Legalize / United Kingdom / Finance (No. 2) Act 1997 / History

Reform history

Finance (No. 2) Act 1997

20 versions · 1997-07-31

2016-09-15

Finance (No. 2) Act 1997

View changes Text at this date

2013-01-31

Finance (No. 2) Act 1997

View changes Text at this date

2011-12-30

Finance (No. 2) Act 1997

View changes Text at this date

2011-07-19

Finance (No. 2) Act 1997

View changes Text at this date

2010-04-01

Finance (No. 2) Act 1997

View changes Text at this date

2009-07-21

Finance (No. 2) Act 1997

View changes Text at this date

2009-04-01

Finance (No. 2) Act 1997

View changes Text at this date

2008-07-21

Finance (No. 2) Act 1997

View changes Text at this date

2007-07-19

Finance (No. 2) Act 1997

View changes Text at this date

2007-04-06

Finance (No. 2) Act 1997

View changes Text at this date

2007-03-29

Finance (No. 2) Act 1997

View changes Text at this date

2006-12-31

Finance (No. 2) Act 1997

View changes Text at this date

2006-07-19

Finance (No. 2) Act 1997

View changes Text at this date

2005-04-07

Finance (No. 2) Act 1997

View changes Text at this date

2005-04-06

Finance (No. 2) Act 1997

View changes Text at this date

Changes on 2005-04-06

@@ -499,7 +499,7 @@

> (4B) Section 231(1) of the Taxes Act 1988 (entitlement to tax credit) shall not apply where the distribution there mentioned is a distribution in respect of any asset of a corporate member’s premiums trust fund.

> (4C) In this section “*UK distributions*” means dividends or other distributions of a company resident in the United Kingdom.

- (5) In section 20(1) of the Taxes Act 1988, as amended by section 24(10) below, in paragraph 2 of Schedule F (distribution in respect of which a person is entitled to a tax credit treated for the purposes of the Tax Acts, other than section 95(1), as representing income equal to the aggregate of the distribution and the tax credit) after “95(1)” there shall be inserted “ of this Act and section 219(4A) of the Finance Act 1994 ”.

- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (6) In section 231(1) of the Taxes Act 1988 (recipient of distribution made by UK resident company entitled to tax credit subject to sections 247 and 441A) after “441A,” there shall be inserted “ section 171(2B) of the Finance Act 1993 and section 219(4B) of the Finance Act 1994, ”.

@@ -558,7 +558,7 @@

- (9) For the sidenote there shall be substituted “ Taxation of dealers in respect of distributions etc. ”

- (10) In section 20(1) of the Taxes Act 1988, in paragraph 2 of Schedule F (distribution in respect of which a person is entitled to a tax credit treated for the purposes of the Tax Acts as representing income equal to the aggregate of the distribution and the tax credit) after “purposes of the Tax Acts” there shall be inserted “ (other than section 95(1)) ”.

- (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (11) In section 234 of the Taxes Act 1988 (information relating to distributions) in subsection (1), the words“but subject to section 95(1A)(c)” shall be omitted.

@@ -745,7 +745,7 @@

- (2) In subsection (1) (recipient of certain distributions to be entitled to tax credit equal to proportion of distribution corresponding to rate of ACT in force)—

- (a) after “where” there shall be inserted “ , in any year of assessment for which income tax is charged, ”; and

- (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (b) for “the rate of advance corporation tax in force for the financial year in which” there shall be substituted “ the tax credit fraction in force when ”.

@@ -757,23 +757,21 @@

- (5) In subsection (3) (which includes provision for payment of excess of tax credit over income tax liability to person not being a company resident in the UK)—

- (a) for “Subject to section 231A,” there shall be substituted “ Subject to subsection (3AA) below, ”; and

- (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (b) the words “and subject to subsections (3A) and (3D) below where the credit exceeds that income tax, to have the excess paid to him” shall cease to have effect.

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

> (3AA) For any year of assessment, the aggregate amount of the tax credits in respect of which claims are made under subsection (3) above by any person must not exceed the aggregate amount of the tax credits in respect of such qualifying distributions (if any) as are brought into charge to tax in the case of that person.

- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (7) In consequence of subsection (5) above, subsections (3A) to (3D) shall cease to have effect.

- (8) Section 231A of the Taxes Act 1988 (which is superseded by the foregoing provisions of this section) shall cease to have effect.

- (9) The amendments made by subsections (5) and (6) above do not affect the entitlement of a person who is not resident in the United Kingdom to payment in respect of a tax credit by virtue of arrangements having effect under section 788 of the Taxes Act 1988 (relief by agreement with other countries).

- (9) The amendments made by subsections (5) and (6) above and rewritten in section 397(3) of the Income Tax (Trading and Other Income) Act 2005 do not affect the entitlement of a person who is not resident in the United Kingdom to payment in respect of a tax credit by virtue of arrangements having effect under section 788 of the Taxes Act 1988 (relief by agreement with other countries).

- (10) Where—

- (a) arrangements having effect by virtue of section 788 of the Taxes Act 1988 confer on a person not resident in the United Kingdom the right to a tax credit under section 231 of the Taxes Act 1988 in respect of a dividend of a company resident in the United Kingdom, and

- (a) arrangements having effect by virtue of section 788 of the Taxes Act 1988 confer on a person not resident in the United Kingdom the right to a tax credit under section 397 of the Income Tax (Trading and Other Income) Act 2005 in respect of a dividend of a company resident in the United Kingdom, and

- (b) the arrangements contain provision for permitting—

@@ -1043,7 +1041,7 @@

- (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (7) In sections 722A(5) and 730C(9), and in paragraph 3A(2)(a) of Schedule 23A, (which all define “gilt-edged securities” by reference to section 51A of the Taxes Act 1988), for “51A” there shall be substituted, in each case, “ 50 ”.

- (7) In section 722A(5), and in paragraph 3A(2)(a) of Schedule 23A, (which define “gilt-edged securities” by reference to section 51A of the Taxes Act 1988), for “51A” there shall be substituted, in each case, “ 50 ”.

- (8) Subject to subsections (9) to (13) below, this section has effect in relation to payments of interest falling due on or after 6th April 1998.

@@ -1235,7 +1233,7 @@

- (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 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—

@@ -2384,51 +2382,28 @@

##### 4

- (1) In section 231 of the Taxes Act 1988 (tax credits for certain recipients of qualifying distributions) in subsection (1) (whose provisions are expressed to be subject to sections 247 and 441A) for “441A” there shall be substituted “ 469(2A) ”.

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

### Section 232

##### 5

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

### Section 233

##### 6

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

### Sections 235 to 237

##### 7

- (1) Sections 235 to 237 of the Taxes Act 1988 (distributions of exempt funds and bonus issues) shall cease to have effect.

- (2) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Section 232

##### 5

- (1) In section 232 of the Taxes Act 1988 (tax credits for non-UK residents) the following provisions shall cease to have effect—

- (a) subsection (2) (funds to which section 615(2)(b) or (c) applies); and

- (b) subsection (3) (sovereign powers, governments and international organisations).

- (2) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Section 233

##### 6

- (1) Section 233 of the Taxes Act 1988 (taxation of certain recipients of distributions and in respect of non-qualifying distributions) shall be amended as follows.

- (2) In subsections (1) to (1B), for the words “lower rate”, wherever occurring, there shall be substituted “ Schedule F ordinary rate ”.

- (3) In subsection (1B), for the words “rate applicable to trusts”, in both places where they occur, there shall be substituted “ Schedule F trust rate ”.

- (4) In subsection (2), in the definition of “*excess liability*”, for “were charged at the lower rate to the exclusion of the higher rate or, as the case may be, the rate applicable to trusts” there shall be substituted

> were charged—

> (a) in the case of income chargeable under Schedule F, at the Schedule F ordinary rate, and

> (b) in the case of any other income, at the lower rate,

> to the exclusion of the higher rate, the Schedule F upper rate or, as the case may be, the Schedule F trust rate

- (5) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Sections 235 to 237

##### 7

- (1) Sections 235 to 237 of the Taxes Act 1988 (distributions of exempt funds and bonus issues) shall cease to have effect.

- (2) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Section 238

##### 8

@@ -2445,19 +2420,7 @@

##### 10

- (1) Section 249 of the Taxes Act 1988 (stock dividends treated as income) shall be amended as follows.

- (2) In subsection (4) (taxation of individuals)—

- (a) in the words preceding paragraph (a), for “lower rate” there shall be substituted “ Schedule F ordinary rate ”;

- (b) in paragraph (a), for “lower rate” there shall be substituted “ Schedule F ordinary rate ”; and

- (c) in paragraph (c), after “as if it were income to which section 1A applies” there shall be inserted “ as it applies to income chargeable under Schedule F ”.

- (3) In subsection (6) (taxation of trustees) in paragraph (b) for “lower rate” there shall be substituted “ Schedule F ordinary rate ”.

- (4) This paragraph has effect in relation to share capital, within the meaning of section 249 of the Taxes Act 1988, issued on or after 6th April 1999.

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

### Section 421

@@ -2465,9 +2428,9 @@

- (1) In section 421 of the Taxes Act 1988 (taxation of borrower when loan under s.419 released etc) in subsection (1)—

- (a) in paragraphs (a) and (b), for the words “lower rate”, in both places where they occur, there shall be substituted “ Schedule F ordinary rate ”; and

- (b) in paragraph (c), after the words “as if it were income to which section 1A applies” there shall be inserted “ by virtue of subsection (2)(b) of that section ”.

- (a) in paragraphs (a) and (b), for the words “lower rate”, in both places where they occur, there shall be substituted “ Schedule F ordinary rate ”; ...

- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (2) This paragraph has effect in relation to the release or writing off of the whole or part of a debt on or after 6th April 1999.

@@ -2492,26 +2455,104 @@

##### 13

- (1) In section 549 of the Taxes Act 1988 (policies of life insurance etc: corresponding deficiency relief) in subsection (2) (which contains a definition of “*excess liability*”)—

- (a) after “(so far as applicable in accordance with section 1A) the lower rate” there shall be inserted “ or the Schedule F ordinary rate ”; and

- (b) for “any higher rate” there shall be substituted “ the higher rate and the Schedule F upper rate ”.

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

### Section 660C

##### 14

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

### Section 687

##### 15

- (1) In section 687 of the Taxes Act 1988 (payments under discretionary trusts) subsection (3) (amounts which may be set against the amount assessable on trustees) shall be amended as follows.

- (2) For paragraphs (a) and (aa) there shall be substituted—

> (a) the amount of any tax on income arising to the trustees which (not being income the tax on which falls within paragraphs (a1) to (bc) below) is charged in pursuance of section 686 at the rate applicable to trusts or the Schedule F trust rate;

> (a1) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any income of the trustees chargeable under Schedule F;

> (a2) the amount of tax which, by virtue of section 233(1A), is charged, at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate, on the amount or value of the whole or any part of any qualifying distribution included in the income arising to the trustees;

> (aa) the amount of tax which, by virtue of section 233(1B), is charged, at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate, on the amount or value of the whole or any part of any non-qualifying distribution included in the income arising to the trustees;

- (3) For paragraph (b) there shall be substituted—

> (b) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any sum treated, under section 249(6), as income of the trustees;

- (4) After paragraph (b) there shall be inserted—

> (bb) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any sum treated under section 421(1)(a) as income of the trustees;

> (bc) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any sum treated under section 686A as income of the trustees;

- (5) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 689B

##### 16

- (1) Section 689B of the Taxes Act 1988 (order in which expenses of trustees are to be set against income) shall be amended as follows.

- (2) In subsection (1)—

- (a) in paragraph (a) (set against income within subsection (2) or (3) before other income) after “subsection (2)” there shall be inserted “ , (2A) ”;

- (b) in paragraph (b) (set against income within subsection (2) before subsection (3)) after “subsection (2)” there shall be inserted “ or (2A) ”; and

- (c) at the end of paragraph (b) there shall be added

> and

> (c) as set against so much (if any) of any income as is income falling within subsection (2) below before being set against income falling within subsection (2A) below

- (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (4) After subsection (2) there shall be inserted—

> (2A) Income falls within this subsection if it is income to which section 1A applies by virtue of its being equivalent foreign income falling within subsection (3)(b) of that section and chargeable under Case V of Schedule D.

- (5) In subsection (3) (income to which section 1A applies but which does not fall within subsection (2) of s.689B) after “subsection (2)” there shall be inserted “ or (2A) ”.

- (6) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 699

##### 17

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

### Section 703

##### 18

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

### Section 709

##### 19

- (1) In section 709 of the Taxes Act 1988 (meaning of tax advantage etc) in subsection (2A) (references to a relief and to repayment of tax to include references to a tax credit and payment of any amount in respect of a tax credit) the words “and to a repayment of tax”, “respectively” and “and to a payment of any amount in respect of a tax credit” shall be omitted.

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 660C

##### 14

- (1) Section 660C of the Taxes Act 1988 (settlements where the settlor retains an interest: nature of the charge on settlor) shall be amended as follows.

- (2) In subsection (1) (tax to be charged under Case VI of Schedule D) for “under Case VI of Schedule D” there shall be substituted—

> (a) in the case of income falling within subsection (1A) below, as if it were income to which section 1A applies by virtue of subsection (2)(b) of that section; and

> (b) in the case of any other income, under Case VI of Schedule D

### Section 743

##### 20

- (1) Section 743 of the Taxes Act 1988 (provisions supplemental to section 739 etc) shall be amended as follows.

- (2) In subsection (1) (subject to an exception for income which has borne tax by deduction at the basic rate or the lower rate, income chargeable under s.739 to be charged under Case VI of Schedule D)—

- (a) for “or the lower rate” there shall be substituted “ , the lower rate or the Schedule F ordinary rate ”; and

- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (3) After subsection (1) there shall be inserted—

@@ -2526,216 +2567,87 @@

- (4) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 687

##### 15

- (1) In section 687 of the Taxes Act 1988 (payments under discretionary trusts) subsection (3) (amounts which may be set against the amount assessable on trustees) shall be amended as follows.

- (2) For paragraphs (a) and (aa) there shall be substituted—

> (a1) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any income of the trustees chargeable under Schedule F;

### Section 819

##### 21

- (1) In section 819 of the Taxes Act 1988 (old references to standard rate tax) in subsection (2)—

- (a) after “(so far as applicable in accordance with section 1A) the lower rate” there shall be inserted “ or the Schedule F ordinary rate ”; and

- (b) for “any higher rate” there shall be substituted “ the higher rate and the Schedule F upper rate ”.

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 832

##### 22

- (1) In section 832 of the Taxes Act 1988 (interpretation of the Tax Acts) the following definitions shall be inserted in subsection (1) at the appropriate places—

> 1. “*the Schedule F ordinary rate*” shall be construed in accordance with section 1B(2);

;

> (b) “*the Schedule F trust rate*” shall be construed in accordance with section 686(1A);

;

> (c) “*the Schedule F upper rate*” shall be construed in accordance with section 1B(2);

- (3) For paragraph (b) there shall be substituted—

> (b) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any sum treated, under section 249(6), as income of the trustees;

- (4) After paragraph (b) there shall be inserted—

> (bb) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any sum treated under section 421(1)(a) as income of the trustees;

> (bc) the amount of tax at a rate equal to the difference between the Schedule F ordinary rate and the Schedule F trust rate on any sum treated under section 686A as income of the trustees;

- (5) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 689B

##### 16

- (1) Section 689B of the Taxes Act 1988 (order in which expenses of trustees are to be set against income) shall be amended as follows.

- (2) In subsection (1)—

- (a) in paragraph (a) (set against income within subsection (2) or (3) before other income) after “subsection (2)” there shall be inserted “ , (2A) ”;

- (b) in paragraph (b) (set against income within subsection (2) before subsection (3)) after “subsection (2)” there shall be inserted “ or (2A) ”; and

- (c) at the end of paragraph (b) there shall be added

> and

> (c) as set against so much (if any) of any income as is income falling within subsection (2) below before being set against income falling within subsection (2A) below

- (3) In subsection (2) (income against which expenses are to be first set)—

- (a) before paragraph (a) there shall be inserted—

> (za) so much of the income of the trustees as is income chargeable under Schedule F;

; and

- (b) after paragraph (a) there shall be inserted—

> (aa) so much of the income of the trustees as is a non-qualifying distribution, within the meaning of section 233(1B);

- (4) After subsection (2) there shall be inserted—

- (5) In subsection (3) (income to which section 1A applies but which does not fall within subsection (2) of s.689B) after “subsection (2)” there shall be inserted “ or (2A) ”.

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Schedule 13

##### 23

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

### The Taxation of Chargeable Gains Act 1992

### Section 4

##### 24

- (1) Section 4 of the Taxation of Chargeable Gains Act 1992 (rates of capital gains tax) shall be amended as follows.

- (2) In subsection (2) (case where income tax is chargeable at the higher rate on part of income of an individual) after “the higher rate”, where first occurring, there shall be inserted “ or the Schedule F upper rate ”.

- (3) In subsection (3) (case where income tax is not chargeable at the higher rate on income of an individual but his gains exceed the unused basic rate band) after “the higher rate”, where first occurring, there shall be inserted “ or the Schedule F upper rate ”.

- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (6) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 699

##### 17

- (1) In section 699 of the Taxes Act 1988 (relief from higher rate tax for inheritance tax on accrued income) in subsection (2) (definition of “*excess liability*”)—

- (a) after “(so far as applicable in accordance with section 1A) the lower rate” there shall be inserted “ or the Schedule F ordinary rate ”; and

- (b) for “any higher rate” there shall be substituted “ the higher rate and the Schedule F upper rate ”.

### Section 6

##### 25

- (1) In section 6 of the Taxation of Chargeable Gains Act 1992 (other special cases) in subsection (3) (cases where income includes gains on policies of life insurance etc) in paragraph (b) after “as if no income were chargeable at the higher rate” there shall be inserted “ or the Schedule F upper rate ”.

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 703

##### 18

## Part II — Insurance companies and Lloyd’s underwriters

### The Taxes Act 1988

### Section 231B

##### 26

- (1) In section 231B of the Taxes Act 1988, in subsection (4)(b), the words “or 441A(7)” shall be omitted.

- (2) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Section 434

##### 27

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

### Section 709

##### 19

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 743

##### 20

- (1) Section 743 of the Taxes Act 1988 (provisions supplemental to section 739 etc) shall be amended as follows.

- (a) for “or the lower rate” there shall be substituted “ , the lower rate or the Schedule F ordinary rate ”; and

- (b) for “under Case VI of Schedule D” there shall be substituted—

> (a) in the case of income falling within subsection (1A) below, as if it were income to which section 1A applies by virtue of subsection (2)(b) of that section; and

> (b) in the case of any other income, under Case VI of Schedule D

- (3) After subsection (1) there shall be inserted—

> (1A) Income falls within this subsection if it is—

> (a) income chargeable under Schedule F;

> (b) income to which section 1A applies by virtue of its being equivalent foreign income falling within subsection (3)(b) of that section and chargeable under Case V of Schedule D;

> (c) a distribution in relation to which section 233(1) applies;

> (d) a qualifying distribution whose amount or value is determined in accordance with section 233(1A);

> (e) a non-qualifying distribution, within the meaning of section 233(1B);

> (f) income treated as arising by virtue of section 249;

> (g) income treated as received by virtue of section 421(1)(a).

- (4) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 819

##### 21

- (1) In section 819 of the Taxes Act 1988 (old references to standard rate tax) in subsection (2)—

- (a) after “(so far as applicable in accordance with section 1A) the lower rate” there shall be inserted “ or the Schedule F ordinary rate ”; and

- (b) for “any higher rate” there shall be substituted “ the higher rate and the Schedule F upper rate ”.

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 832

##### 22

- (1) In section 832 of the Taxes Act 1988 (interpretation of the Tax Acts) the following definitions shall be inserted in subsection (1) at the appropriate places—

> 1. “*the Schedule F ordinary rate*” shall be construed in accordance with section 1B(2);

;

> (b) “*the Schedule F trust rate*” shall be construed in accordance with section 686(1A);

;

> (c) “*the Schedule F upper rate*” shall be construed in accordance with section 1B(2);

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Schedule 13

##### 23

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

### The Taxation of Chargeable Gains Act 1992

### Section 4

##### 24

- (1) Section 4 of the Taxation of Chargeable Gains Act 1992 (rates of capital gains tax) shall be amended as follows.

- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

- (6) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

### Section 6

##### 25

- (2) This paragraph has effect for the year 1999-00 and subsequent years of assessment.

## Part II — Insurance companies and Lloyd’s underwriters

### The Taxes Act 1988

### Section 231B

##### 26

- (1) In section 231B of the Taxes Act 1988, in subsection (4)(b), the words “or 441A(7)” shall be omitted.

- (2) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Section 434

##### 27

- (1) In section 434 of the Taxes Act 1988 (franked investment income etc) in subsection (1A) (which modifies paragraph 2 of Schedule F) the words from “but this subsection” onwards shall cease to have effect.

- (2) This paragraph has effect in relation to distributions made on or after 6th April 1999.

### Section 441A

@@ -3328,25 +3240,25 @@

## 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.

#### Mortgage interest payments.

#### 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.

@@ -3702,8 +3614,84 @@

[^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-3aa504bb87e3ec0b5fed407e65ad9b55]: S. 22(5) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-7b6073990c3b6f18b875358fd5d79ef0]: S. 24(10) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-2b059a750e843bd9966d710a0052f57d]: S. 30(2)(a) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-85402a9c3d2652264761a722e08ce6e5]: S. 30(5)(a) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-f978685f35c2de34c06f60268f0dc08b]: S. 30(6) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-37f0379321d004a43380473bc36c33d4]: Words in s. 30(9) inserted (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 1 para. 496(a)](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/496/a) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-bfff500bca8bd27c70bbffe7007b4945]: Words in s. 30(10)(a) substituted (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 1 para. 496(b)](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/496/b) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-7fbee7b6f37f685af80cf80e59014d04]: Words in s. 37(7) substituted (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 1 para. 497](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/497) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-f864638bbb592a2783d9149e2c0887c0]: Words in s. 48(1) inserted (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 1 para. 498](https://www.legislation.gov.uk/ukpga/2005/5/schedule/1/paragraph/498) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-4229c444ca99c2e081bfea85f54f76b7]: [Sch. 4 para. 4](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/4) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-ea2d553dbbb872621243958b3460270f]: [Sch. 4 para. 5](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/5) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-377693e8cf6ef62b70c287ed542d6d5c]: [Sch. 4 para. 6](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/6) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-cc4ca35a151a737a678519eb6549b2b9]: [Sch. 4 para. 10](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/10) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-fc19c574995708a9039e17edc02b6f0a]: Sch. 4 para. 11(1)(b) and preceding word repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-3488cf3952721762a22266a3b818b1dd]: [Sch. 4 para. 13](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/13) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-4e0811c551703a8bd2e633782c78be73]: [Sch. 4 para. 14](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/14) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-7f7d47798731b92dd814533b065fd65e]: [Sch. 4 para. 16(3)](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/16/3) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-9e475462dacf9ba84c796662c572b15f]: [Sch. 4 para. 17](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/17) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-198ff9d9c775b38304a6a6e2cb86245a]: [Sch. 4 para. 20(2)(b)](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/20/2/b) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^key-fff401c1bcb213080ac6743d8389bd80]: [Sch. 4 para. 27](https://www.legislation.gov.uk/ukpga/1997/58/schedule/4/paragraph/27) repealed (6.4.2005) by [Income Tax (Trading and Other Income) Act 2005 (c. 5)](https://www.legislation.gov.uk/ukpga/2005/5), [s. 883(1)](https://www.legislation.gov.uk/ukpga/2005/5/section/883/1), [Sch. 3](https://www.legislation.gov.uk/ukpga/2005/5/schedule/3) (with [Sch. 2](https://www.legislation.gov.uk/ukpga/2005/5/schedule/2))

[^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.

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.

#### 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.

These repeals have effect in accordance with section 15 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.

2004-12-02

Finance (No. 2) Act 1997

View changes Text at this date

2004-07-22

Finance (No. 2) Act 1997

View changes Text at this date

2003-07-10

Finance (No. 2) Act 1997

View changes Text at this date

2002-07-24

Finance (No. 2) Act 1997

View changes Text at this date

1997-07-31

Finance (No. 2) Act 1997

original version Text at this date