Finance Act 1996

• (3) So far as relating to the provision mentioned in sub-paragraph (2)(a) above, sub-paragraph (1) above has effect in relation to any interest paid on a quoted Eurobond on or after 1st April 1996.

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

• (5) So far as relating to the provisions mentioned in sub-paragraph (2)(c) ... above, sub-paragraph (1) above has effect in relation to accounting periods ending on or after 1st April 1996.

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

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (9) So far as relating to the provision mentioned in sub-paragraph (2)(h) above, sub-paragraph (1) above has effect in relation to relevant periods ending on or after 1st April 1996.

• (10) So far as relating to the provisions mentioned in sub-paragraph (2)(j) and (k) above, sub-paragraph (1) above has effect in relation to any time falling on or after 1st April 1996.

• (11) So far as relating to the provision mentioned in sub-paragraph (2)(l) above, sub-paragraph (1) above has effect in relation to chargeable periods ending on or after 1st April 1996.

7

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

8

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

9

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

The Taxation of Chargeable Gains Act 1992

10

• (1) In each of the provisions of the Taxation of Chargeable Gains Act 1992 listed in sub-paragraph (2) below, for the word “quoted” (wherever occurring) there shall be substituted “ listed ”.

• (2) The provisions referred to in sub-paragraph (1) above are—

• (a) section 144(8)(b);

• (b) the definition of “unquoted company” in section 164N(1);

• (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (d) section 276(2)(c) and (6);

• (e) section 281(3)(c); and

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) So far as relating to the provisions mentioned in sub-paragraph (2)(a) and (c) to (f) above, sub-paragraph (1) above has effect in relation to disposals on or after 1st April 1996.

• (4) So far as relating to the provision mentioned in sub-paragraph (2)(b) above, sub-paragraph (1) above has effect in relation to acquisitions of qualifying investments (within the meaning of section 164A of that Act) on or after 1st April 1996.

11

• (1) In section 146(4)(b) of that Act (definition of “quoted shares and securities”), for the words “have a quoted market value” there shall be substituted the words “ are listed ”.

• (2) This paragraph has effect in relation to disposals of options on or after 1st April 1996.

12

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

• (2) In Schedule 11 to that Act (transitional provisions and savings), in paragraph 7(1)(a) (modification of section 272(3) when ascertaining market values before 25th March 1973), for “listed” there shall be substituted “ quoted ”.

• (3) This paragraph has effect where the relevant date falls on or after 1st April 1996.

SCHEDULE 39

Part I — Income Tax and Corporation Tax

Capital Allowances

1

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

• (2) The following section shall be inserted after section 15 of the 1990 Act:

(15A) (1) This section applies where: (a) a balancing charge falls to be made as provided in section 15 on any person in respect of a building or structure which is temporarily out of use but is deemed by virtue of subsection (1) of that section still to be an industrial building or structure; and (b) when the building or structure was last in use, it was in use as an industrial building or structure for the purposes of a trade which was carried on by that person but which has since been permanently discontinued. (2) Where this section applies, the amount of the balancing charge shall be treated for the purposes of section 105 of the principal Act (allowable deductions) as a sum received by that person which is chargeable to tax under section 103 or 104(1) of the principal Act (charges on receipts after discontinuance), and accordingly any loss, expense, debit or capital allowance such as is referred to in section 105(1) may be deducted from the amount of the balancing charge. (3) Nothing in subsection (2) above shall prevent any amounts allowable under any other provisions of the Tax Acts from being deducted from the amount of the balancing charge. (4) Section 15(3) shall apply for the purposes of this section.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

Contributions to overseas pension schemes

2

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

Part II — Chargeable Gains

Treatment of compensation and insurance money

3

• (1) Section 23 of the Taxation of Chargeable Gains Act 1992 (receipt of compensation and insurance money not treated as a disposal) shall be amended as follows.

• (2) The following subsections shall be substituted for subsection (6):

(6) If a building (“the old building”) is destroyed or irreparably damaged, and all or part of a capital sum received by way of compensation for the destruction or damage, or under a policy of insurance of the risk of the destruction or damage, is applied by the recipient in constructing or otherwise acquiring a replacement building situated on other land (“the new building”), then for the purposes of subsections (4) and (5) above each of the old building and the new building shall be regarded as an asset separate from the land on which it is or was situated and the old building shall be treated as lost or destroyed. (7) For the purposes of subsection (6) above: (a) references to a building include references to any permanent or semi-permanent structure in the nature of a building; and (b) the reference to a sum applied in acquiring the new building does not include a reference to a sum applied in acquiring the land on which the new building is situated; and (c) all necessary apportionments shall be made of any expenditure, compensation or consideration, and the method of apportionment shall be such as is just and reasonable. (8) This section shall apply in relation to a wasting asset with the following modifications: (a) paragraphs (b) and (c) of subsection (1) above, and subsection (2) above, shall not apply; and (b) in subsections (1) and (3) above, the amount of the expenditure from which the deduction is to be made shall be the amount which would have been allowable under Chapter III of this Part if the asset had been disposed of immediately after the application of the capital sum.

• (3) The amendments made by this paragraph shall have effect in relation to capital sums received on or after 6th April 1996.

Assets of negligible value

4

• (1) Section 24 of the Taxation of Chargeable Gains Act 1992 (disposals where assets lost or destroyed, or become of negligible value) shall be amended by the substitution of the following subsection for subsection (2):

(2) Where the owner of an asset which has become of negligible value makes a claim to that effect: (a) this Act shall apply as if the claimant had sold, and immediately reacquired, the asset at the time of the claim or (subject to paragraphs (b) and (c) below) at any earlier time specified in the claim, for a consideration of an amount equal to the value specified in the claim. (b) An earlier time may be specified in the claim if: (i) the claimant owned the asset at the earlier time; and (ii) the asset had become of negligible value at the earlier time; and either (iii) for capital gains tax purposes the earlier time is not more than two years before the beginning of the year of assessment in which the claim is made; or (iv) for corporation tax purposes the earlier time is on or after the first day of the earliest accounting period ending not more than two years before the time of the claim. (c) Section 93 of and Schedule 12 to the Finance Act 1994 (indexation losses and transitional relief) shall have effect in relation to an asset to which this section applies as if the sale and reacquisition occurred at the time of the claim and not at any earlier time.

• (2) The amendment made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.

Settled Property

5

• (1) Section 72 of the Taxation of Chargeable Gains Act 1992 (termination of life interest on death of person entitled) shall be amended as follows.

• (2) In subsections (1), (2) and (5), for the words “a life” wherever they occur, there shall be substituted “ an ” and, in subsection (5), the word “life”, in the third place where it occurs, shall be omitted.

• (3) For subsections (3) and (4) there shall be substituted the following subsections:

(3) This section shall apply on the death of the person entitled to any annuity payable out of, or charged on, settled property or the income of settled property as it applies on the death of a person whose interest in possession in the whole or any part of settled property terminates on his death. (4) Where, in the case of any entitlement to an annuity created by a settlement some of the settled property is appropriated by the trustees as a fund out of which the annuity is payable, and there is no right of recourse to, or to the income of, settled property not so appropriated, then without prejudice to subsection (5) below, the settled property so appropriated shall, while the annuity is payable, and on the occasion of the death of the person entitled to the annuity, be treated for the purposes of this section as being settled property under a separate settlement.

• (4) The amendments made by this paragraph shall have effect in relation to deaths occurring on or after 6th April 1996.

6

• (1) Section 73 of the Taxation of Chargeable Gains Act 1992 (death of life tenant: exclusion of chargeable gain) shall be amended as follows.

• (2) In subsection (1), for the words from “termination” to “that interest” there shall be substituted “ death of a person entitled to an interest in possession in the settled property ”.

• (3) In subsection (2), the word “life” shall be omitted.

• (4) In subsection (3), for the words from “subsection (5)” to “subsection (2) above” there shall be substituted “ subsections (3) to (5) of that section shall apply for the purposes of this section ”.

• (5) The amendments made by this paragraph shall have effect in relation to deaths occurring on or after 6th April 1996.

Retirement Relief

7

• (1) Paragraph 14 of Schedule 6 to the Taxation of Chargeable Gains Act 1992 shall be amended as follows.

• (2) In subparagraph (2), the word “original” shall be inserted before “ qualifying period ”.

• (3) The following subparagraphs shall be inserted at the end:

(7) In relation to the expression “the original qualifying period”, the questions whether a disposal is a qualifying disposal and whether the period relating to that disposal is a qualifying period shall be determined without regard to the requirement that the length of the period be at least one year. (8) This paragraph shall not apply if the extended qualifying period resulting from the operation of subparagraphs (1) to (7) would be a period of less than one year.

• (4) The amendments made by this paragraph shall have effect in relation to disposals made on or after 6th April 1996.

Relief for loans to traders

8

• (1) Section 253 of the Taxation of Chargeable Gains Act 1992 (relief for loans to traders) shall be amended as follows.

• (2) In subsection (3):

• (a) for the words from the beginning until “is satisfied that” there shall be substituted “ Where a person who has made a qualifying loan makes a claim and at that time ”; and

• (b) for the words “when the claim was made” there shall be substituted “ at the time of the claim or (subject to subsection (3A) below) any earlier time specified in the claim. ”

• (3) The following subsection shall be inserted after subsection (3):

(3A) For the purposes of subsection (3) above, an earlier time may be specified in the claim if: (a) the amount to which that subsection applies was also irrecoverable at the earlier time; and either (b) for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or (c) for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.

• (4) In subsection (4) for the words from the beginning until “is satisfied that” there shall be substituted “ Where a person who has guaranteed the repayment of a loan which is, or but for subsection (1)(c) above would be, a qualifying loan makes a claim and at that time ”.

• (5) The amendments made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.

Relief for debts on qualifying corporate bonds

9

• (1) Section 254 of the Taxation of Chargeable Gains Act 1992 (relief for debts on qualifying corporate bonds) shall be amended as follows.

• (2) In subsection (2):

• (a) for the words from the beginning until “is satisfied that” there shall be substituted “ Where a person who has made a qualifying loan makes a claim and at that time ”; and

• (b) for the words “when the claim was made” there shall be substituted “ at the time of the claim or (subject to subsection (8A) below) any earlier time specified in the claim ”.

• (3) In subsections (6) and (7), the words “the inspector is satisfied that” shall be omitted.

• (4) In subsection (8), the words “in the inspector’s opinion” shall be omitted.

• (5) The following subsection shall be inserted after subsection (8):

(8A) For the purposes of subsection (2) above, an earlier time may be specified in the claim if: (a) the condition which was fulfilled at the time of the claim was also fulfilled at the earlier time; and either (b) for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or (c) for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.

• (6) In subsection (11), the words “the inspector was satisfied that”, “by the inspector” and “he was satisfied that” shall be omitted.

• (7) The amendments made by this paragraph shall have effect in relation to claims made on or after 6th April 1996.

Part III — Stamp Duty

Lost or spoiled instruments

10

• (1) The Stamp Duties Management Act 1891 (“the Management Act”) shall be amended as follows.

• (2) In section 9 of the Management Act (procedure for obtaining allowance), subsection (7), paragraph (e), the words “which is inadvertently and undesignedly spoiled, and in lieu whereof another instrument made between the same parties and for the same purpose is executed and duly stamped, or” shall be omitted.

• (3) The following section shall be inserted after section 12 of the Management Act:

(12A) (1) This section applies where the Commissioners are satisfied that: (a) an instrument which was executed and duly stamped (“the original instrument”) has been accidentally lost or spoiled; and (b) in place of the original instrument, another instrument made between the same persons and for the same purpose (“the replacement instrument”) has been executed; and (c) an application for relief under this section is made to the Commissioners; and either (d) where the original instrument has been lost, the applicant undertakes to deliver it up to the Commissioners to be cancelled if it is subsequently found; or (e) where the original instrument has been spoiled: (i) the application is made within two years after the date of the original instrument, or if it is not dated, within two years after the time when it was executed, or within such further time as the Commissioners may allow; and (ii) no legal proceeding has been commenced in which the original instrument has been or could or would have been given or offered in evidence; and (iii) the original instrument is delivered up to the Commissioners to be cancelled. (2) Where this section applies: (a) the replacement instrument shall not be chargeable with any duty, but shall be stamped with the duty with which it would otherwise have been chargeable in accordance with the law in force at the time when it was executed, and shall be deemed for all purposes to be duly stamped; and (b) if any duty, interest, fine or penalty was paid in respect of the replacement instrument before the application was made, the Commissioners shall pay to such person as they consider appropriate an amount equal to the duty, interest, fine or penalty so paid. (3) For the purposes of this section the Commissioners may require the applicant to produce such evidence by statutory declaration or otherwise as they think fit.

• (4) Subject to subparagraph (5) below, the amendments made by this paragraph shall have effect from the day on which this Act is passed.

• (5) The amendments made by this paragraph shall not apply in relation to an instrument which has been accidentally spoiled if an application for allowance under section 9 of the Management Act was made before the day on which this Act is passed.

SCHEDULE 40

The Stamp Act 1891 (c. 39)

1

In the definition of “stock” in section 122(1) of the Stamp Act 1891, after “Bank of Ireland,” there shall be inserted “ any strip (within the meaning of section 47 of the Finance Act 1942) of any such stocks or funds, ”.

2

• (1) At the end of paragraph (1) of the general exemptions at the end of Schedule 1 to the Stamp Act 1891 (exemption for Government stocks etc.) there shall be inserted “ or strips (within the meaning of section 47 of the Finance Act 1942) of such stocks or funds ”.

• (2) Where any day is appointed as the abolition day for the purposes of sections 107 to 110 of the Finance Act 1990, sub-paragraph (1) above shall cease to have effect in accordance with the provisions of that Act for the coming into force of the repeal of the paragraph mentioned in that sub-paragraph.

The Taxes Act 1988

3

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

4

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

5

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

6

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

7

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

The Taxation of Chargeable Gains Act 1992 (c. 12)

8

In Schedule 9 to the Taxation of Chargeable Gains Act 1992 (gilt-edged securities), after paragraph 1 there shall be inserted the following paragraph—

(1A) (1) Any security which is a strip of a security which is a gilt-edged security for the purposes of this Act is also itself a gilt-edged security for those purposes. (2) In this paragraph “strip” has the same meaning as in section 47 of the Finance Act 1942.

SCHEDULE 41

Part I — Hydrocarbon Oil Duty: relief for marine voyages

Part II — Vehicle Excise and Registration

Part III — Excise duties: repeal of drawbacks etc.

Part IV — Value Added Tax

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

Part VI — Inheritance Tax

Part VII — Stamp duty and stamp duty reserve tax

Part VIII — Miscellaneous

Spirits: rate of duty.

Wine and made-wine: rates.

Cider: rate of duty.

Rates of duty and rebate.

Misuse of rebated kerosene.

Relief for marine voyages.

Licences for machines as well as premises.

Licences for machines as well as premises.

Electrically propelled vehicles.

Increase in general rate.

Vehicles capable of conveying loads.

Vehicles capable of conveying loads.

Old vehicles.

Old vehicles: further provisions.

Exemptions for vehicle testing in Northern Ireland.

Method of making payments on account.

Adaptation of aircraft and hovercraft.

Default surcharges.

Repeated misdeclaration penalty.

Penalties for failure to notify.

Extensions of time

Release and replacement.

The appropriate percentage.

43A

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

43B

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

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

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

• (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43C

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

44A

• (1) A disposal is not a taxable disposal for the purposes of this Part if it is—

• (a) of material all of which is treated for the purposes of section 42 above as qualifying material,

• (b) made at a qualifying landfill site, and

• (c) made, or treated as made, on or after 1st October 1999.

• (2) A landfill site is a qualifying landfill site for the purposes of this section if at the time of the disposal—

• (a) the landfill site is or was a quarry,

• (b) subject to subsection (3) below, it is a requirement of planning consent in respect of the land in which the quarry or former quarry is situated that it be wholly or partially refilled, and

• (c) subject to subsection (4) below, the licence , permit or, as the case may require, resolution authorising disposals on or in the land comprising the site permits only the disposal of material which comprises qualifying material.

• (3) Where a quarry—

• (a) was in existence before 1st October 1999, and

• (b) quarrying operations ceased before that date,

the requirement referred to in subsection (2)(b) must have been imposed on or before that date.

• (4) Where a licence or permit authorising disposals on or in the land does not (apart from the application of this subsection) meet the requirements of subsection (2)(c) above and an application has been made to vary the licence or permit in order to meet them, it shall be deemed to meet them for the period before—

• (a) the application is disposed of, or

• (b) the second anniversary of the making of the application if it occurs before the application is disposed of.

• (5) For the purposes of subsection (4) an application is disposed of if—

• (a) it is granted,

• (b) it is withdrawn,

• (c) it is refused and there is no right of appeal against the refusal,

• (d) a time limit for appeal against refusal expires without an appeal having been commenced, or

• (e) an appeal against refusal is dismissed or withdrawn and there is no further right of appeal.

Taxation of loan relationships.

The appropriate percentage.

The appropriate percentage.

84A

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

87A

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

88A

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

92A

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

93A

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

93B

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

Relationships linked to the value of chargeable assets.

Incidental benefits for holders of certain offices etc.

Grant and exercise of share options.

Release and replacement.

Notional tax deductions and payments.

Notional tax deductions and payments.

The appropriate percentage.

Liability of partners.

Liability of partners.

Determination of tax where no return delivered.

Determination of tax where no return delivered.

PAYE regulations.

Exemptions for charities.

Reinvestment relief on disposal of qualifying corporate bond.

Capital redemption business.

Investments in housing.

Life assurance business losses.

Investments in housing.

Annual payments under insurance policies: deductions.

Premiums for leases.

Annual payments under certain insurance policies.

Depositary receipts.

Depositary receipts.

Attribution of gains to participators in non-resident companies.

Agricultural property relief.

Rate bands.

Transfers to members of electronic transfer systems etc.

Depositary receipts.

Sub-contractors in the construction industry.

Transfers of securities to members of electronic transfer systems etc.

Banks.

Retirement relief: age limits.

Setting of rates of interest.

Banks.

Retirement relief: age limits.

Setting of rates of interest.

Quotation or listing of securities.

Agricultural property relief.

Transfers to members of electronic transfer systems etc.

Setting of rates of interest.

Rates of charge expressed as percentages.

Regulations concerning administration: sub-delegation to the Board.

Setting of rates of interest.

Banks.

The following is the Schedule which shall be inserted after Schedule 2 to the Misuse of rebated kerosene Hydrocarbon Oil Duties Act 1979—

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

Part VIII — Secondary liability: controllers of landfill sites

Meaning of controller

48

• (1) For the purposes of this Part of this Schedule a person is the controller of the whole, or a part, of a landfill site at a given time if he determines, or is entitled to determine, what disposals of material, if any, may be made—

• (a) at every part of the site at that time, or

• (b) at that part of the site at that time,

as the case may be.

• (2) But a person who, because he is an employee or agent of another, determines or is entitled to determine what disposals may be made at a landfill site or any part of a landfill site is not the controller of that site or, as the case may be, that part of that site.

• (3) Where a person is the controller of the whole or a part of a landfill site, that site or, as the case may be, that part of the site is referred to in this Part of this Schedule as being under his control.

• (4) Any reference in this Part of this Schedule to a controller (without more) is a reference to a controller of the whole or a part of a landfill site.

Secondary liability

49

• (1) Where—

• (a) a taxable disposal is made at a landfill site,

• (b) at the time when that disposal is made a person is the operator of the landfill site by virtue of section 67(a), (c) or (e) of this Act, and

• (c) at that time a person other than the operator mentioned in paragraph (b) above is the controller of the whole or a part of the landfill site,

the controller shall be liable to pay to the Commissioners an amount of the landfill tax chargeable on the disposal.

• (2) The amount which the controller is liable to pay shall be determined in accordance with the following provisions of this paragraph.

• (3) In a case where the whole of the landfill site is under the control of the controller, he shall be liable to pay the whole of the landfill tax chargeable.

• (4) In a case where a part of the landfill site is under the control of the controller, he shall be liable to pay an amount of the landfill tax calculated in accordance with sub-paragraphs (5) and (6) below.

• (5) The amount of landfill tax which the controller is liable to pay is the amount which would have been chargeable had a separate taxable disposal consisting of the amount of material referred to in sub-paragraph (6) below been made at the time of the disposal mentioned in sub-paragraph (1)(a) above.

• (6) That amount of material is the amount by weight of the material comprised in the disposal mentioned in sub-paragraph (1)(a) above which was disposed of on the part of the landfill site under the control of the controller.

• (7) If the amount mentioned in sub-paragraph (6) above is nil, the controller shall have no liability under sub-paragraph (1) above in relation to landfill tax chargeable on the disposal.

• (8) For the purposes of sub-paragraph (1)(b) and (c) above—

• (a) section 61 of this Act, and

• (b) any regulations made under section 62 of this Act,

shall not apply for determining the time when the disposal in question is made.

Operator entitled to credit

50

• (1) This paragraph applies where—

• (a) the operator of a landfill site is liable to pay landfill tax on a taxable disposal by reference to a particular accounting period,

• (b) a controller of the whole or a part of that site is (apart from this paragraph) liable under paragraph 49 above to pay an amount of that tax, and

• (c) for the accounting period in question the operator is entitled to credit under regulations made under section 51 of this Act.

• (2) The amount of the tax which the controller is (apart from this sub-paragraph) liable to pay shall be reduced by the amount calculated in accordance with the following formula—

$$A xCG$where—A is the amount of tax mentioned in sub-paragraph (1)(b) above;C is the amount of credit mentioned in sub-paragraph (1)(c) above; andG is the operator’s gross tax liability for the accounting period in question.$

• (3) For the purposes of sub-paragraph (2) above, the operator’s gross tax liability for the accounting period in question is the gross amount of landfill tax—

• (a) which is chargeable on disposals made at all landfill sites of which he is the operator, and

• (b) for which he is required to account by reference to that accounting period.

• (4) In sub-paragraph (3) above, the gross amount of landfill tax means the amount of tax before any credit or any other adjustment is taken into account in the period in question.

• (5) If the amount calculated in accordance with the formula in sub-paragraph (2) above is greater than the amount of tax mentioned in sub-paragraph (1)(b) above, the amount of the tax which the controller is liable to pay shall be reduced to nil.

Payment of secondary liability

51

• (1) This paragraph applies where a controller is liable under paragraph 49 above (after taking account of any reduction under paragraph 50 above) to pay an amount of landfill tax (“the relevant amount”).

• (2) The controller is required to pay the relevant amount to the Commissioners only if—

• (a) a notice containing the required information is served on him, or

• (b) other reasonable steps are taken with a view to bringing the required information to his attention,

before the end of the period of two years beginning with the day immediately following the relevant accounting day.

• (3) The relevant accounting day is the last day of the accounting period by reference to which the landfill site operator liable to pay the landfill tax in question is required to account for that tax.

• (4) If the controller is required to pay the relevant amount by virtue of this paragraph, the amount shall be paid before the end of the period of thirty days beginning with the day immediately following the notification day.

• (5) The notification day is—

• (a) in a case where notice is served on a controller as mentioned in sub-paragraph (2)(a) above, the day on which the notice is served, or

• (b) in a case where other reasonable steps are taken as mentioned in sub-paragraph (2)(b) above, the day on which the last of those steps is taken.

• (6) For the purposes of sub-paragraph (2) above the required information is the relevant amount and, if that amount is one reduced in accordance with paragraph 50 above, also—

• (a) the amount of the controller’s liability under paragraph 49 above apart from the reduction,

• (b) the amount of credit to which the operator is entitled, and

• (c) the operator’s gross tax liability.

Assessments

52

• (1) Where an amount of landfill tax is—

• (a) assessed under section 50 of this Act, and

• (b) notified to a licensed operator,

the Commissioners may also determine that a controller of the whole or a part of any landfill site operated by the licensed operator shall be liable to pay so much of the amount assessed as they consider just and equitable.

• (2) A controller is required to pay an amount determined under sub-paragraph (1) above only if—

• (a) a notice stating the amount is served on him, or

• (b) other reasonable steps are taken with a view to bringing the amount of the liability to his attention,

before the expiry of the period of two years beginning with the day immediately following the assessment day.

• (3) The assessment day is the day on which the assessment in question is notified to the licensed operator.

• (4) If a controller is required to pay an amount by virtue of this paragraph, it shall be paid before the end of the period of thirty days beginning with the day immediately following the notification day.

• (5) The notification day is—

• (a) in a case where notice is served on a controller as mentioned in sub-paragraph (2)(a) above, the day on which the notice is served, or

• (b) in a case where other reasonable steps are taken as mentioned in sub-paragraph (2)(b) above, the day on which the last of those steps is taken.

• (6) For the purposes of this paragraph a licensed operator is a person who is the operator of a landfill site by virtue of section 67(a), (c) or (e) of this Act.

Assessment withdrawn or reduced

53

• (1) Where—

• (a) a controller is liable to pay an amount determined under paragraph 52 above, and

• (b) the assessment notified to the licensed operator is withdrawn or reduced,

the Commissioners may determine that the controller’s liability is to be cancelled or to be reduced to such an amount as they consider just and equitable.

• (2) Sub-paragraphs (3) to (5) below apply where the Commissioners make a determination under sub-paragraph (1) above that the controller’s liability is to be reduced (but not cancelled).

• (3) In such a case they shall—

• (a) serve the controller with notice stating the amount of the reduced liability, or

• (b) take other reasonable steps with a view to bringing the reduced amount to the controller’s attention.

• (4) If the controller has already been served with notice of the amount determined under paragraph 52 above, or if other steps have already been taken to bring that amount to his attention—

• (a) the Commissioners shall serve the notice mentioned in sub-paragraph (3)(a) above, or take the steps mentioned in sub-paragraph (3)(b) above, before the end of the period of thirty days beginning with the day immediately following that on which they make the determination under sub-paragraph (1) above, and

• (b) the reduced amount shall be payable, or treated as having been payable, on or before the day on which the amount referred to in sub-paragraph (1)(a) above would have been payable apart from this paragraph.

• (5) In a case where the controller has not been served with notice of the amount determined under paragraph 52 above, or no other steps have been taken to bring that amount to his attention, he shall be liable to pay the reduced amount only if—

• (a) the notice mentioned in sub-paragraph (3)(a) above is served, or

• (b) the other steps mentioned in sub-paragraph (3)(b) above are taken,

before the expiry of the period of two years beginning with the day immediately following that on which the Commissioners make the determination under sub-paragraph (1) above.

• (6) Sub-paragraph (7) below applies where—

• (a) the Commissioners make a determination under sub-paragraph (1) above that the controller’s liability is to be cancelled, and

• (b) the controller has already been served with notice of the amount determined under paragraph 52 above, or other steps have already been taken to bring that amount to his attention.

• (7) In such a case the Commissioners shall—

• (a) serve the controller with notice stating that the liability has been cancelled, or

• (b) take other reasonable steps with a view to bringing the cancellation to the controller’s attention,

before the end of the period of thirty days beginning with the day immediately following that on which they make the determination that the liability is to be cancelled.

Adjustments

54

• (1) This paragraph applies in any case where the liability of a licensed operator to pay landfill tax is adjusted otherwise than by—

• (a) his being entitled to credit under regulations made under section 51 of this Act,

• (b) his being notified of an amount assessed under section 50 of this Act, or

• (c) the withdrawal or reduction of an assessment under section 50 of this Act which was notified to him.

• (2) In such a case the Commissioners may determine that a controller of the whole or any part of a landfill site operated by the licensed operator—

• (a) shall be liable to pay to the Commissioners such an amount as they consider just and equitable, or

• (b) shall be entitled to an allowance of such an amount as they consider just and equitable.

• (3) A controller is required to pay an amount determined under sub-paragraph (2)(a) above only if—

• (a) a notice stating the amount is served on him, or

• (b) other reasonable steps are taken with a view to bringing the amount of the liability to his attention,

before the end of the period of two years beginning with the day immediately following the relevant accounting day.

• (4) The relevant accounting day is the last day of the accounting period of the operator within which the adjustment in question was taken into account.

• (5) If a controller is required to pay an amount by virtue of sub-paragraph (3) above, it shall be paid before the end of the period of thirty days beginning with the day immediately following the notification day.

• (6) The notification day is—

• (a) in a case where notice is served on a controller as mentioned in sub-paragraph (3)(a) above, the day on which the notice is served, or

• (b) in a case where other reasonable steps are taken as mentioned in sub-paragraph (3)(b) above, the day on which the last of those steps is taken.

• (7) The Commissioners may determine in what manner a controller is to benefit from an allowance determined under sub-paragraph (2)(b) above.

• (8) For the purposes of this paragraph a licensed operator is a person who is the operator of a landfill site by virtue of section 67(a), (c) or (e) of this Act.

Amounts payable to be treated as tax

55

An amount which a controller is required to pay under paragraph 52, 53 or 54(2)(a) above or under paragraph 58 below shall be deemed to be an amount of tax due from him and shall be recoverable accordingly.

Controller not carrying out taxable activity

56

A controller is not to be treated for the purposes of this Act as carrying out a taxable activity by reason only of any liability under this Part of this Schedule.

Joint and several liability

57

• (1) In any case where the condition in sub-paragraph (4), (5) or (6) below is satisfied, the controller and the operator shall be jointly and severally liable for the principal liability.

• (2) But the amount which may be recovered from the controller in consequence of such liability shall not exceed the amount of the secondary liability.

• (3) For the purposes of this paragraph—

• (a) the principal liability is the amount referred to in sub-paragraph (4)(a), (5)(a) or (6)(a) below, as the case may be, and

• (b) the secondary liability is the amount referred to in sub-paragraph (4)(b), (5)(b) or (6)(b) below, as the case may be.

• (4) The condition in this sub-paragraph is satisfied if—

• (a) the operator of a landfill site is liable under section 41 of this Act for landfill tax, and

• (b) a controller is liable under paragraph 49 above, after taking account of any reduction under paragraph 50 above, to pay an amount of that tax.

• (5) The condition in this sub-paragraph is satisfied if—

• (a) the operator of a landfill site is notified of the amount of an assessment made under section 50 of this Act, and

• (b) in consequence of a determination made under paragraph 52 above by the Commissioners in connection with the assessment, a controller is liable to pay an amount (after taking account of any reduction under paragraph 53 above).

• (6) The condition in this sub-paragraph is satisfied if—

• (a) the liability of the operator of a landfill site to pay landfill tax is adjusted in such a way that paragraph 54 above applies, and

• (b) in consequence of a determination made under paragraph 54(2)(a) above by the Commissioners in connection with the adjustment, a controller is liable to pay an amount.

Interest payable by a controller

58

• (1) This paragraph applies where—

• (a) the operator of a landfill site and the controller of the whole or a part of that site are by virtue of paragraph 57 above jointly and severally liable for an amount, and

• (b) that amount carries interest by virtue of any provision of this Schedule.

• (2) The controller and the operator shall be jointly and severally liable to pay the interest.

• (3) But the amount which may be recovered from the controller in consequence of such liability shall not exceed the amount calculated in accordance with the following formula—

$$(I -[A+B]) ×SP$where—I is the total amount of interest in question;A is the amount of interest carried for the period which—(a) begins with the first day of the period for which interest is carried, and(b) ends with the day on which the controller becomes liable to pay the secondary liability;B is the amount of interest carried for any day falling after that on which the secondary liability is met in full;S is the amount of the secondary liability;P is the amount of the principal liability.$

In this paragraph secondary liability and principal liability have the same meaning as in paragraph 57 above.

• (4) The controller is liable for an amount of interest only if—

• (a) a notice stating the amount is served on him, or

• (b) other reasonable steps are taken with a view to bringing the amount of the liability to his attention,

before the end of the period of two years beginning with the day immediately following the final day.

• (5) The final day is the last day of the period for which the interest in question is carried.

• (6) If the controller is required to pay an amount in accordance with this paragraph, it shall be paid before the end of the period of thirty days beginning with the day immediately following the notification day.

• (7) The notification day is—

• (a) in a case where notice is served on a controller as mentioned in sub-paragraph (4)(a) above, the day on which the notice is served, or

• (b) in a case where other reasonable steps are taken as mentioned in sub-paragraph (4)(b) above, the day on which the last of those steps is taken.

• (8) Where by virtue of sub-paragraph (2) above a controller is liable to pay interest which arises under paragraph 27 above, paragraph 28 above shall apply in relation to that interest as it applies to interest which a person is liable under paragraph 27 above to pay.

Reviews and Appeals

59

Sections 54 to 56 of this Act shall apply to a decision of the Commissioners under this Part of this Schedule—

• (a) that a person is a controller,

• (b) that a person is liable under this Part of this Schedule to pay any amount (including a penalty under paragraph 60 below),

• (c) that a person is not entitled under this Part of this Schedule to an allowance, or

• (d) as to the amount of any liability or any allowance under this Part of this Schedule,

as they apply to the other decisions of the Commissioners specified in section 54(1).

Notice that person is, or is no longer, a controller

60

• (1) This paragraph applies where—

• (a) on the date when this paragraph comes into force, a person is a controller of the whole or a part of a landfill site, or

• (b) after that date, a person becomes or ceases to be a controller of the whole or a part of a landfill site.

• (2) The controller, and the operator of the landfill site in question, shall be under a duty to secure that notice which complies with the requirements of sub-paragraph (3) below appropriate to the case in question is given to the Commissioners.

• (3) The requirements of this sub-paragraph are that the notice—

• (a) states that a person is, has become or has ceased to be a controller,

• (b) identifies that person and the site under his control or formerly under his control,

• (c) states the date when he became or ceased to be the controller, and

• (d) is given within the period of thirty days beginning with the day immediately following—

• (i) the day when this paragraph comes into force, in a case falling within sub-paragraph (1)(a) above, or

• (ii) the day when the person in question becomes or ceases to be the controller, in a case falling within sub-paragraph (1)(b) above.

• (4) If a person fails to comply with sub-paragraph (2) above, he is liable to a penalty of £250.

• (5) Paragraph 25 above applies to a penalty under sub-paragraph (4) above as it applies to a penalty under Part V of this Schedule.

Extension of time limits where notice not served

61

• (1) This paragraph applies where—

• (a) a person is liable under paragraph 49 above to pay an amount of landfill tax or liable under paragraph 58 above to pay interest, or

• (b) the Commissioners are entitled under paragraph 52, 53 or 54 above to determine an amount which a person is liable to pay.

• (2) The reference to two years in paragraph 51(2), 52(2), 53(5), 54(3) or 58(4) above (as the case may be) shall be treated as a reference to twenty years if the requirement of paragraph 60(2) above to give notice to the Commissioners in relation to the person mentioned in sub-paragraph (1) above being or becoming a controller has not been complied with.

Insurance company liabilities

1A

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

Impairment losses and consortium relief

5A

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

Impairment losses : parties having connection and creditor in insolvent liquidation etc

6A

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

Impairment losses: companies becoming connected

6B

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

Impairment losses: cessation of connection

6C

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

Exchange gains and losses where loan not on arm’s length terms

11A

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

Partnerships involving companies

19

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

Interpretation of references to major interests

20

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

3A

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

The section inserted after section 150 of the Finance Act 1994 by section 101(3) of this Act is as follows—

Issue price etc of securities issued in accordance with qualifying earn-out right

3A

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

Securities issued to connected person etc at price in excess of market value: transfer to connected person

9A

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

Adjustment of opening value where new accounting basis adopted as from an accounting period beginning on 1st April 1996

3A

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

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

11A

• (1) This paragraph applies where, in the case of any asset representing in whole or in part a loan relationship of a company, an amount representing a deemed allowable loss would (apart from this paragraph) fall or have fallen to be brought into account in accordance with paragraph 8(3) above for an accounting period (whenever beginning or ending), but for section 251(4) of the 1992 Act (no allowable loss on disposal of debt acquired from connected person).

• (2) Where this paragraph applies, the amount of any credit falling within sub-paragraph (3) below shall be treated for the purposes of Part 5 of the Corporation Tax Act 2009 as reduced (but not below nil) by the amount described in sub-paragraph (1) above.

• (3) A credit falls within this sub-paragraph if (apart from this paragraph)—

• (a) the credit falls to be given by virtue of paragraph 11(3)(a) above for an accounting period beginning on or after 1st October 2002; and

• (b) the loan relationship mentioned in paragraph 11(1)(a) above in the case of the credit is the same loan relationship as the one mentioned in sub-paragraph (1) above.

The sections inserted after section 329 of the Taxes Act 1988 by section 150 of this Act are as follows—

The power in section 8(2) of this Act applies to these repeals as it applies to that section.

1

Subject to note 2 below, these repeals have effect in accordance with section 184(6)(b) of this Act.

2

The repeal in section 116 of the Inheritance Tax Act 1984, and the related repeal in section 155 of the Finance Act 1995, have effect in accordance with section 185(3) and (6) of this Act.

1

The repeals in sections 87 and 88 of the Finance Act 1986 have effect in accordance with sections 188 and 192 of this Act.

2

The repeals in sections 94 and 96 of the Finance Act 1986 have effect in accordance with section 194 of this Act.

3

The repeal in section 97 of the Finance Act 1986 has effect in accordance with section 196(4) of this Act.

4

The repeals in the Finance Act 1996 have effect—

• (a) so far as relating to stamp duty, in accordance with section 108 of the Finance Act 1990; and

• (b) so far as relating to stamp duty reserve tax, in accordance with section 110 of the Finance Act 1990.

Editorial notes