Finance Act 1999

• (a) applying the provisions of the Taxes Management Act 1970 relating to penalties and the payment of interest on overdue tax, and

• (b) requiring information to be provided, or books, documents or other records to be made available for inspection, and imposing a penalty for failure to do so.

• (3) That power includes, and shall be deemed always to have included, power to make provision requiring specified descriptions of persons to account for and pay tax, and any interest on it, on behalf of the person liable to pay it.

Units in unit trusts

Stamp duty and stamp duty reserve tax: unit trusts

122

• (1) The following provisions of this Act (which apply generally to instruments executed on or after 1st October 1999)—

• (a) section 109 and Schedule 12 (interest and penalties on late stamping),

• (b) section 110 (interest on duty overpaid, etc.), and

• (c) section 112 and Schedules 13 and 14 (general amendment of charging provisions),

do not apply to transfers or other instruments relating to units under a unit trust scheme.

• (2) Subsection (1) does not affect the operation of those provisions in relation to stamp duty—

• (a) on a conveyance or transfer on sale of property other than units under a unit trust scheme in relation to which such units form the whole or part of the consideration, or

• (b) under Schedule 15 to this Act (bearer instruments).

• (3) In subsections (1) and (2) “unit” and “unit trust scheme” have the same meaning as in Part VII of the Finance Act 1946 or Part III of the Finance (No.2) Act (Northern Ireland) 1946.

• (4) Schedule 19 to this Act (stamp duty and stamp duty reserve tax: unit trusts) has effect.

This subsection and that Schedule come into force on 6th February 2000.

Supplementary provisions

Construction of this Part and other supplementary provisions

123

• (1) This Part—

• (a) so far as it relates to stamp duty shall be construed as one with the Stamp Act 1891, and

• (b) so far as it relates to stamp duty reserve tax shall be construed as one with Part IV of the Finance Act 1986.

• (2) In this Part—

• (a) “the enactments relating to stamp duty” means the Stamp Act 1891 and any enactment amending or which is to be construed as one with that Act; and

• (b) “the enactments relating to stamp duty reserve tax” means Part IV of the Finance Act 1986 and any enactment amending or which is to be construed as one with that Part.

• (3) The following provisions of this Part shall cease to have effect on the day appointed under section 111(1) of the Finance Act 1990 (abolition of stamp duty for securities etc.)—

• section 113;

• sections 116 to 121;

• subsections (1)(b) and (2)(b) of this section;

• in Schedule 13—paragraph 3,in paragraph 4 the words “in the case of any other conveyance or transfer on sale”,paragraph 7(1)(b)(ii) to (iv),paragraph 24(a)... and (d);

• in Schedule 14, paragraphs 5, 8, 12, 13, 16 to 21 and 23;

• Schedule 15;

• in Schedule 16, paragraphs 2 to 11;

• in Schedule 17, paragraphs 6 to 8;

• Parts I and III of Schedule 19;

• in Part IV of that Schedule, the words “and the enactments relating to stamp duty reserve tax” in paragraphs 14(1), 15, 16, 17(1) and 18(1).

• (4) The amendment by this Part, or the repeal in consequence of this Part, of any enactment relating to stamp duty does not affect that enactment as applied for any purpose other than stamp duty.

Part VII — Other taxes

Landfill tax

Rate of landfill tax

124

• (1) In section 42 of the Finance Act 1996 (amount of landfill tax), in subsections (1)(a) and (2), for “£7”, in each place where it occurs, there shall be substituted “ £10 ”.

• (2) This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 1999.

Insurance premium tax

Rate of insurance premium tax

125

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

Customs duties

Interest on unpaid customs debts

126

• (1) This section applies for the determination and recovery of the amount of any interest charged in accordance with Article 232 of the Community Customs Code (interest on duty not paid within the prescribed period) on arrears of customs duty payable to the Commissioners.

• (2) Subject to subsection (3) below, the interest shall be charged on the amount in arrears at the rate applicable under section 197 of the Finance Act 1996 (power to fix rates of interest applicable in the case of indirect taxes) for the period which—

• (a) begins with the latest time for payment of that amount; and

• (b) ends with the day before that on which payment of that amount is actually made.

• (3) Regulations made for the purposes of this section under section 197 of the Finance Act 1996 may provide that, where the amount of interest computed in any case in accordance with subsection (2) above is less than such minimum amount as may be specified in or determined in accordance with the regulations, the amount of interest charged in that case is (instead of being the amount so computed) to be taken to be equal to that minimum amount.

• (4) Subsections (2) and (3) above have effect subject to Article 232(2) of the Community Customs Code (power to waive interest in certain cases).

• (5) Any interest the amount of which falls to be determined in accordance with this section shall be recoverable by the Commissioners as if it were customs duty; but nothing in this subsection shall be taken to impose any liability to interest on an amount so determined.

• (6) Interest on an amount of customs duty shall not be recoverable from any person at any time more than three years after the latest time for payment of that amount unless a written notice that arrears of customs duty attract interest was given to that person by the Commissioners at a time falling—

• (a) at or after the time when that amount first became payable; and

• (b) before the end of that three years.

• (7) In this section—

• “the Commissioners” means the Commissioners of Customs and Excise;

• “the Community Customs Code” means Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code;

• “customs duty” includes any agricultural levy of the European Union ; and

• “the latest time for payment”, in relation to an amount of customs duty, means the end of the period prescribed by the Community Customs Code for the payment of that amount.

• (8) The preceding provisions of this section—

• (a) shall have effect for periods beginning on or after such day as the Treasury may by order made by statutory instrument appoint; and

• (b) shall so have effect in relation to interest running from before that day, as well as in relation to interest running from, or from after, that day;

and different days may be appointed under this subsection for different purposes.

Interest on repayments

127

• (1) Subject to the following provisions of this section, where the Commissioners are liable to repay an amount to any person in consequence of—

• (a) the payment to them by way of customs duty of an amount that was not due from that person, or

• (b) any requirement to repay an amount of customs duty in accordance with the Community Customs Code or Commission Regulation No. 2454/93,

then, if and to the extent that they would not be liable to do so apart from this section, the Commissioners shall pay interest to him on that amount for the applicable period.

• (2) The amounts that carry interest under subsection (1) above—

• (a) include only so much of any amount mentioned in that subsection as is the subject of a claim that the Commissioners are required to satisfy or have satisfied; and

• (b) do not include any amount of interest under this section.

• (3) Subject to section 128 below, in relation to any amount that carries interest under subsection (1) above, the applicable period for the purposes of this section is the period which–

• (a) begins with the thirty-first working day after the making of the claim for repayment of that amount; and

• (b) ends with the date on which the Commissioners issue the repayment of that amount, and in paragraph (a) above “working day” means any day other than a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882 .

• (4) The Commissioners shall not be liable to pay interest under this section except on the making of a claim for that purpose.

• (5) A claim under this section must be in writing and must be made not more than three years after the end of the applicable period to which it relates.

• (6) Any reference in this section to the issue by the Commissioners of any repayment of any amount includes a reference to the discharge by way of set-off of the Commissioners’ liability to repay that amount.

• (7) Interest under this section shall be payable at the rate applicable under section 197 of the Finance Act 1996.

• (8) In this section and section 128 below—

• “the Commissioners” means the Commissioners of Customs and Excise;

• “the Community Customs Code” means Council Regulation (EEC) No. 2913/92 establishing the Community Customs Code; and

• “customs duty” includes any agricultural levy of the European Union .

• (9) The Commissioners may by order modify subsection (3) above so as to provide for interest under this section to begin to run from a time before the sixty-first day after the making of the claim for repayment.

• (10) The power of the Commissioners to make an order under subsection (9) above shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

• (11) This section has effect in relation only to a repayment the claim for which is made on or after such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.

Periods to be disregarded in determining interest under s. 127

128

• (1) In determining the applicable period for the purposes of section 127 above in the case of interest on the amount of any repayment there shall be left out of account any period by which the Commissioners’ issue of the repayment is delayed as a result of circumstances beyond their control.

• (2) The reference in subsection (1) above to a period by which the Commissioners’ issue of a repayment is delayed as a result of circumstances beyond their control includes, in particular, any period which is referable to any one or more of the matters mentioned in subsections (3) to (5) below.

• (3) The first of those matters is any unreasonable delay in the making of any claim for the repayment of the amount on which interest is claimed.

• (4) The second of those matters is any failure by any person to provide the Commissioners—

• (a) at or before the time of the making of any such claim, or

• (b) subsequently in response to a request for information by the Commissioners,

with all the information required by them to enable the existence and amount of the claimant’s entitlement to a repayment to be determined.

• (5) The third of those matters is the making, as part of or in association with such a claim, of a claim to anything to which the person making the claim has no entitlement.

• (6) In determining for the purposes of subsection (4) above whether any period of delay is referable to a failure by any person to provide information in response to a request by the Commissioners, there shall be taken to be so referable any period which—

• (a) begins with the date on which the Commissioners request that person to provide information which they reasonably consider relevant to the matter to be determined; and

• (b) ends with the earliest date on which it would be reasonable for the Commissioners to conclude—

• (i) that they have received a complete answer to their request for information;

• (ii) that they have received all that they need in answer to that request; or

• (iii) that it is unnecessary for them to be provided with any information in answer to that request.

Repayment of overpaid interest etc

129

• (1) Where—

• (a) the Commissioners have issued an amount to any person by way of—

• (i) a payment of interest under section 127 above, or

• (ii) a repayment of customs duty or of interest on arrears of customs duty,

• (b) that person was not entitled to that amount, and

• (c) the Commissioners are entitled to recover it,

the amount shall be recoverable by the Commissioners as if it were customs duty.

• (2) An amount shall not be recoverable from any person in accordance with subsection (1) above at any time more than three years after the payment or repayment was issued unless a written notice that the amount is recoverable was given to that person by the Commissioners before the end of those three years.

• (3) Any reference in this section to the issue by the Commissioners of any payment or repayment of any amount includes a reference to the discharge by way of set-off of the Commissioners’ liability to pay or, as the case may be, to repay that amount.

• (4) Nothing in this section shall be taken to impose any liability to interest on an amount to which subsection (1) above applies.

• (5) In this section—

• “the Commissioners” means the Commissioners of Customs and Excise; and

• “customs duty” includes any agricultural levy of the European Union .

• (6) This section shall have effect in relation to amounts issued on or after such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.

Consequential amendments relating to interest

130

• (1) In section 14(1) of the Finance Act 1994 (reviewable and appealable decisions), for the “and” at the end of paragraph (c) there shall be substituted—

(ca) any decision as to whether or not— (i) an amount due in respect of customs duty or agricultural levy, or (ii) any repayment by the Commissioners of an amount paid by way of customs duty or agricultural levy, is to carry interest, or as to the rate at which, or period for which, any such amount is to carry interest;

.

• (2) For sub-paragraph (k) of paragraph 1 of Schedule 5 to that Act (under which decisions as to interest under the Community Customs Code are reviewable and appealable) there shall be substituted the following sub-paragraph—

(k) any decision as to whether or not collection of interest on arrears of customs duty or agricultural levy is to be waived;

.

• (3) In section 197(2) of the Finance Act 1996 (setting of rates of interest for indirect taxes), after paragraph (e) there shall be inserted the following paragraph—

(f) sections 126 and 127 of the Finance Act 1999 (interest on overdue customs duty and on repayments of amounts paid by way of customs duty).

• (4) Subsections (1) and (2) above have effect in relation to decisions made on or after the day on which this Act is passed.

Part VIII — Miscellaneous and Supplemental

General administration of tax

Economic and monetary union: taxes and duties

131

The Commissioners of Inland Revenue and the Commissioners of Customs and Excise may incur expenditure in order to secure that, if the United Kingdom were to move to the third stage of economic and monetary union, they would be able to exercise their functions relating to taxes and duties (including agricultural levies of the European Union ).

Power to provide for use of electronic communications

132

• (1) Regulations may be made, in accordance with this section, for facilitating the use of electronic communications for—

• (a) the delivery of information the delivery of which is authorised or required by or under any legislation relating to a taxation matter;

• (b) the making of payments under any such legislation.

• (2) The power to make regulations under this section is conferred—

• (a) on the Commissioners of Inland Revenue in relation to matters which are under their care and management; and

• (b) on the Commissioners of Customs and Excise in relation to matters which are under their care and management.

• (3) For the purposes of this section provision for facilitating the use of electronic communications includes any of the following—

• (a) provision authorising persons to use electronic communications for the delivery of information to tax authorities, or for the making of payments to tax authorities;

• (b) provision requiring electronic communications to be used for the making to tax authorities of payments due from persons using such communications for the delivery of information to those authorities;

• (c) provision authorising tax authorities to use electronic communications for the delivery of information to other persons or for the making of any payments;

• (d) provision as to the electronic form to be taken by any information that is delivered to any tax authorities using electronic communications;

• (e) provision requiring persons to prepare and keep records of information delivered to tax authorities by means of electronic communications, and of payments made to any such authorities by any such means;

• (f) provision for the production of the contents of records kept in accordance with any regulations under this section;

• (g) provision imposing conditions that must be complied with in connection with any use of electronic communications for the delivery of information or the making of any payment;

• (h) provision, in relation to cases where use is made of electronic communications, for treating information as not having been delivered, or a payment as not having been made, unless conditions imposed by any such regulations are satisfied;

• (i) provision, in relation to such cases, for determining the time when information is delivered or a payment is made;

• (j) provision, in relation to such cases, for determining the person by whom information is to be taken to have been delivered or by whom a payment is to be taken to have been made;

• (k) provision, in relation to cases where information is delivered by means of electronic communications, for authenticating whatever is delivered.

• (4) The power to make provision under this section for facilitating the use of electronic communications shall also include power to make such provision as the persons exercising the power think fit (including provision for the application of conclusive or other presumptions) as to the manner of proving for any purpose—

• (a) whether any use of electronic communications is to be taken as having resulted in the delivery of information or the making of a payment;

• (b) the time of delivery of any information for the delivery of which electronic communications have been used;

• (c) the time of the making of any payment for the making of which electronic communications have been used;

• (d) the person by whom information delivered by means of electronic communications was delivered;

• (e) the contents of anything so delivered;

• (f) the contents of any records;

• (g) any other matter for which provision may be made by regulations under this section.

• (5) Regulations under this section may—

• (a) allow any authorisation or requirement for which such regulations may provide to be given or imposed by means of a specific or general direction given by the Commissioners of Inland Revenue or the Commissioners of Customs and Excise;

• (b) provide that the conditions of any such authorisation or requirement are to be taken to be satisfied only where such tax authorities as may be determined under the regulations are satisfied as to specified matters;

• (c) allow a person to refuse to accept delivery of information in an electronic form or by means of electronic communications except in such circumstances as may be specified in or determined under the regulations;

• (d) allow or require use to be made of intermediaries in connection with—

• (i) the delivery of information, or the making of payments, by means of electronic communications; or

• (ii) the authentication or security of anything transmitted by any such means.

• (6) Power to make provision by regulations under this section shall include power—

• (a) to provide for a contravention of, or any failure to comply with, a specified provision of any such regulations to attract a penalty of a specified amount not exceeding £1,000;

• (b) to provide that specified enactments relating to penalties imposed for the purposes of any taxation matter (including enactments relating to assessments, review and appeal) are to apply, with or without modifications, in relation to penalties under such regulations;

• (c) to make different provision for different cases;

• (d) to make such incidental, supplemental, consequential and transitional provision in connection with any provision contained in any such regulations as the persons exercising the power think fit.

• (7) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

• (8) References in this section to the delivery of information include references to any of the following (however referred to)—

• (a) the production or furnishing to a person of any information, account, record or document;

• (b) the giving, making, issue or surrender to, or service on, any person of any notice, notification, statement, declaration, certificate or direction;

• (c) the imposition on any person of any requirement or the issue to any person of any request;

• (d) the making of any return, claim, election or application;

• (e) the amendment or withdrawal of anything mentioned in paragraphs (a) to (d) above.

• (9) References in this section to a taxation matter are references to any of the matters which are under the care and management of the Commissioners of Inland Revenue or of the Commissioners of Customs and Excise.

• (10) In this section—

• “electronic communications” includes any communications by means of an electronic communications service ;

• “legislation” means any enactment, EU legislation or subordinate legislation;

• “payment” includes a repayment;

• “records” includes records in electronic form;

• “subordinate legislation” has the same meaning as in the Interpretation Act 1978;

• “tax authorities” means—the Commissioners of Inland Revenue or the Commissioners of Customs and Excise,any officer of either body of Commissioners; orany other person who for the purposes of electronic communications is acting under the authority of either body of Commissioners.

Use of electronic communications under other provisions

133

• (1) Without prejudice to section 132 above, where any power to make subordinate legislation for or in connection with the delivery of information or the making of payments is conferred in relation to any taxation matter on—

• (a) the Commissioners of Inland Revenue,

• (b) the Commissioners of Customs and Excise, or

• (c) the Treasury,

that power shall be taken (to the extent that it would not otherwise be so taken) to include power to make any such provision in relation to the delivery of that information or the making of those payments as could be made by any person by regulations in exercise of a power conferred by that section.

• (2) Provision made in exercise of the powers conferred by section 132 above or subsection (1) above shall have effect notwithstanding so much of any enactment or subordinate legislation as (apart from the provision so made) would require—

• (a) any information to be delivered, or

• (b) any amount to be paid,

in a form or manner that would preclude the use of electronic communications for its delivery or payment, or the use in connection with its delivery or payment of an intermediary.

• (3) Schedule 3A to the Taxes Management Act 1970 (electronic lodgment of tax returns etc.) shall cease to have effect.

• (4) Subsection (3) above shall come into force on such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed under this subsection for different purposes.

• (5) Expressions used in this section and section 132 above have the same meanings in this section as in that section.

Government borrowing etc.

The Debt Management Account

134

• (1) Schedule 5A to the National Loans Act 1968 (the Debt Management Account) shall be amended in accordance with subsections (2) to (6) below.

• (2) In paragraph 1(2) (objects of the Treasury’s operation of the Debt Management Account), after paragraph (b) there shall be inserted—

(ba) meeting any request to borrow money from the Treasury, made by the Bank of England;

.

• (3) After paragraph 5 there shall be inserted—

(5A) (1) Where the Treasury raise money by virtue of paragraph 4 above, they shall exercise their powers under this Schedule so as to secure that the principal amount is repaid within the period of one year beginning with the day on which the money was raised. (2) Nothing in sub-paragraph (1) above shall require the Treasury to repay any amount at any time when— (a) they are unable to obtain a good discharge for the repayment or they consider that there is a material risk that they would be unable to do so; or (b) it is impracticable to repay the amount. (3) Where— (a) by virtue of sub-paragraph (2) above, an amount is not repaid within the period mentioned in sub-paragraph (1) above, and (b) the case ceases to be one in relation to which sub-paragraph (2)(a) or (b) applies, the Treasury shall exercise their powers under this Schedule so as to secure that the amount is repaid as soon as is reasonably practicable. (4) Any reference in this paragraph to the repayment of any amount includes a reference to the discharge by way of set-off of the Treasury’s liability to repay that amount.

• (4) In paragraph 9(1) (payments from Debt Management Account into National Loans Fund in respect of securities or Treasury bills), after “Treasury bills” there shall be inserted “ (other than bills issued by virtue of paragraph 4 above) ”.

• (5) In paragraph 13(1) (payment into Debt Management Account of sums in respect of payments of interest made from that Account), after “respect of” there shall be inserted “ (a) ” and after “the Account” there shall be inserted

, and (b) any discount on any Treasury bills issued by virtue of paragraph 4 above.

• (6) In paragraph 13(3) (payment into National Loans Fund in respect of payments of interest received or earned by the Debt Management Account), after “respect of” there shall be inserted “ (a) ” and after “the Account” there shall be inserted

, and (b) any benefit accruing to the Account which, in the opinion of the Treasury, ought to be treated in the same way as such interest.

• (7) In section 18 of the National Savings Bank Act 1971 (securities in which ordinary deposits may be invested), in paragraph (a), for the words “or on the National” to the end there shall be substituted “ , on the National Loans Fund with recourse to the Consolidated Fund or on the Debt Management Account with recourse to the National Loans Fund and then to the Consolidated Fund, or ”.

• (8) Subsection (6) above has effect in relation to any benefit accruing to the Debt Management Account on or after 1st April 1999.

Lending by Revenue Accounts to National Loans Fund

135

• (1) Where, at the close of business on any day, a sum stands to the credit of—

• (a) the General Account of the Commissioners of Customs and Excise, or

• (b) the General Account of the Commissioners of Inland Revenue,

that sum may be lent to the National Loans Fund on that day.

• (2) Subsection (1) above does not apply to any sum to the extent that it is required to be paid, on the day in question, in accordance with section 44 of the Commissioners for Revenue and Customs Act 2005 .

• (3) A loan made by virtue of subsection (1) above shall be repaid before the close of business on the day after the loan is made or, where that day is not a business day, before the close of business on the next business day.

• (4) Subject to subsection (3) above, a loan made by virtue of subsection (1) above shall be made in such circumstances, and on such terms and conditions, as the Treasury may from time to time direct.

• (5) In this section “business day” means any day other than—

• (a) a Saturday or Sunday;

• (b) Good Friday or Christmas Day;

• (c) a day which, in England and Wales, is a bank holiday under the Banking and Financial Dealings Act 1971;

• (d) a day specified in an order under section 2(1) of that Act (days on which financial dealings are suspended) and declared by that order to be a non-business day for the purposes of this paragraph; or

• (e) a day appointed by Royal proclamation as a public fast or thanksgiving day.

Definition of Government Stock

136

• (1) The descriptions of stock and bonds specified in Part I of Schedule 11 to the Finance Act 1942 (description of Government stock and bonds to which the provisions of that Act regarding transfer and registration apply, and which by virtue of section 16(3) of the National Loans Act 1968 include descriptions of certain securities issued under that Act) do not include—

• (a) any securities (of whatever series) of any of the descriptions specified in subsection (2) below issued before 20th July 1998, or

• (b) any securities issued on or after 20th July 1998 under the auspices of the Director of Savings.

• (2) The descriptions referred to in subsection (1) are—

• Defence Bonds;

• National Development Bonds;

• British Savings Bonds;

• National Savings Indexed Income Bonds;

• National Savings Income Bonds;

• National Savings Deposit Bonds;

• National Savings Capital Bonds;

• Children’s Bonus Bonds;

• National Savings FIRST Option Bonds;

• National Savings Pensioners Guaranteed Income Bonds.

• (3) The modifications made by this section shall be deemed always to have had effect.

National Savings Bank: disclosure of information

137

The following shall be inserted after section 12(2) of the National Savings Bank Act 1971 (secrecy)—

(2A) Subsection (1) above shall not prevent the disclosure, by a person authorised by the Director of Savings, of information to any person for a permitted purpose. (2B) A permitted purpose is a purpose connected with the provision of information about— (a) the business of the National Savings Bank; (b) any other means by which money is raised under the auspices of, by or through the Director of Savings. (2C) A person to whom information is disclosed in pursuance of subsection (2A) above shall not— (a) use the information for a purpose other than a permitted purpose; (b) disclose the information to any other person.

Supplemental

Interpretation

138

In this Act “theTaxes Act 1988” means the Income and Corporation Taxes Act 1988.

Repeals

139

• (1) The enactments mentioned in Schedule 20 to this Act (which include provisions that are spent or of no practical utility) are hereby repealed to the extent specified in the third column of that Schedule.

• (2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.

Short title

140

This Act may be cited as the Finance Act 1999.

SCHEDULE 1

1

Schedule 1 to the Vehicle Excise and Registration Act 1994 (annual rates of vehicle excise duty) shall be amended as follows.

2

• (1) In sub-paragraph (2A)(b) of paragraph 6 (vehicles which are used for exceptional loads and satisfy the reduced pollution requirements), for “£4,670” there shall be substituted “ £4,170 ”.

• (2) In sub-paragraph (3) of that paragraph (weight by reference to which vehicles classified as vehicles used for exceptional loads), for “38,000 kilograms” there shall be substituted “ 41,000 kilograms ”.

3

For the Table in paragraph 9(1) (rigid goods vehicles not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted—

4

In paragraph 9A(3) (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,670” there shall be substituted “ £4,170 ”.

5

For the Table in paragraph 9B (rigid goods vehicles satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted—

Revenue weight of vehicle	Revenue weight of vehicle	Rate	Rate	Rate
(1) Exceeding	(2) Not Exceeding	(3) Two axle vehicle	(4) Three axle vehicle	(5) Four or more axle vehicle
kgs	kgs	£	£	£
3,500	7,500	155	155	155
7,500	12,000	155	155	155
12,000	13,000	155	155	155
13,000	14,000	155	155	155
14,000	15,000	155	155	155
15,000	17,000	320	155	155
17,000	19,000	600	155	155
19,000	21,000	600	155	155
21,000	23,000	600	470	155
23,000	25,000	600	1,230	155
25,000	27,000	600	1,340	470
27,000	29,000	600	1,340	1,320
29,000	31,000	600	1,340	2,360
31,000	44,000	600	1,340	3,400

6

For the Table in paragraph 11(1) (tractive units not satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted—

Revenue weight of tractive unit	Revenue weight of tractive unit	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles
(1) Exceeding	(2) Not exceeding	(3) Any no. of semi- trailer axles	(4) 2 or more semi- trailer axles	(5) 3 or more semi- trailer axles	(6) Any no. of semi- trailer axles	(7) 2 or more semi- trailer axles	(8) 3 or more semi- trailer axles
kgs	kgs	£	£	£	£	£	£
3,500	7,500	160	160	160	160	160	160
7,500	12,000	300	300	300	300	300	300
12,000	16,000	460	460	460	460	460	460
16,000	20,000	520	460	460	460	460	460
20,000	23,000	810	460	460	460	460	460
23,000	26,000	1,190	590	460	590	460	460
26,000	28,000	1,190	1,130	460	1,130	460	460
28,000	31,000	1,740	1,740	1,090	1,740	660	460
31,000	33,000	2,530	2,530	1,740	2,530	1,000	460
33,000	34,000	5,170	5,170	1,740	2,530	1,470	570
34,000	35,000	5,170	5,170	2,840	2,530	2,100	860
35,000	36,000	6,750	6,750	2,840	2,530	2,100	860
36,000	38,000	9,250	9,250	3,210	2,820	2,820	1,280
38,000	41,000	9,250	9,250	5,750	4,250	4,250	2,500
41,000	44,000	9,250	9,250	5,750	7,250	7,250	1,280

7

In paragraph 11A(3) (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 44,000 kilograms), for “£4,670” there shall be substituted “ £4,170 ”.

8

For the Table in paragraph 11B (tractive units satisfying reduced pollution requirements and with a revenue weight exceeding 3,500 kilograms but not exceeding 44,000 kilograms) there shall be substituted—

Revenue weight of tractive unit	Revenue weight of tractive unit	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with two axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles	Rate for tractive unit with three or more axles
(1) Exceeding	(2) Not exceeding	(3) Any no. of semi- trailer axles	(4) 2 or more semi- trailer axles	(5) 3 or more semi- trailer axles	(6) Any no. of semi- trailer axles	(7) 2 or more semi- trailer axles	(8) 3 or more semi- trailer axles
kgs	kgs	£	£	£	£	£	£
3,500	7,500	155	155	155	155	155	155
7,500	12,000	155	155	155	155	155	155
12,000	16,000	155	155	155	155	155	155
16,000	20,000	155	155	155	155	155	155
20,000	23,000	155	155	155	155	155	155
23,000	26,000	190	155	155	155	155	155
26,000	28,000	190	155	155	155	155	155
28,000	31,000	740	740	155	740	155	155
31,000	33,000	1,530	1,530	740	1,530	155	155
33,000	34,000	4,170	4,170	740	1,530	470	155
34,000	35,000	4,170	4,170	1,840	1,530	1,100	155
35,000	36,000	5,750	5,750	1,840	1,530	1,100	155
36,000	38,000	8,250	8,250	2,210	1,820	1,820	280
38,000	41,000	8,250	8,250	4,750	3,250	3,250	1,500
41,000	44,000	8,250	8,250	4,750	6,250	6,250	280

9

• (1) Subject to the following provisions of this paragraph, the preceding provisions of this Schedule apply in relation to licences taken out after 9th March 1999.

• (2) Sub-paragraph (3) below applies where—

• (a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights; and

• (b) the revenue weight of the vehicle at any time on or after 17th April 1999 (though still within the specified range of weights mentioned in paragraph (a) above) is or has been one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle’s licensed weight.

• (3) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 (vehicles becoming chargeable at a higher rate) any use of the vehicle on a public road at a time on or after 17th April 1999 when its revenue weight is or was within sub-paragraph (2)(b) above shall be treated as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.

• (4) Sub-paragraph (5) below applies where—

• (a) a pre-commencement licence was taken out for a goods vehicle at a rate applicable to a vehicle with a revenue weight falling within a specified range of weights;

• (b) the revenue weight of the vehicle is or has been increased at a time after 9th March 1999; and

• (c) the revenue weight of the vehicle immediately after the increase (though still within the specified range of weights mentioned in paragraph (a) above) is or was one which, for the purposes of taking out a licence for that vehicle after 9th March 1999, would fall in a range of weights attracting a rate of duty higher than that attracted by the vehicle’s licensed weight.

• (5) For the purposes of section 15 of the Vehicle Excise and Registration Act 1994 (vehicles becoming chargeable at a higher rate) any use of the vehicle on a public road after the increase in its revenue weight shall be treated (if it would not otherwise be so treated by virtue of sub-paragraph (3) above) as a use of the vehicle so as to subject it to a rate of duty higher than that at which the pre-commencement licence was taken out.

• (6) In this paragraph—

• “licensed weight”, in relation to a vehicle, means the revenue weight of the vehicle at the time when the pre-commencement licence for that vehicle was taken out; and

• “pre-commencement licence” means a licence taken out on or before 9th March 1999 and in force after that date.

SCHEDULE 2

Amendment of Value Added Tax Act 1994

1

• (1) Section 43 of the Value Added Tax Act 1994 (groups of companies) shall be amended as follows.

• (2) In subsection (1), for the words “the following provisions of this section” there shall be substituted the words “ sections 43A to 43C ”.

• (3) Subsections (3) to (8) shall cease to have effect.

2

The following shall be inserted after section 43 of the Value Added Tax Act 1994—

(43A) (1) Two or more bodies corporate are eligible to be treated as members of a group if each is established or has a fixed establishment in the United Kingdom and— (a) one of them controls each of the others, (b) one person (whether a body corporate or an individual) controls all of them, or (c) two or more individuals carrying on a business in partnership control all of them. (2) For the purposes of this section a body corporate shall be taken to control another body corporate if it is empowered by statute to control that body’s activities or if it is that body’s holding company within the meaning of section 736 of the Companies Act 1985. (3) For the purposes of this section an individual or individuals shall be taken to control a body corporate if he or they, were he or they a company, would be that body’s holding company within the meaning of that section. (43B) (1) This section applies where an application is made to the Commissioners for two or more bodies corporate, which are eligible under section 43A(1), to be treated as members of a group. (2) This section also applies where two or more bodies corporate are treated as members of a group and an application is made to the Commissioners— (a) for another body corporate, which is eligible under section 43A(1) to be treated as a member of the group, to be treated as a member of the group, (b) for a body corporate to cease to be treated as a member of the group, (c) for a member to be substituted as the group’s representative member, or (d) for the bodies corporate no longer to be treated as members of a group. (3) An application with respect to any bodies corporate— (a) must be made by one of them or by the person controlling them, and (b) in the case of an application for the bodies to be treated as a group, must appoint one of them as the representative member. (4) Where this section applies in relation to an application it shall, subject to subsection (6) below, be taken to be granted with effect from— (a) the day on which the application is received by the Commissioners, or (b) such earlier or later time as the Commissioners may allow. (5) The Commissioners may refuse an application, within the period of 90 days starting with the day on which it was received by them, if it appears to them— (a) in the case of an application such as is mentioned in subsection (1) above, that the bodies corporate are not eligible under section 43A(1) to be treated as members of a group, (b) in the case of an application such as is mentioned in subsection (2)(a) above, that the body corporate is not eligible under section 43A(1) to be treated as a member of the group, or (c) in any case, that refusal of the application is necessary for the protection of the revenue. (6) If the Commissioners refuse an application it shall be taken never to have been granted. (43C) (1) The Commissioners may, by notice given to a body corporate, terminate its treatment as a member of a group from a date— (a) which is specified in the notice, and (b) which is, or falls after, the date on which the notice is given. (2) The Commissioners may give a notice under subsection (1) above only if it appears to them to be necessary for the protection of the revenue. (3) Where— (a) a body is treated as a member of a group, and (b) it appears to the Commissioners that the body is not, or is no longer, eligible under section 43A(1) to be treated as a member of the group, the Commissioners shall, by notice given to the body, terminate its treatment as a member of the group from a date specified in the notice. (4) The date specified in a notice under subsection (3) above may be earlier than the date on which the notice is given but shall not be earlier than— (a) the first date on which, in the opinion of the Commissioners, the body was not eligible to be treated as a member of the group, or (b) the date on which, in the opinion of the Commissioners, the body ceased to be eligible to be treated as a member of the group.

3

For section 83(k) of the Value Added Tax Act 1994 (appeals) there shall be substituted—

(k) the refusal of an application such as is mentioned in section 43B(1) or (2); (ka) the giving of a notice under section 43C(1) or (3);

.

4

After section 84(4) of the Value Added Tax Act 1994 (appeals: supplementary) there shall be inserted—

(4A) Where an appeal is brought against the refusal of an application such as is mentioned in section 43B(1) or (2) on the grounds stated in section 43B(5)(c)— (a) the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for refusing the application, (b) the refusal shall have effect pending the determination of the appeal, and (c) if the appeal is allowed, the refusal shall be deemed not to have occurred. (4B) Where an appeal is brought against the giving of a notice under section 43C(1) or (3)— (a) the notice shall have effect pending the determination of the appeal, and (b) if the appeal is allowed, the notice shall be deemed never to have had effect. (4C) Where an appeal is brought against the giving of a notice under section 43C(1), the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for giving the notice. (4D) Where— (a) an appeal is brought against the giving of a notice under section 43C(3), and (b) the grounds of appeal relate wholly or partly to the date specified in the notice, the tribunal shall not allow the appeal in respect of the date unless it considers that the Commissioners could not reasonably have been satisfied that it was appropriate.

5

• (1) Schedule 9A to the Value Added Tax Act 1994 (groups: anti-avoidance) shall be amended as follows.

• (2) At the end of paragraph 2 (which becomes sub-paragraph (1) of that paragraph) there shall be inserted—

(2) This paragraph shall not apply where the relevant event is the termination of a body corporate’s treatment as a member of a group by a notice under section 43C(1) or (3).

• (3) In paragraph 3(8), for the words “under section 43” there shall be substituted “ such as is mentioned in section 43B ”.

• (4) In paragraph 7(1), for the words “section 43” there shall be substituted “ sections 43 to 43C ”.

Transitional provisions

6

• (1) In this paragraph—

• “the old law” means sections 43, 83 and 84 of, and Schedule 9A to, the Value Added Tax Act 1994 as they have effect without the amendments in paragraphs 1 to 5 of this Schedule, and

• “the new law” means sections 43 to 43C, 83 and 84 of, and Schedule 9A to, that Act as they have effect by virtue of paragraphs 1 to 5 of this Schedule.

• (2) Where, immediately before this Schedule comes into force, two or more bodies corporate are treated as members of a group by virtue of the old law—

• (a) they shall continue to be treated as members of a group, and

• (b) in their treatment as members of a group after this Schedule comes into force, they shall be treated as if any application under the old law by virtue of which they are treated as members of a group had been an equivalent application under the new law.

• (3) Where an application under section 43 of the Value Added Tax Act 1994 is received by the Commissioners, and has neither taken effect nor been refused before the day on which this Act is passed, the old law shall apply to determine whether the application is to take effect; but where it is determined under this sub-paragraph that an application is to take effect—

• (a) it shall be treated as if it were an equivalent application under the new law, and

• (b) it shall be taken to have been granted under the new law at the time when it would have taken effect in accordance with the old law.

• (4) In a case to which sub-paragraph (2) or (3) above applies, the power under section 43C(3) shall not be used to terminate the treatment of a body corporate as a member of a group—

• (a) on the ground that the body corporate is not established, and does not have a fixed establishment, in the United Kingdom, and

• (b) from a date before 1st January 2000.

• (5) Where an application which purports to be an application under the old law is received by the Commissioners after the day on which this Act is passed—

• (a) it shall be treated as if it were an application under the new law, and

• (b) section 43B of the new law shall apply notwithstanding any provision in the application for a date from which it is to take effect.

SCHEDULE 3

The Schedule inserted after Schedule 13A to the Taxes Act 1988 is as follows—

SCHEDULE 4

Amendments of Part IX of the Taxes Act 1988

1

• (1) Section 353 of the Taxes Act 1988 (general provision for relief for interest payments) is amended as follows.

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

• (3) In subsections (1A) and (1B), omit the words “354 or”.

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

2

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

3

• (1) Section 367 of the Taxes Act 1988 (supplementary provisions) is amended as follows.

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

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

• (4) In subsection (5), for “sections 356A to 357 and” substitute “ section ”.

4

In section 369 of the Taxes Act 1988 (mortgage interest payable under deduction of tax), for subsection (1A) substitute—

(1A) In subsection (1) above “the applicable percentage” means the percentage which is the basic rate for the year of assessment in which the payment has become or becomes due.

5

• (1) Section 370 of the Taxes Act 1988 (meaning of “relevant loan interest”) is amended as follows.

• (2) In subsection (1)—

• (a) for “sections 372” substitute “ sections 373 ”; and

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

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

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

• (5) In subsection (5), for the words from “sections” to “each” substitute “ section 365 shall ”.

6

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

7

• (1) Section 373 of the Taxes Act 1988 (loans in excess of the qualifying maximum, and joint borrowers) is amended as follows.

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

• (3) In subsection (6), for “sections 370 to 372” substitute “ section 370 ”.

8

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

9

• (1) In section 375 of the Taxes Act 1988 (interest ceasing to be relevant loan interest, etc.), after subsection (8A) insert—

(8B) Subsections (1), (5) and (6) above shall not apply where interest ceases to be relevant loan interest by virtue of section 38 of the Finance Act 1999.

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

10

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

11

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

12

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

13

In section 378 of the Taxes Act 1988 (supplementary regulations)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) in subsection (3), for “377”, wherever occurring, substitute “ 376A ”.

14

In section 379 of the Taxes Act 1988 (interpretation of sections 369 to 378)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

• (c) after the definition of “relevant loan interest” insert the following definition—

“separated” means separated under an order of a court of competent jurisdiction or by deed of separation or in such circumstances that the separation is likely to be permanent.

Other amendments

15

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

• (2) In subsection (1)—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

16

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

17

• (1) Section 222 of the Taxation of Chargeable Gains Act 1992 (relief on disposal of private residence) is amended as follows.

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

• (3) After subsection (8) insert—

(8A) Subject to subsections (8B), (8C) and (9) below, for the purposes of subsection (8) above living accommodation is job-related for a person if— (a) it is provided for him by reason of his employment, or for his spouse by reason of her employment, in any of the following cases— (i) where it is necessary for the proper performance of the duties of the employment that the employee should reside in that accommodation; (ii) where the accommodation is provided for the better performance of the duties of the employment, and it is one of the kinds of employment in the case of which it is customary for employers to provide living accommodation for employees; (iii) where, there being a special threat to the employee’s security, special security arrangements are in force and the employee resides in the accommodation as part of those arrangements; or (b) under a contract entered into at arm’s length and requiring him or his spouse to carry on a particular trade, profession or vocation, he or his spouse is bound— (i) to carry on that trade, profession or vocation on premises or other land provided by another person (whether under a tenancy or otherwise); and (ii) to live either on those premises or on other premises provided by that other person. (8B) If the living accommodation is provided by a company and the employee is a director of that or an associated company, subsection (8A)(a)(i) or (ii) above shall not apply unless— (a) the company of which the employee is a director is one in which he or she has no material interest; and (b) either— (i) the employment is as a full-time working director, or (ii) the company is non-profit making, that is to say, it does not carry on a trade nor do its functions consist wholly or mainly in the holding of investments or other property, or (iii) the company is established for charitable purposes only. (8C) Subsection (8A)(b) above does not apply if the living accommodation concerned is in whole or in part provided by— (a) a company in which the borrower or his spouse has a material interest; or (b) any person or persons together with whom the borrower or his spouse carries on a trade or business in partnership. (8D) For the purposes of this section— (a) a company is an associated company of another if one of them has control of the other or both are under the control of the same person; and (b) “employment”, “director”, “full-time working director”, “material interest” and “control”, in relation to a body corporate, have the same meanings as they have for the purposes of Chapter II of Part V of the Taxes Act.

• (4) In subsection (9)—

• (a) for “Section 356(3)(b) and (5) of the Taxes Act” substitute “ Subsections (8A)(b) and (8C) above ”; and

• (b) for “within the meaning of that section” substitute “ for the purposes of that subsection ”.

Commencement

18

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

• (2) Paragraph 15 above has effect in relation to any claim for (or for part of) the year 2000-01 or any subsequent year of assessment.

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

• (4) Paragraph 17 above has effect for the year 2000-01 and subsequent years of assessment.

• (5) The other provisions of this Schedule have effect in relation to any payment of interest falling within subsection (3) or (4) of section 38 of this Act.

SCHEDULE 5

Payments on dissolution, etc., or loss of office

1

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

Payments in respect of overnight expenses or EU travel

2

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

Office-holders’ transport and subsistence

3

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

Trustees’ income from parliamentary pension funds

4

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

Relevant statutory schemes

5

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

Pensions of members of the Scottish Executive

6

• (1) Sub-paragraph (2) below applies if provision under the Scotland Act 1998 is made for the salary paid to members of the Scottish Parliament who are also members of the Scottish Executive to be lower than that of other members of the Scottish Parliament.

• (2) In that case, sections 629 ... of the Taxes Act 1988 (under which part of the salary of the holder of certain offices is treated as remuneration as a member of the House of Commons) apply in relation to the salary of a member of the Scottish Executive who is also a member of the Scottish Parliament as they apply in relation to the salary of the holder of a qualifying office within the meaning of those sections who is also a member of the House of Commons, with such modifications as the Treasury may specify by order.

• (3) In this paragraph references to a member of the Scottish Executive include a junior Scottish Minister.

SCHEDULE 6

Application of this Schedule

1

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

Tax treatment of receipts by way of reverse premium

2

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

Arrangements not at arm’s length

3

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

Special rules for insurance companies carrying on life assurance business

4

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

Exclusion of receipts taken into account for capital allowances

5

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

...

6

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

Exclusion of consideration under sale and lease-back arrangement

7

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

Connected persons and relevant arrangements

8

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

SCHEDULE 7

After Schedule 5B to the Taxation of Chargeable Gains Act 1992 (EIS re-investment) insert—

SCHEDULE 8

EIS deferred gains: gains accruing on part disposal

Introductory

1

Schedule 5B to the Taxation of Chargeable Gains Act 1992 (relief in respect of re-investment under the enterprise investment scheme) is amended as follows.

Paragraph 4

2

• (1) In paragraph 4(1) (amount of gain accruing on chargeable event), for paragraph (b) substitute—

(b) the amount of the gain shall be equal to so much of the deferred gain as is attributable to the shares in relation to which the chargeable event occurs.

• (2) For paragraph 4(5)(a) (amount of gain where shares represented by other assets) substitute—

(a) so much of the deferred gain as is attributable to those shares shall be treated, in determining for the purposes of this paragraph the amount of the deferred gain to be treated as attributable to each of those assets, as apportioned in such manner as may be just and reasonable between those assets; and

.

• (3) After paragraph 4(5) insert—

(6) In order to determine, for the purposes of this paragraph, the amount of the deferred gain attributable to any shares, a proportionate part of the amount of the gain shall be attributed to each of the relevant shares held, immediately before the occurrence of the chargeable event in question, by the investor or a person who has acquired any of the relevant shares from the investor on a disposal within marriage. (7) In this paragraph “the deferred gain” means— (a) the amount of the original gain against which expenditure has been set under this Schedule, less (b) the amount of any gain treated as accruing under this paragraph previously as a result of a disposal of any of the relevant shares.

Paragraph 19

3

• (1) In paragraph 19(1) (interpretation) omit the definition of “relevant shares”.

• (2) After paragraph 19(1) insert—

(1A) For the purposes of this Schedule, “the relevant shares”, in relation to a case to which this Schedule applies, means the shares which— (a) are acquired by the investor in making the qualifying investment, and (b) where the qualifying investment is made before the time at which the original gain accrues, are still held by the investor at that time. This is subject to sub-paragraphs (1B) and (1D) below. (1B) If any corresponding bonus shares in the same company are issued to the investor or any person who has acquired any of the relevant shares from the investor on a disposal within marriage, this Schedule shall apply as if references to the relevant shares were to all the shares comprising the relevant shares and the bonus shares so issued. (1C) In sub-paragraph (1B) above “corresponding bonus shares” means bonus shares which— (a) are issued in respect of the relevant shares; and (b) are of the same class, and carry the same rights, as those shares. (1D) If, in circumstances in which paragraph 8 above applies, new shares are issued in exchange for old shares, references in this Schedule to the relevant shares, so far as they relate to the old shares, shall be construed as references to the new shares and not to the old shares. (1E) In sub-paragraph (1D) above “new shares” and “old shares” have the same meaning as in paragraph 8 above.

Consequential amendments

4

In consequence of paragraph 3 above—

• (a) in paragraph 2 (postponement of original gain), in sub-paragraphs (1) and (4), for “relevant shares” substitute “ the relevant shares ”;

• (b) in paragraph 2(2) and (3), for “any relevant shares” substitute “ the relevant shares ”;

• (c) in paragraph 2(2)(b), for “those relevant shares” substitute “ the relevant shares ”;

• (d) in paragraph 3 (chargeable events), in sub-paragraph (1) and paragraphs (a) and (b) of sub-paragraph (5), for “any relevant shares” substitute “ any of the relevant shares ”;

• (e) in paragraph 4 (gain accruing on chargeable event), in sub-paragraphs (1) and (5), for “any relevant shares” substitute “ any of the relevant shares ”;

• (f) in paragraph 4(5)(b), for “the same relevant shares” substitute “ the same shares ”;

• (g) in paragraph 5(1) (person to whom gain accrues), for “any relevant shares” substitute “ any of the relevant shares ”;

• (h) in paragraph 6(1) (deferral claims), for “relevant shares” substitute “ the relevant shares ”;

• (i) in paragraph 16(1) and (2) (information about chargeable events), for “any relevant shares” substitute “ any of the relevant shares ”; and

• (j) in paragraph 19(1) (interpretation), in the definition of “the five year period”, for “any relevant shares” substitute “ any of the relevant shares ”.

SCHEDULE 9

1

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2

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3

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4

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5

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SCHEDULE 10

Definition of “pension business”

1

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Approval of retirement benefit schemes

2

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Discretionary approval of retirement benefit schemes

3

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

Non-approved retirement benefit schemes

4

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5

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6

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Charge on pensions commuted in special circumstances

7

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Charge on unauthorised payments

8

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Definition of “retirement benefits scheme”

9

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Interpretation of Chapter I

10

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Overseas pensions

11

In section 615(6)(b) of the Taxes Act 1988 (funds annuities from which are paid without deduction of tax to non-UK residents), after “purpose” there shall be inserted “ (subject to any enactment or Northern Ireland legislation requiring or allowing provision for the value of any rights to be transferred between schemes or between members of the same scheme) ”.

Rules prohibiting surrender or assignment of annuities etc.

12

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Annuity payable on the death of a member

13

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Rule in section 636A prohibiting assignment or surrender

14

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

Meaning of “relevant earnings”

15

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

Purchased life annuities

16

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

Interpretation of Part XIV

17

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Commencement etc.

18

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SCHEDULE 11

Income and Corporation Taxes Act 1988 (c. 1)

1

Section 411A of the Taxes Act 1988 (group relief in substitution for loss relief) shall cease to have effect.

2

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

Finance Act 1989 (c. 26)

3

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

Capital Allowances Act 1990 (c. 1)

4

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

5

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6

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7

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Finance Act 1994 (c. 9)

8

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

Finance Act 1998 (c. 36)

9

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SCHEDULE 12

Stamp Act 1891 (c. 39)

1

For section 12 of the Stamp Act 1891 (assessment of duty by Commissioners) substitute—