LegalizeReform history
Finance (No. 2) Act 1997
20 versions
· 1997-07-31
2016-09-15
Finance (No. 2) Act 1997
2013-01-31
Finance (No. 2) Act 1997
2011-12-30
Finance (No. 2) Act 1997
2011-07-19
Finance (No. 2) Act 1997
Changes on 2011-07-19
@@ -711,49 +711,7 @@
##### 35
- (1) In any case where—
- (a) a qualifying distribution is made on or after 6th April 1999 and before 6th April 2004 by a company resident in the United Kingdom, and
- (b) the recipient of the distribution is a section 505 body, and
- (c) if the section 505 body falls within neither paragraph (b) nor paragraph (c) of subsection (3) below, entitlement to exemption from tax by virtue of subsection (1)(c)(iii) of section 505 of the Taxes Act 1988 (charities) in respect of the distribution is not prevented by anything in that section,
the section 505 body, on a claim made under this section to the Board, shall be entitled to be paid by the Board out of money provided by Parliament an amount determined in accordance with subsection (2) below.
- (2) The amount referred to in subsection (1) above is an amount equal to—
- (a) 21 per cent of the amount or value of the distribution if the distribution is made on or after 6th April 1999 and before 6th April 2000;
- (b) 17 per cent of that amount or value if the distribution is made on or after 6th April 2000 and before 6th April 2001;
- (c) 13 per cent of that amount or value if the distribution is made on or after 6th April 2001 and before 6th April 2002;
- (d) 8 per cent of that amount or value if the distribution is made on or after 6th April 2002 and before 6th April 2003;
- (e) 4 per cent of that amount or value if the distribution is made on or after 6th April 2003 and before 6th April 2004.
- (3) For the purposes of this section each of the following is a section 505 body—
- (a) any charitable company (as defined in section 506(1) of the Taxes Act 1988);
- (b) each of the bodies mentioned in section 507 of that Act (heritage bodies);
- (c) any Association of a description specified in section 508 of that Act (scientific research organisations).
- (4) Schedule 5 to this Act shall have effect to remove or restrict entitlement to payment under this section in certain circumstances.
- (5) For the purposes of Chapter I of Part XVII of the Taxes Act 1988 (cancellation of tax advantages) payment of an amount under this section shall be treated as repayment of tax.
- (6) Any entitlement of a section 505 body to a payment under subsection (1) above shall be subject to a power of the Board to determine (whether before or after any payment is made) that, having regard to the operation in relation to the distribution in question of section 703 of the Taxes Act 1988 (cancellation of tax advantages), that body is to be treated as if it had had no entitlement to that payment or to so much of it as they may determine.
- (7) No claim may be made under this section later than two years after the end of the chargeable period of the section 505 body in which the distribution is made.
- (8) An appeal may be brought against any decision of the Board under this section or under Schedule 5 to this Act by giving written notice to the Board within thirty days of receipt of written notice of the decision.
- (9) ... the provisions of the Taxes Management Act 1970 relating to appeals under the Tax Acts shall apply to an appeal under this section as they apply to those appeals.
- (10) Any payment of an amount under this section shall be treated for the purposes of section 252 of the Taxes Act 1988 (rectification of excessive set-off etc of ACT or tax credit) as a payment of tax credit.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Foreign income dividends
@@ -2108,55 +2066,37 @@
##### 1
This Part of this Schedule applies where a person (“*the claimant*”)—
- (a) would, apart from paragraph 2 below, be entitled to a payment under section 35(1) of this Act in respect of a distribution, and
- (b) his holding (together with any associated holding) of any one class of the shares, securities or rights by virtue of which he is entitled to the distribution amounts to not less than 10 per cent of that class.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 2
Where this Part of this Schedule applies, if any part of the distribution is not a part—
- (a) to which profits arising after the date of acquisition are attributable in accordance with section 236 of the Taxes Act 1988, or
- (b) in relation to which the date of acquisition is earlier than 6th April 1965,
then no payment under section 35(1) of this Act shall be made to the claimant in respect of the distribution.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 3
This Part of this Schedule applies to any qualifying distribution except any amount which is treated as such in accordance with section 209(3) or sections 210 and 211 of the Taxes Act 1988.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 4
Notwithstanding the repeal of sections 235 and 236 of the Taxes Act 1988 by this Act, section 236 of the Taxes Act 1988 as it applies in relation to distributions made before 6th April 1999 shall continue to apply for the purposes of this Part of this Schedule as it applies for the purposes of section 235 of the Taxes Act 1988 in relation to such distributions.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 5
For the purposes of this Part of this Schedule and section 236 of the Taxes Act 1988 as it applies by virtue of paragraph 4 above, the date of acquisition, in relation to any part of a distribution or profits attributable to it, is the date on which the shares, securities or rights by virtue of which a person is entitled to that part were acquired by him.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## Part II — Bonus issues
##### 6
A person (“*the claimant*”) who receives an amount treated as a distribution by virtue of section 209(3), 210 or 211(1) of the Taxes Act 1988 (“*a bonus issue*”) shall not be entitled to a payment under section 35(1) of this Act in respect of that distribution, except to the extent that paragraph 7 below otherwise provides.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 7
Paragraph 6 above shall not affect a person’s entitlement to a payment under section 35 of this Act in respect of that part (if any) of a bonus issue made in respect of any shares or securities which, if it had been declared as a dividend, would represent a normal return to the claimant—
- (a) on the consideration provided by him for the relevant shares or securities, that is to say, those in respect of which the bonus issue was made; and
- (b) if the relevant shares or securities are derived from shares or securities previously acquired by the claimant, on the shares or securities which were previously acquired.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
##### 8
For the purposes of paragraph 7 above—
- (a) if the consideration provided by the claimant for any of the relevant shares or securities was in excess of their market value at the time he acquired them, or if no consideration was provided by him for any of the relevant shares or securities, the claimant shall be taken to have provided for those shares or securities consideration equal to their market value at the time he acquired them; and
- (b) in determining whether an amount received by way of dividend exceeds a normal return, regard shall be had to the length of time previous to the receipt of that amount since the claimant first acquired any of the relevant shares or securities and to any dividends and other distributions made in respect of them during that time.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
## SCHEDULE 6
@@ -2528,19 +2468,19 @@
## Part III — Statutory effect of resolutions etc
#### The companies benefitting from windfalls.
#### Charge to windfall tax.
#### Interpretation of Part I.
#### Rate of duty on spirits.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rate of duty on beer.
#### Rates of duty on wine and made-wine.
#### Rates of hydrocarbon oil duties etc.
#### Rates of vehicle excise duty.
#### Rates of duty on cider.
#### Rates of tobacco products duty.
#### Payments where vehicle information transmitted electronically.
@@ -2550,10 +2490,10 @@
#### Losses etc not to be set against surplus franked investment income.
#### Insurance companies and friendly societies.
#### Taxation of dealers in respect of distributions etc.
#### Taxation of dealers in respect of distributions etc.
#### Repeal of s.95(5) of the Taxes Act 1988: consequential amendments.
#### Payments to companies under section 687 of the Taxes Act 1988.
@@ -2726,8 +2666,6 @@
[^c4155621]: S. 30(4): Power to modify conferred (31.7.1998) by [1988 c. 1](https://www.legislation.gov.uk/ukpga/1988/1), [s. 33B](https://www.legislation.gov.uk/ukpga/1988/1/section/33B) (as inserted (31.7.1998) by [1998 c. 36](https://www.legislation.gov.uk/ukpga/1998/36), [s. 77(1)](https://www.legislation.gov.uk/ukpga/1998/36/section/77/1))
[^c4155631]: [1970 c. 9](https://www.legislation.gov.uk/ukpga/1970/9).
[^c4155641]: 1997 c .16.
[^c4155681]: S. 37(6) repealed (31.7.1998 with effect as mentioned in Sch. 27 Pt. III(3) Note of the amending Act) by [1998 c. 36](https://www.legislation.gov.uk/ukpga/1998/36), [ss. 37(3)](https://www.legislation.gov.uk/ukpga/1998/36/section/37/3), [165](https://www.legislation.gov.uk/ukpga/1998/36/section/165), [Sch. 27 Pt. III(3)](https://www.legislation.gov.uk/ukpga/1998/36/schedule/27/part/III/3) Note; [S.I. 1999/619](https://www.legislation.gov.uk/uksi/1999/619), [art. 2](https://www.legislation.gov.uk/uksi/1999/619/article/2)
@@ -2882,8 +2820,6 @@
[^key-438a759e796df8b89f16f53f16e9fe42]: S. 33(1) repealed (6.4.2007) by [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3), [s. 1034(1)](https://www.legislation.gov.uk/ukpga/2007/3/section/1034/1), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2007/3/schedule/3/part/1) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2007/3/schedule/2))
[^key-e6deb63f51958f8ca08607a4166a32be]: Words in s. 35(3)(a) substituted (6.4.2007) by [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3), [s. 1034(1)](https://www.legislation.gov.uk/ukpga/2007/3/section/1034/1), [Sch. 1 para. 379](https://www.legislation.gov.uk/ukpga/2007/3/schedule/1/paragraph/379) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2007/3/schedule/2))
[^key-7b06a5010e253b1689703cc0daaedf44]: [S. 37(2)-(4)](https://www.legislation.gov.uk/ukpga/1997/58/section/37/2) repealed (6.4.2007) by [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3), [s. 1034(1)](https://www.legislation.gov.uk/ukpga/2007/3/section/1034/1), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2007/3/schedule/3/part/1) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2007/3/schedule/2))
[^key-1a09279e27b7a30c1db1b86f6b691502]: [S. 37(7)](https://www.legislation.gov.uk/ukpga/1997/58/section/37/7) repealed (6.4.2007) by [Income Tax Act 2007 (c. 3)](https://www.legislation.gov.uk/ukpga/2007/3), [s. 1034(1)](https://www.legislation.gov.uk/ukpga/2007/3/section/1034/1), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2007/3/schedule/3/part/1) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2007/3/schedule/2))
@@ -2920,8 +2856,6 @@
[^key-eebc2c3d2f9c7417f0c295f4e3d60fb1]: [S. 33(2)-(11)](https://www.legislation.gov.uk/ukpga/1997/58/section/33/2) repealed (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by [Corporation Tax Act 2009 (c. 4)](https://www.legislation.gov.uk/ukpga/2009/4), [s. 1329(1)](https://www.legislation.gov.uk/ukpga/2009/4/section/1329/1), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/3/part/1) (with [Sch. 2 Pts. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/1), [2](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/2))
[^key-0d73078e780a1dc6003e14ed5002a28d]: Words in [s. 35(9)](https://www.legislation.gov.uk/ukpga/1997/58/section/35/9) omitted (1.4.2009) by virtue of [The Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009 (S.I. 2009/56)](https://www.legislation.gov.uk/uksi/2009/56), [art. 1(2)](https://www.legislation.gov.uk/uksi/2009/56/article/1/2), [Sch. 1 para. 246(2)](https://www.legislation.gov.uk/uksi/2009/56/schedule/1/paragraph/246/2)
[^key-4ffc411e6f70cd5d16147ffeafe4b454]: [S. 40](https://www.legislation.gov.uk/ukpga/1997/58/section/40) repealed (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by [Corporation Tax Act 2009 (c. 4)](https://www.legislation.gov.uk/ukpga/2009/4), [s. 1329(1)](https://www.legislation.gov.uk/ukpga/2009/4/section/1329/1), [Sch. 1 para. 450](https://www.legislation.gov.uk/ukpga/2009/4/schedule/1/paragraph/450), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/3/part/1) (with [Sch. 2 Pts. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/1), [2](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/2))
[^key-97b3021efddb3652d38ddfe44db5cb17]: [Sch. 6 para. 12](https://www.legislation.gov.uk/ukpga/1997/58/schedule/6/paragraph/12) repealed (1.4.2009) (with effect in accordance with s. 1329(1) of the amending Act) by [Corporation Tax Act 2009 (c. 4)](https://www.legislation.gov.uk/ukpga/2009/4), [s. 1329(1)](https://www.legislation.gov.uk/ukpga/2009/4/section/1329/1), [Sch. 3 Pt. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/3/part/1) (with [Sch. 2 Pts. 1](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/1), [2](https://www.legislation.gov.uk/ukpga/2009/4/schedule/2/part/2))
@@ -2954,6 +2888,10 @@
[^key-61e938ca59bafe2d9af6db54644189e7]: [Sch. 4 para. 21](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/21) repealed (1.4.2010) (with effect in accordance with s. 381(1) of the amending Act) by [Taxation (International and Other Provisions) Act 2010 (c. 8)](https://www.legislation.gov.uk/ukpga/2010/8), [s. 381(1)](https://www.legislation.gov.uk/ukpga/2010/8/section/381/1), [Sch. 10 Pt. 13](https://www.legislation.gov.uk/ukpga/2010/8/schedule/10/part/13) (with [Sch. 9 paras. 1-9](https://www.legislation.gov.uk/ukpga/2010/8/schedule/9/paragraph/1), [22](https://www.legislation.gov.uk/ukpga/2010/8/schedule/9/paragraph/22))
[^key-042fd2d93086f7f769ff93f1265b3a6d]: [Sch. 5](https://www.legislation.gov.uk/ukpga/1997/58/schedule/5) repealed (19.7.2011) by [Finance Act 2011 (c. 11)](https://www.legislation.gov.uk/ukpga/2011/11), [Sch. 26 para. 1(1)](https://www.legislation.gov.uk/ukpga/2011/11/schedule/26/paragraph/1/1)
[^key-f99466a4ad09401e0a282fedba19ad93]: [S. 35](https://www.legislation.gov.uk/ukpga/1997/58/section/35) repealed (19.7.2011) by [Finance Act 2011 (c. 11)](https://www.legislation.gov.uk/ukpga/2011/11), [Sch. 26 para. 1(1)](https://www.legislation.gov.uk/ukpga/2011/11/schedule/26/paragraph/1/1)
[^key-96e1df48eadb29d19db370cfd0a93ff0]: [Sch. 3 para. 9](https://www.legislation.gov.uk/ukpga/1997/58/schedule/3/paragraph/9) repealed (31.1.2013) by [Statute Law (Repeals) Act 2013 (c. 2)](https://www.legislation.gov.uk/ukpga/2013/2), [s. 3(2)](https://www.legislation.gov.uk/ukpga/2013/2/section/3/2), [Sch. 1 Pt. 10](https://www.legislation.gov.uk/ukpga/2013/2/schedule/1/part/10) Group 1
These repeals have effect in accordance with section 15 of this Act.
@@ -3018,7 +2956,7 @@
#### Estates in administration: distributions to which s.233(1) applies.
#### Withdrawal of relief on medical insurance premiums.
#### Limit on relief for interest for 1998-99.
#### Losses etc not to be set against surplus franked investment income.
@@ -3048,10 +2986,10 @@
These repeals have effect in accordance with section 36 of, and Schedule 6 to, this Act.
#### Estates in administration: distributions to which s.233(1) applies.
#### Lloyd’s underwriters.
#### Lloyd’s underwriters.
#### Insurance companies and friendly societies.
#### Stamp duty on conveyance or transfer on sale.
@@ -3096,7 +3034,7 @@
#### Carry-back of trading losses.
#### Carry-back of loan relationship deficits.
#### Statutory effect of resolutions etc.
#### Stamp duty on conveyance or transfer on sale.
@@ -3108,7 +3046,7 @@
These repeals have effect in accordance with section 36 of, and Schedule 6 to, this Act.
#### Payments to companies under section 687 of the Taxes Act 1988.
#### Purchase and sale of securities.
#### Rates of tax applicable to Schedule F income etc.
@@ -3128,14 +3066,24 @@
These repeals have effect in accordance with section 36 of, and Schedule 6 to, this Act.
#### Rates of tax applicable to Schedule F income etc.
#### Trusts.
#### Foreign income dividends.
These repeals have effect in accordance with section 15 of this Act.
These repeals have effect in accordance with section 36 of, and Schedule 6 to, this Act.
These repeals have effect in accordance with section 20 of this Act (and, accordingly, the repeal of subsection (7B) of section 826 of the Income and Corporation Taxes Act 1988 has effect only where the earlier period mentioned in that subsection begins on or after 2nd July 1997).
These repeals have effect in accordance with section 36 of, and Schedule 6 to, this Act.
#### Carry-back of trading losses.
#### Stamp duty on conveyance or transfer on sale.
These repeals have effect in accordance with section 15 of this Act.
These repeals have effect for the year 1997-98 and subsequent years of assessment except in relation to the cases in which the relief that has been or may be given under section 54 of the Finance Act 1989 in respect of any payment is unaffected by the provisions of section 17(1) of this Act.
These repeals have effect in accordance with section 20 of this Act (and, accordingly, the repeal of subsection (7B) of section 826 of the Income and Corporation Taxes Act 1988 has effect only where the earlier period mentioned in that subsection begins on or after 2nd July 1997).
These repeals have effect in accordance with section 36 of, and Schedule 6 to, this Act.
2010-04-01
Finance (No. 2) Act 1997
2009-07-21
Finance (No. 2) Act 1997
2009-04-01
Finance (No. 2) Act 1997
2008-07-21
Finance (No. 2) Act 1997
2007-07-19
Finance (No. 2) Act 1997
2007-04-06
Finance (No. 2) Act 1997
2007-03-29
Finance (No. 2) Act 1997
2006-12-31
Finance (No. 2) Act 1997
2006-07-19
Finance (No. 2) Act 1997
2005-04-07
Finance (No. 2) Act 1997
2005-04-06
Finance (No. 2) Act 1997
2004-12-02
Finance (No. 2) Act 1997
2004-07-22
Finance (No. 2) Act 1997
2003-07-10
Finance (No. 2) Act 1997
2002-07-24
Finance (No. 2) Act 1997
1997-07-31
Finance (No. 2) Act 1997
original version
Text at this date