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
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
Changes on 2004-12-02
@@ -1235,12 +1235,9 @@
- (1) Subject to subsection (4) below, section 42 of the Finance (No. 2) Act 1992 shall have effect in relation to any expenditure to which this section applies as if the following subsection were substituted for subsections (4) and (5) (which for any period limit relief for film production and acquisition expenditure to a third, or a proportionately reduced fraction, of the relievable expenditure)—
> (4) The amount deducted for a relevant period under subsection (1) above shall not exceed so much of the total expenditure incurred by the claimant on—
> (a) the production of the film concerned, or
> (b) the acquisition of the master negative or any master tape or master disc of it,
> as has not already been deducted by virtue of section 40B or 41 above or this section.
- (2) Subject to subsection (3) below, this section applies to so much of any expenditure falling within paragraphs (a) and (b) of section 42(1) of the Finance (No. 2) Act 1992 as is expenditure in relation to which each of the following conditions is satisfied, that is to say—
> (4) The amount deducted for a relevant period under subsection (1) above shall not exceed so much of the total expenditure incurred by the claimant on the production or acquisition of the original master version of the film concerned, as has not already been deducted by virtue of section 40B or 41 above or this section.
- (2) This section applies to so much of any expenditure falling within paragraphs (a) and (b) of section 42(1) of the Finance (No. 2) Act 1992 as is expenditure in relation to which each of the following conditions is satisfied, that is to say—
- (a) the expenditure is expenditure incurred on or after 2nd July 1997 and before 2nd July 2005;
@@ -1248,23 +1245,15 @@
- (c) the film concerned is a film completed on or after 2nd July 1997.
- (3) This section does not apply to so much of any expenditure falling within section 42(3) of the Finance (No. 2) Act 1992 (acquisition expenditure) as exceeds the amount of the total production expenditure on the film concerned.
- (4) Where this section applies to only part of any expenditure to which subsection (2) or (3) of section 42 of the Finance (No. 2) Act 1992 applies in the case of any film, the amount deducted by virtue of subsection (1) of that section for a relevant period shall not exceed the sum of the following amounts—
- (a) the maximum amount of expenditure to which this section applies that is deductible for that period in accordance with subsection (1) above; and
- (b) the maximum amount specified in subsection (5) below.
- (5) The amount mentioned in subsection (4) above is the maximum amount which would be deductible for the relevant period in accordance with subsection (4) of section 42 of the Finance (No. 2) Act 1992 if—
- (a) in paragraphs (a) and (b) of that subsection (but not in paragraph (c)) the references to expenditure incurred by the claimant did not include references to any expenditure to which this section applies; and
- (b) the maximum amount mentioned in subsection (4)(a) above had already been deducted by virtue of that section.
- (6) In this section “*total production expenditure*”, in relation to any claim for relief under section 42 of the Finance (No. 2) Act 1992 in the case of any film, means (subject to subsections (6A) and (7) below) the total of all expenditure on the production of the film, whenever incurred and whether or not incurred by the claimant.
- (6A) For the purposes of this section the production expenditure on a film shall be taken not to include any amount that at the time the film is completed—
- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (6) In this section “total production expenditure” on a film, in relation to a claim for relief under section 42 of the Finance (No.2) Act 1992, means (subject to subsections (6A) and (7) below) the total of all expenditure incurred on the production of the original master version of the film, including expenditure incurred before 2nd July 1997 and whether or not incurred by the claimant.
- (6A) For the purposes of this section the expenditure incurred on the production of the original master version of a film shall be taken not to include any amount that at the time the film is completed—
- (a) has not been paid, and
@@ -1272,11 +1261,17 @@
- (7) For the purposes of this section where—
- (a) any part of the expenditure incurred by any person on the production of a film is incurred under or by virtue of any transaction directly or indirectly between that person and a person connected with him, and
- (a) any part of the expenditure incurred by any person on the production of the original master version of a film is incurred under or by virtue of any transaction directly or indirectly between that person and a person connected with him, and
- (b) that part of that expenditure might have been expected to have been of a greater amount (“*the arm’s length amount*”) if the transaction had been between independent persons dealing at arm’s length,
that part of that expenditure shall be deemed, for the purpose of determining the amount of the total production expenditure on the film, to have been expenditure of an amount equal to the arm’s length amount.
- (7A) In this section—
- “film” has the meaning given by section 43 of the Finance (No. 2) Act 1992;
- “original master version” is to be construed in accordance with that section.
- (8) Subsection (3) of section 43 of the Finance (No. 2) Act 1992 (time of completion of a film) shall apply for the purposes of this section as it applies for the purposes of sections 41 and 42 of that Act, but with the omission of paragraph (b) (completion on incurring acquisition expenditure) and the word “or” immediately preceding it.
@@ -3333,57 +3328,57 @@
## Part III — Statutory effect of resolutions etc
#### Charge to windfall tax.
#### The companies benefitting from windfalls.
#### 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.
#### Payments where vehicle information transmitted electronically.
#### Mortgage interest payments.
#### Withdrawal of relief on medical insurance premiums.
#### Losses etc not to be set against surplus franked investment income.
#### Estates in administration: distributions to which s.233(1) applies.
#### 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.
#### Rates of tax applicable to Schedule F income etc.
#### Trusts.
#### Estates of deceased persons in administration.
#### Transitional relief for charities etc.
#### Interest to be paid gross.
#### Paying and collecting agents.
#### Carry-back of trading losses.
#### Carry-back of loan relationship deficits.
#### . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
#### Rate of duty on beer.
#### Rates of duty on wine and made-wine.
#### Rates of duty on cider.
#### Rates of tobacco products duty.
#### Payments where vehicle information transmitted electronically.
#### Mortgage interest payments.
#### Limit on relief for interest for 1998-99.
#### Losses etc not to be set against surplus franked investment income.
#### Estates in administration: distributions to which s.233(1) applies.
#### Insurance companies and friendly societies.
#### Repeal of s.95(5) of the Taxes Act 1988: consequential amendments.
#### Purchase and sale of securities.
#### Rates of tax applicable to Schedule F income etc.
#### Trusts.
#### Estates of deceased persons in administration.
#### Tax credits and taxation of distributions: miscellaneous provisions.
#### Foreign income dividends.
#### Paying and collecting agents.
#### Carry-back of trading losses.
#### Carry-back of loan relationship deficits.
#### Restrictions on group relief.
#### Stamp duty on conveyance or transfer on sale.
#### Statutory effect of resolutions etc.
#### Interpretation.
### The Taxes Management Act 1970
@@ -3455,7 +3450,7 @@
### Schedule 20
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 relation to distributions made on or after 2nd July 1997.
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.
@@ -3577,12 +3572,6 @@
[^c4156161]: Words in s. 48(2)(a) substituted (11.5.2001) by [2001 c. 9](https://www.legislation.gov.uk/ukpga/2001/9), [s. 72](https://www.legislation.gov.uk/ukpga/2001/9/section/72)
[^c4156171]: [1992 c. 48](https://www.legislation.gov.uk/ukpga/1992/48).
[^c4156181]: [1992 c. 48](https://www.legislation.gov.uk/ukpga/1992/48).
[^c4813741]: Words in [s. 48(6)](https://www.legislation.gov.uk/ukpga/1997/58/section/48/6) substituted (24.7.2002) by [Finance Act 2002 (c. 23)](https://www.legislation.gov.uk/ukpga/2002/23), [s. 100(2)](https://www.legislation.gov.uk/ukpga/2002/23/section/100/2) (with application as mentioned in [s. 100(4)](https://www.legislation.gov.uk/ukpga/2002/23/section/100/4))
[^c4813761]: S. 48(6A) inserted (24.7.2002) by [Finance Act 2002 (c. 23)](https://www.legislation.gov.uk/ukpga/2002/23), [s. 100(3)](https://www.legislation.gov.uk/ukpga/2002/23/section/100/3) (with application as mentioned in [s. 100(4)](https://www.legislation.gov.uk/ukpga/2002/23/section/100/4))
[^c4156191]: S. 48(9) substituted (22.3.2001 with effect as mentioned in [s. 579(1)](https://www.legislation.gov.uk/ukpga/2001/2/section/579/1) of the amending Act) by [2001 c. 2](https://www.legislation.gov.uk/ukpga/2001/2), [s. 578](https://www.legislation.gov.uk/ukpga/2001/2/section/578), [Sch. 2 para. 99(2)](https://www.legislation.gov.uk/ukpga/2001/2/schedule/2/paragraph/99/2)
@@ -3697,6 +3686,22 @@
[^key-92de3236ed83dbf31cb3c265004cd592]: [Sch. 6 para. 2](https://www.legislation.gov.uk/ukpga/1997/58/schedule/6/paragraph/2) repealed (22.7.2004) (with effect in accordance with s. 42 of the amending Act) by [Finance Act 2004 (c. 12)](https://www.legislation.gov.uk/ukpga/2004/12), [Sch. 42 Pt. 2(3)](https://www.legislation.gov.uk/ukpga/2004/12/schedule/42/part/2/3)
[^key-25112509282686a20022c860f8c12843]: Words in s. 48(1) substituted (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 paras. 26(2)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/26/2), [31(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/31/3)
[^key-6b9dd9f83493195ff2afa8afd1d63560]: S. 48(6) substituted (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 paras. 26(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/26/3), [31(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/31/3)
[^key-b5fdac9e1fb10eea042702dbd943c4a0]: Words in s. 48(6A) substituted (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 paras. 26(4)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/26/4), [31(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/31/3)
[^key-b7a40b9b2a58b5e1011689f28111d0fd]: Words in s. 48(7)(a) inserted (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 paras. 26(5)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/26/5), [31(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/31/3)
[^key-fcb300ffc31d0359da4415cb1b832b1a]: S. 48(7A) inserted (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 paras. 26(6)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/26/6), [31(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/31/3)
[^key-6149eb820b3cc1b48af870295ab2bc14]: Word in s. 48(2) substituted (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 para. 10(1)(a)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/1/a)[(2)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/2) (with [Sch. 3 para. 10(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/3)[(4)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/4))
[^key-9b562d133dfb5820bd2688d6c6dea8cf]: S. 48(3) repealed (retrospective to 2.12.2004) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 para. 10(1)(b)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/1/b)[(2)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/2), [Sch. 11 Pt. 2(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/11/part/2/3) (with [Sch. 3 para. 10(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/3)[(4)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/4))
[^key-dcc73fc69884ffef17a4dca30d4a88f7]: S. 48(4)(5) repealed (2.12.2004 retrospective) by [Finance Act 2005 (c. 7)](https://www.legislation.gov.uk/ukpga/2005/7), [Sch. 3 para. 10(1)(c)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/1/c)[(2)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/2), [Sch. 11 Pt. 2(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/11/part/2/3) (with [Sch. 3 para. 10(3)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/3)[(4)](https://www.legislation.gov.uk/ukpga/2005/7/schedule/3/paragraph/10/4))
[^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.
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