Finance Act 1996

• (1) Schedule 14 to the Taxes Act 1988 (life assurance premium relief: provisions ancillary to section 266) shall be amended in accordance with the following provisions of this paragraph.

• (2) In paragraph 6(2) (which provides for the application of the Taxes Management Act 1970 to an assessment under paragraph 6 of that Schedule as if it were an assessment to tax for the year of assessment in which the relief was given and as if certain other things were the case) the words from “and as if” onwards shall be omitted.

• (3) In paragraph 7(3) (which applies specified provisions of the Taxes Management Act 1970 to the payment of a sum claimed under section 266(5)(b))—

• (a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted—

(a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;

;

• (b) in paragraph (b) (which applies section 30 of the Taxes Management Act 1970) after the words in parentheses there shall be inserted “ apart from subsection (1B) ”;

• (c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for “section 88” there shall be substituted “ section 86 ”; and

• (d) for the words following paragraph (d) there shall be substituted—

shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 266(5)(b) but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.

• (4) After paragraph 7(3) there shall be added—

(4) In the application of section 86 of the Management Act by virtue of sub-paragraph (3) above in relation to sums due and payable by virtue of an assessment made for the whole or part of a year of assessment (“the relevant year of assessment”) under section 29(1)(c) or 30 of that Act, as applied by that sub-paragraph, the relevant date— (a) is 1st January in the relevant year of assessment in a case where the person falling within section 266(5)(b) has made a relevant interim claim; and (b) in any other case, is the later of the following dates, that is to say— (i) 1st January in the relevant year of assessment; or (ii) the date of the making of the payment by the Board which gives rise to the assessment. (5) In this paragraph— - “financial year”, in relation to any person, means a financial year of that person for the purposes of the relevant regulations; - “interim claim” means an interim claim within the meaning of the relevant regulations; - “relevant interim claim” means, in relation to an assessment made for a period coterminous with, or falling wholly within, a person’s financial year, an interim claim made for a period falling wholly or partly within that financial year; - “the relevant regulations” means regulations made under sub-paragraph (1) above.

The Finance Act 1989

12

• (1) Section 57 of the Finance Act 1989 (medical insurance: supplementary) shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (3) (which applies specified provisions of the Taxes Management Act 1970 to the payment of an amount claimed under section 54(6)(b))—

• (a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted—

(a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;

;

• (b) in paragraph (b) (which applies section 30 of the Taxes Management Act 1970) after the words in parentheses there shall be inserted “ apart from subsection (1B) ”;

• (c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for “section 88” there shall be substituted “ section 86 ”; and

• (d) for the words following paragraph (d) there shall be substituted—

shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 54(6)(b) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.

• (3) After subsection (3) there shall be inserted—

(3A) In the application of section 86 of the Taxes Management Act 1970 by virtue of subsection (3) above in relation to sums due and payable by virtue of an assessment made under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date— (a) in a case where the person falling within section 54(6) above has made any interim claim, within the meaning of regulations made under subsection (1) and section 54(4) above, as respects some part of the year of assessment for which the assessment is made, is 1st January in that year of assessment; and (b) in any other case, is the later of the following dates, that is to say— (i) 1st January in the year of assessment for which the assessment is made; or (ii) the date of the making of the payment by the Board which gives rise to the assessment.

13

In section 178 of the Finance Act 1989 (setting rates of interest) in subsection (2)(f) (which specifies the provisions of the Taxes Management Act 1970 to which the section applies) the words “88” shall be omitted.

The Finance Act 1991

14

• (1) Section 33 of the Finance Act 1991 (vocational training) shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (3) (which applies specified provisions of the Taxes Management Act 1970 to the payment of an amount claimed under section 32(5)(b))—

• (a) for paragraph (a) (which applies section 29(3)(c) of the Taxes Management Act 1970) there shall be substituted—

(a) section 29(1)(c) (excessive relief) as it has effect apart from section 29(2) to (10) of that Act;

;

• (b) in paragraph (b) (which applies section 30 of the Taxes Management Act 1970) after the words in parentheses there shall be inserted “ apart from subsection (1B) ”;

• (c) in paragraph (c) (which applies section 88 of the Taxes Management Act 1970) for “section 88” there shall be substituted “ section 86 ”; and

• (d) for the words following paragraph (d) there shall be substituted—

shall apply in relation to an amount which is paid to any person by the Board as an amount recoverable by virtue of section 32(5)(b) above but to which that person is not entitled as if it were income tax which ought not to have been repaid and, where that amount was claimed by that person, as if it had been repaid as respects a chargeable period as a relief which was not due.

• (3) After subsection (3) there shall be inserted—

(3A) In the application of section 86 of the Taxes Management Act 1970 by virtue of subsection (3) above in relation to sums due and payable by virtue of an assessment made under section 29(1)(c) or 30 of that Act, as applied by that subsection, the relevant date— (a) in a case where the person falling within section 32(5) above has made any interim claim, within the meaning of regulations made under subsection (1) above, as respects some part of the year of assessment for which the assessment is made, is 1st January in that year of assessment; and (b) in any other case, is the later of the following dates, that is to say— (i) 1st January in the year of assessment for which the assessment is made; or (ii) the date of the making of the payment by the Board which gives rise to the assessment.

The Taxation of Chargeable Gains Act 1992

15

• (1) Section 281 of the Taxation of Chargeable Gains Act 1992 (payment by instalments of tax on gifts) shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (5), for paragraph (a) (tax payable by instalments to carry interest in accordance with Part IX of the Taxes Management Act 1970, except section 88) there shall be substituted—

(a) tax payable by instalments by virtue of this section carries interest in accordance with Part IX of the Management Act as that Part applies where no election is made under subsection (2) above, and

.

• (3) In subsection (6) (power to pay at any time unpaid tax payable by instalments, with interest to the date of payment) after “with interest” there shall be inserted “ (determined in accordance with subsection (5)(a) above) ”.

• (4) In subsection (7) (cases where tax payable by instalments, with interest to the date of payment, becomes due and payable immediately) after “with interest” there shall be inserted “ (determined in accordance with subsection (5)(a) above as if the tax were tax payable by instalments by virtue of this section) ”.

The Finance Act 1995

16

In section 73(4) of the Finance Act 1995 (power to apply certain provisions of the Taxes Management Act 1970 in relation to certain sums payable in connection with venture capital trusts)—

• (a) for “section 29(3)(c)” there shall be substituted “ section 29(1)(c) ”;

• (b) for “section 88” there shall be substituted “ section 86 ”; and

• (c) after paragraph (d) there shall be added—

and section 86 of that Act may be so applied with such modifications as respects the relevant date as may be specified in the regulations.

Commencement

17

• (1) Paragraphs 1 to 3, 6(2)(a) and (b), 8, ... 11(3)(a) and (b), 12(2)(a) and (b), 14(2)(a) and (b) and 16(a) above have effect, subject to sub-paragraph (2) below—

• (a) for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment; and

• (b) for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).

• (2) Paragraphs 1, 3, 6(2)(a) and (b), ... 11(3)(a) and (b), 12(2)(a) and (b) and 14(2)(a) and (b) above, so far as relating to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994, has effect as respects the year 1997-98 and subsequent years of assessment.

• (3) Paragraphs 4, 5, 6(2)(c) and (3), 11(3)(c) and (4), 12(2)(c) and (3), 13, 14(2)(c) and (3), 15 and 16(b) and (c) above have effect, subject to sub-paragraph (4) below—

• (a) as respects the year 1996-97 and subsequent years of assessment; and

• (b) in relation to any income tax or capital gains tax which—

• (i) is charged by an assessment made on or after 6th April 1998; and

• (ii) is for the year 1995-96 or any earlier year of assessment;

and where sub-paragraph (4) of paragraph 11, sub-paragraph (3) of paragraph 12, or sub-paragraph (3) of paragraph 14 has effect by virtue of paragraph (b) of this sub-paragraph it shall have effect with the substitution, in the provision inserted by that sub-paragraph, for “section 29(1)(c)” of “ section 29(3)(c) ”.

• (4) Paragraphs 4, 6(2)(c) and (3), 11(3)(c) and (4), 12(2)(c) and (3), 13 and 14(2)(c) and (3) above, so far as relating to partnerships whose trades, professions or businesses were set up and commenced before 6th April 1994 have effect—

• (a) as respects the year 1997-98 and subsequent years of assessment; and

• (b) in relation to any income tax which—

• (i) is charged by an assessment made on or after 6th April 1998; and

• (ii) is for the year 1995-96 or any earlier year of assessment.

• (5) Paragraphs 7 and 11(2) above have effect—

• (a) as respects the year 1996-97 and subsequent years of assessment; and

• (b) subject to sub-paragraphs (6) and (7) below, in relation to any income tax or capital gains tax which—

• (i) is charged by an assessment made on or after 6th April 1998; and

• (ii) is for the year 1995-96 or any earlier year of assessment.

• (6) Sub-paragraph (5)(b) above does not apply to paragraph 7 above so far as paragraph 7 provides for the omission of—

• (a) paragraph (a) of subsection (4) of section 374A of the Taxes Act 1988, and

• (b) the words “and as if” so far as they relate to paragraph (a) of that subsection.

• (7) Sub-paragraph (5)(b) above does not apply to paragraph 11(2) above so far as paragraph 11(2) provides for the omission of—

• (a) the words “sections 55(1) (recovery of tax not postponed) and”, and

• (b) the words

and as if— (a) the assessment were among those specified in

so far as those words relate to the words mentioned in paragraph (a) of this sub-paragraph.

• (8) Paragraphs 6(2)(d), 11(3)(d), 12(2)(d) and 14(2)(d) above shall not apply in relation to any payment if the payment, or the claim on which it is made, was made before the day on which this Act is passed.

• (9) Paragraph 9 above has effect as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).

• (10) Any power to make regulations exercisable by virtue of an amendment made by any of the preceding provisions of this Schedule may be exercised so as to make provision having effect in relation to any year of assessment in relation to which that provision has effect in accordance with sub-paragraphs (1) to (9) above.

SCHEDULE 19

Introductory

1

The Taxes Management Act 1970, as it has effect—

• (a) for the purposes of income tax and capital gains tax, as respects the year 1996-97 and subsequent years of assessment, and

• (b) for the purposes of corporation tax, as respects accounting periods ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions),

shall be amended in accordance with the following provisions of this Schedule.

Matters subject to enquiry

2

In each of sections . . . 11AB(1),. . . (matters subject to enquiry), after paragraph (b) there shall be inserted

or (c) any claim or election included in the return (by amendment or otherwise)

.

Power to call for documents

3

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

Further amendments of section 28A

4

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

Further amendments of section 28B

5

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

Right of appeal against notice disallowing claim in return

6

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

7

In section 50 (procedure on appeals), after subsection (7) there shall be inserted the following subsection—

(7A) If, on appeal, it appears to the Commissioners that a claim or election specified in a notice under section 28A(4A) of this Act should have been allowed or disallowed to an extent different from that specified in the notice, the claim or election shall be allowed or disallowed accordingly to the extent that appears to them appropriate, but otherwise the decision in the notice shall stand good.

Claims not included in returns

8

• (1) In Schedule 1A (claims not included in returns), in paragraph 4 (giving effect to claims and amendments), in sub-paragraph (1) for “(1A) and (3)” there shall be substituted “ (1A), (3) and (4) ”.

• (2) In sub-paragraph (2) of that paragraph, for “sub-paragraph (3)” there shall be substituted “ sub-paragraphs (3) and (4) ”.

• (3) After sub-paragraph (3) there shall be inserted the following sub-paragraph—

(4) Nothing in this paragraph applies in relation to a claim or an amendment of a claim if the claim is not one for discharge or repayment of tax.

9

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

Right of appeal against notice disallowing claim not in return

10

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

• (2) In sub-paragraph (2) of that paragraph, for “making of the amendment under paragraph 7(3) above” there shall be substituted “ date mentioned in sub-paragraph (1) above ”.

• (3) In sub-paragraph (3) of that paragraph, for “under this paragraph” there shall be substituted “ against an amendment under paragraph 7(3) above ”.

• (4) After sub-paragraph (4) of that paragraph there shall be inserted the following sub-paragraph—

(5) If, on appeal, it appears to the Commissioners that a claim specified in a notice under paragraph 7(3A) above should have been allowed or disallowed to an extent different from that specified in the notice, the claim shall be allowed or disallowed accordingly to the extent that appears to them appropriate, but otherwise the decision in the notice shall stand good.

SCHEDULE 20

The Taxes Act 1988

1

In section 24(2) of the Taxes Act 1988 (presumption as to sums being paid by way of premium unless the contrary is shown) for “is” there shall be substituted “ can be ”.

2

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

3

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

4

In section 74(1)(j) of the Taxes Act 1988 (Case I or II of Schedule D: no deduction in respect of debts), in sub-paragraph (i) (deduction allowed for a bad debt proved to be such) the words “proved to be such” shall cease to have effect.

5

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

6

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

7

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

8

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

9

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

10

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

11

In section 186(10) of the Taxes Act 1988 (value of the proceeds of certain disposals)—

• (a) for paragraph (b) there shall be substituted the following paragraph—

(b) any other disposal falling within that subsection is not at arm’s length,

; and

• (b) in paragraph (c) for “that sub-paragraph” there shall be substituted “ that subsection ”.

12

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

13

In section 257 of the Taxes Act 1988 (personal allowance)—

• (a) in subsection (2) (claimant entitled to deduction if he proves that he is 65 or over), and

• (b) in subsection (3) (claimant entitled to deduction if he proves that he is 75 or over),

the words “proves that he” shall cease to have effect.

14

• (1) Section 257A of the Taxes Act 1988 (married couple’s allowance) shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (1) (claimant entitled to reduction if he proves that he is a married man whose wife is living with him) for the words from the beginning to “he is” there shall be substituted “ If the claimant is, for the whole or any part of the year of assessment, ”.

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

15

In section 257E(1) of the Taxes Act 1988 (claimant entitled to relief if his wife lives with him and he proves that for the year 1989-90 he was entitled as described in paragraph (a) or (b))—

• (a) the words “he proves” shall cease to have effect; and

• (b) the word “that”, in the first and third places where it occurs in each of paragraphs (a) and (b), shall cease to have effect.

16

• (1) Section 257F of the Taxes Act 1988 (transitional relief: effect of preceding sections where claimant who does not live with his wife proves that paragraphs (a) to (c) apply) shall be amended in accordance with the following provisions of this paragraph.

• (2) The words “the claimant proves” shall cease to have effect.

• (3) In paragraph (a)—

• (a) for “that he” there shall be substituted “ the claimant ”; and

• (b) the word “that” in the second place where it occurs shall cease to have effect.

• (4) In paragraph (b) the word “that” in the first place where it occurs shall cease to have effect.

• (5) In paragraph (c) the word “that” in the first and third places where it occurs shall cease to have effect.

17

• (1) Section 259 of the Taxes Act 1988 (additional relief in respect of children) shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (2) (claimant entitled to reduction if he proves that a qualifying child is resident with him) for the words from “if the claimant” to “he shall be entitled” there shall be substituted

if— (a) the claimant is a person to whom this section applies, and (b) a qualifying child is resident with him for the whole or a part of a year of assessment, the claimant shall be entitled

.

• (3) In subsection (6) (circumstances in which the reference in subsection (5) to a child receiving full-time instruction includes a child undergoing training for a trade, profession or vocation) the second paragraph (inspector’s power to require particulars of training) shall cease to have effect.

18

In section 261A(1) of the Taxes Act 1988 (person who proves that a qualifying child is resident with him in the year in which he and his wife separate is entitled to relief) for “who proves that a qualifying child is resident with him” there shall be substituted “ with whom a qualifying child is resident ”.

19

In section 265(1) of the Taxes Act 1988 (claimant entitled to blind person’s allowance if he proves that he is a registered blind person) the words “proves that he” shall cease to have effect.

20

In section 274(4) of the Taxes Act 1988 (effect of war insurance premiums on the limit on relief under section 266 or 273) in the second paragraph (definition of war insurance premiums: to include any part of any premium paid in respect of a life insurance policy which appears to the inspector to be attributable to risks arising from war or war service abroad) for “appears to the inspector to be” there shall be substituted “ is ”.

21

In section 278(2) of the Taxes Act 1988 (bar on relief for non-residents not to apply to an individual who satisfies the Board that he or she is a Commonwealth citizen etc) the words “satisfies the Board that he or she” shall cease to have effect.

22

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

23

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

24

In section 381(4) of the Taxes Act 1988 (no relief unless it is shown that trade was on a commercial basis) the words “it is shown that” shall cease to have effect.

25

• (1) In section 384 of the Taxes Act 1988 (restrictions on right of set-off) in subsection (1) (no relief unless it is shown that trade was on a commercial basis and with a view to the realisation of profits) the words “it is shown that” shall cease to have effect.

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

26

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

27

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

28

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

29

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

30

In section 503(6) of the Taxes Act 1988 (apportionments where a letting relates only in part to holiday accommodation) for “appear to the inspector, or on appeal the Commissioners, to be” there shall be substituted “ are ”.

31

In section 570(2) of the Taxes Act 1988 (schemes for rationalizing industry: treatment of certain payments made under such schemes)—

• (a) the words “on a claim it is shown in accordance with the provisions of Part II of Schedule 21 that” shall cease to have effect;

• (b) after “the Tax Acts” there shall be inserted “ and a claim is made to that effect, ”;

• (c) for “that Schedule”, where those words first occur, there shall be substituted “ Schedule 21 ”; and

• (d) at the end there shall be added—

and paragraph 6 of that Schedule applies for the purposes of this subsection as it applies for the purposes of that Schedule.

32

In section 582(2)(b) of the Taxes Act 1988 (cases where retention of funding bonds is impracticable)—

• (a) the words “the Board are satisfied that” shall cease to have effect; and

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

33

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

34

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

35

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

36

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

37

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

38

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

39

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

40

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

41

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

42

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

43

In Schedule 21 to the Taxes Act 1988 (tax relief in connection with schemes for rationalizing industry and other redundancy schemes), paragraph 3 (no relief in respect of payments under schemes unless certain amounts are shown) shall cease to have effect.

The Capital Allowances Act 1990

44

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

The Taxation of Chargeable Gains Act 1992

45

In the following provisions of this Schedule “the Gains Act” means the Taxation of Chargeable Gains Act 1992.

46

In section 30(4) of the Gains Act (section not to apply if it is shown that there was no tax avoidance purpose) for “if it is shown that” there shall be substituted “ in a case where ”.

47

In each of—

• (a) subsections (5) and (6) of section 30 of the Gains Act (consideration to be increased or reduced by such amount as appears to the inspector etc to be just and reasonable),

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

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

for “appears to the inspector, or on appeal the Commissioners concerned, to be” there shall be substituted “ is ”.

48

In section 48 of the Gains Act (consideration due after time of disposal and irrecoverable consideration) for the words following “if any part of the consideration so brought into account” there shall be substituted “ subsequently proves to be irrecoverable, there shall be made, on a claim being made to that effect, such adjustment, whether by way of discharge or repayment of tax or otherwise, as is required in consequence. ”

49

In section 49 of the Gains Act (contingent liabilities) for subsection (2) (adjustment to be made if it is shown to the satisfaction of the inspector that a contingent liability has become enforceable) there shall be substituted—

(2) If any such contingent liability subsequently becomes enforceable and is being or has been enforced, there shall be made, on a claim being made to that effect, such adjustment, whether by way of discharge or repayment of tax or otherwise, as is required in consequence.

50

In section 52(4) of the Gains Act (apportionments by such method as appears to the inspector etc to be just and reasonable) the words “such method as appears to the inspector or on appeal the Commissioners concerned to be” shall cease to have effect.

51

In section 116(13) of the Gains Act (subsection (12) not to apply where inspector, being satisfied sum is comparatively small, so directs) the words “the inspector is satisfied that” and “and so directs,” shall cease to have effect.

52

• (1) In section 122 of the Gains Act (distribution which is not a new holding) in subsection (2) (treatment of distributions which the inspector is satisfied are comparatively small) the words “the inspector is satisfied that” and “and so directs” shall cease to have effect.

• (2) Subsection (3) of that section (appeals from decisions of inspectors under subsection (2)) shall cease to have effect.

• (3) In subsection (4)(a) of that section (subsections (2) and (3) not to apply in certain cases) for “subsections (2) and (3)” there shall be substituted “ subsection (2) ”.

53

• (1) In section 133 of the Gains Act (premiums on conversion of securities) in subsection (2) (treatment of premiums which the inspector is satisfied are comparatively small) the words “the inspector is satisfied that” and “and so directs” shall cease to have effect.

• (2) Subsection (3) of that section (appeals from decisions of inspectors under subsection (2)) shall cease to have effect.

• (3) In subsection (4)(a) of that section (subsections (2) and (3) not to apply in certain cases) for “subsections (2) and (3)” there shall be substituted “ subsection (2) ”.

54

In each of sections 150(10)(a) and 150A(9)(a) of the Gains Act (reductions in relief to be apportioned in such a way as appears to the inspector etc to be just and reasonable) for “such a way as appears to the inspector, or on appeal to the Commissioners concerned, to be” there shall be substituted “ a way which is ”.

55

In section 164F(8)(a) of the Gains Act (section not to apply where it is shown that winding up etc is bona fide) the words “it is shown that” shall cease to have effect.

56

In section 164FG of the Gains Act (multiple claims for reductions under section 164A(2) or 164F(10A) of the Gains Act) in subsection (2) (reductions to be treated as claimed separately in such sequence as the claimant elects or an officer of the Board in default of an election determines) the words “or an officer of the Board in default of an election determines” shall cease to have effect.

57

• (1) In each of subsections (4) and (6) of section 176 of the Gains Act (losses or gains on disposals where there have been depreciatory transactions to be reduced to such extent as appears to the inspector etc to be just and reasonable) for “appears to the inspector, or, on appeal, the Commissioners concerned, to be” there shall be substituted “ is ”.

• (2) In subsection (5) of that section (footing on which decision under subsection (4) is to be made) for “The inspector or the Commissioners shall make the decision under subsection (4) above” there shall be substituted “ A reduction under subsection (4) above shall be made ”.

58

In section 181(1)(b) of the Gains Act (sections 178 and 179 not to apply where it is shown that merger was bona fide) the words “it is shown that”, and the word “that” in the second place where it occurs, shall cease to have effect.

59

• (1) Section 222 of the Gains Act (relief on disposal of residence and land up to the permitted area, which is 0.5 of a hectare) shall be amended in accordance with the following provisions of this paragraph.

• (2) For subsection (3) (which provides for the permitted area in certain cases to be such area, larger than 0.5 of a hectare, as the Commissioners may determine) there shall be substituted—

(3) Where the area required for the reasonable enjoyment of the dwelling-house (or of the part in question) as a residence, having regard to the size and character of the dwelling-house, is larger than 0.5 of a hectare, that larger area shall be the permitted area.

• (3) In subsection (5) (determination of individual’s main residence)—

• (a) paragraph (b) (which, subject to conclusive notice by the individual under paragraph (a), provides for the question to be determined by an inspector), and

• (b) the words following that paragraph (right of appeal against inspector’s determination),

shall cease to have effect.

• (4) In subsection (6), paragraph (b) (further provision about the right of appeal against determinations under subsection (5)(b)) and the word “and” immediately preceding it shall cease to have effect.

60

In section 224(2) of the Gains Act (adjustment of relief given by section 223 for changes occurring during period of ownership) for “may be adjusted in such manner as the Commissioners concerned may consider to be just and reasonable” there shall be substituted “ may be adjusted in a manner which is just and reasonable ”.

61

In section 226 of the Gains Act (relief in respect of private residence occupied by dependent relative before 6th April 1988) subsection (5) (power of inspector, before granting a claim for relief under that section, to require claimant to show that granting the claim will not preclude relief to claimant’s wife or husband) shall cease to have effect.

62

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63

• (1) In section 271 of the Gains Act (miscellaneous exemptions) in subsections (1)(g) and (2), for “such extent as the Board are satisfied” there shall be substituted “ the extent ”.

• (2) In subsection (2) of that section, in the second paragraph, the words “the Board are satisfied that” shall cease to have effect.

64

In section 279(1) of the Gains Act (claimant for deduction in respect of gains accruing from the disposal of foreign assets must show that conditions in subsection (3) are satisfied) for paragraph (b) there shall be substituted—

(b) the person charged or chargeable makes a claim, and (c) the conditions set out in subsection (3) below are, so far as applicable, satisfied as respects those gains (“the qualifying gains”);

.

65

In section 280 of the Gains Act (payment of tax by instalments where consideration payable by instalments) for “if the person making the disposal satisfies the Board that he would otherwise suffer undue hardship, the tax on a chargeable gain accruing on the disposal may, at his option,” there shall be substituted “ at the option of the person making the disposal, the tax on a chargeable gain accruing on the disposal may ”.

66

• (1) Schedule 6 to the Gains Act (retirement relief) shall be amended in accordance with the following provisions of this paragraph.

• (2) In paragraph 3, in sub-paragraphs (1), (3) and (4) (under each of which a person is treated as having retired on ill-health grounds if, on production of such evidence as the Board may reasonably require, the Board are satisfied as there mentioned)—

• (a) the words “on production of such evidence as the Board may reasonably require, the Board are satisfied” shall cease to have effect, and

• (b) for “that he” (in each place where those words occur) there shall be substituted “ he ”.

• (3) At the end of that paragraph there shall be added—

(5) In any case where— (a) an officer of the Board gives notice to any person under section 9A(1) of, or paragraph 5(1) of Schedule 1A to, the Management Act (notice of intention to enquire into a return or claim or an amendment of a return or claim), and (b) the enquiry to any extent relates to the question whether or not a person falls to be treated as having retired on ill-health grounds by virtue of the foregoing provisions of this paragraph, then, without prejudice to any other powers of such an officer in relation to such an enquiry, an officer of the Board may at the same or any subsequent time by notice in writing require that person, within such time (which shall not be less than 30 days) as may be specified in the notice, to produce such evidence relating to the question mentioned in paragraph (b) above as may reasonably be specified in the notice.

• (4) In paragraph 10 (limitation of retirement relief in certain cases)—

• (a) in sub-paragraph (1) for “appears to the Board to be” there shall be substituted “ is ”; and

• (b) in sub-paragraph (2) for “the Board shall have regard” there shall be substituted “ regard shall be had ”.

67

In Schedule 8 to the Gains Act (leases) in paragraph 10(2) (presumption as to sums being paid by way of premium unless the contrary is shown) for the words following “in so far as” there shall be substituted “ other sufficient consideration for the payment can be shown to have been given ”.

The Finance Act 1993

68

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69

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70

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The Finance Act 1994

71

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SCHEDULE 21

The Taxes Act 1988

1

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2

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3

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4

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5

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6

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7

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8

• (1) Section 356B of the Taxes Act 1988 (residence basis: married couples) shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (2)(a) (election to be made before the end of the period of twelve months beginning with the end of the first year of assessment for which it is made or such longer period as the Board may in any particular case allow) for the words following “shall be made” there shall be substituted

on or before— (i) the first anniversary of the 31st January next following the first year of assessment for which it is made, or (ii) such later date as the Board may in any particular case allow,

.

• (3) In subsection (4)(b) (notice of withdrawal not to be given after the end of the period of twelve months beginning with the end of the first year of assessment for which it is given or such longer period as the Board may in any particular case allow) for the words following “shall not be given after” there shall be substituted—

(i) the first anniversary of the 31st January next following the year of assessment for which it is given, or (ii) such later date as the Board may in any particular case allow, and

.

9

In section 356C(6) of the Taxes Act 1988, for paragraph (a) (election to have effect for the period in which it is made and subsequent periods) there shall be substituted—

(a) shall be made on or before the first anniversary of the 31st January next following the year of assessment in which falls the first period for which it is made and shall have effect for that period and subsequent periods,

.

10

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11

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12

In section 471 of the Taxes Act 1988 (exchange of securities in connection with conversion operations, nationalisation etc.) for subsection (2) (tax treatment under subsection (1) not to apply to a person who gives notice to the inspector that he desires not to be treated as mentioned in that subsection) there shall be substituted—

(2) Subsection (1) above shall not apply to a person who elects, by notice given to an officer of the Board, not to be treated as mentioned in that subsection. (2A) A notice under subsection (2) above— (a) for the purposes of income tax, shall be given on or before the first anniversary of the 31st January next following the year of assessment in whose basis period the exchange takes place; (b) for the purposes of corporation tax, shall be given no later than two years after the end of the accounting period in which the exchange takes place. (2B) In paragraph (a) of subsection (2A) above “basis period” means— (a) in relation to a year of assessment for which a basis period is given by sections 60 to 63, that basis period; (b) in relation to a year of assessment for which no basis period is given by those sections, the year of assessment.

13

• (1) In section 472 of the Taxes Act 1988 (distribution of securities issued in connection with nationalisation etc.) in subsection (1) (dealer to be treated for tax purposes in the manner specified in subsections (2) and (3), unless he gives notice to the inspector that he desires not to be so treated) for “gives notice to the inspector not later than two years after the end of the chargeable period in which the distribution takes place that he desires” there shall be substituted “ elects, by notice given to an officer of the Board, ”.

• (2) After subsection (3) of that section there shall be inserted—

(3A) A notice under subsection (1) above— (a) for the purposes of income tax, shall be given on or before the first anniversary of the 31st January next following the year of assessment in whose basis period the distribution takes place; (b) for the purposes of corporation tax, shall be given no later than two years after the end of the accounting period in which the distribution takes place. (3B) In paragraph (a) of subsection (3A) above “basis period” means— (a) in relation to a year of assessment for which a basis period is given by sections 60 to 63, that basis period; (b) in relation to a year of assessment for which no basis period is given by those sections, the year of assessment.

14

• (1) Section 504 of the Taxes Act 1988 shall be amended in accordance with the following provisions of this paragraph.

• (2) In subsection (6) (claim to be made within two years after the year of assessment or accounting period in which holiday accommodation is let) for “two years after that year or period” there shall be substituted “ the time specified in subsection (6A) below ”.

• (3) After subsection (6) there shall be inserted—

(6A) The time mentioned in subsection (6) above is— (a) in the case of a claim for the purposes of income tax, the period ending with the first anniversary of the 31st January next following the year of assessment in which the accommodation was let; (b) in the case of a claim for the purposes of corporation tax, the period of two years beginning at the end of the accounting period in which the accommodation was let.

15

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16

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17

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18

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19

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20

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21

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22

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23

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24

In Schedule 11 to the Taxes Act 1988, in paragraph 12 (election to be made by notice given to the inspector within six years after the year of assessment in which payment made) for “the inspector within six years after” there shall be substituted “ an officer of the Board on or before the fifth anniversary of the 31st January next following ”.

The Finance Act 1988 (c. 39)

25

In section 39(2)(b) of the Finance Act 1988 (election to be made not later than twelve months after the end of the first year of assessment for which it is to have effect) for “not later than twelve months after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”.

The Capital Allowances Act 1990 (c. 1)

26

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27

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28

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29

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30

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31

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32

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33

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34

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

35

In section 35(6) of the Taxation of Chargeable Gains Act 1992 (elections under section 35(5) to be made by notice to the inspector within period ending 2 years after the end of the year of assessment or accounting period in which the disposal is made or at such later time as the Board may allow)—

• (a) for “the inspector” there shall be substituted “ an officer of the Board ”; and

• (b) for paragraphs (a) and (b) there shall be substituted—

(a) in the case of an election for the purposes of capital gains tax, with the first anniversary of the 31st January next following the year of assessment in which the disposal is made; (aa) in the case of an election for the purposes of corporation tax, 2 years after the end of the accounting period in which the disposal is made; or (b) in either case, at such later time as the Board may allow;

.

36

In section 161 of the Taxation of Chargeable Gains Act 1992 (appropriations to and from stock) after subsection (3) there shall be inserted—

(3A) An election under subsection (3) above shall be made— (a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which ends the period of account in which the asset is appropriated for the purposes of the trade as trading stock; (b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the asset is appropriated for the purposes of the trade as trading stock; and in paragraph (a) above “period of account” means a period for which the accounts of the trade are made up.

37

In section 242 of the Taxation of Chargeable Gains Act 1992 (small part disposals) after subsection (2) there shall be inserted—

(2A) A claim under subsection (2) above shall be made— (a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the transfer is made; (b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the transfer is made.

38

In section 243 of the Taxation of Chargeable Gains Act 1992 (part disposal to authority with compulsory powers) after subsection (2) there shall be inserted—

(2A) A claim under subsection (2) above shall be made— (a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the transfer is made; (b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the transfer is made.

39

In section 244 of the Taxation of Chargeable Gains Act 1992 (part disposal: consideration exceeding allowable expenditure) after subsection (2) there shall be inserted—

(3) An election under subsection (2)(b) above shall be made— (a) for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the part disposal is made; (b) for the purposes of corporation tax, within 2 years after the end of the accounting period in which the part disposal is made.

40

In section 253 of the Taxation of Chargeable Gains Act 1992 (relief for loans to traders) after subsection (4) there shall be inserted—

(4A) A claim under subsection (4) above shall be made— (a) for the purposes of capital gains tax, on or before the fifth anniversary of the 31st January next following the year of assessment in which the payment was made; (b) for the purposes of corporation tax, within 6 years after the end of the accounting period in which the payment was made.

41

In section 279 of the Taxation of Chargeable Gains Act 1992 (foreign assets: delayed remittances) for subsection (5) (no claim under section 279 to be made more than 6 years after end of year of assessment in which chargeable gain accrues) there shall be substituted—

(5) No claim under this section in respect of a chargeable gain shall be made— (a) in the case of a claim for the purposes of capital gains tax, at any time after the fifth anniversary of the 31st January next following the year of assessment in which the gain accrues; or (b) in the case of a claim for the purposes of corporation tax, more than 6 years after the end of the accounting period in which the gain accrues.

42

• (1) Schedule 2 to the Taxation of Chargeable Gains Act 1992 shall be amended in accordance with the following provisions of this paragraph.

• (2) In paragraph 4 (election for pooling) in sub-paragraph (11) (election to be made by notice to the inspector not later than the expiration of 2 years from the end of the year of assessment or accounting period of a company in which the first relevant disposal is made, or such further time as the Board may allow) for the words following “notice to” there shall be substituted

an officer of the Board given— (a) in the case of an election for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the first relevant disposal is made; (b) in the case of an election for the purposes of corporation tax, not later than the expiration of 2 years from the end of the accounting period in which the first relevant disposal is made; or (c) in either case, within such further time as the Board may allow.

• (3) In paragraph 17 (election for valuation at 6th April) in sub-paragraph (3) (election to be made by notice to the inspector given within 2 years from the end of the year of assessment or accounting period of a company in which the disposal is made, or such further time as the Board may by notice allow) for the words following “by notice to” there shall be substituted

an officer of the Board given— (a) in the case of an election for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the disposal is made; (b) in the case of an election for the purposes of corporation tax, within 2 years from the end of the accounting period in which the disposal is made; or (c) in either case, within such further time as the Board may by notice allow.

43

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44

• (1) Schedule 6 to the Taxation of Chargeable Gains Act 1992 (retirement relief etc.) shall be amended in accordance with the following provisions of this paragraph.

• (2) In paragraph 2(1) (election to be made by notice given to the Board not more than 2 years after the end of the year of assessment in which the disposal occurred) for “not more than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”.

• (3) In paragraph 5(2) (claim for relief to be made not later than 2 years after the end of the year of assessment in which the disposal occurred) for “not later than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”.

• (4) In paragraph 12(5)(b) (election to be made by giving notice to the inspector not later than 2 years after the end of the year of assessment in which capital distribution received)—

• (a) for “not later than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”; and

• (b) for “the inspector” there shall be substituted “ an officer of the Board ”.

• (5) In paragraph 16 (aggregation of spouse’s interest in the business: election to be made by giving notice to the inspector not later than 2 years after the end of the year of assessment in which material disposal occurred)—

• (a) in sub-paragraph (1)(e) for “not later than 2 years after the end of” there shall be substituted “ on or before the first anniversary of the 31st January next following ”; and

• (b) in sub-paragraph (2) for “the inspector” there shall be substituted “ an officer of the Board ”.

The Finance (No. 2) Act 1992 (c. 48)

45

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46

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47

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The Finance Act 1994 (c. 9)

48

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SCHEDULE 22

The Taxes Management Act 1970

1

The Taxes Management Act 1970 shall be amended in accordance with paragraphs 2 to 10 below.

2

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3

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4

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5

In section 33A (error or mistake in partnership statement), for subsection (8) there shall be substituted the following subsections—

(8) Subject to subsection (8A) below, the determination of the Special Commissioners of an appeal under subsection (6) above shall be final and conclusive (notwithstanding any provision having effect by virtue of section 56B of this Act). (8A) Subsection (8) above does not apply in relation to a point of law arising in connection with the computation of profits.

6

Section 42(12) and Schedule 2 (Commissioners to whom appeal lies where appeal is against amendment of claim not included in return) shall be omitted.

7

For section 47 there shall be substituted the following sections—

(46B) (1) In so far as the question in dispute on an appeal to which this section applies is a question which under this section is to be determined by the Special Commissioners, the question shall be determined by them. (2) This section applies to— (a) an appeal against an amendment under section 28A(2) or (4) of this Act of a self-assessment; (b) an appeal against a decision contained in a notice under section 28A(4A) of this Act disallowing a claim or election in whole or in part; (c) an appeal against an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement; (d) an appeal against an assessment to tax which is not a self-assessment; (e) an appeal against an amendment under paragraph 7(3) of Schedule 1A to this Act of a claim or election made otherwise than by being included in a return; (f) an appeal against a decision contained in a notice under paragraph 7(3A) of Schedule 1A to this Act disallowing in whole or in part a claim or election made otherwise than by being included in a return. (3) Any question— (a) of the value of any shares or securities in a company resident in the United Kingdom, other than shares or securities quoted in The Stock Exchange Daily Official List, and (b) arising in relation to the taxation of chargeable gains (whether under capital gains tax or corporation tax) or in relation to a claim under the 1992 Act, is a question to be determined by the Special Commissioners. (4) Any question as to the application of any of the following provisions of the principal Act is a question to be determined by the Special Commissioners— (a) Chapter IA or IB of Part XV (settlements); (b) Part XVI (administration of estates); (c) sections 740 and 743(1) (liability in respect of transfer of assets abroad); (d) section 747(4)(a) (liability in respect of controlled foreign company). (5) Any question as to the application of— (a) section 830 of the principal Act, or (b) section 276 of the 1992 Act, (liability in relation to territorial sea and designated areas) is a question to be determined by the Special Commissioners. (46C) (1) In so far as the question in dispute on an appeal to which this section applies concerns a claim made— (a) to the Board, or (b) under any of the provisions of the principal Act listed in subsection (3) below, the question shall be determined by the Special Commissioners. (2) This section applies to— (a) an appeal against an amendment under section 28A(2) or (4) of this Act of a self-assessment; (b) an appeal against an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement. (3) The provisions of the principal Act mentioned in subsection (1) above are— (a) section 121(1) and (2) (management expenses of owner of mineral rights); (b) sections 459 and 460 (exemption for certain friendly societies); (c) section 467 (exemption for certain trade unions and employers’ associations); (d) sections 527, 534, 536 and 538 (reliefs in respect of royalties, copyright payments etc.); (e) Chapter I of Part XVIII. (46D) (1) In so far as the question in dispute on an appeal to which this section applies— (a) is a question of the value of any land or of a lease of land, and (b) arises in relation to the taxation of chargeable gains (whether under capital gains tax or corporation tax) or in relation to a claim under the 1992 Act, the question shall be determined by the relevant Lands Tribunal. (2) This section applies to— (a) an appeal against an amendment under section 28A(2) or (4) of this Act of a self-assessment; (b) an appeal against a decision contained in a notice under section 28A(4A) of this Act disallowing a claim or election in whole or in part; (c) an appeal against an amendment under section 28B(3) or 30B(1) of this Act of a partnership statement; (d) an appeal against an assessment to tax which is not a self-assessment; (e) an appeal against an amendment under paragraph 7(3) of Schedule 1A to this Act of a claim or election made otherwise than by being included in a return; (f) an appeal against a decision contained in a notice under paragraph 7(3A) of Schedule 1A to this Act disallowing in whole or in part a claim or election made otherwise than by being included in a return. (3) In this section “the relevant Lands Tribunal” means— (a) in relation to land in England and Wales, the Lands Tribunal; (b) in relation to land in Scotland, the Lands Tribunal for Scotland; (c) in relation to land in Northern Ireland, the Lands Tribunal for Northern Ireland.

8

In section 57(3)(c) (power to make regulations authorising conditional decisions where more than one tribunal is determining questions in the proceedings), for “section 47” there shall be substituted “ section 46B, 46C or 46D ”.

9

In Schedule 1A (claims not included in returns), after paragraph 9 there shall be inserted the following paragraphs—

(10) An appeal against an amendment under paragraph 7(3) above of a claim made— (a) to the Board, (b) under Part XVI of the principal Act (administration of estates), or (c) under any of the provisions of the principal Act listed in section 46C(3) of this Act, shall be to the Special Commissioners. (11) (1) Subject to paragraph 10 above and the following provisions of this paragraph, an appeal under paragraph 9(1) above shall be to the General Commissioners. (2) The appellant may elect (in accordance with section 46(1) of this Act) to bring the appeal before the Special Commissioners. (3) Such an election shall be disregarded if— (a) the appellant and the officer of the Board agree in writing, at any time before the determination of the appeal, that it is to be disregarded; or (b) the General Commissioners have given a direction under sub-paragraph (5) below and have not revoked it. (4) At any time before the determination of an appeal in respect of which an election has been made an officer of the Board after giving notice to the appellant may refer the election to the General Commissioners. (5) On any such reference the Commissioners shall, unless they are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, give a direction that the election be disregarded. (6) If, at any time after the giving of such a direction (but before the determination of the appeal) the General Commissioners are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, they shall revoke the direction. (7) Any decision to give or revoke such a direction shall be final. (8) If— (a) a person bringing an appeal under paragraph 9(1) above has another appeal pending to either body of Commissioners concerning an assessment on him, and (b) the appeals relate to the same source of income, the appeal under paragraph 9(1) above shall be to the body of Commissioners before whom the appeal concerning the assessment is being brought. (9) This paragraph is subject to provision made by or under Part V of this Act.

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The following Schedule shall be substituted for Schedule 3—

SCHEDULE 3 (1) In this Schedule— “the relevant place” means the place referred to in section 44(1) of this Act, which is used to identify the General Commissioners before whom proceedings are to be brought; and “the taxpayer”, in relation to any proceedings, means the party to the proceedings who is neither the Board nor an officer of the Board. (2) (1) In the case of any proceedings relating to income tax or capital gains tax the relevant place is whichever of the places specified in sub-paragraph (2) below is identified— (a) except where the proceedings are commenced by an officer of the Board, by an election made by the taxpayer; and (b) where the proceedings are so commenced, by an election made by the officer. (2) Those places are— (a) the place (if any) in the United Kingdom which, at the time when the election is made, is the taxpayer’s place of residence; (b) the place (if any) which at that time is the taxpayer’s place of business in the United Kingdom; (c) the place (if any) in the United Kingdom which at that time is the taxpayer’s place of employment; and, in the case of a place of employment, it shall be immaterial for the purposes of this paragraph whether the proceedings in question relate to matters connected with the employment of the taxpayer. (3) Where the taxpayer fails to make an election for the purposes of this paragraph before the time limit given by paragraph 5 below, an officer of the Board may elect which of the places specified in sub-paragraph (2) above is to be the relevant place. (4) In sub-paragraph (2)(a) above “place of residence” means— (a) in relation to an election made by the taxpayer, his usual place of residence; and (b) in relation to an election made by an officer of the Board, the taxpayer’s usual place of residence or, if that is unknown, his last known place of residence. (5) In sub-paragraph (2)(b) above “place of business” means— (a) the place where the trade, profession, vocation or business with which the proceedings are concerned is carried on, or (b) if the trade, profession, vocation or business is carried on at more than one place, the head office or place where it is mainly carried on. (6) This paragraph does not apply in the case of any proceedings to which paragraph 3, 4 or 7 below applies. (3) (1) In the case of an appeal in exercise of a right of appeal conferred by regulations under section 203 of the principal Act, the relevant place is— (a) except in a case falling in paragraph (b) below, the place determined by the regulations, and (b) if the appellant elects for one of the places specified in paragraph 2(2) above to be the relevant place instead, the place identified by the election. (2) This paragraph does not apply in the case of any proceedings to which paragraph 4 or 7 below applies. (4) (1) In the case of the proceedings mentioned in sub-paragraph (2) below the relevant place is whichever of the places specified in sub-paragraph (3) below is identified— (a) except where the proceedings are commenced by an officer of the Board, by an election made by the company or other body corporate which is a party to the proceedings (“the corporate taxpayer”); and (b) where the proceedings are so commenced, by an election made by the officer. (2) The proceedings are— (a) proceedings relating to corporation tax; (b) proceedings relating to income tax which are proceedings to which a company resident in the United Kingdom and within the charge to corporation tax is a party; (c) proceedings relating to tax assessable under sections 419 and 420 of the principal Act (close company loans). (3) The places are— (a) the place where, at the time when the election is made, the corporate taxpayer carries on its trade or business; (b) the place where, at that time, the head office or principal place of business of the corporate taxpayer is situated; (c) the place where, at that time, the corporate taxpayer resides. (4) Where the corporate taxpayer fails to make an election for the purposes of this paragraph before the time limit given by paragraph 5 below, an officer of the Board may elect which of the places specified in sub-paragraph (3) above is to be the relevant place. (5) This paragraph does not apply in the case of any proceedings to which paragraph 7 below applies. (5) (1) An election by a taxpayer for the purposes of this Schedule shall be made by notice in writing to an officer of the Board. (2) The time limit for the making of such an election in relation to proceedings is— (a) the time when the taxpayer gives notice of appeal or, if the proceedings are not an appeal, otherwise commences the proceedings; or (b) such later date as the Board allows. (3) Such an election shall be irrevocable. (6) An election by an officer of the Board for the purposes of this Schedule shall be made by notice in writing served on the taxpayer. (7) In the case of proceedings relating to a partnership to which a partner of that partnership is a party, the relevant place is— (a) the place where the trade, profession or business of the partnership is carried on, or (b) if the trade, profession or business is carried on at more than one place, the place where it is mainly carried on. (8) (1) The Board may give a direction in relation to any class of proceedings specified in the direction that, notwithstanding the preceding provisions of this Schedule, the relevant place shall be taken to be a place in a division specified in the direction. (2) A direction given under this paragraph shall not have effect in relation to any proceedings unless an officer of the Board has served on the taxpayer a notice in writing stating the effect of the direction in relation to those proceedings. (3) A direction given under this paragraph shall not have effect if the taxpayer gives a notice in accordance with sub-paragraph (4) below objecting to the direction. (4) The taxpayer gives a notice in accordance with this sub-paragraph if he gives it in writing to the Board within the period of 30 days beginning with the day on which the notice under sub-paragraph (2) above was served on him. (9) (1) The Board may give directions for determining the relevant place in cases where — (a) the proceedings fall within paragraph 2, 4 or 7 above, but there is no place falling within paragraph 2(2), 4(3) or, as the case may be, paragraph 7; or (b) the relevant place would, apart from the direction, be a place outside the United Kingdom. (2) A direction given under this paragraph by the Board shall not have effect in relation to any proceedings unless an officer of the Board has served on the taxpayer a notice in writing stating the effect of the direction in relation to those proceedings. (3) A direction under sub-paragraph (1) above may be given in relation to— (a) proceedings falling within that sub-paragraph; (b) any class of such proceedings specified in the direction; or (c) proceedings specified in the direction. (10) The provisions of this Schedule have effect subject to sections 44(2), 46A and 57 of this Act, sections 102(1), 113(5), 343(10) and 783(9) of the principal Act and section 151 of the Capital Allowances Act 1990.

Section 102 of the Taxes Act 1988

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In section 102(1)(a) of the Taxes Act 1988 (cases where jurisdiction exercised by General Commissioners) for “both the trades, professions or vocations” there shall be substituted “ each of the persons whose trade, profession or vocation is one of those ”.

Commencement of Schedule

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This Schedule has effect in relation to—

• (a) any proceedings relating to the year 1996-97 or any subsequent year of assessment, and

• (b) any proceedings relating to an accounting period ending on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment).

SCHEDULE 23

Part I — Schedule 13 to the Taxes Act 1988

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Part II — Schedule 16 to the Taxes Act 1988

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