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Finance Act 1986

Type Public General Act
Publication 1986-07-25
State In force
Department Statute Law Database
Source legislation.gov.uk
Reform history JSON API

PART I — Customs and Excise and Value Added Tax

Chapter I — Customs and Excise

The rates of duty

Section 99(4B): “listed” and “recognised growth market”

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1. Cigarettes An amount equal to 21 per cent. of the retail price plus £30·61 per thousand cigarettes.
2. Cigars £47·05 per kilogram.
3. Hand-rolling tobacco £49·64 per kilogram.
4. Other smoking tobacco and chewing tobacco £24·95 per kilogram.

Capital transfer tax to be known as inheritance tax.

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(a) in the case of fuel oil, of £0·0077 a litre less than the rate at which the duty is for the time being chargeable; (b) in the case of gas oil, of £0·0110 a litre less than the rate at which the duty is for the time being chargeable; and (c) in the case of heavy oil other than fuel oil and gas oil, equal to the rate at which the duty is for the time being chargeable.

(2) In this section— - “fuel oil” means heavy oil which contains in solution an amount of asphaltenes of not less than 0·5 per cent. or which contains less than 0·5 per cent. but not less than 0·1 per cent. of asphaltenes and has a closed flash point not exceeding 150½C; and - “gas oil” means heavy oil of which not more than 50 per cent. by volume distils at a temperature not exceeding 240½C and of which more than 50 per cent. by volume distils at a temperature not exceeding 340½C.

Vehicles excise duty

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Other provisions

Beer duty: minor amendments

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(49) (1) For the purpose of any claim for drawback by a brewer for sale in respect of duty charged on beer, duty which has been determined in accordance with regulations under section 49(1)(bb) above shall be deemed to be duty which has been paid (whether or not it is in fact paid by the time the claim is made). (2) Subject to such conditions as the Commissioners see fit to impose, drawback allowable to a brewer for sale in respect of beer may be set against any amount to which the brewer is chargeable under section 38 above and, in relation to a brewer for sale, any reference in this Act or the Management Act to drawback payable shall be construed accordingly.

Warehousing regulations

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Schedule 3 to this Act (which contains amendments about warehousing regulations) shall have effect.

Betting duties and bingo duty in Northern Ireland

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Betting and gaming duties: evidence by certificate, etc.

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After section 29 of the Betting and Gaming Duties Act 1981 there shall be inserted the following section—

(29A) (1) A certificate of the Commissioners— (a) that any notice required by or under this Act to be given to them had or had not been given at any date, or (b) that any permit, licence or authority required by or under this Act had or had not been issued at any date, or (c) that any return required by or under this Act had not been made at any date, or (d) that any duty shown as due in any return or estimate made in pursuance of this Act had not been paid at any date, shall be sufficient evidence of that fact until the contrary is proved. (2) A photograph of any document furnished to the Commissioners for the purposes of this Act and certified by them to be such a photograph shall be admissible in any proceedings, whether civil or criminal, to the same extent as the document itself. (3) Any document purporting to be a certificate under subsection (1) or (2) above shall be deemed to be such a certificate until the contrary is proved.

Licences under the customs and excise Acts

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Chapter II — Value Added Tax

Fuel for private use

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Registration of two or more persons as one taxable person

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Long-stay accommodation

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Conditions for zero-rating of goods exported etc.

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Transfer of import relief

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Penalty for tax evasion: liability of directors etc.

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Breaches of Treasury orders etc.

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Part II — Income Tax, Corporation Tax and Capital Gains Tax

Chapter I — General

Tax rates and main reliefs

Charge of income tax for 1986-87

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Rate of advance corporation tax

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$$I100−I$ where I is the percentage at which income tax at the basic rate is charged for the year of assessment which begins on 6th April in that financial year; and in the following provisions of this section that percentage is referred to, in relation to a particular financial year, as "the basic rate percentage for the appropriate year of assessment".$

whichever is the earlier.

Corporation tax: small companies

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Personal reliefs: operative date for PAYE

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For the year 1986-87, in subsection (7) of section 24 of the Finance Act 1980 (which specifies the date from which indexed changes in income tax thresholds and allowances are to be brought into account for the purposes of PAYE) for "5th May" there shall be substituted "18th May".

Relief for interest

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For the year 1986-87 the qualifying maximum referred to in paragraphs 5(1) and 24(3) of Schedule 1 to the Finance Act 1974 (limit on relief for interest on certain loans for the purchase or improvement of land) shall be £30,000.

Deduction rate for sub-contractors in construction industry

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Section 69(4) of the Finance (No. 2) Act 1975 (which requires deductions to be made from payments to certain subcontractors in the construction industry) shall have effect in relation to payments made on or after 6th November 1986 with the substitution for the words "30 per cent." of the words "29 per cent.".

Employee shareholding

Employee share schemes: shares subject to restrictions

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(2) Except as provided below, the shares may be subject to a restriction imposed by the company's articles of association (a) requiring all shares held by directors or employees of the company or of any other company of which it has control to be disposed of on ceasing to be so held; and (b) requiring all shares acquired, in pursuance of rights or interests obtained by such directors or employees, by persons who are not (or have ceased to be) such directors or employees to be disposed of when they are acquired. (3) A restriction is not authorised by sub-paragraph (2) above unless— (a) any disposal required by the restriction will be by way of sale for a consideration in money on terms specified in the articles of association; and (b) the articles also contain general provisions by virtue of which any person disposing of shares of the same class (whether or not held or acquired as mentioned in sub-paragraph (2) above) may be required to sell them on terms which are the same as those mentioned in paragraph (a) above.

(4) Except in the case of redeemable shares in a workers' co-operative, nothing in sub-paragraph (2) above authorises a restriction which would require a person, before the release date, to dispose of his beneficial interest in shares the ownership of which has not been transferred to him.

Employee share schemes: general amendments

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

Approved profit sharing schemes: workers' co-operatives

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those provisions shall be disregarded in determining whether the society should be or continue to be registered under the industrial and provident societies legislation as a bona fide co-operative society.

and “registrar” has the same meaning as in that Act and “co-operative society” has the same meaning as in section 1 of that Act.

Savings-related share option schemes

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Shares and rights to acquire shares obtained by directors and employees

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