LegalizeFinance Act 1990
Part I — Customs and Excise and Value Added Tax
chapter I — Customs and Excise
Rates of duty
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1
- (1) In section 5 of the Alcoholic Liquor Duties Act 1979 (spirits) for “£15.77” there shall be substituted “ £17.35 ”.
- (2) In section 36 of that Act (beer) for “£0.90” there shall be substituted “ £0.97 ”.
- (3) For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.
- (4) In section 62(1) of that Act (cider) for “£17.33” there shall be substituted “ £18.66 ”.
- (5) This section shall be deemed to have come into force at 6 o’clock in the evening of 20th March 1990.
European Economic Interest Groupings.
2
- (1) For the Table in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—
| 1. Cigarettes | An amount equal to 21 per cent. of the retail price plus £34.91 per thousand cigarettes. |
|---|---|
| 2. Cigars | £53.67 per kilogram. |
| 3. Hand-rolling tobacco | £56.63 per kilogram. |
| 4. Other smoking tobacco and chewing tobacco | £24.95 per kilogram. |
- (2) This section shall be deemed to have come into force on 23rd March 1990.
Hydrocarbon oil
3
- (1) In section 6 of the Hydrocarbon Oil Duties Act 1979—
- (a) in subsection (1), for “£0.2044” (duty on light oil) and “£0.1729” (duty on heavy oil) there shall be substituted “ £0.2248 ” and “ £0.1902 ” respectively; and
- (b) subsection (2A) (special rate of duty on petrol below 4 star) shall cease to have effect.
- (2) In section 11(1) of that Act, for “£0.0077” (rebate on fuel oil) and “£0.0110” (rebate on gas oil) there shall be substituted “ £0.0083 ” and “ £0.0118 ” respectively.
- (3) In section 13A(1) of that Act (rebate on unleaded petrol), for “£0.0272” there shall be substituted “ £0.0299 ”.
- (4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0077” there shall be substituted “ £0.0083 ”.
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) Subsections (1) to (4) above shall be deemed to have come into force at 6 o’clock in the evening of 20th March 1990.
Pool betting duty
4
- (1) In section 7(1) of the Betting and Gaming Duties Act 1981 (which specifies 42½ per cent. as the rate of pool betting duty), for the words “42½ per cent.” there shall be substituted the words “ 40 per cent. ”.
- (2) This section shall apply in relation to bets made at any time by reference to an event taking place on or after 6th April 1990.
Vehicles excise duty
5
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other provisions
Vehicles excise duty: exemptions
6
Entry of goods on importation
7
Schedule 3 to this Act (which amends the provisions of the Customs and Excise Management Act 1979 about initial and supplementary entries and postponed entry) shall have effect in relation to goods imported on or after the day on which this Act is passed.
Spirits methylated abroad
8
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Lodgings for officers in charge of distillery
9
In section 12 of the Alcoholic Liquor Duties Act 1979 (licence to manufacture spirits) subsections (6) to (9) (requirement that distiller provide lodgings for officers in charge of distillery) shall cease to have effect.
chapter II — Value Added Tax
Registration
10
Bad debts
11
Domestic accommodation
12
Goods shipped as stores
13
Supplies to groups
14
Power to assess.1983 c. 55
15
Interest on tax etc. recovered or recoverable by assessment
16
Part II — Income Tax, Corporation Tax and Capital Gains Tax
Chapter I — General
Income tax rates and allowances
Rates and main allowances
17
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Relief for blind persons
18
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Corporation tax rates
Charge and rate of corporation tax for 1990
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Corporation tax shall be charged for the financial year 1990 at the rate of 35 per cent.
Small companies
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Benefits in kind
Care for children
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Car benefits
22
- (1) In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—
| Cylinder capacity of car in cubic centimetres | Age of car at end of relevant year of assessment | Age of car at end of relevant year of assessment |
|---|---|---|
| Under 4 years | 4 years or more | |
| 1400 or less | £1,700 | £1,150 |
| More than 1400 but not more than 2000 | £2,200 | £1,500 |
| More than 2000 | £3,550 | £2,350 |
| Original market value of car | Age of car at end of relevant year of assessment | Age of car at end of relevant year of assessment |
| --- | --- | --- |
| Under 4 years | 4 years or more | |
| Less than £6,000 | £1,700 | £1,150 |
| £6,000 or more but less than £8,500 | £2,200 | £1,500 |
| £8,500 or more but not more than £19,250 | £3,550 | £2,350 |
| (2) This section shall have effect for the year 1990-91 and subsequent years of assessment. | (2) This section shall have effect for the year 1990-91 and subsequent years of assessment. | (2) This section shall have effect for the year 1990-91 and subsequent years of assessment. |
| --- | --- | --- |
| Original market value of car | Age of car at end of relevant year of assessment | Age of car at end of relevant year of assessment |
| Under 4 years | 4 years or more | |
| More than £19,250 but not more than £29,000 | £4,600 | £3,100 |
| More than £29,000 | £7,400 | £4,900 |
Mileage allowances
Limit on chargeable mileage profit
23
Charities
Payroll deduction scheme
24
Donations to charity by individuals
25
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5C) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5D) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5E) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5F) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5G) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5I) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5J) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Company donations to charity
26
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Maximum qualifying company donations
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- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Savings
Tax-exempt special savings accounts
28
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Extension of SAYE
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Building societies and deposit takers
30
Schedule 5 to this Act (which contains provisions relating to building societies, deposit-takers and investors) shall have effect.
Employee share ownership trusts
Conditions for roll-over relief
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Conditions for relief: supplementary
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The relief
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Dwelling-houses special provision
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Shares: special provision
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Chargeable event when replacement assets owned
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Chargeable event when replacement property owned
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Chargeable event when bonds owned
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Information
39
Other enactments
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Insurance companies and friendly societies
Apportionment of income etc
41
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Overseas life assurance business
42
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Deduction for policy holders' tax
43
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Reinsurance commissions
44
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Policy holders' share of profits etc
45
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Annual deemed disposal of holdings of unit trusts etc
46
Spreading of gains and losses under section 46
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Transfers of long term business
48
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Friendly societies: increased tax exemption
49
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) In paragraph 3(8)(b)(ii) of Schedule 15 to that Act (amount of premiums to be disregarded in determining whether a policy meets conditions for it to be a qualifying policy), after the word “premiums” there shall be inserted the words “ or, where those premiums are payable otherwise than annually, an amount equal to 10 per cent. of those premiums if that is greater ”.
Friendly societies: application of enactments
50
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Unit and investment trusts etc.
Authorised unit trusts
51
Unit trusts: repeals
52
- (1) The Taxes Act 1988 shall have effect subject to the following provisions of this section.
- (2) In section 468 (authorised unit trusts) subsection (5) shall not apply as regards a distribution period beginning after 31st December 1990.
- (3) Where a particular distribution period is by virtue of subsection (2) above the last distribution period as regards which section 468(5) applies in the case of a trust, the trustees’ liability to income tax in respect of any source of income chargeable under Case III of Schedule D shall be assessed as if they had ceased to possess the source of income on the last day of that distribution period.
- (4) But where section 67 of the Taxes Act 1988 applies by virtue of subsection (3) above, it shall apply with the omission from subsection (1)(b) of the words from “and shall” to “this provision”.
- (5) Section 468B (certified unit trusts: corporation tax) shall not apply as regards an accounting period ending after 31st December 1990.
- (6) Section 468C (certified unit trusts: distributions) shall not apply as regards a distribution period ending after 31st December 1990.
- (7) Section 468D (funds of funds: distributions) shall not apply as regards a distribution period ending after 31st December 1990.
- (8) In this section “distribution period” has the same meaning as in section 468 of the Taxes Act 1988.
Unit trust managers: exemption from bond-washing provisions
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Indexation: collective investment schemes
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Investment trusts
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Securities
Convertible securities
56
Deep gain securities
57
- (1) In Schedule 11 to the Finance Act 1989 (deep gain securities) paragraph 1 (meaning of deep gain security) shall be amended as follows.
- (2) The following sub-paragraph shall be inserted after sub-paragraph (3)—
(3A) In the case of a security issued on or after 9th June 1989, for the purposes of sub-paragraph (2) above “redemption” does not include any redemption which may be made before maturity only if— (a) the person who issued the security fails to comply with the duties imposed on him by the terms of issue, (b) the person who issued the security becomes unable to pay his debts, or (c) the security was issued by a company and a person gains control of the company in pursuance of the acceptance of an offer made by that person to acquire shares in the company.
- (3) The amendment made by this section shall be deemed always to have had effect.
Qualifying indexed securities
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Deep discount securities
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Oil industry
Allowance for abandonment expenditure related to offshore machinery or plant
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Carrying back of losses referable to allowance for abandonment expenditure
61
CT treatment of PRT repayment
62
- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Disposals of certain shares deriving value from exploration or exploitation assets or rights
63
Limitation of losses on disposal of oil industry assets
64
International
Dual resident companies: capital gains
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Dual resident companies: transfers of assets abroad
66
Dual resident companies: controlled foreign companies
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- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) In Schedule 25 to that Act—
- (a) paragraphs 2(1)(c) and 4(1)(c) shall be omitted,
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) Subsections (1) and (2) above shall apply on and after 20th March 1990 and subsection (3) above shall apply to dividends paid on or after that date.
Movements of capital between residents of member States
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- (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (3) In section 98 of the Taxes Management Act 1970 (penalties for failure to furnish information and for false information)—
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