Legalize / United Kingdom / Public General Act

Finance Act 1998

Type Public General Act

Publication 1998-07-31

Last updated 2026-04-22

State In force

Department Statute Law Database

Source legislation.gov.uk

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(a) a claim notification (within the meaning of section 1142A of the Corporation Tax Act 2009) was required to be made, and

(b) no claim notification was made,

the company may not make a new claim to which this Part of this Schedule would apply in respect of the expenditure to which the original claim related.

Penalty

83F

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Part 9B — Claims relating to remediation of contaminated or derelict land

Introduction

83G

This Part of this Schedule applies to claims for—

(a) land remediation tax credits under section 1151 of the Corporation Tax Act 2009 (“land remediation tax credits”), and

(b) life assurance company tax credits under section 1164 of that Act (“life assurance company tax credits”).

Claim to be included in company tax return

83H

(1) A claim for a land remediation tax credit or a life assurance company tax credit must be made by being included in the claimant company’s company tax return for the accounting period for which the claim is made.

(2) It may be included in the return originally made or by amendment.

Content of claim

83I

A claim for a land remediation tax credit or a life assurance company tax credit must specify the amount of the tax credit claimed, which must be an amount quantified at the time the claim is made.

Amendment or withdrawal of claim

83J

A claim for a land remediation tax credit or a life assurance company tax credit may be amended or withdrawn by the claimant company only by amending its company tax return.

Time limit for claims

83K

(1) A claim for a land remediation tax credit or a life assurance company tax credit may be made, amended or withdrawn at any time up to the first anniversary of the filing date for the company tax return of the claimant company for the accounting period for which the claim is made.

(2) The claim may be made, amended or withdrawn at a later date if an officer of Revenue and Customs allows it.

Penalty

83L

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PART 9BA — Claims for relief under Schedule 12 to the Finance Act 2002

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83LA

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83LB

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83LC

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83LD

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83LE

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PART 9C — Claims for relief under Schedule 13 to the Finance Act 2002

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PART 9D — Claims under Parts 14A to 15E of the Corporation Tax Act 2009

Introduction

83S

This Part of this Schedule applies to claims for —

(za) audiovisual expenditure credit or video game expenditure credit,

(a) film tax relief,

(b) television tax relief,

(d) an additional deduction under Part 15C of CTA 2009,

(e) a theatre tax credit under that Part of that Act,

(f) orchestra tax relief

(g) museums and galleries exhibition tax relief.

Claim to be included in company tax return

83T

(1) A claim to which this Part of this Schedule applies must be made by being included in the claimant company's tax return for the accounting period for which the claim is made.

(2) It may be included in the return originally made or by amendment.

Content of claim

83U

A claim to which this Part of this Schedule applies must specify the amount of the relief claimed, which must be an amount quantified at the time the claim is made.

Amendment or withdrawal of claim

83V

A claim to which this Part of this Schedule applies may be amended or withdrawn by the claimant company only by amending its company tax return.

Time limits for claim

83W

(1) A claim to which this part of this Schedule applies may be made, amended or withdrawn at any time up to the end of the period of—

(a) two years beginning with the last day of the period of account to which the claim relates, in a case where that period is not longer than 18 months, or

(b) 42 months beginning with the first day of the period of account to which the claim relates, in any other case.

(2) The claim may be made, amended or withdrawn at a later date if an officer of Revenue and Customs allows it.

Additional information to be provided in relation to claim

83WA

The Commissioners for His Majesty’s Revenue and Customs may by regulations specify, in relation to a claim to which this Part of this Schedule applies—

(a) information to be provided by the claimant company;

(b) the form and manner in which, and the time by which, the information is to be provided;

(c) the consequences of failing to provide the information as required (which may include the total or partial invalidity of the claim or a reduction of the claimed relief).

Penalty

83X

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PART 9E — Designation of losses as unrestricted losses for the purposes of Chapter 3 of Part 7A of the Corporation Tax Act 2010

Introduction

83Y

(1) This Part of this Schedule applies to the designation of losses within sub-paragraph (2) as unrestricted losses by a banking company under section 269CH of the Corporation Tax Act 2010 (losses covered by carried-forward loss allowance).

(2) The losses mentioned in sub-paragraph (1) are losses which, in relation to any accounting period, would (in the absence of that section) be relevant carried-forward losses.

(3) Expressions used in this Part of this Schedule and in Chapter 3 of Part 7A of the Corporation Tax Act 2010 have the same meaning in this Part of this Schedule as they have in that Chapter.

Designation to be made in company tax return

83YA

(1) A designation to which this Part of this Schedule applies must be made by being included in the company's tax return for the accounting period for which the company makes a deduction in respect of the losses.

(2) It may be included in the return originally made or by amendment.

Identification of losses

83YB

Where a company designates any relevant carried-forward loss in a company tax return, the return must specify—

(a) the amount of the loss, and

(b) whether the loss is—

(i) a pre-2015 carried-forward trading loss,

(ii) a pre-2015 carried-forward non-trading deficit, or

(iii) pre-2015 carried-forward management expenses.

Amendment or withdrawal of designation

83YC

A designation to which this Part of this Schedule applies may be amended or withdrawn by the company only by amending its company tax return.

Part X — Special provisions

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84

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Non-annual accounting of general insurance business

85

(1) This paragraph applies where a company carrying on insurance business delivers a company tax return based wholly or partly on accounts drawn up using the method described in paragraph 58 in Section E of Part 2 of Schedule 3 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

That paragraph provides for a technical provision to be made in the accounts which is later replaced by a provision for estimated claims outstanding.

(2) Where this paragraph applies—

(a) the company may make any amendments of its return arising from the replacement of the technical provision at any time within twelve months from the date on which the provision was replaced, and

(b) an officer of Revenue and Customs may give notice of enquiry into the return at any time up to two years from that date.

(3) Nothing in this paragraph prevents notice of enquiry being given at any later time in accordance with the general rule in paragraph 24(3).

Insurance companies with non-annual actuarial investigations

86

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Friendly societies with non-annual actuarial investigations

87

(1) This paragraph applies where a company tax return is delivered by a friendly society which is required by section 5.2 of the IPRU (FSOC) to cause an investigation to be made into its financial condition at least once in every period of three years.

(2) Where this paragraph applies—

(a) the society may make any amendments of its return arising from the relevant investigation at any time within 15 months from the date as at which that investigation is carried out, and

(b) an officer of Revenue and Customs may give notice of enquiry into the return at any time up to 27 months from that date.

(3) “The relevant investigation” means—

(a) if the return is for a period as at the end of which there is carried out an investigation under section 5.2 of the IPRU (FSOC) into the financial condition of the society, that investigation;

(b) if the return is not for such a period, the first such investigation to be made into the financial condition of the company as at the end of a subsequent period.

(4) In this paragraph, “IPRU (FSOC)” means the Interim Prudential Sourcebook for Friendly Societies made by the Prudential Regulation Authority under the Financial Services and Markets Act 2000.

PART 10A — SEs

Company ceasing to be UK resident on formation of SE by merger

87A

(1) Sub-paragraph (2) applies if at any time a company ceases to be resident in the United Kingdom in the course of the formation of an SE by merger, whether or not the company continues to exist after the formation of the SE.

(2) The other Parts of this Schedule apply after that time, but in relation to liabilities accruing and matters arising before that time—

(a) as if the company were still resident in the United Kingdom, and

(b) if the company has ceased to exist, as if the SE were the company.

SE ceasing to be UK resident

87B

(1) Sub-paragraph (2) applies if at any time an SE—

(a) transfers its registered office from the United Kingdom, and

(b) ceases to be resident in the United Kingdom.

(2) The other Parts of this Schedule apply after that time, but in relation to liabilities accruing and matters arising before that time, as if the SE were still resident in the United Kingdom.

Meaning of SE

87C

In this Part “SE” means a European public limited-liability company (or Societas Europaea) within the meaning of Council Regulation (EC) No. 2157/2001 on the Statute for a European company.

Part XI — Supplementary provisions

Conclusiveness of amounts stated in return

88

(1) This paragraph applies to an amount stated in a company tax return for an accounting period which is required to be included in the return and which affects or may affect—

(a) the tax payable by the company making the return for another accounting period, or

(b) the tax liability of another company for any accounting period.

(2) If such an amount can no longer be altered it is taken to be conclusively determined for the purposes of the Corporation Tax Acts in relation to that other period or other company.

Sub-paragraphs (3) to (5) explain what is meant by can no longer be altered.

(3) An amount is regarded as one that can no longer be altered if—

(a) the period specified in paragraph 15(4) (general period for amendment by company) has ended,

(b) any enquiry into the return has been completed ... (or is completed so far as relating to the matters to which the amount relates by the issue of a partial closure notice) ,

(c) if an officer of Revenue and Customs amends the return under paragraph 34, the period within which an appeal may be brought against that amendment has ended, and

(d) if an appeal is brought, the appeal has been finally determined.

(4) If the return is amended by the company under a provision that allows an amendment after the end of the period specified in paragraph 15(4), an amount affected by the amendment ceases to be regarded as one that can no longer be altered until after whichever is the last of the following—

(a) the end of the period within which notice of enquiry into the return may be given in consequence of the amendment;

(b) if such a notice is given, the completion of the enquiry (or the completion of the enquiry so far as relating to the matters to which the amount relates by the issue of a partial closure notice) ;

(c) if an officer of Revenue and Customs amends the return under paragraph 34, the end of the period within which an appeal against that amendment may be brought;

(d) if an appeal is brought, the date on which the appeal is finally determined.

(5) If the return is amended by an officer of Revenue and Customs under paragraph 83(3) (consequential amendment of return where amount available by way of capital allowances is reduced), an amount affected by the amendment ceases to be regarded as one that can no longer be altered until after—

(a) the end of the period within which an appeal against that amendment may be brought, or

(b) if an appeal is brought, the date on which the appeal is finally determined.

(6) For the purposes of this paragraph an amount carried forward from a period for which a return was made under section 11 of the Taxes Management Act 1970 is not regarded as one required to be included in a company tax return for a later period.

(7) Nothing in this paragraph affects any power to make an assessment other than a self-assessment or the power to make a discovery determination.

(8) Nothing in this paragraph affects a power of the company making the return to make a claim under paragraph 51 (claim for relief for overpaid tax).

(9) Nothing in this paragraph affects the operation of any provision of Part 10 of TIOPA 2010 (corporate interest restriction).

Security for payments

88A

(1) The Commissioners for Her Majesty’s Revenue and Customs may by regulations make provision for and in connection with requiring the giving, by prescribed persons and in prescribed circumstances, of security for the payment of tax that a company is or may be liable to pay.

(2) Regulations under this paragraph must provide that security may be required only where an officer of Revenue and Customs considers it necessary for the protection of the revenue.

(3) Regulations under this paragraph must provide for a right of appeal against—

(a) decisions to require security to be given;

(b) decisions as to the amount, terms or duration of any security required.

(4) A person commits an offence if—

(a) the person fails to comply with a requirement to give security that is imposed by regulations under this paragraph, and

(b) the failure continues for such period as is prescribed.

(5) A person who commits an offence under sub-paragraph (4) is liable on summary conviction—

(a) in England and Wales, to a fine;

(b) in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.

(6) In this paragraph—

“prescribed” means prescribed in regulations under this paragraph;

“security” includes further security.

Penalty for fraud or negligence

89

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90

(1) This paragraph applies where a company incurs more than one penalty whose amount falls to be determined by reference to the tax payable by it for an accounting period.

(2) Each penalty after the first shall be reduced so that the total amount of the penalties, so far as determined by reference to any particular part of the tax, does not exceed whichever is, or but for this paragraph would be, the greater or greatest of them, so far as so determined.

UK Economic Interest Groupings and European Economic Interest Groupings

91

An act or omission such as is mentioned in section 98B of the Taxes Management Act 1970 (UK Economic Interest Groupings and European Economic Interest Groupings: acts or omissions attracting penalties) on the part of a grouping, or a member of a grouping, is treated as the act or omission of each member of the grouping for the purposes of—

paragraphs 43 and 46(2) (assessment in case of fraud or negligence), and

paragraphs 61(2) and 65(1) (consequential claims in case of such an assessment).

Notices of appeal

92

(1) This paragraph applies in relation to any appeal under this Schedule.

(2) The notice of appeal shall specify the grounds of appeal.

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

General jurisdiction of Special or General Commissioners

93

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Election to take appeal to Special Commissioners

94

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Meaning of “the Inland Revenue"

95

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The self-assessment appointed day

96

In this Schedule “the self-assessment appointed day” means the day appointed by the Treasury under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).

Construction of references to assessment

97

Any reference in the Tax Acts (however expressed) to a person being assessed to tax, or being charged to tax by an assessment, include a reference to his being so assessed, or being so charged—

(a) by a self-assessment under this Schedule, or an amendment of such a self-assessment, or

(b) by a determination under paragraph 36 or 37 of this Schedule (which, until superseded by a self-assessment, has effect as if it were one).

Meaning of TIOPA 2010

97A

In this Schedule “TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010.

Index of defined expressions

98

In this Schedule the expressions listed below are defined or otherwise explained by the provisions indicated—

SCHEDULE 19

Taxes Management Act 1970 (c.9)

1

The following provisions of the Taxes Management Act 1970 shall cease to have effect—

section 10 (notice of liability to corporation tax),

section 11 (return of profits),

section 11AA (return of profits to include self-assessment),

section 11AB (power to enquire into return of profits),

sections 11AC to 11AE (modifications of sections 11AA and 11AB for certain insurance companies and friendly societies).

2

In section 12(2) of the Taxes Management Act 1970 (information about chargeable gains), omit “or section 11".

3

In section 12AA(7) of the Taxes Management Act 1970 (partnership return: information about chargeable gains), after “section 12(2) of this Act" insert “ or paragraph 13 of Schedule 18 to the Finance Act 1998 ”.

4

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5

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6

In section 12B(1) of the Taxes Management Act 1970 (records to be kept for purposes of returns), omit “, 11".

7

In section 19A(1) of the Taxes Management Act 1970 (power to call for documents for purposes of certain enquiries), omit “, 11AB(1)".

8

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9

Sections 28AA and 28AB of the Taxes Management Act 1970 (amendment of return of profits made for wrong period) shall cease to have effect.

10

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11

Sections 28D, 28E and 28F of the Taxes Management Act 1970 (determination of corporation tax in absence of self-assessment) shall cease to have effect.

12

(1) Section 29 of the Taxes Management Act 1970 (assessment where loss of tax discovered) is amended as follows.

(2) In subsection (1) for “profits which ought to have been assessed to tax" substitute “ income which ought to have been assessed to income tax, or chargeable gains which ought to have been assessed to capital gains tax, ”.

(3) For “chargeable period", wherever it occurs, substitute “ year of assessment ”.

(4) In subsections (2), (3), (5)(a), (6)(a) and (7)(a) for “section 8, 8A or 11" substitute “ section 8 or 8A ”.

(5) In subsection (3)(b) omit “in the case of a return under section 8 or 8A,".

(6) Omit subsection (10).

13

(1) Section 30 of the Taxes Management Act 1970 (recovery of overpayment of tax, etc.) is amended as follows.

(2) In subsection (1) for “tax" in the first place where it occurs substitute “ income tax or capital gains tax ”.

(3) In subsection (2)(a), omit “or 825".

(4) Omit subsection (2A).

(5) In subsection (3), omit “or corporation tax".

(6) Omit subsection (3A).

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

(8) Omit subsection (4A).

(9) In subsection (5)(a), for “chargeable period" substitute “ year of assessment ”.

14

(1) Section 30B of the Taxes Management Act 1970 (amendment of partnership statement where loss of tax discovered) is amended as follows.

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

(3) In subsection (7)(b) for “section 8, 8A or 11” substitute “ section 8 or 8A ”.

(4) In subsection (9) for the definition of “profits” substitute—

“profits”— (a) in relation to income tax, means income, (b) in relation to capital gains tax, means chargeable gains, and (c) in relation to corporation tax, means profits as computed for the purposes of that tax;

15

(1) Section 33 of the Taxes Management Act 1970 (error or mistake) is amended as follows.

(2) For subsection (1) substitute—

(1) If a person who has paid income tax or capital gains tax under an assessment (whether a self-assessment or otherwise) alleges that the assessment was excessive by reason of some error or mistake in a return, he may by notice in writing at any time not later than five years after the 31st January next following the year of assessment to which the return relates, make a claim to the Board for relief.

(3) In subsection (5), after paragraph (a) insert “ , and ” and omit paragraph (c).

16

(1) Section 33A of the Taxes Management Act 1970 (error or mistake in partnership statement) is amended as follows.

(2) In subsection (1) omit “under section 9 or 11AA of this Act".

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

17

In section 34(1) of the Taxes Management Act 1970 (ordinary time limit for assessment), for the words from “an assessment to tax may be made" to the end substitute “ an assessment to income tax or capital gains tax may be made at any time not later than five years after the 31st January next following the year of assessment to which it relates ”.

18

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19

Sections 41A, 41B and 41C of the Taxes Management Act 1970 (corporation tax determinations) shall cease to have effect.

20

(1) Section 42 of the Taxes Management Act 1970 (procedure for making claims, etc.) is amended as follows.

(2) In subsections (2), (9) and (11)(a) omit “, 11".

(3) Omit subsections (4) and (4A), and in subsection (5) the words from “and the reference in subsection (4)" to the end.

(4) In subsection (13), after paragraph (a) insert “ , and ” and omit paragraph (c).

21

In section 43 of the Taxes Management Act 1970, for subsection (1) substitute—

(1) Subject to any provision of the Taxes Acts prescribing a longer or shorter period, no claim for relief in respect of income tax or capital gains tax may be made more than five years after the 31st January next following the year of assessment to which it relates.

22

(1) Section 43A of the Taxes Management Act 1970 (further assessments: claims etc.) is amended as follows.

(2) In subsection (1) for paragraph (a) substitute—

(a) where by virtue of section 29 of this Act an assessment to income tax or capital gains tax is made on any person for a year of assessment, and

(3) In subsections (2), (3), (4) and (5) for “chargeable period", wherever occurring, substitute “ year of assessment ”.

23

In section 46(2) of the Taxes Management Act 1970 (determinations of Commissioner to be final), omit the words “and in particular save as provided by section 29 of this Act".

24

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25

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26

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27

(1) Section 50 of the Taxes Management Act 1970 (procedure) is amended as follows.

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

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

(4) For subsection (9) substitute—

(9) Where any amounts contained in a partnership statement are reduced under subsection (6) above or increased under subsection (7) above, an officer of the Board shall by notice to each of the relevant partners amend— (a) the partner’s self-assessment under section 9 of this Act, or (b) the partner’s company tax return, so as to give effect to the reductions or increases of those amounts.

28

In section 55(1) of the Taxes Management Act 1970 (recovery of tax not postponed), for paragraphs (a) and (b) substitute—

(a) an amendment of a self-assessment under— (i) section 28A(2) or (4) of this Act, or (ii) paragraph 30 or 34(2) of Schedule 18 to the Finance Act 1998, (b) an assessment to tax other than a self-assessment,

29

(1) In Part VA of the Taxes Management Act 1970 (payment of tax), before section 59A insert the heading “Income tax and capital gains tax".

(2) For section 59D of that Act substitute—

(59D) (1) Corporation tax for an accounting period is due and payable on the day following the expiry of nine months from the end of that period. (2) If the tax payable is then exceeded by the total of any relevant amounts previously paid (as stated in the relevant company tax return), the excess shall be repaid. (3) The tax payable means the amount computed in accordance with paragraph 8 of Schedule 18 to the Finance Act 1998. (4) Relevant amounts previously paid means any of the following, so far as relating to the accounting period in question— (a) any amount of corporation tax paid by the company and not repaid; (b) any corporation tax refund surrendered to the company by another group company; (c) any amount by which the sums available for set off under Step 4 of the calculation in paragraph 8 of Schedule 18 to the Finance Act 1998 (amounts set off against overall tax liability) exceeds the amount against which they may be set off under that provision; (d) any amount treated as corporation tax paid in respect of profits of the company under section 559 of the principal Act (deductions from payments to sub-contractors). (5) This section has effect subject to section 59E. (59DA) (1) This section applies where a company has paid an amount of corporation tax for an accounting period and the circumstances of the company change, so that the company has grounds for believing that the amount paid exceeds its probable tax liability although that liability has not been finally established. (2) The company may, by notice given to an officer of the Board, claim repayment of the excess. No such claim may be made before the date which under section 826 of the principal Act (interest on overpaid tax), subject to regulations under section 826A of that Act, is the material date in relation to that tax. (3) The notice must state— (a) the amount which the company considers should be repaid, and (b) its grounds for believing that the amount paid exceeds its probable tax liability. (4) If the company has appealed against an amendment of an assessment, or an assessment, relating to the tax liability in question, and the appeal has not been finally determined, it may apply to the Commissioners to whom the appeal stands referred for a determination of the amount which should be repaid to the company pending determination of the liability. (5) Any claim under subsection (2) or application under subsection (4) shall be heard and determined in the same way as an appeal. (6) If the company makes an application under section 55(3) or (4) (application to postpone payment pending determination of appeal), that application may be combined with an application under subsection (4) above. (7) If a company makes a claim or application under this section before it has delivered a company tax return for the period in question, any deductions under section 559 of the principal Act (deductions from payments to certain subcontractors) shall be disregarded in considering whether the amount paid by the company exceeds its probable tax liability. (8) This section has effect subject to section 59E.

30

(1) Section 65 of the Taxes Management Act 1970 (recovery of small amounts of tax by civil proceedings in the magistrates’ court) is amended as follows.

(2) In subsection (1) for the words from the beginning to “payment or tax" substitute “ Any amount due and payable by way of income tax, capital gains tax or corporation tax which does not exceed £2,000 ”.

(3) In subsection (3), omit the words from “for the recovery of" to the end of paragraph (b).

(4) In subsection (5) for “sums" substitute “ sum ”.

31

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32

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33

Section 94 of the Taxes Management Act 1970 (penalty for failure to make return for corporation tax) shall cease to have effect.

34

Section 96 of the Taxes Management Act 1970 (incorrect return or accounts for corporation tax) shall cease to have effect.

35

In section 97 of the Taxes Management Act 1970 (incorrect return or accounts: supplemental), in subsections (1) and (2) for “sections 95 and 96" substitute “ section 95 ”.

36

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37

In section 97A of the Taxes Management Act 1970 (two or more tax-geared penalties in respect of same tax), omit paragraph (b) and the word “or" preceding it.

38

In section 100(6)(a) of the Taxes Management Act 1970 (determination of penalties), for “section 94(6) above" substitute “ paragraph 18(2) of Schedule 18 to the Finance Act 1998 ”.

39

For section 101 of the Taxes Management Act 1970 (evidence of profits for purposes of preceding provisions of Part X) substitute—

(101) An assessment which can no longer be varied by any Commissioners on appeal or by order of any court is sufficient evidence, for the purposes of— (a) the preceding provisions of this Part, and (b) the provisions of Schedule 18 to the Finance Act 1998 relating to penalties, that the amounts in respect of which tax is charged in the assessment arose or were received as stated in the assessment.

40

In section 103A of the Taxes Management Act 1970 (interest on penalties), after “this Part of this Act" insert “ , or Schedule 18 to the Finance Act 1998, ”.

41

In section 113(1B) of the Taxes Management Act 1970 (Revenue assessments to tax), after “section 29 of this Act" insert “ or paragraph 41 of Schedule 18 to the Finance Act 1998 ”.

42

(1) Schedule 1A to the Taxes Management Act 1970 (claims, etc. not included in returns) is amended as follows.

(2) In paragraph 1, for the definition of “profits” substitute—

“profits”— (a) in relation to income tax, means income, (b) in relation to capital gains tax, means chargeable gains, and (c) in relation to corporation tax, means profits as computed for the purposes of that tax;

(3) In paragraph 2(5)(c) after “section 12 of this Act” insert “ or paragraph 13 of Schedule 18 to the Finance Act 1998 ”.

(4) In paragraph 2A (keeping and preserving of records), in sub-paragraphs (3) and (5)(a) after “12B(4A) of this Act” insert “ or paragraph 22(3) of Schedule 18 to the Finance Act 1998 ”.

(5) In paragraph 5 (power to enquire into claims), in sub-paragraph (3)(b) for “section 9A(1), 11AB(1) or 12AC(1) of this Act” substitute “ section 9A(1) or 12AC(1) of this Act or paragraph 24 of Schedule 18 to the Finance Act 1998 ”.

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

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

43

(1) Schedule 3A to the Taxes Management Act 1970 (electronic lodgement of tax returns) is amended as follows.

(2) In paragraph 1(4)(a), after “Part II of this Act" insert “ or Schedule 18 to the Finance Act 1998 ”.

(3) In paragraph 8(2)(a), after “Part II of this Act" insert “ or Schedule 18 to the Finance Act 1998 ”.

Income and Corporation Taxes Act 1988 (c.1)

44

(1) Section 246Q of the Taxes Act 1988 (repayment or set-off of ACT in respect of foreign income dividend) is amended as follows.

(2) In subsection (6) for the words from the beginning to “section 11 of the Management Act" substitute “ A company tax return made by the company for the relevant period ”.

(3) In subsection (7) for “a return under section 11 of the Management Act" substitute “ a company tax return ”.

45

(1) Section 246U of the Taxes Act 1988 (repayments treated as repayments of ACT in case of international headquarters company) is amended as follows.

(2) In subsection (7), for paragraph (a) substitute—

(a) a company tax return made by the company for the accounting period, or

(3) In subsection (8) for “a return under section 11 of the Management Act" substitute “ a company tax return ”.

46

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

47

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

48

(1) Section 488 of the Taxes Act 1988 (co-operative housing associations) is amended as follows.

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

(3) For subsection (12) substitute—

(12) A housing association making a claim under this section may be required— (a) under paragraph 3 of Schedule 18 to the Finance Act 1998, if the claim is included in a company tax return, and (b) under paragraph 2(5) of Schedule 1A to the Taxes Management Act 1970 if it is not so included, to deliver as part of the return or claim an authority, granted by all members of the association, for any relevant information contained in any return made by a member under the provisions of the Income Tax Acts to be used by an officer of the Board in such manner as he may think fit in connection with any enquiry relating to the association’s claim.

49

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

50

(1) Schedule 13A to the Taxes Act 1988 (surrenders of advance corporation tax) is amended as follows.

(2) In paragraph 5(1) for “a return under section 11 of the Management Act" substitute “ a company tax return ”.

(3) For paragraph 5(2) substitute—

(2) The provisions of Part VII of Schedule 18 to the Finance Act 1998 (general provisions as to claims and elections) do not apply to the making of claims.

(4) In paragraph 14(1) omit the words from “(which correspond" to “Management Act)".

(5) In paragraph 14(6) for “an amendment of a self-assessment under section 28A(4) of that Act" substitute “ an amendment of a company tax return under paragraph 34(2) of Schedule 18 to the Finance Act 1998 ”.

(6) In paragraph 14(8) omit the words from “against an amendment" to the end.

51

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

SCHEDULE 20

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

SCHEDULE 21

Introductory

1

The Taxation of Chargeable Gains Act 1992 shall be amended in accordance with the following provisions of this Schedule.

Gains of trustees attributed to settlor

2

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

Annual exempt amount

3

For subsection (5) of section 3 (definition of taxable amount) there shall be substituted the following subsections—

(5) For the purposes of this section an individual’s taxable amount for any year of assessment is the amount which, after— (a) making every deduction for which section 2(2) provides, (b) applying any reduction in respect of taper relief under section 2A, and (c) adding any amounts falling to be added by virtue of section 2(5)(b), is (apart from this section) the amount for that year on which that individual is chargeable to capital gains tax in accordance with section 2. (5A) Where, in the case of any individual, the amount of the adjusted net gains for any year of assessment is equal to or less than the exempt amount for that year, no deduction shall be made for that year in respect of— (a) any allowable losses carried forward from a previous year; or (b) any allowable losses carried back from a subsequent year in which the individual dies. (5B) Where, in the case of any individual, the amount of the adjusted net gains for any year of assessment exceeds the exempt amount for the year, the deductions made for that year in respect of allowable losses falling within subsection (5A)(a) or (b) above shall not be greater than the excess. (5C) In subsections (5A) and (5B) above the references, in relation to any individual’s case, to the adjusted net gains for any year are references to the amount given in his case by— (a) taking the amount for that year from which the deductions for which section 2(2)(a) and (b) provides are to be made; (b) deducting only the amounts falling to be deducted in accordance with section 2(2)(a); and (c) in a year in which any amount falls to be brought into account by virtue of section 2(5)(b), adding whichever is the smaller of the exempt amount for that year and the amount falling to be so brought into account.

Gains attributed to members of non-resident companies

4

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

Carry back of losses on death

5

In section 62 (general provisions about death), the following subsections shall be inserted after subsection (2)—

(2A) Amounts deductible from chargeable gains for any year in accordance with subsection (2) above shall not be so deductible from any such gains so far as they are gains that are brought into account for that year by virtue of section 2(5)(b). (2B) Where deductions under subsection (2) above fall to be made from the chargeable gains for any year, the provisions of this Act relating to taper relief shall have effect as if those deductions were deductions under section 2(2)(a) and (b) and, accordingly, as if— (a) those deductions were to be made (before the application of the relief) in computing for that year the excess (if any) mentioned in section 2A(1); and (b) for the purpose of determining the gains represented in that excess, the gains for that year from which those deductions are treated as made were to be ascertained in accordance with section 2A(6).

Gains attributed to settlors and beneficiaries

6

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

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

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

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

Gains on assets deriving from reorganisation of body carrying on a mutual business etc.

7

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

Commercial letting of furnished holiday dwellings

8

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

Delayed remittances in respect of foreign assets

9

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

SCHEDULE 22

Introductory

1

The Taxation of Chargeable Gains Act 1992 shall be amended as follows.

Transitional for settlements created before 17th March 1998

2

(1) In the words at the end of sub-paragraph (1) of paragraph 2 of Schedule 5 (which specifies the provisions to which that sub-paragraph is subject), after “(4) to (6)" there shall be inserted “ and paragraph 2A ”.

(2) After that paragraph there shall be inserted the following paragraph—

(2A) (1) In determining for the purposes of section 86(1)(d) whether the settlor has an interest at any time during any year of assessment in a settlement created before 17th March 1998, paragraphs (da) and (db) of paragraph 2(3) above, and the reference to those paragraphs in paragraph 2(3)(e), shall be disregarded unless— (a) that year is a year in which one of the four conditions set out in the following provisions of this paragraph becomes fulfilled as regards the settlement; or (b) one of those conditions became fulfilled as regards that settlement in any previous year of assessment ending on or after 5th April 1998. (2) The first condition is (subject to sub-paragraph (3) below) that on or after 17th March 1998 property or income is provided directly or indirectly for the purposes of the settlement— (a) otherwise than under a transaction entered into at arm’s length, and (b) otherwise than in pursuance of a liability incurred by any person before that date. (3) For the purposes of the first condition, where the settlement’s expenses relating to administration and taxation for a year of assessment exceed its income for the year, property or income provided towards meeting those expenses shall be ignored if the value of the property or income so provided does not exceed the difference between the amount of those expenses and the amount of the settlement’s income for the year. (4) The second condition is that— (a) the trustees become on or after 17th March 1998 neither resident nor ordinarily resident in the United Kingdom, or (b) the trustees, while continuing to be resident and ordinarily resident in the United Kingdom, become on or after 17th March 1998 trustees who fall to be regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom. (5) The third condition is that on or after 17th March 1998 the terms of the settlement are varied so that any person falling within sub-paragraph (7) below becomes for the first time a person who will or might benefit from the settlement. (6) The fourth condition is that— (a) on or after 17th March 1998 a person falling within sub-paragraph (7) below enjoys a benefit from the settlement for the first time, and (b) the person concerned is not one who (looking only at the terms of the settlement immediately before 17th March 1998) would be capable of enjoying a benefit from the settlement on or after that date. (7) Each of the following persons falls within this sub-paragraph— (a) any grandchild of the settlor or of the settlor’s spouse; (b) the spouse of any such grandchild; (c) a company controlled by a person or persons falling within paragraph (a) or (b) above; (d) a company controlled by any such person or persons together with any person or persons (not so falling) each of whom is for the purposes of paragraph 2(1) above a defined person in relation to the settlement; (e) a company associated with a company falling within paragraph (c) or (d) above. (8) For the purposes of sub-paragraph (7) above the question whether a company is controlled by a person or persons shall be construed in accordance with section 416 of the Taxes Act; but in deciding that question for those purposes no rights or powers of (or attributed to) an associate or associates of a person shall be attributed to him under section 416(6) if he is not a participator in the company. (9) For the purposes of sub-paragraph (7) above the question whether one company is associated with another shall be construed in accordance with section 416 of the Taxes Act; but where in deciding that question for those purposes it falls to be decided whether a company is controlled by a person or persons, no rights or powers of (or attributed to) an associate or associates of a person shall be attributed to him under section 416(6) if he is not a participator in the company. (10) In this paragraph— - 'child' includes a step-child; - 'grandchild' means a child of a child; - 'participator' has the meaning given by section 417(1) of the Taxes Act.

(3) In construing section 86(1)(e) as regards any year of assessment and in relation to a settlement which—

(a) was created before 17th March 1998, and

(b) is a settlement in which the settlor has an interest during that year by virtue only of the fulfilment for the purposes of the paragraph inserted by sub-paragraph (2) above of one of the conditions set out in that paragraph,

no account shall be taken of disposals made before the relevant day (whether for the purpose of arriving at gains or for the purpose of arriving at losses).

(4) In sub-paragraph (3) above “the relevant day” means—

(a) for the year 1997-98, 17th March 1998; and

(b) for any other year of assessment, the 6th April which is the first day of that year.

Consequential amendments of paragraphs 4 and 5 of Schedule 5 to the 1992 Act

3

(1) In paragraphs 4(1)(a) and 5(1)(a) of Schedule 5 (disapplication of section 86 in certain cases where beneficiaries die), for “(d)" there shall be substituted “ (db) ”.

(2) In paragraph 4(4) of that Schedule (disapplication of section 86 in certain cases where a beneficiary ceases to be married)—

(a) in paragraph (b), for “or (d)" there shall be substituted “ , (d) or (db) ”; and

(b) for “or child" there shall be substituted “ , child or grandchild ”.

Consequential amendment of paragraph 9 of Schedule 5 to the 1992 Act

4

(1) In sub-paragraph (7) of paragraph 9 of Schedule 5 (persons listed for the purpose of the conditions the fulfilment of which makes a pre-19th March 1991 settlement a qualifying settlement)—

(a) after paragraph (d) there shall be inserted the following paragraphs—

(da) any grandchild of a settlor or of a settlor’s spouse; (db) the spouse of any such grandchild;

and

(b) in paragraph (e), for “(d)" there shall be substituted “ (db) ”.

(2) For sub-paragraph (11) of that paragraph there shall be substituted the following sub-paragraph—

(11) In this paragraph— - 'child’ includes a step-child; - 'grandchild’ means a child of a child; - 'participator’ has the meaning given by section 417(1) of the Taxes Act.

(3) Sub-paragraph (1) above shall be disregarded for the purpose of determining whether either of the conditions set out in sub-paragraphs (5) and (6) of that paragraph became fulfilled at any time before 17th March 1998.

Consequential amendment of Schedule 5A

5

(1) In paragraph 2(1) of Schedule 5A (returns in relation to dealings involving settlements created before 19th March 1991), in paragraph (a) for “19th March 1991" there shall be substituted “ 17th March 1998 ”.

(2) This paragraph has effect in relation to transfers on or after 17th March 1998.

SCHEDULE 23

Pre-6th April 1999 gains and losses of settlements that become qualifying

1

(1) This paragraph applies to a settlement in the case of any person who is a settlor in relation to that settlement if that settlement—

(a) is one created before 19th March 1991;

(b) is not a qualifying settlement in the year 1998-99; and

(c) is a qualifying settlement in the year 1999-00 without having been a protected settlement in relation to that settlor immediately after the beginning of 6th April 1999.

(2) Subject to sub-paragraph (3) below, section 86 of the 1992 Act (attribution of gains to settlor of non-resident or dual resident trusts) shall have effect in relation to any settlement to which this paragraph applies—

(a) as if any relevant gains or relevant losses accruing to the trustees of the settlement on or after 17th March 1998 and before 6th April 1999 were gains or losses accruing to those trustees on 6th April 1999; and

(b) where it is not the case, as if the trustees fulfilled the condition as to residence in the year 1999-00.

(3) Where (apart from sub-paragraph (2)(b) above) the trustees of a settlement to which this paragraph applies do not fulfil the condition as to residence in the year 1999-00, section 86 of the 1992 Act shall have effect (without prejudice to any charge imposed otherwise than by virtue of that section) as if the only gains and losses accruing to the trustees of that settlement in that year were those which are treated as accruing to those trustees on 6th April 1999 by virtue of sub-paragraph (2)(a) above.

(4) The gains and losses that are relevant gains or relevant losses for the purposes of this paragraph are those which (apart from this paragraph) accrue to the trustees of a settlement to which this paragraph applies in any year of assessment in which those trustees fulfil the condition as to residence.

Pre-6th April 1999 gains and losses where there is a transfer to another settlement

2

(1) This paragraph applies, subject to sub-paragraph (5) below, to any chargeable gain or loss accruing on the disposal of any asset by the trustees of a settlement (“the transferor settlement") if—

(a) that settlement was created before 19th March 1991;

(b) the disposal on which the gain or loss accrues is one made—

(i) on or after 17th March 1998 and before 6th April 1999; and

(ii) in a year of assessment in which the trustees of the transferor settlement fulfil the condition as to residence but the settlement is not a qualifying settlement;

(i) is domiciled in the United Kingdom at some time in the year 1999-00 and in the year of assessment in which the disposal is made;

(ii) is either resident in the United Kingdom during any part of each of those years or ordinarily resident in the United Kingdom during each of those years; and

(iii) is alive at the end of the year 1999-00;

(d) the asset disposed of is property originating from the chargeable settlor;

(e) the property comprised in another settlement (“the transferee settlement") at any time after the disposal and before 6th April 1999 is or includes (whether in consequence of the disposal or otherwise) the asset disposed of or any relevant property;

(f) the transferor settlement has a relevant connection with the transferee settlement; and

(g) the gain or loss in question is not one treated under paragraph 1 above as accruing on 6th April 1999 to the trustees of the transferor settlement.

(2) If, in the case of the chargeable settlor, section 86 of the 1992 Act applies (apart from this paragraph) for the year 1999-00 in relation to the transferee settlement, that section shall apply for that year in relation to that settlement as if any chargeable gain or loss to which this paragraph applies—

(a) were a gain or loss accruing on 6th April 1999 to the trustees of the transferee settlement; and

(b) so accrued on the disposal by those trustees of any asset that was property originating from the chargeable settlor.

(3) Where sub-paragraph (2) above does not apply, section 86 of the 1992 Act shall have effect in relation to the chargeable settlor as if—

(a) in the year 1999-00 the conditions specified in paragraphs (a) to (d) and (f) of subsection (1) of that section were fulfilled in his case in relation to the transferee settlement;

(b) any gain or loss to which this paragraph applies—

(i) were a gain or loss accruing on 6th April 1999 to the trustees of the transferee settlement; and

(ii) so accrued on the disposal by them of an asset that was property originating from the chargeable settlor;

and

(c) any chargeable gains and losses accruing to the trustees of the transferee settlement which are not gains or losses to which this paragraph applies were to be disregarded for the purposes of that section.

(4) Where (but for this sub-paragraph) the same gain or loss would fall to be treated by virtue of sub-paragraph (2) or (3) above as a gain or loss accruing to the trustees of more than one settlement—

(a) that gain or loss shall be apportioned between those settlements in such manner as may be just and reasonable; and

(b) only such part of the gain or loss as on that apportionment is attributable to a particular settlement shall be treated in accordance with that sub-paragraph as accruing to that settlement.

(5) This paragraph does not apply to any chargeable gain or loss accruing on any disposal if, for the year of assessment in which that disposal is made, section 86 of the 1992 Act would, on the relevant assumption, have been prevented by virtue of paragraph 3, 4 or 5 of Schedule 5 to that Act—

(a) from applying in the case of the chargeable settlor in relation to the transferor settlement; or

(b) from applying in his case in relation to the transferee settlement.

(6) The relevant assumption for the purposes of sub-paragraph (5) above is that section 86 of the 1992 Act would have applied in the case of the chargeable settlor apart from paragraphs 3 to 5 of Schedule 5 to that Act.

(7) In this paragraph “relevant property”, in relation to any disposal made by the trustees of the transferor settlement, means any property (not being the asset disposed of) which—

(a) is or represents property or income originating from the chargeable settlor;

(b) has been comprised in, or has arisen to, the transferor settlement at any time after the time of that disposal; and

(c) is property or income of the trustees of the transferee settlement acquired or otherwise deriving, directly or indirectly, from the trustees of the transferor settlement.

(8) For the purposes of this paragraph the transferor settlement has, in relation to a disposal by its trustees, a relevant connection with the transferee settlement if—

(a) immediately before the time of the disposal, the beneficiaries of the transferor settlement are or include persons who are defined persons in relation to that settlement at that time;

(b) the transferor settlement is not a protected settlement at that time in relation to the chargeable settlor;

(i) have attained the age of eighteen; and

(ii) have been defined persons in relation to the transferor settlement;

and

(d) the property comprised in the transferee settlement in respect of which some or all of the persons mentioned in paragraph (c) above are beneficiaries of that settlement at the beginning of 6th April 1999 is or includes anything which, in relation to either that settlement or the transferor settlement, is property or income originating from the chargeable settlor.

(9) For the purposes of this paragraph a person is a defined person in relation to a settlement at a time if he would fall at that time to be treated, by reference to the chargeable settlor, as a defined person in relation to that settlement for the purposes of paragraph 2 of Schedule 5 to the 1992 Act.

(10) Sub-paragraph (3)(c) above is without prejudice to any charge imposed otherwise than by virtue of this paragraph.

Pre-6th April 1999 gains and losses where there is a transfer to a foreign institution

3

(1) This paragraph applies, subject to sub-paragraphs (4) and (6) below, to a chargeable gain or loss accruing on the disposal of any asset by the trustees of a settlement (“the transferor settlement") if—

(a) that settlement was created before 19th March 1991;

(b) the disposal on which the gain or loss accrues is one made—

(i) on or after 17th March 1998 and before 6th April 1999; and

(ii) in a year of assessment in which the trustees of the transferor settlement fulfil the condition as to residence but the settlement is not a qualifying settlement;

(i) is domiciled in the United Kingdom at some time in the year 1999-00 and in the year of assessment in which the disposal is made;

(ii) is either resident in the United Kingdom during any part of each of those years or ordinarily resident in the United Kingdom during each of those years; and

(iii) is alive at the end of the year 1999-00;

(d) the asset disposed of is property originating from the chargeable settlor;

(e) the property comprised in a foreign institution (“the transferee institution") at any time after the disposal and before 6th April 1999 is or includes (whether in consequence of the disposal or otherwise) the asset disposed of or any relevant property;

(f) the transferor settlement has a relevant connection with the transferee institution; and

(g) the gain or loss in question is neither—

(i) a gain or loss treated under paragraph 1 above as accruing on 6th April 1999 to the trustees of any settlement; nor

(ii) a gain or loss to which paragraph 2 above applies.

(2) If, in the case of the chargeable settlor, section 86 of the 1992 Act applies (apart from this paragraph) for the year 1999-00 in relation to the transferor settlement, that section shall apply for that year in relation to that settlement as if any chargeable gain or loss to which this paragraph applies—

(a) were a gain or loss accruing on 6th April 1999 to the trustees of the transferor settlement; and

(b) so accrued on the disposal by them of an asset that was property originating from the chargeable settlor.

(3) Where sub-paragraph (2) above does not apply, section 86 of the 1992 Act shall have effect in relation to the chargeable settlor as if—

(a) (where it is not the case) the transferor settlement existed in the year 1999-00;

(b) that settlement were a settlement in relation to which all the conditions specified in paragraphs (a) to (d) and (f) of subsection (1) of that section were fulfilled in the case of the chargeable settlor in that year;

(i) were a gain or loss accruing on 6th April 1999 to the trustees of the transferor settlement; and

(ii) so accrued on the disposal by them of an asset that was property originating from the chargeable settlor;

and

(d) any chargeable gains and losses which are not gains or losses to which this paragraph applies were to be disregarded for the purposes of that section.

(4) This paragraph does not apply to any chargeable gain or loss accruing on any disposal if, for the year of assessment in which that disposal is made, section 86 of the 1992 Act would, on the relevant assumption, have been prevented by virtue of paragraph 3, 4 of 5 of Schedule 5 to that Act from applying in the case of the chargeable settlor in relation to the transferor settlement.

(5) The relevant assumption for the purposes of sub-paragraph (4) above is that section 86 of the 1992 Act would have applied in the case of the chargeable settlor apart from paragraphs 3 to 5 of Schedule 5 to that Act.

(6) This paragraph does not apply to any chargeable gain or loss accruing on any disposal if the chargeable settlor stands in such a relationship to the foreign institution that if—

(a) that institution were a settlement,

(b) property of the institution were property comprised in the settlement, and

paragraph 4 or 5 of Schedule 5 to the 1992 Act would (assuming that nothing else did) prevent section 86 of that Act from applying in the case of the chargeable settlor in relation to that settlement for the year of assessment in which that disposal is made.

(7) In this paragraph “relevant property”, in relation to any disposal made by the trustees of the transferor settlement, means any property which—

(a) is or represents property or income originating from the chargeable settlor;

(b) has been comprised in, or has arisen to, the transferor settlement at any time after the time of that disposal; and

(c) is property or income of the transferee institution acquired or otherwise deriving, directly or indirectly, from the trustees of the transferor settlement.

(8) For the purposes of this paragraph the transferor settlement has, in relation to a disposal by its trustees, a relevant connection with the transferee institution if—

(a) immediately before the time of the disposal, the beneficiaries of the transferor settlement are or include persons who are defined persons in relation to that settlement at that time;

(b) the transferor settlement is not a protected settlement at that time in relation to the chargeable settlor; and

(i) one in which a relevant defined person is a participator at the beginning of 6th April 1999;

(ii) one which is under the control of a company in which, or two or more companies in any of which, a relevant defined person is a participator at that time; or

(iii) one whose relevant property or relevant income includes property or income in which a relevant defined person has an interest at that time.

(9) For the purposes of this paragraph a person is a relevant defined person at any time if he—

(a) has attained the age of eighteen; and

(b) has been, by reference to the chargeable settlor, a defined person in relation to the transferor settlement.

(10) For the purposes of this paragraph a person has an interest in any property or income of a foreign institution at any time if—

(a) there are any circumstances whatever in which that property or income is or will or may become applicable for his benefit or payable to him;

(b) there are any circumstances whatever in which income which is or may arise from that property or income is or will or may become applicable for his benefit or payable to him;

(c) he enjoys a benefit directly or indirectly from that property or income or from any income arising from that property or income.

(11) For the purposes of this paragraph a person is a defined person in relation to a settlement at a time if he would fall at that time to be treated, by reference to the chargeable settlor, as a defined person in relation to that settlement for the purposes of paragraph 2 of Schedule 5 to the 1992 Act.

(12) In this paragraph—

“foreign institution” means any company or other institution resident outside the United Kingdom;

“participator” has the meaning given (for the purposes of Part XI of the Taxes Act 1988 (close companies)) by section 417(1) of that Act;

“relevant income”, in relation to a foreign institution, means any income of that institution which, if that institution were a settlement, would be treated for the purposes of Schedule 5 to the 1992 Act as originating from the chargeable settlor;

“relevant property”, in relation to a foreign institution, means any property of that institution which, if that institution were a settlement, would be treated for the purposes of Schedule 5 to the 1992 Act as originating from the chargeable settlor.

(13) Sub-paragraph (3)(d) above is without prejudice to any charge imposed otherwise than by virtue of this paragraph.

Rule to prevent a double charge

4

(1) This paragraph applies, in the case of a person who is a settlor in relation to any settlement (“the relevant settlement"), to so much (if any) of the amount falling in his case within section 86(1)(e) of the 1992 Act for the year 1999-00 as (apart from this paragraph) would be treated by virtue only of the preceding provisions of this Schedule, as gains accruing to him in that year.

(2) Where there is an excess of the relevant chargeable amounts for the transitional period over the amount of the section 87 pool on 17th March 1998, only so much (if any) of the amount to which this paragraph applies as exceeds that excess shall fall in accordance with this Schedule to be, or (as the case may be) to be included in, the amount treated as accruing to the settlor in the year 1999-00.

(3) In sub-paragraph (2) above, the reference to the relevant chargeable amounts for the transitional period is (subject to sub-paragraph (5) below) a reference to the aggregate of the amounts on which beneficiaries of the relevant settlement are charged to tax under section 87 or 89(2) of the 1992 Act for any year of assessment ending after 17th March 1998 and before 6th April 1999 in respect of capital payments received by them.

(4) In sub-paragraph (2) above, the reference to the section 87 pool on 17th March 1998 is (subject to sub-paragraph (5) below) a reference to the amount (if any) which, in accordance with subsection (2) of section 87 of the 1992 Act, would have fallen in relation to the relevant settlement to be carried forward from the year 1997-98 to be included in the amount of the trust gains for the year 1998-99 if—

(a) the year 1997-98 had ended with 16th March 1998; and

(b) the year 1998-99 had begun with 17th March 1998.

(5) Where the property comprised in the relevant settlement has at any time included property not originating from the settlor, only so much (if any) of any capital payment or of any amount that would have been carried forward in accordance with section 87(2) of the 1992 Act as, on a just and reasonable apportionment, is properly referable to property originating from the settlor shall be taken into account for the purposes of sub-paragraphs (3) and (4) above.

(6) Where any reduction falls to be made by virtue of sub-paragraph (2) above in the amount to be attributed in accordance with this Schedule to any settlor for the year 1999-00, the reduction to be treated as made for that year in accordance with section 87(3) of the 1992 Act in the case of the settlement in question shall not be made until—

(a) the reduction (if any) falling to be made by virtue of that sub-paragraph has been made in the case of every settlor to whom any amount is so attributed; and

(b) effect has been given to any reduction required to be made under paragraph 5(1) below.

(7) In this paragraph “the transitional period” means the period beginning with 17th March 1998 and ending with 5th April 1999.

5

(1) Where in the case of any settlement there is (after the making of any reduction or reductions in accordance with paragraph 4(2) above) any amount or amounts falling in accordance with this Schedule to be attributed for the year 1999-00 to settlors of the settlement, the amount or (as the case may be) aggregate amount falling in accordance with this Schedule to be so attributed shall be applied in reducing the amount which (after any reductions in accordance with section 86A(6A) of that Act) is carried forward to that year in accordance with section 87(2) of that Act.

(2) Where an amount or aggregate amount has been applied, in accordance with sub-paragraph (1) above, in reducing the amount which in the case of any settlement is carried forward to the year 1999-00 in accordance with section 87(2) of the 1992 Act, that amount (or, as the case may be, so much of it as does not exceed the amount which it is applied in reducing) shall be deducted from the amount used for that year in the case of that settlement for making the reduction under section 87(3) of that Act.

Interpretation of Schedule

6

(1) In this Schedule—

“the 1992 Act” means the Taxation of Chargeable Gains Act 1992;

“qualifying settlement”, in relation to any year of assessment, means a settlement that is a qualifying settlement in that year for the purposes of section 86 of and Schedule 5 to the 1992 Act;

“settlor”, in relation to a settlement, has the same meaning as in Schedule 5 to the 1992 Act.

(2) In this Schedule “protected settlement”, in relation to any time and any settlor, means (subject to sub-paragraph (3) below)—

(a) a settlement that is a protected settlement at that time, within the meaning given by sub-paragraph (10A) of paragraph 9 of Schedule 5 to the 1992 Act, or

(b) a settlement that would be such a settlement at that time if that settlor were the only settlor of the settlement.

(3) For the purposes of construing, in accordance with sub-paragraph (2) above, the references in paragraphs 2(8) and 3(8) above to a protected settlement, paragraph 9(10A)(a) of Schedule 5 to the 1992 Act shall be deemed to have effect with the omission of the words “or who were under that age at the end of the immediately preceding year of assessment".

(4) References in this Schedule to the condition as to residence are references to the condition set out in section 86(2) of the 1992 Act.

(5) For the purposes of this Schedule a person is a beneficiary of a settlement if—

(a) there are any circumstances whatever in which property which is or may become comprised in the settlement is or will or may become applicable for his benefit or payable to him;

(b) there are any circumstances whatever in which income which arises or may arise from property comprised in the settlement is or will or may become applicable for his benefit or payable to him;

(c) he enjoys a benefit directly or indirectly from any property comprised in the settlement or any income arising from any such property;

and references in this paragraph to the property comprised in the settlement in respect of which a person is a beneficiary shall be construed accordingly.

(6) For the purposes of this paragraph, paragraph 8 of Schedule 5 to the 1992 Act shall apply for determining if property is property originating from any person as it applies for the purposes of that Schedule.

(7) Expressions used in this Schedule and in the 1992 Act have the same meanings in this Schedule as in that Act.

SCHEDULE 24

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

SCHEDULE 25

Meaning of “the 1984 Act"

1

In this Schedule “the 1984 Act” means the Inheritance Tax Act 1984.

Claims for designation

2

(1) In section 30 of the 1984 Act (conditionally exempt transfers), after subsection (3B) there shall be inserted the following subsection—

(3BA) A claim under subsection (1) above must be made no more than two years after the date of the transfer of value to which it relates or, in the case of a claim with respect to a potentially exempt transfer, the date of the death, or (in either case) within such longer period as the Board may allow.

(2) This paragraph has effect in relation to any transfer of value or death on or after 17th March 1998.

3

(1) In section 78 of the 1984 Act (conditionally exempt occasions), after subsection (1) there shall be inserted the following subsection—

(1A) A claim under subsection (1) above must be made no more than two years after the date of the transfer or other event in question or within such longer period as the Board may allow.

(2) This paragraph has effect in relation to transfers of property made, and other events occurring, on or after 17th March 1998.

Property capable of designation

4

(1) In section 31 of the 1984 Act, in subsection (1) (property capable of designation under that section), for paragraph (a) there shall be substituted the following paragraphs—

(a) any relevant object which appears to the Board to be pre-eminent for its national, scientific, historic or artistic interest; (aa) any collection or group of relevant objects which, taken as a whole, appears to the Board to be pre-eminent for its national, scientific, historic or artistic interest;

(2) In subsections (2) and (3) of that section, for “(1)(a)", wherever occurring, there shall be substituted “ (1)(a) or (aa) ”.

(3) For subsection (5) of that section, there shall be substituted the following subsection—

(5) In this section— - 'national interest’ includes interest within any part of the United Kingdom; and - 'relevant object’ means— 1. a picture, print, book, manuscript, work of art or scientific object, or 2. anything not falling within paragraph (a) above that does not yield income; and in determining under subsection (1)(a) or (aa) above whether an object or a collection or group of objects is pre-eminent, regard shall be had to any significant association of the object, collection or group with a particular place.

(4) This paragraph has effect in relation to the making of any designation on a claim made on or after the day on which this Act is passed.

Access to designated property

5

(1) In section 31 of the 1984 Act (designation of property and requisite undertakings), after subsection (4F) there shall be inserted the following subsection—

(4FA) For the purposes of this section, the steps agreed for securing reasonable access to the public must ensure that the access that is secured is not confined to access only where a prior appointment has been made.

(2) This paragraph has effect in relation to the giving of any undertaking on or after the day on which this Act is passed.

Publication of information about designated property

6

(1) In section 31 of the 1984 Act (designation of property and requisite undertakings), after the subsection (4FA) of that section inserted by paragraph 5 above there shall be inserted the following subsection—

(4FB) Subject to subsection (3) above, where the steps that may be set out in any undertaking include steps for securing reasonable access to the public to any property, the steps that may be agreed and set out in that undertaking may also include steps involving the publication of— (a) the terms of any undertaking given or to be given for any of the purposes of this Act with respect to the property; or (b) any other information relating to the property which (apart from this subsection) would fall to be treated as confidential; and references in this Act to an undertaking for access to any property shall be construed as including references to so much of any undertaking as provides for the taking of steps involving any such publication.

(2) This paragraph has effect in relation to the giving of any undertaking on or after the day on which this Act is passed.

Undertakings on death, disposal of property, etc.

7

(1) In section 32 of the 1984 Act (chargeable events in relation to conditionally exempt transfers), in subsection (2), for “subsection (5)(b)" there shall be substituted “ subsection (5AA) ”.

(2) In subsection (5) of that section, for paragraph (b) there shall be substituted the following paragraph—

(b) the condition specified in subsection (5AA) below is satisfied with respect to the property.

(3) After that subsection there shall be inserted the following subsection—

(5AA) The condition referred to in subsection (5)(b) above is satisfied if— (a) the requisite undertaking described in section 31 above is given with respect to the property by such person as the Board think appropriate in the circumstances of the case, or (b) (where the property is an area of land within section 31(1)(d) above) the requisite undertakings described in that section are given with respect to the property by such person or persons as the Board think appropriate in the circumstances of the case.

(4) In section 32A of the 1984 Act (chargeable events in relation to associated properties), in subsection (6), for the words from “unless" to “case; and" there shall be substituted—

unless— (a) the requisite undertaking described in section 31 above is given with respect to the property (or part) not disposed of by such person as the Board think appropriate in the circumstances of the case, or (b) (where any of the property or part not disposed of is an area of land within section 31(1)(d) above) the requisite undertakings described in that section are given with respect to that property (or that part) by such person or persons as the Board think appropriate in the circumstances of the case; and

(5) In subsection (8) of that section, for paragraph (b) there shall be substituted the following paragraph—

(b) the condition specified in subsection (8A) below is satisfied with respect to the property (or part) concerned.

(6) After that subsection there shall be inserted the following subsection—

(8A) The condition referred to in subsection (8)(b) above is satisfied if— (a) the requisite undertaking described in section 31 above is given with respect to the property (or part) by such person as the Board think appropriate in the circumstances of the case, or (b) (where any of the property or part is an area of land within section 31(1)(d) above) the requisite undertakings described in that section are given with respect to the property (or part) by such person or persons as the Board think appropriate in the circumstances of the case.

(7) For subsection (9) of that section there shall be substituted the following subsection—

(9) If the whole or part of any property is disposed of by sale and— (a) the requisite undertaking described in section 31 above is given with respect to the property (or part) by such person as the Board think appropriate in the circumstances of the case, or (b) (where any of the property or part is an area of land within section 31(1)(d) above) the requisite undertakings described in that section are given with respect to the property (or part) by such person or persons as the Board think appropriate in the circumstances of the case, the disposal is a chargeable event only with respect to the whole or part actually disposed of (if it is a chargeable event with respect to such whole or part apart from this subsection).

(8) In Schedule 5 to the 1984 Act, for paragraph 5 (undertaking capable of preventing disposal from being chargeable in cases where death occurred before 7th April 1976) there shall be substituted the following paragraph—

(5) (1) The further undertaking referred to in paragraph 1 above is the requisite undertaking described in section 31(2) of this Act given with respect to the object in question by such person as the Board think appropriate in the circumstances of the case. (2) Subsection (3) of section 31 of this Act shall apply in relation to documents which are designated as objects to which section 31 of the Finance Act 1975 applies as that subsection applies in relation to documents designated under section 31(1)(a) of this Act. (3) The further undertaking referred to in paragraph 3 above is— (a) the requisite undertaking described in subsection (4) of section 31 of this Act given with respect to the property in question by such person as the Board think appropriate in the circumstances of the case, or (b) (where applicable) the requisite undertakings described in subsections (4) and (4A) of that section given with respect to the property in question by such person or persons as the Board think appropriate in the circumstances of the case.

(9) This paragraph has effect in relation to the giving of any undertaking on or after the day on which this Act is passed.

Variation of undertakings

8

(1) After section 35 of the 1984 Act there shall be inserted the following section—

(35A) (1) An undertaking given under section 30, 32 or 32A above or paragraph 5 of Schedule 5 to this Act may be varied from time to time by agreement between the Board and the person bound by the undertaking. (2) Where a Special Commissioner is satisfied that— (a) the Board have made a proposal for the variation of such an undertaking to the person bound by the undertaking, (b) that person has failed to agree to the proposed variation within six months after the date on which the proposal was made, and (c) it is just and reasonable, in all the circumstances, to require the proposed variation to be made, the Commissioner may direct that the undertaking is to have effect from a date specified by him as if the proposed variation had been agreed to by the person bound by the undertaking. (3) The date specified by the Special Commissioner must not be less than sixty days after the date of his direction. (4) A direction under this section shall not take effect if, before the date specified by the Special Commissioner, a variation different from that to which the direction relates is agreed between the Board and the person bound by the undertaking.

(2) After section 79 of the 1984 Act there shall be inserted the following section—

(79A) (1) An undertaking given under section 78 or 79 above may be varied from time to time by agreement between the Board and the person bound by the undertaking. (2) Where a Special Commissioner is satisfied that— (a) the Board have made a proposal for the variation of such an undertaking to the person bound by the undertaking, (b) that person has failed to agree to the proposed variation within six months after the date on which the proposal was made, and (c) it is just and reasonable, in all the circumstances, to require the proposed variation to be made, the Commissioner may direct that the undertaking is to have effect from a date specified by him as if the proposed variation had been agreed to by the person bound by the undertaking. (3) The date specified by the Special Commissioner must not be less than sixty days after the date of his direction. (4) A direction under this section shall not take effect if, before the date specified by the Special Commissioner, a variation different from that to which the direction relates is agreed between the Board and the person bound by the undertaking.

(3) In Schedule 4 to the 1984 Act (maintenance funds for historic buildings), in paragraph 3, after sub-paragraph (3) there shall be inserted the following sub-paragraph—

(3A) Section 35A of this Act shall apply in relation to an undertaking given under sub-paragraph (3) above as it applies in relation to an undertaking given under section 30 of this Act.

(4) Subject to paragraph 10 below, this paragraph has effect in relation to undertakings given on or after the day on which this Act is passed.

9

(1) In section 258 of the Taxation of Chargeable Gains Act 1992 (disposal of works of art), after subsection (8) there shall be inserted the following subsection—

(8A) Section 35A of the 1984 Act (variation of undertakings) shall have effect in relation to an undertaking given under this section as it has effect in relation to an undertaking given under section 30 of that Act.

(2) Subject to paragraph 10 below, this paragraph has effect in relation to undertakings given on or after the day on which this Act is passed.

10

(1) Section 35A of the 1984 Act applies in relation to a relevant undertaking given with respect to any property before the day on which this Act is passed except in a case where there has been a chargeable event with respect to that property at any time after the giving of the undertaking but before that day.

(2) In its application to such a relevant undertaking, section 35A of the 1984 Act applies with the modifications set out in sub-paragraphs (3) and (4) below.

(3) The first modification is the substitution, for paragraph (a) of subsection (2), of the following paragraph—

(a) the Board have made a proposal to the person bound by such an undertaking for the undertaking to be varied so as to include (where it does not already do so) an extended access requirement or a publication requirement (or both those requirements),

(4) The second modification is the insertion, after subsection (4), of the following subsections—

(5) For the purposes of subsection (2)(a) above— (a) an extended access requirement is a requirement for the taking of steps ensuring that the access to the public that is secured is not confined to access only where a prior appointment has been made; and (b) a publication requirement is a requirement for the taking of steps involving the publication of any matter mentioned in paragraph (a) or (b) of section 31(4FB) above. (6) In determining for the purposes of subsection (2)(a) above whether an undertaking already includes an extended access requirement, there shall be disregarded so much of the undertaking as includes provision for the property with respect to which the undertaking was given to be made available temporarily for the purposes of special exhibitions.

(5) In this paragraph “relevant undertaking” means any of the following—

(a) an undertaking given under section 30, 32, 32A, 78 or 79 of the 1984 Act;

(b) an undertaking given under paragraph 3(3) of Schedule 4 to the 1984 Act or paragraph 5(2) of Schedule 5 to that Act;

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Finance Act 1998

Penalty

83F

Part 9B — Claims relating to remediation of contaminated or derelict land

Introduction

83G

Claim to be included in company tax return

83H

Content of claim

83I

Amendment or withdrawal of claim

83J

Time limit for claims

83K

Penalty

83L

PART 9BA — Claims for relief under Schedule 12 to the Finance Act 2002

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

83LA

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

83LB

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

83LC

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

83LD

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

83LE

PART 9C — Claims for relief under Schedule 13 to the Finance Act 2002

PART 9D — Claims under Parts 14A to 15E of the Corporation Tax Act 2009

Introduction

83S

Claim to be included in company tax return

83T

Content of claim

83U

Amendment or withdrawal of claim

83V

Time limits for claim

83W

Additional information to be provided in relation to claim

83WA

Penalty

83X

PART 9E — Designation of losses as unrestricted losses for the purposes of Chapter 3 of Part 7A of the Corporation Tax Act 2010

Introduction

83Y

Designation to be made in company tax return

83YA

Identification of losses

83YB

Amendment or withdrawal of designation

83YC

Part X — Special provisions

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

84

Non-annual accounting of general insurance business

85

Insurance companies with non-annual actuarial investigations

86

Friendly societies with non-annual actuarial investigations

87

PART 10A — SEs

Company ceasing to be UK resident on formation of SE by merger

87A

SE ceasing to be UK resident

87B

Meaning of SE

87C

Part XI — Supplementary provisions

Conclusiveness of amounts stated in return

88

Security for payments

88A

Penalty for fraud or negligence

89

Multiple tax-related penalties in respect of same accounting period

90

UK Economic Interest Groupings and European Economic Interest Groupings

91

Notices of appeal