (a) Part II, and section 76 of, and Schedules 3 to 5 to, the Capital Transfer Tax Act 1984 (exempt transfers);

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

• (c) the enactments re-enacted by those provisions;

and the corresponding functions of the Treasury under any earlier enactments relating to capital transfer tax or estate duty, are hereby transferred to the Commissioners of Inland Revenue (“the Board”).

• (2) This section shall not affect the validity of anything done by or in relation to the Treasury before the passing of this Act ; and anything which at that date is in the process of being done by or in relation to the Treasury may, if it relates to functions transferred by this section to the Board, be continued by or in relation to the Board.

• (3) Any authorisation, designation, direction, approval, determination, or other thing given, made or done by the Treasury in connection with functions transferred by this section shall have effect as if given, made or done by the Board in so far as that is required for continuing its effect after the passing of this Act.

• (4) Any enactment passed or instrument or other document made before the coming into operation of this section shall have effect, so far as may be necessary, for the purpose or in consequence of the transfer of functions affected by this section as if any reference to the Treasury were or included a reference to the Board.

European Communities and Investment Bank: exemptions

96

• (1) In section 126 of the Finance Act 1984 (tax exemptions in relation to designated international organisations) the following shall be inserted after subsection (3)—

(4) The Treasury may, by order made by statutory instrument, designate any of the European Union or the European Investment Bank for the purposes of this section, and references in subsections (2) and (3) above to an organisation designated for the purposes of this section include references to a body so designated by virtue of this sub-section. (5) Subsection (3) above, as it applies by virtue of subsection (4) above, shall be read as if the words “under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891” were omitted.

• (2) An order made by virtue of subsection (4) of section 126 of the Finance Act 1984 may revoke or vary the European Communities (Loan Stock) (Stamp Duties) Order 1972 (which provides for exemption from stamp duty in respect of issues and transfers of loan stock of the bodies referred to in that subsection, other than the Economic Community).

Extension of Provisional Collection of Taxes Act 1968 to reduced and composite rates

97

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

Short title, interpretation, construction and repeals

98

• (1) This Act may be cited as the Finance Act 1985.

• (2) In this Act “the Taxes Act” means the Income and Corporation Taxes Act [1988 ].

• (3) Part II of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, sp far as it relates to Corporation Tax Act and, so far as it relates to capital gains tax, shall be construed as one with the Capital Gains Tax Act 1979.

• (4) Part III of this Act shall be construed as one with the Stamp Act 1891.

• (5) Part IV of this Act shall be construed as one with Part I of the Oil Taxation Act 1975.

• (6) The enactments specified in Schedule 27 to 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.

SCHEDULE 1

SCHEDULE 2

Part I — Provisions Substituted in Part II of Schedules 1 to 5 to the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972

1

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

2

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

3

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

4

The following are the provisions substituted in the Act of 1971 and the Act of 1972 for Part II of Schedule 4—

Plated gross weight of vehicle	Plated gross weight of vehicle	Rate of duty	Rate of duty	Rate of duty
1.	2.	3.	4.	5.
Exceeding	Not exceeding	Two axle vehicle	Three axle vehicle	Four or more axle vehicle
tonnes	tonnes	£	£	£
12	13	410.00	320.00	320.00
13	14	570.00	340.00	340.00
14	15	740.00	340.00	340.00
15	17	1,030.00	340.00	340.00
17	19	—	490.00	340.00
19	21	—	660.00	340.00
21	23	—	900.00	490.00
23	25	—	1,610.00	690.00
25	27	—	—	1,000.00
27	29	—	—	1,470.00
29	30.49	—	—	2,420.00
Plated gross weight of vehicle	Plated gross weight of vehicle	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	Two axle vehicle	Three axle vehicle	Four or more axle vehicle
tonnes	tonnes	£	£	£
12	13	175.00	145.00	145.00
13	14	215.00	150.00	150.00
14	15	255.00	150.00	150.00
15	17	335.00	160.00	150.00
17	19	—	190.00	150.00
19	21	—	240.00	160.00
21	23	—	295.00	195.00
23	25	—	475.00	245.00
25	27	—	—	325.00
27	29	—	—	445.00
29	30-49	—	—	725.00
Plated gross weight of vehicle	Plated gross weight of vehicle	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	Two axle vehicle	Three axle vehicle	Four or more axle vehicle
tonnes	tonnes	£	£	£
12	13	105.00	90.00	90.00
13	14	145.00	90.00	90.00
14	15	185.00	90.00	90.00
15	17	260.00	90.00	90.00
17	19	—	125.00	90.00
19	21	—	165.00	90.00
21	23	—	225.00	125.00
23	25	—	405.00	175.00
25	27	—	—	250.00
27	29	—	—	370.00
29	30-49	—	—	605.00
Gross weight of trailer	Gross weight of trailer	Duty supplement
---	---	---	---
Exceeding	Not exceeding	Duty supplement
tonnes	tonnes	£
4	8	80.00
8	10	100.00
10	12	130.00
12	14	180.00
14	—	355.00
Gross weight of trailer	Gross weight of trailer	Duty supplement
---	---	---	---
Exceeding	Not exceeding	Duty supplement
tonnes	tonnes	£
4	8	80.00
8	10	100.00
10	12	130.00
12	14	180.00
14	—	355.00
Gross weight of trailer	Gross weight of trailer	Duty supplement
---	---	---	---
Exceeding	Not exceeding	Duty supplement
tonnes	tonnes	£
—	—	80.00
Plated train weight of tractor unit	Plated train weight of tractor unit	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	For a tractor unit to be used with semitrailers with any number of axles	For a tractor unit to be used only with semi-trailers with not less than two axles	For a tractor unit to be used only with semitrailers with not less than three axles
tonnes	tonnes	£	£	£
12	14	470.00	420.00	420.00
14	16	590.00	440.00	440.00
16	18	690.00	440.00	440.00
18	20	810.00	440.00	440.00
20	22	940.00	550.00	440.00
22	23	1,000.00	620.00	440.00
23	25	1,150.00	780.00	440.00
25	26	1,150.00	870.00	530.00
26	28	1,150.00	1,090.00	720.00
28	29	1,210.00	1,210.00	820.00
29	31	1,680.00	1,680.00	1,050.00
31	33	2,450.00	2,450.00	1,680.00
33	34	2,450.00	2,450.00	2,250.00
34	36	2,750.00	2,750.00	2,750.00
36	38	3,100.00	3,100.00	3,100.00
Plated train weight of tractor unit	Plated train weight of tractor unit	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	For a tractor unit to be used with semitrailers with any number of axles	For a tractor unit to be used only with semi-trailers with not less than two axles	For a tractor unit to be used only with semitrailers with not less than three axles
tonnes	tonnes	£	£	£
12	14	190.00	175.00	175.00
14	16	225.00	180.00	180.00
16	18	250.00	180.00	180.00
18	20	280.00	180.00	180.00
20	22	310.00	205.00	180.00
22	23	325.00	225.00	180.00
23	25	370.00	265.00	185.00
25	26	370.00	285.00	210.00
26	28	370.00	345.00	260.00
28	29	380.00	380.00	285.00
29	31	525.00	525.00	355.00
31	33	755.00	755.00	550.00
33	34	990.00	990.00	950.00
34	36	1,155.00	1,155.00	1,155.00
36	38	1,300.00	1,300.00	1,300.00
Plated train weight of tractor unit	Plated train weight of tractor unit	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	For a tractor unit to be used with semitrailers with any number of axles	For a tractor unit to be used only with semi-trailers with not less than two axles	For a tractor unit to be used only with semitrailers with not less than three axles
tonnes	tonnes	£	£	£
12	14	120.00	105.00	105.00
14	16	150.00	110.00	110.00
16	18	175.00	110.00	110.00
18	20	205.00	110.00	110.00
20	22	235.00	140.00	110.00
22	23	250.00	155.00	110.00
23	25	290.00	195.00	110.00
25	26	290.00	220.00	135.00
26	28	290.00	275.00	180.00
28	29	305.00	305.00	205.00
29	31	420.00	420.00	265.00
31	33	615.00	615.00	420.00
33	34	615.00	615.00	565.00
34	36	690.00	690.00	690.00
36	38	775.00	775.00	775.00
Plated train weight of tractor unit	Plated train weight of tractor unit	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	For a tractor unit to be used with semitrailers with any number of axles	For a tractor unit to be used only with semi-trailers with not less than two axles	For a tractor unit to be used only with semitrailers with not less than three axles
tonnes	tonnes	£	£	£
12	14	420.00	420.00	420.00
14	20	440.00	440.00	440.00
20	22	550.00	440.00	440.00
22	23	620.00	440.00	440.00
23	25	780.00	440.00	440.00
25	26	870.00	440.00	440.00
26	28	1,090.00	440.00	440.00
28	29	1,210.00	520.00	440.00
29	31	1,680.00	640.00	446.00
31	33	2,450.00	970.00	440.00
33	34	2,450.00	1,420.00	550.00
34	36	2,450.00	2,030.00	830.00
36	38	2,730.00	2,730.00	1,240.00
Plated train weight of tractor unit	Plated train weight of tractor unit	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	For a tractor unit to be used with semitrailers with any number of axles	For a tractor unit to be used only with semi-trailers with not less than two axles	For a tractor unit to be used only with semitrailers with not less than three axles
tonnes	tonnes	£	£	£
12	14	175.00	175.00	175.00
14	20	180.00	180.00	180.00
20	22	205.00	180.00	180.00
22	23	225.00	180.00	180.00
23	25	265.00	180.00	180.00
25	26	285.00	185.00	180.00
26	28	345.00	200.00	190.00
28	29	380.00	225.00	200.00
29	31	525.00	270.00	220.00
31	33	755.00	405.00	240.00
33	34	805.00	595.00	300.00
34	36	935.00	855.00	455.00
36	38	1,145.00	1,145.00	680.00
Plated train weight of tractor unit	Plated train weight of tractor unit	Rate of duty	Rate of duty	Rate of duty
---	---	---	---	---
1.	2.	3.	4.	5.
Exceeding	Not exceeding	For a tractor unit to be used with semitrailers with any number of axles	For a tractor unit to be used only with semi-trailers with not less than two axles	For a tractor unit to be used only with semitrailers with not less than three axles
tonnes	tonnes	£	£	£
12	14	105.00	105.00	105.00
14	18	110.00	110.00	110.00
18	20	110.00	110.00	110.00
20	22	140.00	110.00	110.00
22	23	155.00	110.00	110.00
23	25	195.00	110.00	110.00
25	26	220.00	110.00	110.00
26	28	275.00	110.00	110.00
28	29	305.00	130.00	110.00
29	31	420.00	160.00	110.00
31	33	615.00	245.00	110.00
33	34	615.00	355.00	140.00
34	36	615.00	510.00	210.00
36	38	685.00	685.00	310.00

5

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

Part II — Amendment of Part I of Schedule 4 to the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972

6

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

7

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

8

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

9

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

SCHEDULE 3

Manufacture of spirits during the recovery of beer

1

In section 13 (regulations and directions relating to manufacture of spirits) after subsection (2) there shall be inserted the following subsection—

(2A) If the Commissioners so direct, spirits manufactured by a process to which a direction under subsection (2) above applies shall be treated as not being within the charge of duty on spirits under section 5 above.

Spirits: attenuation charge

2

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

Determination of beer duty

3

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

Restrictions on adding substances to beer

4

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

SCHEDULE 4

1

The following shall be substituted for section 20 of the Hydrocarbon Oil Duties Act 1979 (contaminated or accidentally mixed oil)—

(20) (1) This section applies where it is shown to the satisfaction of the Commissioners— (a) that hydrocarbon oil has been delivered for home use, that since it was so delivered it has become contaminated, and that at the time it became contaminated it was oil on which the appropriate duty of excise had been paid, or (b) that hydrocarbon oils of different descriptions have been delivered for home use, that since they were so delivered they have become accidentally mixed with each other, and that at the time of mixing they were oils on which the appropriate duty of excise had been paid. (2) Subject to any conditions which the Commissioners see fit to impose for the protection of the revenue, they may make to such person as they see fit a payment in accordance with subsection (3) below. (3) The payment shall be of an amount appearing to the Commissioners to be equal to the excise duty which would have been payable if— (a) the oil had been delivered for home use (uncontaminated) at the time it became contaminated (where subsection (1)(a) above applies), or (b) the oils had been delivered for home use (unmixed) at the time they became mixed (where subsection (1)(b) above applies).

2

The following shall be inserted after section 20 of that Act (as substituted by paragraph 1 above)—

(20A) (1) In this section “new oil” means hydrocarbon oil which after it has been charged under section 6 above as oil of one description becomes oil of a different description as a result of approved mixing in a pipeline with other hydrocarbon oil which has been so charged; and “approved mixing” has the meaning given by subsection (5) below. (2) Where the Commissioners are of opinion that, if the new oil had fallen to be charged under section 6 above as oil of the different description, the amount of duty would have been greater or less than that actually charged, then— (a) if in their opinion the amount would have been greater, they may charge under this section a duty of excise on the oil of an amount equal to the difference, and (b) if in their opinion the amount would have been less, they may make under this section an allowance equal to the difference. (3) In determining the amount of duty which would have been charged if the new oil had fallen to be charged under section 6 above as oil of the different description, the rates to be applied are those effective at the time when in the Commissioners’ opinion the oil became oil of the different description. (4) Where the Commissioners have made a charge or allowance under subsection (2) above, then, for the purposes of this Act, any relief or rebate which was permitted or allowed at the time of the charge under section 6 above shall be disregarded. (5) The Commissioners may make regulations— (a) enabling them to grant to persons (whether individually or of a specified class) permission to mix in a pipeline different descriptions of hydrocarbon oil (whether generally or in the case of specified descriptions only) and to withdraw permission for reasonable cause; (b) enabling permission to be granted subject to conditions and conditions to be varied for reasonable cause, and in this section “approved mixing” means mixing in accordance with permission under the regulations. (6) The Commissioners may make regulations— (a) for prescribing the method of charging the duty under this section; (b) for determining the form of the allowance under this section (which may be by way of repayment or otherwise) and the time the allowance may be made. (7) Regulations under this section may make different provision for different circumstances.

3

In section 27(3) of that Act (expressions have meanings given by certain other Acts), in the list of expressions defined in the Management Act, after the entry relating to “officer” and “proper” there shall be inserted “pipeline”.

4

In paragraph 11 of Schedule 3 to that Act (securing and collecting duty on oil produced in the United Kingdom) the words “produced in the United Kingdom” shall cease to have effect.

SCHEDULE 5

Part I — Amendments of Betting and Gaming Duties Act 1981

1

• (1) In section 21 (gaming machine licences) in subsection (1) for the words “Great Britain” there shall be substituted “the United Kingdom”.

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

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

3

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

• (2) For subsections (2) to (4) of that section there shall be substituted the following subsections—

(2) For the purposes of this Act a gaming machine is a smallprize machine if the value or aggregate value of the benefits in money or money’s worth, which any player who is successful in a single game played by means of the machine may receive, cannot exceed £3. (3) The Commissioners may by order substitute for the sum for the time being mentioned in subsection (2) above such higher sum as may be specified in the order, with effect from a date so specified.

4

• (1) In section 23 (amount of duty) in paragraph (a) of subsection (1) for the words from “where” to “Acts” there shall be substituted “which authorise the provision only of smallprize machines”.

• (2) In Tables A and B in subsection (1) of that section the words“Premises with local authority approval” and“Premises without local authority approval” shall be omitted.

5

In section 24(5) (provision of gaming machine in contravention of restrictions) for the words “a penalty of £500” there shall be substituted “a penalty of level 5 on the standard scale.”

6

In section 26(2) (interpretation of provisions relating to gaming machine licence duty), for the entry relating to Great Britain there shall be substituted the following entries—

”United Kingdom’ includes the territorial waters of the United Kingdom; “small prize machine” has the meaning given by section 22(2) above.

7

In section 33(1) (general interpretation provisions) at the end of the definition of “the prescribed sum” there shall be inserted the words

and (c) if the offence was committed in Northern Ireland, the prescribed sum within the meaning of Article 4 of the Fines and Penalties (Northern Ireland) Order 1984.

8

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

9

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

• (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II — Extension to Northern Ireland of Certain Subordinate Legislation

10

Any orders or regulations made under any provision of Schedule 4 to the Betting and Gaming Duties Act 1981, in so far as they have effect immediately before 1st August 1985, shall have effect on and after that day in relation to Northern Ireland as if—

• (a) that Act extended to Northern Ireland at the time when the orders or regulations were made, and

• (b) the orders or regulations were made in relation to Northern Ireland as well as Great Britain.

SCHEDULE 6

SCHEDULE 7

1

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

• (2) In subparagraph (6) (assessment on failure to prove availability or loss or destruction of goods) after the words “supplied by him” there shall be inserted “or have been exported from the United Kingdom otherwise than by way of supply”.

• (3) After subparagraph (6) of that paragraph there shall be inserted the following subparagraph—

(6A) In any case where,— (a) as a result of a person’s failure to make a return for a prescribed accounting period, the Commissioners have made an assessment under subparagraph (1) above for that period, and (b) the tax assessed has been paid but no proper return has been made for the period to which the assessment related, and (c) as a result of a failure to make a return for a later prescribed accounting period, being a failure by the person referred to in paragraph (a) above or a person acting in a representative capacity in relation to him, as mentioned in subparagraph (4) above, the Commissioners find it necessary to make another assessment under subparagraph (1) above, then, if the Commissioners think fit, having regard to the failure referred to in paragraph (a) above, they may specify in the assessment referred to in paragraph (c) above an amount of tax greater than that which they would otherwise have considered to be appropriate.

2

In paragraph 7(2) (records to be preserved for a period not exceeding three years) for “three” there shall be substituted “six”.

3

• (1) In paragraph 8 (furnishing of information and production of documents) for subparagraphs (2) and (3) there shall be substituted the following subparagraphs—

(2) Every person who is concerned (in whatever capacity) in the supply of goods or services in the course or furtherance of a business or to whom such a supply is made and every person who is concerned (in whatever capacity) in the importation of goods in the course or furtherance of a business shall— (a) furnish to the Commissioners, within such time and in such form as they may reasonably require, such information relating to the goods or services or to the supply or importation as the Commissioners may reasonably specify; and (b) upon demand made by an authorised person, produce or cause to be produced for inspection by that person,— (i) at the principal place of business of the person upon whom the demand is made or at such other place as the authorised person may reasonably require, and (ii) at such time as the authorised person may reasonably require, any documents relating to the goods or services or to the supply or importation. (3) Where, by virtue of subparagraph (2) above, an authorised person has power to require the production of any documents from any such person as is referred to in that subparagraph, he shall have the like power to require production of the documents concerned from any other person who appears to the authorised person to be in possession of them; but where any such other person claims a lien on any document produced by him, the production shall be without prejudice to the lien.

• (2) In subparagraph (4) of that paragraph for the words from “goods” to “services” there shall be substituted “goods or services or the importation of goods”.

• (3) After subparagraph (4) there shall be inserted the following subparagraphs—

(4A) An authorised person may take copies of, or make extracts from, any document produced under subparagraph (2) or subparagraph (3) above. (4B) If it appears to him to be necessary to do so, an authorised person may, at a reasonable time and for a reasonable period, remove any document produced under subparagraph (2) or subparagraph (3) above and shall, on request, provide a receipt for any document so removed; and where a lien is claimed on a document produced under subparagraph (3) above, the removal of the document under this subparagraph shall not be regarded as breaking the lien. (4C) Where a document removed by an authorised person under subparagraph (4B) above is reasonably required for the proper conduct of a business he shall, as soon as practicable, provide a copy of the document, free of charge, to the person by whom it was produced or caused to be produced.

4

After paragraph 9 there shall be inserted the following paragraph

(9A) An authorised person may at any reasonable time require a person making such a supply as is referred to in subsection (1) of section 13 of this Act or any person acting on his behalf— (a) to open any gaming machine, within the meaning of that section; and (b) to carry out any other operation which may be necessary to enable the authorised person to ascertain the amount which, in accordance with subsection (2) of that section, is to be taken as the value of supplies made in the circumstances mentioned in subsection (1) of that section in any period.

5

• (1) In paragraph 10 (entry and search of premises and persons) in subparagraph (3) (search warrants)—

• (a) for the words “an offence in connection with the tax” there shall be substituted “a fraud offence which appears to be of a serious nature”;

• (b) after the word “authorising” there shall be inserted “subject to subparagraphs (5) and (6) below”;

• (c) in paragraph (b) for the words “such an offence” there shall substituted “a fraud offence which appears to him to be of a serious nature”; and

• (d) in paragraph (c) the words “to have committed or to be about to commit such an offence or” shall be omitted.

• (2) At the end of the paragraph there shall be added the following subparagraphs—

(4) In subparagraph (3) above ”a fraud offence’ means an offence under any provision of subsections (1) to (3) of section 39 of this Act. (5) The powers conferred by a warrant under this paragraph shall not be exercisable— (a) by more than such number of authorised persons as may be specified in the warrant; nor (b) outside such times of day as may be so specified; nor (c) if the warrant so provides, otherwise than in the presence of a constable in uniform. (6) An authorised person seeking to exercise the powers conferred by a warrant under this paragraph or, if there is more than one such authorised person, that one of them who is in charge of the search shall provide a copy of the warrant endorsed with his name as follows:— (a) if the occupier of the premises concerned is present at the time the search is to begin, the copy shall be supplied to the occupier; (b) if at that time the occupier is not present but a person who appears to the authorised person to be in charge of the premises is present, the copy shall be supplied to that person; and (c) if neither paragraph (a) nor paragraph (b) above applies, the copy shall be left in a prominent place on the premises.

6

After paragraph 10 there shall be inserted the following paragraphs—

(10A) (1) Where, on an application by an authorised person, a justice of the peace or, in Scotland, a justice (within the meaning of section 462 of the Criminal Procedure (Scotland) Act 1975) is satisfied that there are reasonable grounds for believing— (a) that an offence in connection with the tax is being, has been or is about to be committed, and (b) that any recorded information (including any document of any nature whatsoever) which may be required as evidence for the purpose of any proceedings in respect of such an offence is in the possession of any person, he may make an order under this paragraph. (2) An order under this paragraph is an order that the person who appears to the justice to be in possession of the recorded information to which the application relates shall— (a) give an authorised person access to it, and (b) permit an authorised person to remove and take away any of it which he reasonably considers necessary, not later than the end of the period of seven days beginning on the date of the order or the end of such longer period as the order may specify. (3) The reference in subparagraph (2)(a) above to giving an authorised person access to the recorded information to which the application relates includes a reference to permitting the authorised person to take copies of it or to make extracts from it. (4) Where the recorded information consists of information contained in a computer, an order under this paragraph shall have effect as an order to produce the information in a form in which it is visible and legible and, if the authorised person wishes to remove it, in a form in which it can be removed. (5) This paragraph is without prejudice to paragraphs 8 and 10 above. (10B) (1) An authorised person who removes anything in the exercise of a power conferred by or under paragraph 10 or 10A above shall, if so requested by a person showing himself— (a) to be the occupier of premises from which it was removed, or (b) to have had custody or control of it immediately before the removal, provide that person with a record of what he removed. (2) The authorised person shall provide the record within a reasonable time from the making of the request for it. (3) Subject to subparagraph (7) below, if a request for permission to be granted access to anything which— (a) has been removed by an authorised person, and (b) is retained by the Commissioners for the purpose of investigating an offence, is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed or by someone acting on behalf of such a person, the officer shall allow the person who made the request access to it under the supervision of an authorised person. (4) Subject to subparagraph (7) below, if a request for a photograph or copy of any such thing is made to the officer in overall charge of the investigation by a person who had custody or control of the thing immediately before it was so removed, or by someone acting on behalf of such a person, the officer shall— (a) allow the person who made the request access to it under the supervision of an authorised person for the purpose of photographing it or copying it; or (b) photograph or copy it, or cause it to be photographed or copied. (5) Where anything is photographed or copied under subparagraph (4)(b) above the photograph or copy shall be supplied to the person who made the request. (6) The photograph or copy shall be supplied within a reasonable time from the making of the request. (7) There is no duty under this paragraph to grant access to, or to supply a photograph or copy of, anything if the officer in overall charge of the investigation for the purposes of which it was removed has reasonable grounds for believing that to do so would prejudice— (a) that investigation; (b) the investigation of an offence other than the offence for the purposes of the investigation of which the thing was removed; or (c) any criminal proceedings which may be brought as a result of— (i) the investigation of which he is in charge, or (ii) any such investigation as is mentioned in paragraph (b) above. (8) Any reference in this paragraph to the officer in overall charge of the investigation is a reference to the person whose name and address are endorsed on the warrant or order concerned as being the officer so in charge. (10C) (1) Where, on an application made as mentioned in subparagraph (2) below, the appropriate judicial authority is satisfied that a person has failed to comply with a requirement imposed by paragraph 10B above, the authority may order that person to comply with the requirement within such time and in such manner as may be specified in the order. (2) An application under subparagraph (1) above shall be made,— (a) in the case of a failure to comply with any of the requirements imposed by subparagraphs (1) and (2) of paragraph 10B above, by the occupier of the premises from which the thing in question was removed or by the person who had custody or control of it immediately before it was so removed, and (b) in any other case, by the person who had such custody or control. (3) In this paragraph “the appropriate judicial authority” means— (a) in England and Wales, a magistrates’ court; (b) in Scotland, the sheriff; and (c) in Northern Ireland, a court of summary jurisdiction, as defined in Article 2(2)(a) of the Magistrates’ Courts (Northern Ireland) Order 1981. (4) In England and Wales and Northern Ireland, an application for an order under this paragraph shall be made by way of complaint; and sections 21 and 42(2) of the Interpretation Act (Northern Ireland) 1954 shall apply as if any reference in those provisions to any enactment included a reference to this paragraph.

SCHEDULE 8

Interpretation

1

In this Schedule “Schedule 8” means Schedule 8 to the principal Act (constitution and procedure of value added tax tribunals).

The President

2

• (1) In paragraph 2 of the Schedule 8, in subparagraph (2) after the words “Lord Chancellor”, there shall be inserted “after consultation with the Lord Advocate”.

• (2) After that subparagraph there shall be inserted the following subparagraph—

(3) Subject to paragraph 3 below, the appointment of the President shall be for such term and subject to such conditions as may be determined by the Lord Chancellor, after consultation with the Lord Advocate, and a person who ceases to hold the office of President shall be eligible for reappointment thereto.

3

• (1) In paragraph 3 of Schedule 8, in subparagraph (1) after the word “office”, in the second place where it occurs, there shall be inserted “(a)” and at the end of the subparagraph there shall be added

or (b) if subparagraph (1A) below applies, on the date on which he attains the age of seventyfive

.

• (2) After subparagraph (1) of that paragraph there shall be inserted the following subparagraph—

(1A) If the Lord Chancellor, after consultation with the Lord Advocate, considers it desirable in the public interest to do so, he may authorise the President to continue in office after the end of the completed year of service mentioned in subparagraph (1) (a) above.

• (3) In subparagraph (2) of that paragraph after the word “fit” there shall be inserted “and after consultation with the Lord Advocate”.

• (4) At the end of subparagraph (3) of that paragraph there shall be added the words “after consultation with the Lord Advocate”.

• (5) In subparagraph (4) of that paragraph for the words, “the Treasury may” there shall be substituted “the Lord Chancellor may with the approval of the Treasury”.

• (6) In subparagraph (5) of that paragraph for the words “the Treasury”, where they first occur, there shall be substituted “the Lord Chancellor” and for the words “the Treasury may” there shall be substituted “the Lord Chancellor may with the approval of the Treasury”.

Sittings of tribunals

4

In paragraph 4 of Schedule 8—

• (a) for the words “the President” there shall be substituted “the Lord Chancellor or, in relation to Scotland, the Secretary of State”;

• (b) the words “with the consent of the Treasury” shall be omitted; and

• (c) for the word “he” there shall be substituted “the Lord Chancellor or, as the case may be, the Secretary of State”.

Membership of tribunals

5

• (1) In paragraph 7 of Schedule 8, in subparagraph (3), after the word “made”, when it first occurs, there shall be inserted “by the appropriate authority, that is to say” and in each of paragraphs (a) to (c) the word “by” shall be omitted.

• (2) After subparagraph (3) of that paragraph there shall be inserted the following subparagraphs—

(3A) No person may be appointed to a panel of chairmen of tribunals for England and Wales or Northern Ireland unless he is a barrister or solicitor of not less than seven years’ standing; and no person may be appointed to a panel of chairmen of tribunals for Scotland unless he is an advocate or solicitor of not less than seven years’ standing. (3B) Subject to the following provisions of this paragraph, the appointment of a chairman of value added tax tribunals shall be for such term and subject to such conditions as may be determined by the appropriate authority, and a person who ceases to hold the office of chairman shall be eligible for reappointment thereto. (3C) A chairman of value added tax tribunals may resign his office at any time and shall vacate his office— (a) at the end of the completed year of service in which he attains the age of seventytwo; or (b) if subparagraph (3D) below applies in his case, on the date on which he attains the age of seventyfive. (3D) If the appropriate authority considers it desirable in the public interest to do so, he may authorise a chairman of value added tax tribunals to continue in office after the end of the completed year of service mentioned in subparagraph (3C)(a) above. (3E) The appropriate authority may, if he thinks fit, remove a chairman of value added tax tribunals from office on the ground of incapacity or misbehaviour.

• (3) In subparagraph (4) of that paragraph for the words “the Treasury may”, in both places where they occur, there shall be substituted “the Lord Chancellor may with the approval of the Treasury”.

• (4) In subparagraph (5) of that paragraph for the words “the Treasury”, where they first occur, there shall be substituted “the Lord Chancellor” and for the words “the Treasury may” there shall be substituted “the Lord Chancellor may with the approval of the Treasury”.

Administration

6

• (1) Officers and staff may be appointed under section 27 of the Courts Act 1971 (court staff) for carrying out the administrative work of value added tax tribunals in England and Wales.

• (2) The Secretary of State may make available such officers and staff as he may consider necessary for carrying out the administrative work of value added tax tribunals in Scotland.

[Schedules 9to 13repealed by ICTA 1988 s.844and Sch.31.See 1987edition for these provisions.]

[Schedules14to 17repealed by 1990(C) s.164(4)and Sch.2.See 1989edition for these provisions.]

SCHEDULES 9—13

PART I — General Modifications

Interpretation

1

In this Part of this Schedule—

• (a) a " company owned by a consortium" means either such a trading company as is referred to in paragraph (a) or paragraph (b) of subsection (2) of section 258 of the Taxes Act or such a holding company as is referred to in paragraph (c) of that subsection (companies owned directly or indirectly by consortia);

• (b) a " consortium claim " means a claim for group relief made by virtue of subsection (2) of section 258 of the Taxes Act;

• (c) a " group claim " means a claim for group relief made by virtue of subsection (1) of that section ;

• (d) a "group/consortium company" means a company which is both a member of a group of companies and a company owned by a consortium ;

• (e) " relevant accounting period " means an accounting period beginning on or after 1st August 1985 ; and

• (f) other expressions have the same meaning as in section 258 and the following sections of Chapter I of Part XI of the Taxes Act.

Claims for losses etc. of a group /consortium company

2

• (1) For the purpose of a consortium claim in respect of the loss or other amount of any relevant accounting period of a group/ consortium company, that loss or other amount shall be treated as reduced (or, as the case may be, extinguished) by first deducting therefrom the potential relief attributable to group claims.

• (2) Subject to sub-paragraph (3) below, in relation to the loss or other amount of a relevant accounting period of a group/consortium company, the potential relief attributable to group claims is the aggregate amount of group relief that would be claimed if every company which, as a member of the same group of companies as the group /consortium company, could make a group claim in respect of that loss or other amount made such a claim for an amount which, when set against the claimant company's total profits for its corresponding accounting period, would equal those profits.

• (3) Where for any accounting period another member of the group of companies of which the group/consortium company is a member has a loss or other amount available for relief and one or more group claims is or are in fact made in respect of that loss or other amount, account shall be taken of the relief so claimed before determining (in relation to the loss or other amount of the group/consortium company) the potential relief attributable to group claims under sub-paragraph (2) above.

Claims for relief by a group/consortium company

3

• (1) In any case where—

• (a) a consortium claim is made by a group/consortium company in respect of a loss or other amount of an accounting period of a member of the consortium, and

• (b) the corresponding accounting period of the group/consortium company is a relevant accounting period,

the total profits of that accounting period of the group/consortium company, against a fraction of which that loss or other amount may be set off (in accordance with section 259(8)(b) of the Taxes Act), shall be treated as reduced (or, as the case may be, extinguished) by deducting therefrom the potential relief available to the group/consortium company by way of group claims.

• (2) Subject to sub-paragraph (3) below, in relation to a relevant accounting period of a group/consortium company, the potential relief available to the company by way of group claims is the maximum amount of group relief that could be claimed by the company for that accounting period on group claims relating to the losses or other amounts available for relief of other members of the group of companies of which the group/consortium company is a member.

• (3) Where another member of the group of companies of which the group/consortium company is a member in fact makes one or more group claims in respect of losses or other amounts of other members of the group, account shall be taken of the relief already claimed by that company in determining the potential relief available to the group/consortium company by way of group claims under subparagraph (2) above.

Trading losses to be set against profits before group relief

4

• (1) Where a company owned by a consortium—

• (a) has in any relevant accounting period incurred such a loss as is referred to in section 259(1) of the Taxes Act, and

• (b) has profits (of whatever description) of that accounting period against which that loss could be set off under subsection (2) of section 177 of that Act,

the amount of that loss which is available to any member of the consortium on a consortium claim shall be determined on the assumption that the company owned by the consortium has made a claim under that subsection requiring the loss to be so set off.

• (2) Where the company referred to in sub-paragraph (1) above is a group/consortium company, the amount of the loss shall be determined under that sub-paragraph before any reduction is made under paragraph 2 above.

Extension of scope of consortium relief

5

• (1) This paragraph applies where—

• (a) a company (in this paragraph referred to as " the link company ") which is a member of a consortium is also a member of a group of companies; and

• (b) the link company could (disregarding any deficiency of profits) make a consortium claim in respect of the loss or other amount eligible for relief of a relevant accounting period of a company owned by the consortium.

• (2) Subject to sub-paragraphs (3) and (4) below, a company (in this paragraph referred to as a group member ") which is a member of the group referred to in sub-paragraph (1)(a) above but is not itself a member of the consortium may make any consortium claim which could be made by the link company ; and the fraction which is appropriate under section 259(8) of the Taxes Act where a group member is the claimant company shall be the same as that which would be appropriate if the link company were the claimant company.

• (3) A group member may not, by virtue of sub-paragraph (2) above, make a consortium claim in respect of the loss or other amount of any relevant accounting period of a company owned by the consortium unless the claimant company was a member of the group concerned throughout the whole of the accounting period or, as the case may be, each accounting period of the link company which, if that company were making the claim, would be a corresponding accounting period in relation to the relevant accounting period concerned.

• (4) The maximum amount of relief which, in the aggregate, may be claimed by group members and the link company by consortium claims relating to the loss or other amount of any relevant accounting period of a company owned by the consortium shall not exceed the relief which could have been claimed by the fink company (disregarding any deficiency of profits) if this paragraph had not been enacted.

6

• (1) This paragraph applies where—

• (a) a company (in this paragraph referred to as "the link company") which is a member of a consortium is also a member of a group of companies ; and

• (b) a company which is a member of that group of companies but is not itself a member of the consortium has for any relevant accounting period a loss or other amount available for relief;

and, in relation to the link company, any reference in this paragraph to a group member is a reference to a company falling within paragraph (b) above.

• (2) Subject to the following provisions of this paragraph, a company owned by the consortium may make any consortium claim in respect of the loss or other amount referred to in sub-paragraph (1)(b) above which it could make if the group member were a member of the consortium at all times when the link company was such a member, but not at any other time.

• (3) The fraction which is appropriate under section 259(8) of the Taxes Act in relation to a consortium claim made by virtue of subparagraph (2) above shall be the same as that which would be appropriate if the link company were the surrendering company, except that the accounting period in respect of which the member's share in the consortium is to be ascertained shall be that of the group member which is in fact the surrendering company.

• (4) A company owned by the consortium may not, by virtue of sub-paragraph (2) above, make a consortium claim in respect of the loss or other amount of any relevant accounting period of a group member unless, throughout the whole of that accounting period, the group member was a member of the group of companies referred to in sub-paragraph (1) above.

• (5) For any accounting period of a company owned by the consortium (in this sub-paragraph referred to as " the claimant company's accounting period "), the maximum amount of relief which, in the aggregate, may be claimed by that company by consortium claims relating to the losses or other amounts of accounting periods of the link company and group members shall not exceed that fraction of the total profits of the claimant company's accounting period which would be brought into account under section 259(8)(b) of the Taxes Act on a consortium claim in respect of which—

• (a) the link company was the surrendering company ; and

• (b) the link company's accounting period was the same as the claimant company's accounting period.

Restriction on consortium claims where companies join or leave consortium

7

• (1) In any case where—

• (a) a consortium claim is made in respect of the loss or other amount of a relevant accounting period of a company owned by a consortium (in this paragraph that claim is referred to as "the primary claim", that company is re-referred to as " the principal surrendering company " and that accounting period is referred to as " the principal accounting period "), and

• (b) the company making the primary claim or, if that claim is made by virtue of paragraph 5 above, the company which is the link company for the purposes of that paragraph was not a member of the consortium throughout the whole of the principal accounting period, and

• (c) on or after the date on which the primary claim is made, a consortium claim is made which falls within sub-paragraph (2) below,

no relief shall be allowed on the primary claim or, as the case may be, any relief which was so allowed shall be withdrawn.

• (2) A consortium claim is to be taken into account under subparagraph (1)(c) above if—

• (a) it is in respect of the loss or other amount of an accounting period of a surrendering company (being a company owned by the consortium referred to in sub-paragraph (1) above); and

• (b) it is made by the company making the primary claim or, if that claim or the claim mentioned in this sub-paragraph is made by virtue of paragraph 5 above, by any other member of the group referred to in sub-paragraph (1)(a) of that paragraph; and

• (c) at any time during the principal accounting period the surrendering company is a member of the same group of companies as the principal surrendering company ; and

• (d) the accounting period to which the claim relates falls, in whole or in part, within the principal accounting period.

• (3) Where any relief which has been allowed is withdrawn by virtue of sub-paragraph (1) above, all such adjustments shall be made, whether by way of assessment or otherwise, as may be necessary in consequence of that withdrawal.

8

• (1) In any case where—

• (a) a company owned by a consortium makes a consortium claim (in this paragraph referred to as " the primary claim ") in respect of the loss or other amount of a relevant accounting period of a member of the consortium or, if the primary claim is made by virtue of paragraph 6 above, of a company which, in relation to that member of the consortium, is a group member, within the meaning of that paragraph, and

• (b) the member of the consortium concerned (whether as the surrendering company or the link company, within the meaning of paragraph 6 above) was not a member of the consortium throughout the whole of the relevant accounting period referred to in paragraph (a) above, and

• (c) on or after the date on which the primary claim is made, a consortium claim is made which falls within sub-paragraph (2) below,

no relief shall be allowed on the primary claim or, as the case may be, any relief which was so allowed shall be withdrawn.

• (2) A consortium claim is to be taken into account under subparagraph (1)(c) above if—

• (a) it is made by a company owned by the consortium referred to in sub-paragraph (1) above ; and

• (b) the company making the claim is a member of the same group of companies as the company making the primary claim; and

• (c) the claim relates to the loss or other amount of an accounting period of the consortium member referred to in sub-paragraph (1) above or of a company which, in relation to that consortium member, is a group member, within the meaning of paragraph 6 above ; and

• (d) the accounting period referred to in paragraph (c) above falls, in whole or in part, in the relevant accounting period referred to in sub-paragraph (1)(a) above.

• (3) Where any relief which has been allowed is withdrawn by virtue of sub-paragraph (1) above, all such adjustments shall be made, whether by way of assessment or otherwise, as may be necessary in consequence of that withdrawal.

PART II — Amendments of Section 263 of Taxes Act

9

• (1) At the beginning of subsection (3) there shall be inserted the words " Subject to subsections (3A) and (3B) below".

• (2) In that subsection for the words from " are made " to " relate to " there shall be substituted the words " relating to".

• (3) In that subsection after the words "surrendering company ", in the first place where they occur, there shall be inserted " are made by two or more claimant companies which themselves are members of a group of companies".

10

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

(3A) If companies which are members of different groups make claims falling within subsection (3) above, that subsection shall apply separately in relation to the companies in each group. (3B) For the purposes of subsection (3) above, there shall be left out of account a claim made by a company if— (a) the claimant company joins or leaves a group of companies at the same time as the surrendering company ; and (b) both before and after that time either the claimant company is a 75 per cent, subsidiary of the surrendering company or the surrendering company is a 75 per cent, subsidiary of the claimant company or both companies are 75 per cent, subsidiaries of another company.

11

• (1) In subsection (4) for the words "If claims for group relief " there shall be substituted " Subject to subsection (4A) below, if claims as respects two or more surrendering companies which themselves are members of a group of companies".

• (2) In that subsection the words " as respects more than one surrendering company " shall be omitted.

12

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

(4A) If claims falling within subsection (4) above are made as respects surrendering companies which are members of different groups, that subsection shall apply separately in relation to claims as respects the surrendering companies in each group. (4B) For the purposes of subsection (4) above, there shall be left out of account a claim made as respects a surrendering company if— (a) the surrendering company joins or leaves the group of companies concerned at the same time as the claimant company ; and (b) both before and after that time either the surrendering company is a 75 per cent, subsidiary of the claimant company or the claimant company is a 75 per cent, subsidiary of the surrendering company or both companies are 75 per cent, subsidiaries of another company.

13

For subsection (5) there shall be substituted the following subsection : —

(5) References in subsections (3) to (4A) above to claims for group relief do not include references to consortium claims, that is to say, claims made by virtue of section 258(2) above.

.

SCHEDULES 14—17.

PART I — Paragraphs to be Substituted for Paragraph 3 of Schedule 1 to the Taxes Act

PART II — Insurances Made Between 1st June 1984 and 19th March 1985

1

• (1) If, with respect to a policy for the assurance of a gross sum which is issued as mentioned in section 40(5) of this Act, there is—

• (a) an infringement of any of the conditions in sub-paragraphs (2) to (7) of the paragraph 3 which is set out in Part I of this Schedule (including an infringement occurring before that paragraph comes into force as part of the Taxes Act), or

• (b) an infringement of the conditions in subsection (2) of section 334 of the Taxes Act,

section 332(1) of that Act shall not apply to so much as is attributable to that policy of the profits of the registered friendly society or branch concerned which arise from tax exempt life or endowment business, as defined in section 337 of that Act.

• (2) With respect to policies falling within sub-paragraph (1) above, that sub-paragraph has effect in place of section 334(1) of the Taxes Act.

• (3) Nothing in sub-paragraph (1) above shall be taken to affect the status of a policy as a qualifying policy within the meaning of Part I of Schedule 1 to the Taxes Act.

PART III — Control of Business Done by Old Societies

2

In this Part of this Schedule " old society " means a friendly society which is not a new society (as defined in section 337(3) of the Taxes Act).

3

• (1) This Part of this Schedule applies if, on or after 19th March 1985, an old society—

• (a) begins to carry on tax exempt life or endowment business; or

• (b) in the opinion of the Board begins to carry on such business on an enlarged scale or of a new character.

• (2) If it appears to the Board, having regard to the restrictions placed on qualifying policies issued by new societies by paragraphs 3(b)(1), 3(1)(c) and 3A(3) of Schedule 1 to the Taxes Act (as set out in Part I of tins Schedule), that for the protection of the revenue it is expedient to do so, the Board may give a direction to the old society under paragraph 4 below.

4

A direction under this paragraph is that (and has the effect that) the old society to which it is given is to be treated for the purposes of the Taxes Act as a new society with respect to business carried on after the date of the direction.

5

An old society to which a direction is given may, within thirty days of the date on which it is given, appeal against the direction to the Special Commissioners on the ground that—

• (a) it has not begun to carry on business as mentioned in paragraph 3(1)(a) or paragraph 3(1)(b) above ; or

• (b) that the direction is not necessary for the protection of the revenue.

SCHEDULE 11

Introduction

1

• (1) This sub-paragraph applies to deep discount securities issued by a company where one or both of the following applies—

• (a) immediately before the issue the assets held by the company included relevant securities with a value equal to at least 75 per cent, of the value of all the assets held by it;