Finance Act 2001

• (c) provision for securing continuity in the application of any of the provisions of this Part where, by virtue of any regulations under this section, any person is treated as if he were the same person as the subject of the procedure.

• (3) In subsection (2) above “relevant matter”, in relation to a case in which an insolvency procedure is applied to any person or estate, means—

• (a) the application of that procedure to that person or estate;

• (b) the appointment of any person for the purposes of the application of that procedure;

• (c) any other matter relating to—

• (i) the application of that procedure to the subject of the procedure or to his estate;

• (ii) the holding of an appointment made for the purposes of that procedure; or

• (iii) the exercise or discharge of any powers or duties conferred or imposed on any person by virtue of such an appointment.

• (4) Regulations made by virtue of subsection (2)(b) above may include provision for a person to cease, on the occurrence of such an event as may be prescribed, to be treated as if he were the same person as the subject of the procedure.

• (5) Regulations under this section prescribing the manner in which any notification is to be given to the Commissioners may require it to be given in such manner and to contain such particulars as may be specified in a general notice published by the Commissioners in accordance with the regulations.

• (6) Regulations under this section may provide that the extent to which, and the purposes for which, a person is to be treated under the regulations as if he were the same person as the subject of the procedure may be determined by reference to a notice given in accordance with the regulations to the person so treated.

• (7) For the purposes of this section, an insolvency procedure is applied to a person if—

• (a) a bankruptcy order, winding-up order or administration order is made or an administrator is appointed in relation to that person or a partnership of which he is a member;

• (b) an award of sequestration is made in relation to that person’s estate or the estate of a partnership of which he is a member;

• (c) that person is put into administrative receivership;

• (d) that person passes a resolution for voluntary winding up;

• (e) any voluntary arrangement approved in accordance with—

• (i) Part 1 or 8 of the Insolvency Act 1986 (c. 45), or

• (ii) Part II or Chapter II of Part VIII of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) ,

comes into force in relation to that person or a partnership of which that person is a member;

• (f) a deed of arrangement registered in accordance with—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) Chapter I of Part VIII of that Order,

takes effect in relation to that person;

• (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (k) that person’s estate becomes vested in any other person as that person’s trustee under a trust deed (within the meaning of the Bankruptcy (Scotland) Act 2016).

• (8) For the purposes of this section, an insolvency procedure is applied to a deceased person’s estate if—

• (a) after that person’s death—

• (i) a bankruptcy order, or

• (ii) an order with corresponding effect but a different name,

is made in relation to that person’s estate under any of the provisions of the Insolvency Act 1986 (c. 45) or the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19) ) as they are applied to the administration of the insolvent estates of deceased persons; or

• (b) an award of sequestration is made on that person’s estate after his death.

• (9) In subsection (7) above—

• (a) the reference to any administration order is a reference to an administration order under Schedule B1 to the Insolvency Act 1986 or Article 21 of the Insolvency (Northern Ireland) Order 1989;

• (b) the reference to a person being put into administrative receivership is a reference to the appointment in relation to him of an administrative receiver, within the meaning of section 251 of that Act of 1986 or Article 5(1) of that Order of 1989; and

• (c) references to a member of a partnership include references to any person who is liable as a partner under section 14 of the Partnership Act 1890 (c. 39) (persons liable by “holding out”).

• (10) In this section “the subject of the procedure”, in relation to the application of any insolvency procedure, means the person to whom, or to whose estate, the procedure is applied.

Death and incapacity

38

• (1) The Commissioners may, in accordance with subsection (2) below, by regulations make provision for the purposes of aggregates levy in relation to cases where a person carries on a business of an individual who has died or become incapacitated.

• (2) The provisions that may be contained in regulations under this section are—

• (a) provision requiring the person who is carrying on the business to inform the Commissioners of the fact that he is carrying on the business and of the event that has led to his carrying it on;

• (b) provision allowing that person to be treated for a limited time as if he and the person who has died or become incapacitated were the same person; and

• (c) such other provision as the Commissioners think fit for securing continuity in the application of this Part where a person is so treated.

Transfer of a business as a going concern

39

• (1) The Commissioners may by regulations make provision for securing continuity in the application of this Part in cases where any business carried on by a person is transferred to another person as a going concern.

• (2) Regulations under this section may, in particular, include any or all of the following—

• (a) provision requiring the transferor to inform the Commissioners of the transfer;

• (b) provision for liabilities and duties under this Part of the transferor to become, to such extent as may be provided by the regulations, liabilities and duties of the transferee;

• (c) provision for any right of either of them to a tax credit or repayment of aggregates levy to be satisfied by allowing the credit or making the repayment to the other;

• (d) provision as to the preservation of any records or accounts relating to the business which, by virtue of any regulations under paragraph 2 of Schedule 7 to this Act, are required to be preserved for any period after the transfer.

• (3) Regulations under this section may provide that no such provision as is mentioned in paragraph (b) or (c) of subsection (2) above shall have effect in relation to any transferor and transferee unless an application for the purpose has been made by them under the regulations.

Review and appeal

Review of Commissioners' decisions

40

• (1) Subject to section 41, an appeal shall lie to an appeal tribunal from any person who is or will be affected by any decision of HMRC with respect to any of the following matters—,

• (a) whether or not a person is charged in any case with an amount of aggregates levy;

• (b) the amount of aggregates levy charged in any case and the time when the charge is to be taken as having arisen;

• (c) the registration of any person or premises for the purposes of aggregates levy or the cancellation of any registration;

• (d) the person liable to pay the aggregates levy charged in any case, the amount of a person’s liability to aggregates levy and the time by which he is required to pay an amount of that levy;

• (e) the imposition of a requirement on any person to give security, or further security, under section 26 above and the amount and manner of providing any security required under that section;

• (f) whether or not liability to a penalty or to interest on any amount arises in any person’s case under any provision made by or under this Part, and the amount of any such liability;

• (g) any matter the decision as to which is appealable under this section in accordance with paragraph 8(6) or (7) of Schedule 6 to this Act;

• (h) the extent of any person’s entitlement to any tax credit or to a repayment in respect of a tax credit and the extent of any liability of the Commissioners under this Part to pay interest on any amount;

• (i) whether or not any person is required to have a tax representative by virtue of any regulations under section 33 above;

• (j) the giving, withdrawal or variation, for the purposes of any such regulations, of any approval or direction with respect to the person who is to act as another’s tax representative;

• (k) whether a body corporate is to be treated, or is to cease to be treated, as a member of a group, the times at which a body corporate is to be so treated and the body corporate which is, in relation to any time, to be the representative member for a group;

• (l) any matter not falling within the preceding paragraphs the decision with respect to which is contained in

• (i) an assessment under paragraphs 2 or 3 of Schedule 5 in respect of an accounting period in relation to which any return required to be made by virtue of regulations under section 25 has been made; or

• (ii) an assessment under any provision of Schedule 5 other than paragraphs 2 or 3.

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

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

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

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

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

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

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (10) This section has effect subject to paragraph 8(5) of Schedule 6 to this Act.

Appeals against reviewed decisions

41

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

• (2) Subject to subsections (2A) and (2B), where an appeal under section 40 relates to a decision (whether or not contained in an assessment) that an amount of aggregates levy is due from any person, it shall not be entertained unless the amount which HMRC have determined to be due has been paid or deposited with them.

• (2A) In a case where the amount determined to be payable as aggregates levy has not been paid or deposited an appeal shall be entertained if—

• (a) HMRC are satisfied (on the application of the appellant), or

• (b) the appeal tribunal decides (HMRC not being so satisfied and on the application of the appellant),

• that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship.

• (2B) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007, the decision of the appeal tribunal as to the issue of hardship is final.

• (3) On an appeal under section 40 relating to a penalty under paragraph 7 of Schedule 6 to this Act (evasion), the burden of proof as to the matters specified in paragraphs (a) to (c) of sub-paragraph (1) of that paragraph shall lie upon the Commissioners.

Determinations on appeal

42

• (1) Where, on an appeal under section 40 above—

• (a) it is found that an assessment of the appellant ... is an assessment for an amount that is less than it ought to have been, and

• (b) the tribunal give a direction specifying the correct amount,

the assessment shall have effect as an assessment of the amount specified in the direction and (without prejudice to any power under this Part to reduce the amount of interest payable on the amount of an assessment) as if it were an assessment notified to the appellant in that amount at the same time as the original assessment.

• (2) On an appeal under section 40 above, the powers of the appeal tribunal in relation to any decision of the Commissioners shall include a power, where the tribunal allow an appeal on the ground that the Commissioners could not reasonably have arrived at the decision, either—

• (a) to direct that the decision, so far as it remains in force, is to cease to have effect from such time as the tribunal may direct; or

• (b) to require the Commissioners to conduct, in accordance with the directions of the tribunal, a review or a further review of the original decision as appropriate.

• (3) Where, on an appeal under section 40 above, the appeal tribunal find that a liability to a penalty or to an amount of interest arises, the tribunal shall not give any direction for the modification of the amount payable in respect of that liability except—

• (a) in exercise of a power conferred on the tribunal by section 46(1) below (penalties) or paragraph 10(3) or (6) of Schedule 5 to this Act, paragraph 6(6) or (9) of Schedule 8 to this Act or paragraph 5(5) or (8) of Schedule 10 to this Act (penalty interest); or

• (b) for the purpose of making the amount payable conform to the amount of the liability imposed by this Part.

• (4) Where, on an appeal under section 40 above, it is found that the whole or part of any amount paid or deposited in pursuance of section 41(2) above is not due, so much of that amount as is found not to be due shall be repaid with interest at the rate applicable under section 197 of the Finance Act 1996.

• (5) Where, on an appeal under section 40 above, it is found that the whole or part of any amount due to the appellant by way of any repayment in respect of a tax credit has not been paid, so much of that amount as is found not to have been paid shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996.

• (6) Where—

• (a) an appeal under section 40 above has been entertained notwithstanding that an amount determined by the Commissioners to be payable as aggregates levy has not been paid or deposited, and

• (b) it is found on the appeal that that amount is due,

it shall be paid with interest at the rate applicable under section 197 of the Finance Act 1996

• (6A) Interest under subsection (6) shall be paid without any deduction of income tax.

• (7) Sections 85 and 85B of the Value Added Tax Act 1994 (settling of appeals by agreement and payment of tax where there is a further appeal) shall have effect as if—

• (a) the references to section 83 of that Act included references to section 40 above, and

• (b) the references to value added tax included references to aggregates levy.

Adjustments of contracts

43

• (1) Where—

• (a) an agreement to supply a quantity of aggregate to any person has been entered into at any time before the commencement date, and

• (b) on or after that date aggregates levy is charged on that quantity of aggregate,

so much of the agreement as requires any payment to be made to the supplier at the time when or after the charge to levy on that quantity of aggregate arises shall be adjusted so as to secure that the cost of discharging the liability to pay the levy, to the extent that it would otherwise have been borne by the supplier, is borne by the person making the payment.

• (2) Where—

• (a) an agreement with regard to any sum payable in respect of the use of land (whether the sum is called rent or royalty or otherwise) provides that the amount of the sum is to be calculated by reference to—

• (i) the turnover of a business, or

• (ii) the price received for minerals extracted from the land,

• (b) the agreement was entered into before commencement date, and

• (c) the circumstances are such that (had the agreement been made on or after that date) it might reasonably be expected that it would have provided that aggregates levy charged in particular circumstances be ignored in calculating the turnover or price,

the agreement shall be taken to provide that aggregates levy charged in those circumstances shall be ignored in calculating the turnover or, as the case may be, price.

General provisions

Destination of receipts

44

All money and securities for money collected or received for or on account of aggregates levy shall—

• (a) if collected or received in England and Wales, be placed to the general account of the Commissioners kept at the Bank of England under section 17 of the Customs and Excise Management Act 1979 (c. 2); and

• (b) if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct.

Regulations and orders

45

• (1) The powers of the Commissioners under this Part to make regulations shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

• (2) Where regulations made under this Part impose a relevant requirement on any person, they may provide that if the person fails to comply with the requirement he shall be liable, subject to subsection (3) below, to a penalty of £250.

• (3) Where by reason of any conduct—

• (a) a person is convicted of an offence (whether under this Act or otherwise), or

• (b) a person is assessed to a penalty under paragraph 7 of Schedule 6 to this Act or a penalty for a deliberate inaccuracy under Schedule 24 to the Finance Act 2007 (penalties for errors),

that person shall not by reason of that conduct be liable also to a penalty under any regulations under this Part.

• (4) In subsection (2) above “relevant requirement” means any requirement other than one the penalty for a contravention of which is specified in section 25(3) or 33(3) above or in paragraph 2 of Schedule 7 to this Act.

• (5) Subject to subsection (6) below, a power under this Part to make any provision by order or regulations—

• (a) may be exercised so as to apply the provision only in such cases as may be described in the order or regulations;

• (b) may be exercised so as to make different provision for different cases or descriptions of case; and

• (c) shall include power by the order or regulations to make such supplementary, incidental, consequential or transitional provision as the Treasury or, as the case may be, the Commissioners may think fit.

• (6) Subsection (5) above does not apply to an order under section 16(6) or 24(10) above.

Civil penalties

46

• (1) Where a person is liable to a civil penalty imposed by or under this Part—

• (a) the Commissioners or, on appeal, an appeal tribunal may reduce the penalty to such amount (including nil) as they think proper; but

• (b) on an appeal relating to any penalty reduced by the Commissioners, an appeal tribunal may cancel the whole or any part of the Commissioners’ reduction.

• (2) In determining whether a civil penalty should be, or should have been, reduced under subsection (1) above, no account shall be taken of any of the following matters, that is to say—

• (a) the insufficiency of the funds available to any person for paying any aggregates levy due or for paying the amount of the penalty;

• (b) the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of aggregates levy;

• (c) the fact that the person liable to the penalty or a person acting on his behalf has acted in good faith.

• (3) For the purposes of any provision made by or under this Part under which liability to a civil penalty does not arise in respect of conduct for which there is shown to be a reasonable excuse—

• (a) an insufficiency of funds available for paying any amount is not a reasonable excuse; and

• (b) where reliance has been placed on any other person to perform any task, neither the fact of that reliance nor any conduct of the person relied upon is a reasonable excuse.

• (4) Schedule 10 to this Act (which makes provision about the assessment of civil penalties imposed and about interest on such penalties) shall have effect.

• (5) If it appears to the Treasury that there has been a change in the value of money since the time when the amount of a civil penalty provided for by this Part was fixed, they may by order made by statutory instrument substitute, for the amount for the time being specified as the amount of that penalty, such other sum as appears to them to be justified by the change.

• (6) In subsection (5) above the reference to the time when the amount of a civil penalty was fixed is a reference—

• (a) in the case of a penalty which has not previously been modified under that subsection, to the time of the passing of this Act; and

• (b) in any other case, to the time of the making of the order under that subsection that made the most recent modification of the amount of that penalty.

• (7) An order under subsection (5) above—

• (a) shall not be made unless a draft of the order has been laid before Parliament and approved by resolution of the House of Commons; and

• (b) shall not apply to the penalty for any conduct before the coming into force of the order.

• (8) In this section “civil penalty” means any penalty liability to which arises otherwise than in consequence of a person’s conviction for a criminal offence.

Service of notices etc

47

• (1) Any notice, notification or requirement that is to be or may be served on, given to or imposed on any person for the purposes of any provision made by or under this Part may be served, given or imposed by sending it to that person or his tax representative by post in a letter addressed to that person or representative at the latest or usual residence or place of business of that person or representative.

• (2) Any direction required or authorised by or under this Part to be given by the Commissioners may be given by sending it by post in a letter addressed to each person affected by it at his latest or usual residence or place of business.

• (3) Any direction, notice or notification required or authorised by or under this Part to be given by the Commissioners may be withdrawn or varied by them by a direction, notice or notification given in the same manner as the one withdrawn or varied.

Interpretation of Part

48

• (1) In this Part—

• “accounting period” means a period which, in pursuance of any regulations under section 25(1) above, is an accounting period for the purposes of aggregates levy;

• “aggregate” shall be construed in accordance with sections 17(1) and 18 above;

• “agreement” includes any arrangement or understanding (whether or not legally enforceable), and cognate expressions shall be construed accordingly;

• “agricultural” means agricultural within the meaning of the Agriculture Act 1967 (c. 22) or the Agriculture Act (Northern Ireland) 1949 (c. 2 (N.I.));

• “appeal tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal;

• “the commencement date” has the meaning given by section 16(6) above;

• “commercial exploitation” shall be construed in accordance with section 19 above;

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

• “conduct” includes acts and omissions;

• “construction purposes” shall be construed in accordance with subsection (2) below;

• “exempt process” shall be construed in accordance with section 18(2) above;

• “forestry” includes the cultivation, maintenance and care of trees or woodland of any description;

• “gravel” includes gravel comprising or containing pebbles or stones or both;

• “HMRC” means Her Majesty’s Revenue and Customs;

• “limestone” includes chalk and dolomite;

• “member”, in relation to a group, shall be construed in accordance with section 35(6) above;

• “mixed” includes blended, and cognate expressions shall be construed accordingly;

• “non-resident taxpayer” means a person who—is or is required to be registered for the purposes of aggregates levy, or would be so required but for an exemption by virtue of regulations under section 24(4) above; andis not resident in the United Kingdom;

• “operate” and “operator”, in relation to any site, shall be construed in accordance with section 21 above;

• “originating site” shall be construed in accordance with section 20 above;

• “prescribed” means prescribed by regulations made by the Commissioners under this Part;

• “registered” means registered in the register maintained under section 24 above;

• “representative member”, in relation to a group, shall be construed in accordance with section 35(6) above;

• “rock” does not include any rock contained in a quantity of aggregate consisting wholly or mainly of gravel or sand;

• “structure” includes roads and paths, the way on which any railway track is or is to be laid and embankments;

• “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30);

• “tax credit” means a tax credit for which provision is made by tax credit regulations;

• “tax credit regulations” means regulations under section 30, 30A or 30B above;

• “tax representative”, in relation to any person, means the person who, in accordance with any regulations under section 33 above, is for the time being that person’s tax representative for the purposes of aggregates levy;

• “taxable aggregate” shall be construed in accordance with section 17(2) to (4) above;

• “United Kingdom waters” means—the territorial sea adjacent to the United Kingdom, except so much of that territorial sea as is to be treated as adjacent to Scotland for the purposes of the Scotland Act 1998 (see section 126(2) of that Act); orany area designated by Order in Council under section 1(7) of the Continental Shelf Act 1964 (c. 29).

• (2) References in this Part to the use of anything for construction purposes are references to either of the following, except in so far as it consists in the application to it of an exempt process, that is to say—

• (a) using it as material or support in the construction or improvement of any structure;

• (b) mixing it with anything as part of the process of producing mortar, concrete, tarmacadam, coated roadstone or any similar construction material.

• (3) References in this Part to winning any aggregate are references to winning it—

• (a) by quarrying, dredging, mining or collecting it from any land or area of the seabed; or

• (b) by separating it in any other manner from any land or area of the seabed in which it is comprised.

• (4) References in this Part, in relation to any accounting period, to aggregates levy due from any person for that period are references (subject to any regulations made by virtue of section 25(2)(a) above) to the aggregates levy for which that person is required, in accordance with regulations under section 25 above, to account by reference to that period.

• (5) References in this Part to a repayment of aggregates levy or of an amount of aggregates levy are references to any repayment of an amount to any person by virtue of—

• (a) any tax credit regulations;

• (b) section 31 above;

• (c) paragraph 11(3) of Schedule 5 to this Act; or

• (d) paragraph 6(3) of Schedule 10 to this Act.

• (6) For the purposes of this Part a person is resident in the United Kingdom at any time if, at that time—

• (a) that person has an established place of business in the United Kingdom;

• (b) that person has a usual place of residence in the United Kingdom; or

• (c) that person is a firm or unincorporated body which (without being resident in the United Kingdom by virtue of paragraph (a) above) has amongst its partners or members at least one individual with a usual place of residence in the United Kingdom.

Supplemental

Minor and consequential amendments

49

• (1) In section 1(1) of the Provisional Collection of Taxes Act 1968 (c. 2) (taxes in relation to which resolutions may have temporary statutory effect), after “landfill tax,” there shall be inserted “ aggregates levy, ”.

• (2) In section 197(2) of the Finance Act 1996 (c. 8) (enactments for which interest rates are set under section 197), after paragraph (g) there shall be inserted—

(h) the following provisions of the Finance Act 2001 (interest payable to or by the Commissioners in connection with aggregates levy), that is to say— (i) sections 25(2)(f) and 30(3)(f); (ii) paragraph 8(3)(a) of Schedule 5; and (iii) paragraphs 2 and 6(1)(b) of Schedule 8.

.

• (3) In section 827 of the Taxes Act 1988 (no deduction for penalties etc.), the following subsection shall be inserted after subsection (1D)—

(1E) Where a person is liable to make a payment by way of— (a) any penalty under any provision of Part 2 of the Finance Act 2001 (aggregates levy), (b) interest under any of paragraphs 5 to 9 of Schedule 5 to that Act (interest on aggregates levy due and on interest), (c) interest under paragraph 6 of Schedule 8 to that Act (interest on recoverable overpayments etc.), or (d) interest under paragraph 5 of Schedule 10 to that Act (interest on penalties), the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes.

.

Part 3 — INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

Chapter 1 — CHARGE AND RATES

Income tax

Charge and rates for 2001-02

50

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

Starting rate limit for 2001-02

51

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

Children’s tax credit: amount for 2001-02 and subsequent years

52

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

Children’s tax credit: baby rate

53

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

Corporation tax

Charge and main rate for financial year 2002

54

Corporation tax shall be charged for the financial year 2002 at the rate of 30%.

Small companies' rate and fraction for financial year 2001

55

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

Corporation tax starting rate and fraction for financial year 2001

56

For the financial year 2001—

• (a) the corporation tax starting rate shall be 10%, and

• (b) the fraction mentioned in section 13AA(3) of the Taxes Act 1988 (marginal relief for small companies) shall be one fortieth.

Chapter 2 — OTHER PROVISIONS

Employment

Mileage allowances: exemptions and relief

57

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

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

• (3) The consequential amendments in Part 2 of Schedule 12 to this Act have effect.

• (4) This section has effect for the year 2002-03 and subsequent years of assessment.

Mileage allowances: nil liability notices

58

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

Employees' vehicles: withdrawal of capital allowances

59

• (1) In Chapter 3 of Part 2 of the Capital Allowances Act 2001 (c. 2) (plant and machinery: qualifying expenditure), for section 36 (restriction on qualifying expenditure in case of employment or office) substitute—

(36) (1) Where the qualifying activity consists of an employment or office— (a) expenditure on the provision of a mechanically propelled road vehicle, or a cycle, is not qualifying expenditure, and (b) other expenditure is qualifying expenditure only if the plant or machinery is necessarily provided for use in the performance of the duties of the employment or office. (2) In this section “cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988.

.

• (2) Section 80 of that Act (vehicles provided for purposes of employment or office) is repealed.

• (3) The above amendments apply to expenditure incurred on or after 6th April 2002.

• (4) Where immediately before 6th April 2002—

• (a) expenditure incurred by an employee on the provision of a mechanically propelled road vehicle, or a cycle, was qualifying expenditure for the purposes of Part 2 of the Capital Allowances Act 2001 (c. 2) , and

• (b) the employee is treated for the purposes of that Part as owning an asset as a result of that expenditure having been incurred,

the employee shall be treated for the purposes of that Part of that Act as if he had ceased to own the asset at that time.

• (5) In subsection (4)—

• “employee” includes an office-holder; and

• “cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988 (c. 52).

Exemption for works bus services: extension to minibuses

60

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

Employee share ownership plans

61

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

Enterprise incentives

Enterprise management incentives

62

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

Enterprise investment scheme

63

Schedule 15 to this Act (which makes amendments relating to the enterprise investment scheme) has effect.

Venture capital

64

• (1) Schedule 16 to this Act has effect.

• (2) In that Schedule—

• ...

• Part 2 makes amendments relating to the corporate venturing scheme.

Capital allowances

Energy-saving plant and machinery

65

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

Fixtures provided in connection with energy management services

66

• (1) Schedule 18 to this Act (fixtures provided in connection with provision of energy management services) has effect in relation to expenditure incurred on or after 1st April 2001.

• (2) The Schedule has effect—

• (a) for income tax purposes, as respects allowances and charges falling to be made for chargeable periods ending on or after 6th April 2001, and

• (b) for corporation tax purposes, as respects allowances and charges falling to be made for chargeable periods ending on or after 1st April 2001.

Conversion of parts of business premises into flats

67

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

Decommissioning of offshore oil infrastructure

68

Schedule 20 to this Act (capital allowances in respect of expenditure incurred on decommissioning offshore infrastructure) has effect.

Minor amendments

69

• (1) Schedule 21 (which makes minor amendments to the Capital Allowances Act 2001 (c. 2) ) has effect.

• (2) The amendments made by the Schedule have effect—

• (a) for income tax purposes, as respects allowances and charges falling to be made for chargeable periods ending on or after 6th April 2001, and

• (b) for corporation tax purposes, as respects allowances and charges falling to be made for chargeable periods ending on or after 1st April 2001.

Other relieving provisions

Relief for expenditure on remediation of contaminated land

70

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

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

• (3) Schedule 23 to this Act (which contains consequential amendments) has effect accordingly.

Creative artists: relief for fluctuating profits

71

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

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

• (3) The following provisions of the Taxes Act 1988 are repealed—

• section 534 (relief for copyright payments etc.);

• section 535 (relief where copyright sold after ten years or more);

• section 537A (relief for payments in respect of designs);

• section 538 (relief for painters, sculptors and other artists).

The repeals have effect in relation to payments actually receivable on or after 6th April 2001.

• (4) Part 2 of Schedule 24 to this Act contains amendments consequential on the preceding provisions of this section.

Expenditure on film production etc

72

In section 48(2)(a) of the Finance (No.2) Act 1997 (c. 58) (favourable tax treatment for certain expenditure on film production, etc. incurred before 2nd July 2002) for “2nd July 2002” substitute “ 2nd July 2005 ”.

Deductions for business gifts: yearly limit

73

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

Pension funds

Payments to employers out of pension funds

74

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

Limited liability partnerships

Limited liability partnerships: general

75

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

• (2) In the Taxation of Chargeable Gains Act 1992 (c. 12), for section 59A (limited liability partnerships) substitute—

(59A) (1) Where a limited liability partnership carries on a trade or business with a view to profit— (a) assets held by the limited liability partnership are treated for the purposes of tax in respect of chargeable gains as held by its members as partners, and (b) any dealings by the limited liability partnership are treated for those purposes as dealings by its members in partnership (and not by the limited liability partnership as such); and tax in respect of chargeable gains accruing to the members of the limited liability partnership on the disposal of any of its assets shall be assessed and charged on them separately. (2) For all purposes, except as otherwise provided, in the enactments relating to tax in respect of chargeable gains— (a) references to a partnership include a limited liability partnership in relation to which subsection (1) above applies, (b) references to members of a partnership include members of such a limited liability partnership, (c) references to a company do not include such a limited liability partnership, and (d) references to members of a company do not include members of such a limited liability partnership. (3) Subsection (1) above continues to apply in relation to a limited liability partnership which no longer carries on any trade or business with a view to profit— (a) if the cessation is only temporary, or (b) during a period of winding up following a permanent cessation, provided— (i) the winding up is not for reasons connected in whole or in part with the avoidance of tax, and (ii) the period of winding up is not unreasonably prolonged, but subject to subsection (4) below. (4) Subsection (1) above ceases to apply in relation to a limited liability partnership— (a) on the appointment of a liquidator or (if earlier) the making of a winding-up order by the court, or (b) on the occurrence of any event under the law of a country or territory outside the United Kingdom corresponding to an event specified in paragraph (a) above. (5) Where subsection (1) above ceases to apply in relation to a limited liability partnership with the effect that tax is assessed and charged— (a) on the limited liability partnership (as a company) in respect of chargeable gains accruing on the disposal of any of its assets, and (b) on the members in respect of chargeable gains accruing on the disposal of any of their capital interests in the limited liability partnership, it shall be assessed and charged on the limited liability partnership as if subsection (1) above had never applied in relation to it. (6) Neither the commencement of the application of subsection (1) above nor the cessation of its application in relation to a limited liability partnership shall be taken as giving rise to the disposal of any assets by it or any of its members.

.

• (3) In Chapter 2 of Part 5 of the Taxation of Chargeable Gains Act 1992 (c. 12) (relief for gifts of business assets), after section 169 insert—

(169A) (1) This section applies where section 59A(1) ceases to apply to a limited liability partnership. (2) A member of the partnership who immediately before the time at which section 59A(1) ceases to apply holds an asset, or an interest in an asset, acquired by him— (a) on a disposal to members of a partnership, and (b) for a consideration which is treated as reduced under section 165(4)(b) or 260(3)(b), shall be treated as if a chargeable gain equal to the amount of the reduction accrued to him immediately before that time.

• (4) In section 170(9) of the Taxation of Chargeable Gains Act 1992 (groups of companies: meaning of “company”), in paragraph (b) after “company” insert “ (other than a limited liability partnership) ”.

• (5) Subsection (3) above shall be deemed to have come into force on 3rd May 2001 and applies where section 59A(1) of the Taxation of Chargeable Gains Act 1992 ceased or ceases to apply as mentioned in section 169A of that Act (as inserted by that subsection) on or after that date.

• (6) The other provisions of this section shall be deemed to have come into force on 6th April 2001.

Limited liability partnerships: investment LLPs and property investment LLPs

76

• (1) Schedule 25 to this Act has effect with respect to limited liability partnerships whose business consists wholly or mainly in the making of investments.

• (2) The provisions of that Schedule shall be deemed to have come into force on 6th April 2001.

Chargeable gains

Notional transfers within a group

77

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

Taper relief: assets qualifying as business assets

78

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

De-grouping charge: transitional relief

79

Schedule 29 to the Finance Act 2000 (chargeable gains: non-resident companies and groups etc) shall be deemed to have been enacted with the following paragraph added at the end of Part 3 (transitional provisions) after paragraph 46—

(47) (1) This paragraph has effect for the purposes of section 179 of the Taxation of Chargeable Gains Act 1992 as that section has effect in relation to assets acquired before 1st April 2000 (“old section 179”). (2) Where— (a) a company would (apart from this paragraph) fall to be regarded for the purposes of old section 179 as ceasing to be a member of an old group at any time, but (b) immediately before that time, it is also a member of a new group for the purposes of new section 179, the company shall not be regarded for the purposes of old section 179 as ceasing to be a member of the old group unless or until it also ceases to be a member of the new group for the purposes of new section 179. (3) Sub-paragraph (2) above does not prevent the company from being or becoming a member of another old group at any time. (4) Where a company ceases to be a member of a new group on any occasion, it shall not by virtue of sub-paragraph (2) above be treated for the purposes of old section 179 as if it had on that occasion ceased to be a member of the same old group more than once. (5) For the purposes of this paragraph— (a) references to a company being a member of an old group are references to its being, for the purposes of old section 179, a member of a group of companies within the meaning given by old section 170; (b) references to a company being a member of a new group are references to its being, for the purposes of new section 179, a member of a group of companies within the meaning given by new section 170; and (c) references to a company ceasing to be a member of an old group or a new group shall be construed in accordance with paragraph (a) or (b) above, as the case may be. (6) Where, for the purposes of sub-paragraph (2)(b) above, a company is not a member of a new group by reason only that— (a) the principal company of the old group is not the principal company of the new group, and (b) the company in question is not an effective 51 per cent subsidiary of the principal company of the new group, subsection (3)(b) of new section 170 shall not apply in relation to the company for the purposes of this paragraph for so long as it remains an effective 51 per cent subsidiary of the company which was the principal company of the old group. (7) In this paragraph— (a) “new section 179” means section 179 of the Taxation of Chargeable Gains Act 1992 (c. 12) as it has effect in relation to assets acquired on or after 1st April 2000; (b) “new section 170” means section 170 of that Act, as amended by the main amendments; (c) “old section 170” means section 170 of the Taxation of Chargeable Gains Act 1992, as it stands before the main amendments. (8) Expressions used in this paragraph and in section 170 of the Taxation of Chargeable Gains Act 1992 shall be construed in accordance with that section.

.

Attribution of gains of non-resident companies

80

• (1) Section 13 of the Taxation of Chargeable Gains Act 1992 (attribution of gains to members of non-resident companies) is amended as follows.

• (2) In subsection (4) (no attribution if amount does not exceed one twentieth of gain) for “one twentieth” substitute “ one tenth ”.

• (3) In subsection (5) (gains to which the section does not apply) for paragraph (b) substitute—

(b) a chargeable gain accruing on the disposal of an asset used, and used only— (i) for the purposes of a trade carried on by the company wholly outside the United Kingdom, or (ii) for the purposes of the part carried on outside the United Kingdom of a trade carried on by the company partly within and partly outside the United Kingdom,

.

• (4) For subsection (5A) (credit for tax on attributed gain in relation to later distribution) substitute—

(5A) Where— (a) an amount of tax is paid by a person in pursuance of subsection (2) above, and (b) an amount in respect of the chargeable gain is distributed (either by way of dividend or distribution of capital or on the dissolution of the company) before the end of the period specified in subsection (5B) below, the amount of tax (so far as neither reimbursed by the company nor applied as a deduction under subsection (7) below) shall be applied for reducing or extinguishing any liability of that person to income tax, capital gains tax or corporation tax in respect of the distribution. (5B) The period referred to in subsection (5A)(b) above is the period of three years from— (a) the end of the period of account of the company in which the chargeable gain accrued, or (b) the end of the period of twelve months beginning with the date on which the chargeable gain accrued, whichever is earlier. In paragraph (a) above a “period of account” means a period for which the company makes up its accounts.

• (5) After subsection (10A) insert—

(10B) A chargeable gain that would be treated as accruing to a person under subsection (2) above shall not be so treated if— (a) it would be so treated only if assets that are assets of a pension scheme were taken into account in ascertaining that person’s interest as a participator in the company, and (b) at the time the gain accrues a gain arising on a disposal of those assets would be exempt from tax by virtue of section 271(1)(b), (c), (d), (g) or (h) or (2). In paragraph (a) above “assets of a pension scheme” means assets held for the purposes of a fund or scheme to which any of the provisions mentioned in paragraph (b) above applies.

.

• (6) This section applies to chargeable gains accruing as mentioned in section 13(1) of the Taxation of Chargeable Gains Act 1992 (c. 12) on or after 7th March 2001.

International matters

Double taxation relief

81

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

Controlled foreign companies: acceptable distribution policy

82

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

Miscellaneous

Life policies, life annuity contracts and capital redemption policies

83

• (1) Schedule 28 to this Act (which makes amendments relating to Chapter 2 of Part 13 of the Taxes Act 1988) has effect.

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

• (3) The amendments made by Part 2 of that Schedule (which relate to the provision by insurers etc of information relating to chargeable events happening in connection with a policy or contract) have effect in relation to chargeable events happening on or after 6th April 2002.

Exclusion of deductions for deemed manufactured payments

84

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

Deduction of tax: payments between companies etc

85

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

• (2) In section 98 of the Taxes Management Act 1970 (c. 9) (penalties for failing to make, or making incorrectly, certain returns etc.), after subsection (4) insert—

(4A) If— (a) a failure to comply with section 350(1) of, or Schedule 16 to, the principal Act arises from a person’s failure to deliver an account, or show the amount, of a payment, and (b) the payment is within subsection (4B) below, subsection (1) above shall have effect as if for “£300” there were substituted “£3,000” and as if for “£60” there were substituted “£600”. (4B) A payment is within this subsection if— (a) the payment is made by a company without an amount representing the income tax on the payment being deducted from the payment, (b) at the time the payment is made, the company— (i) does not believe that either of the conditions specified in section 349B of the principal Act is satisfied, or (ii) where it believes that either of those conditions is satisfied, could not reasonably so believe, (c) the payment is one from which tax is deductible under section 349 of the principal Act unless the company reasonably believes that one of those conditions is satisfied, and (d) neither of those conditions is satisfied at the time the payment is made. (4C) In subsection (4B) above “company” includes a partnership of which any member is a company.

.

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

• (4) Subsections (1) to (3) apply to payments made on or after 1st April 2001.

• (5) Sections 247 and 248 of the Taxes Act 1988 (companies within a group may elect for section 349 not to apply to payments between them) shall cease to have effect.

• (6) Subsection (5) applies in relation to payments made after the day on which this Act is passed.

Profits for purposes of small companies' relief

86

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

Tax deductions and credits: end of provisional repayment regime

87

• (1) The provisions of section 438A of, and Schedule 19AB to, the Taxes Act 1988 (provisional repayments in respect of tax borne by deduction and tax credits) shall cease to have effect as follows.

• (2) Those provisions shall not apply in relation to income tax borne by deduction from payments received after 30th September 2001.

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

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

• (5) The provisions of section 438A of, and Schedule 19AB to, the Taxes Act 1988 shall not apply in relation to tax credits in respect of distributions made on or after 6th April 2004.

General

Amendments to the machinery of self-assessment

88

• (1) Schedule 29 to this Act (amendments to the machinery of self-assessment) has effect.

• (2) In that Schedule—

• Part 1 makes provision about the amendment or correction of returns,

• Part 2 makes provision about enquiries into returns,

• Part 3 makes provision for the referral of questions to the Special Commissioners during an enquiry,

• Part 4 makes provision about the procedure on completion of an enquiry, and

• Part 5 contains minor and consequential amendments.

• (3) Except as otherwise provided, the amendments in that Schedule have effect as from the passing of this Act in relation to returns—

• (a) whether made before or after the passing of this Act, and

• (b) whether relating to periods before or after the passing of this Act.

Recovery proceedings: minor amendments

89

• (1) In sections 66(1) and 67(1) of the Taxes Management Act 1970 (c. 9) (proceedings in county court or sheriff court to recover tax due and payable under an assessment), omit the words “under any assessment”.

This amendment applies in relation to proceedings begun after the passing of this Act.

• (2) For section 69 of the Taxes Management Act 1970 substitute—

(69) (1) This section applies to— (a) penalties imposed under Part 2, 5A or 10 of this Act or Schedule 18 to the Finance Act 1998; (b) surcharges imposed under Part 5A of this Act; and (c) interest charged under any provision of this Act (or recoverable as if it were interest so charged). (2) An amount by way of penalty, surcharge or interest to which this section applies shall be treated for the purposes of the following provisions as if it were an amount of tax. (3) Those provisions are— (a) sections 61, 63 and 65 to 68 of this Act; (b) section 35(2)(g)(i) of the Crown Proceedings Act 1947 (rules of court: restriction of set-off or counterclaim where proceedings, or set-off or counterclaim, relate to tax) and any rules of court imposing any such restriction; (c) section 35(2)(b) of that Act as set out in section 50 of that Act (which imposes corresponding restrictions in Scotland).

This amendment applies—

• (a) to proceedings begun (or a counterclaim made) after the passing of this Act, and

• (b) to a set-off first claimed after the passing of this Act.

• (3) ...

This amendment applies to certificates tendered in evidence after the passing of this Act.

Repayment supplements: claim for relief involving two or more years

90

• (1) Section 824 of the Taxes Act 1988 (repayment supplements) is amended as follows.

• (2) After subsection (2B) insert—

(2C) Subsection (1) above shall apply to a repayment made by the Board as a result of a claim for relief under— (a) paragraph 2 of Schedule 1B to the Management Act (carry back of loss relief), (b) paragraph 3 of that Schedule (relief for fluctuating profits of farming etc.), or (c) Schedule 4A to this Act (relief for fluctuating profits of creative artists etc.), as if it were a repayment falling within that subsection.

.

• (3) In subsection (3), after paragraph (aa) insert—

(ab) if the repayment is a repayment as a result of a claim for relief under any of the provisions mentioned in subsection (2C) above, the relevant time is the 31st January next following the year that is the later year in relation to the claim;

.

• (4) This section applies in relation to repayments made after the passing of this Act.

Power to revise excessive penalties

91

• (1) In section 100 of the Taxes Management Act 1970 (determination of penalties by officer of the Board), in subsection (6) (revision of penalty if amount of tax taken into account discovered to be excessive), after “a penalty under” insert “ section 93(2), (4) or (5) of this Act or ”.

• (2) This section applies in relation to penalties determined at any time whether before or after the passing of this Act.

Part 4 — OTHER TAXES

Stamp duty and stamp duty reserve tax

Stamp duty: exemption for land in disadvantaged areas

92

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

SDRT: unit trust schemes and individual pension accounts

93

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

SDRT: open-ended investment companies and individual pension accounts

94

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

Exemptions in relation to employee share ownership plans

95

• (1) This section forms part of the SIP code (see section 488 of the Income Tax (Earnings and Pensions) Act 2003 (... share incentive plans)).

• (2) Accordingly, expressions used in this section and contained in the index at the end of Schedule 2 to that Act (... share incentive plans) have the meaning indicated by that index.

• (3) Where, under a Schedule 2 SIP, partnership shares or dividend shares are transferred by the trustees to an employee—

• (a) no ad valorem stamp duty is chargeable on any instrument by which the transfer is made, and

• (b) no stamp duty reserve tax is chargeable on any agreement by the trustees to make the transfer.

• (4) But subsection (3) does not apply to—

• (a) any instrument executed (within the meaning of the Stamp Act 1891) before 6th April 2003, or

• (b) any agreement to transfer shares made before that date.

Value added tax

VAT: children’s car seats

96

• (1) In paragraph 1 of Schedule A1 to the Value Added Tax Act 1994 (c. 23) (supplies benefiting from 5% reduced rate), after sub-paragraph (4) insert—

(5) The supplies falling within this paragraph also include supplies of children’s car seats.

• (2) After paragraph 6 of that Schedule insert—

(7) (1) Paragraph 1(5) above is interpreted in accordance with the provisions of this paragraph. (2) The following are “children’s car seats”— (a) a safety seat; (b) the combination of a safety seat and a related wheeled framework; (c) a booster seat; (d) a booster cushion. (3) In this paragraph “safety seat” means a seat— (a) designed to be sat in by a child in a road vehicle, (b) designed so that, when in use in a road vehicle, it can be restrained— (i) by a seat belt fitted in the vehicle, or (ii) by belts, or anchorages, that form part of the seat being attached to the vehicle, or (iii) in either of those ways, and (c) incorporating an integral harness, or integral impact shield, for restraining a child seated in it. (4) For the purposes of this paragraph, a wheeled framework is “related” to a safety seat if the framework and the seat are each designed so that— (a) when the seat is not in use in a road vehicle it can be attached to the framework, and (b) when the seat is so attached, the combination of the seat and the framework can be used as a child’s pushchair. (5) In this paragraph “booster seat” means a seat designed— (a) to be sat in by a child in a road vehicle, and (b) so that, when in use in a road vehicle, it and a child seated in it can be restrained by a seat belt fitted in the vehicle. (6) In this paragraph “booster cushion” means a cushion designed— (a) to be sat on by a child in a road vehicle, and (b) so that a child seated on it can be restrained by a seat belt fitted in the vehicle. (7) In this paragraph “child” means a person aged under 14 years.

.

• (3) The amendments made by this section have effect in relation to supplies made after the day on which this Act is passed.

VAT: residential conversions and renovations

97

• (1) In paragraph 1 of Schedule A1 to the Value Added Tax Act 1994 (c. 23) (supplies benefiting from 5% reduced rate), after sub-paragraph (5) (which is inserted by section 96 of this Act) insert—

(6) The supplies falling within this paragraph also include— (a) the supply, in the course of a qualifying conversion, of qualifying services related to the conversion; (b) the supply of building materials if— (i) the materials are supplied by a person who, in the course of a qualifying conversion, is supplying qualifying services related to the conversion, and (ii) those services include the incorporation of the materials in the building concerned or its immediate site. (7) The supplies falling within this paragraph also include— (a) the supply, in the course of the renovation or alteration of a single household dwelling, of qualifying services related to the renovation or alteration; (b) the supply of building materials if— (i) the materials are supplied by a person who, in the course of the renovation or alteration of a single household dwelling, is supplying qualifying services related to the renovation or alteration, and (ii) those services include the incorporation of the materials in the dwelling concerned or its immediate site. (8) Sub-paragraph (9) below applies where a supply of services is only in part a supply to which sub-paragraph (6)(a) or (7)(a) above applies. (9) The supply, to the extent that it is one to which paragraph (a) of sub-paragraph (6) or (7) above applies, is to be taken to be a supply to which that paragraph applies; and an apportionment may be made to determine that extent.

• (2) After paragraph 7 of that Schedule (which also is inserted by section 96 of this Act) insert—