Legalize / United Kingdom / Public General Act

Finance Act 2002

Type Public General Act

Publication 2002-07-24

Last updated 2026-03-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

assets realised shall be identified with assets acquired on the same basis as that used by the company for accounting purposes, unless the basis used by the company is “last in, first out” in which case assets realised shall be identified with assets acquired on or before 1st January 2002 in priority to assets acquired after that day.

(4) Where a company has made an election under this section and—

(a) an asset in relation to which the election has effect is transferred to another company (“the transferee company”) in pursuance of an insurance business transfer scheme, and

(b) immediately after the transfer either—

(i) the transferee company is resident in the United Kingdom, or

(ii) the asset is held for the purposes of a business carried on by the transferee company in the United Kingdom through a branch or agency,

this section applies as if the transferee company had made an election under this section in relation to that asset.

(5) ...

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

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

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

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

Mark to market: miscellaneous amendments

67

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

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

(3) In section 81 of the Finance Act 1999 (c. 16) (acquisitions disregarded under insurance companies concession), at the end add—

(13) If the relevant company changes from— (a) not recognising a profit or loss on an asset until it is realised, to (b) bringing assets into account in each period of account at a fair value, then, in calculating the amount of any adjustment required under Schedule 22 to the Finance Act 2002 (calculation of adjustment on change of basis), the amount to be taken into account as the cost of the asset in relation to a period of account before the change is the cost of the previous acquisition.

(4) The provisions of this section come into force as follows—

(a) the amendments in subsections (1) and (2) apply in relation to periods of account ending on or after 1st August 2001;

(b) the amendment in subsection (3) applies wherever an adjustment falls to be made under Schedule 22 to the Finance Act 2002 (see Part 5 of that Schedule).

Expenditure involving crime

68

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

Financial instruments

Qualifying contracts for unallowable purposes

69

Forward premiums and discounts under currency contracts

70

Loan relationships

Accounting method where rate of interest etc is reset

71

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

Convertible securities etc: loan relationships

72

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

Convertible securities etc: issuing company not to be connected company

73

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

Convertible securities etc: debtor relationships

74

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

Asset-linked loan relationships

75

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

Asset-linked loan relationships involving guaranteed returns

76

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

Loan relationships ceasing to be within section 93 of the Finance Act 1996

77

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

Guaranteed returns on transactions involving futures and options

78

Foreign exchange gains and losses, loan relationships and currency

Forex and exchange gains and losses from loan relationships etc

79

(1) The following provisions shall cease to have effect—

(a) paragraph 4 of Schedule 9 to the Finance Act 1996 (c. 8) (which excludes foreign exchange gains and losses from the computation of credits and debits under the loan relationships legislation); and

(b) in consequence, sections 125 to 169 of the Finance Act 1993 (c. 34) (taxation of foreign exchange gains and losses).

(2) Schedule 23 to this Act (which makes provision in relation to exchange gains and losses from loan relationships etc) shall have effect.

(3) The amendments made by subsection (1) and by Parts 1 and 2 of Schedule 23 have effect in relation to accounting periods beginning on or after 1st October 2002.

Corporation tax: currency

80

(1) Schedule 24 to this Act (which makes provision in relation to corporation tax and currency) shall have effect.

(2) This section has effect in relation to accounting periods beginning on or after 1st October 2002.

Transitional provision

81

(1) The Treasury may by regulations make such transitional or consequential provision, or such savings (with or without modifications), as they may from time to time consider appropriate in consequence of, or otherwise in connection with, any provision of section 79 or 80 or Schedule 23 or 24 (or any repeal consequential on any such provision).

(2) The power conferred by subsection (1) includes power—

(a) to make different provision for different cases or different purposes;

(b) to amend any statutory instrument; and

(3) The provision that may be made by virtue of subsection (1) or (2) includes provision for or in connection with bringing amounts into account—

(a) for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12), as if they were chargeable gains or allowable losses; or

(b) for the purposes of Part 5 of the Corporation Tax Act 2009, as if they were credits or debits in respect of a loan relationship or a related transaction of the company concerned.

(4) Nothing in any provision of Schedule 23 or 24 shall prejudice the operation of this section.

(5) Nothing in this section or in Schedule 23 or 24 limits the operation of section 16 or 17 of the Interpretation Act 1978 (c. 30) (effect of repeals).

Loan relationships and other money debts

Loan relationships: general amendments

82

(1) Schedule 25 to this Act (which makes provision in relation to loan relationships) shall have effect.

(2) The amendments made by Parts 1 and 2 of that Schedule have effect in relation to accounting periods beginning on or after 1st October 2002.

Derivative contracts

83

(1) The following shall have effect—

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

(b) Schedule 27 to this Act (which makes minor and consequential amendments relating to the taxation of derivative contracts); and

(c) Schedule 28 to this Act (which contains transitional provisions etc in connection with the coming into force of this section and Schedules 26 and 27).

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

(3) This section has effect in relation to accounting periods beginning on or after 1st October 2002.

(4) Subsection (3) is subject to any specific provision of Schedule 28.

Intangible fixed assets

Gains and losses from intangible fixed assets of company

84

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

(2) Schedule 30 to this Act contains consequential amendments.

Insurance

Gains of insurance company from venture capital investment partnership

85

(1) In Chapter 3 of Part 6 of the Taxation of Chargeable Gains Act 1992 (c. 12) (insurance), after section 211 insert—

(211A) Schedule 7AD to this Act has effect with respect to the gains of an insurance company from a venture capital investment partnership.

(2) After Schedule 7AC to that Act (inserted by Part 1 of Schedule 8 to this Act) insert the Schedule 7AD set out in Schedule 31 to this Act.

Lloyd’s underwriters

86

(1) Schedule 32 to this Act (which makes provision about the taxation of Lloyd’s underwriters) has effect.

(2) The amendments in that Schedule have effect in relation to quota share contracts (within the meaning of section 178 of the Finance Act 1993 (c. 34) or section 225 of the Finance Act 1994) entered into on or after 17th April 2002.

Life policies etc: chargeable events

87

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

International matters

Extension of power to give effect to double taxation arrangements

88

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

(2) The following amendments are consequential on that above—

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

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

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) This section applies on and after the date on which this Act is passed in relation to arrangements made before that date (as well as in relation to arrangements made on or after that date).

Controlled foreign companies: territorial exclusions from s.748 exemptions

89

(1) In section 748 of the Taxes Act 1988 (controlled foreign companies: cases where no apportionment falls to be made under section 747(3)) after subsection (5) insert—

(6) This section is subject to section 748A.

(2) After section 748 of the Taxes Act 1988 insert—

(748A) Territorial exclusions from exemption under section 748 (1) Nothing in section 748 prevents an apportionment under section 747(3) falling to be made as regards an accounting period of a controlled foreign company if the company— (a) is a company incorporated in a territory to which this section applies as respects that accounting period; or (b) is at any time in that accounting period liable to tax in such a territory by reason of domicile, residence or place of management; or (c) at any time in that accounting period carries on business through a branch or agency in such a territory. (2) The condition in subsection (1)(c) above is not satisfied as regards an accounting period of a controlled foreign company if the business carried on by the company in that period through branches or agencies in territories to which this section applies, taken as a whole, is only a minimal part of the whole of the business carried on by the company in that period. (3) The territories to which this section applies as respects an accounting period of a controlled foreign company are those specified as such in regulations made by the Treasury. (4) Regulations under subsection (3) above— (a) may make different provision for different cases or with respect to different territories; and (b) may contain such incidental, supplemental, consequential or transitional provision as the Treasury may think fit. (5) A statutory instrument containing regulations under subsection (3) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

(3) This section has effect in relation to accounting periods of controlled foreign companies beginning on or after the day on which this Act is passed.

(4) In this section “accounting period” and “controlled foreign company” have the same meaning as in Chapter 4 of Part 17 of the Taxes Act 1988.

Controlled foreign companies and treaty non-resident companies

90

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

Supplementary charge in respect of ring fence trades

91

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

Assessment, recovery and postponement of supplementary charge

92

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

(2) In section 59E of the Taxes Management Act 1970 (c. 9) (further provision as to when corporation tax is due and payable) in subsection (11) (extension of references in the section to corporation tax) after paragraph (b) add—

(c) to any sum chargeable on a company under section 501A(1) of the principal Act (supplementary charge in respect of ring fence trades) as if it were an amount of corporation tax chargeable on the company

(3) In Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns: assessments and related matters) in paragraph 1 (meaning of “tax”) in the second sentence (amounts assessable or chargeable as if they were corporation tax) for the word “and” immediately preceding the paragraph beginning “section 747(4)(a)” substitute the following paragraph—

section 501A(1) of that Act (supplementary charge in respect of ring fence trades), and

(4) In paragraph 8 of that Schedule (calculation of tax payable) after paragraph number 1 of the third step insert—

(1A) Any sum chargeable under section 501A(1) of that Act (supplementary charge in respect of ring fence trades).

(5) Regulation 3 of the Instalment Payment Regulations (large companies) is amended as follows.

(6) In paragraph (1) (which, subject to paragraphs (2) and (3), defines a large company) for “paragraphs (2) and (3),” substitute “ paragraphs (2) to (3A), ”.

(7) After paragraph (3) insert—

(3A) Any question whether a company is, or is not, a large company as respects an accounting period beginning on or after 17th April 2002 shall, so far as not falling to be determined by reference to the company’s total liability, be determined as it would have been determined apart from section 501A of the Taxes Act (supplementary charge in respect of ring fence trades).

(8) The amendment by this section of any provision contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending that provision, whether in relation to the same or any other chargeable periods.

(9) In this section “the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175).

Supplementary charge: transitional provisions

93

(1) In the case of a straddling period, that is to say, an accounting period which begins before 17th April 2002 and ends on or after that date—

(a) sections 501A and 501B of the Taxes Act 1988 (which are inserted by sections 91 and 92) shall apply as if so much of the straddling period as falls before 17th April 2002, and so much of that period as falls on or after that date, were separate accounting periods; and

(b) all necessary apportionments between the two separate accounting periods shall be made in proportion to the number of days in those periods.

(2) In the case of a straddling period, the Instalment Payment Regulations shall apply separately—

(a) in relation to any tax chargeable on the company under section 501A(1) of the Taxes Act 1988; and

(b) in relation to any other tax chargeable on the company.

(3) In their application by virtue of paragraph (a) of subsection (2), the Instalment Payment Regulations shall have effect in relation to the tax mentioned in that paragraph as if—

(a) the deemed accounting period treated under subsection (1)(a) as beginning on 17th April 2002 were an accounting period for the purposes of those Regulations; and

(b) that tax were chargeable for that period.

(4) Any reference in the Instalment Payment Regulations to the total liability of a company shall accordingly be construed—

(a) in their application by virtue of paragraph (a) of subsection (2), as a reference to the tax mentioned in that paragraph; and

(b) in their application by virtue of paragraph (b) of that subsection, as a reference to the amount that would be the company’s total liability for the straddling period if the tax mentioned in paragraph (a) of that subsection were left out of account.

(5) For the purposes of the Instalment Payment Regulations—

(a) a company shall be regarded as a large company as respects the deemed accounting period under subsection (3)(a) if, and only if, it is a large company for those purposes as respects the straddling period; and

(b) any question whether a company is a large company as respects the straddling period shall be determined as it would have been determined apart from section 501A of the Taxes Act 1988.

(6) In this section “the Instalment Payment Regulations” has the same meaning as in section 92.

Deduction of tax

Deduction of tax: payments to exempt bodies etc

94

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

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

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

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

(5) In section 98 of the Taxes Management Act 1970 (c. 9) (special returns, etc), in subsection (4B)—

(a) in paragraph (a), after “a company” insert “ or local authority ”,

(b) in paragraph (b)—

(i) after “the company” insert “ or authority ”, and

(ii) for “either”, in each place, substitute “ one ”,

(d) in paragraph (d), for “neither” substitute “ none ”.

(6) In that section, for subsection (4C) substitute—

(4C) In subsection (4B) above— - “company” includes a partnership of which any member is a company; and - “local authority” includes a partnership of which any member is a local authority.

(7) The amendments made by this section apply for the purposes of payments made on or after 1st October 2002.

Deduction of tax by persons dealing in financial instruments

95

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

Cross-border royalties

96

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

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

(3) In section 98 of the Taxes Management Act 1970 (c. 9) (special returns etc)—

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

(b) after subsection (4C) insert—

(4D) A payment is within this subsection if— (a) it is a payment to which section 349(1) of the principal Act (requirement to deduct tax) applies, (b) it is made by a company which, purporting to rely on section 349E(1) of that Act (power for companies to take account of double taxation treaty relief when paying royalties), deducts less tax from the payment than required by section 349(1) of that Act , and (c) at the time the payment is made the payee (within the meaning of section 349E of that Act) is not entitled to relief in respect of the payment under any arrangements under section 788 of that Act (double taxation relief) and the company— (i) does not believe that it is entitled to such relief, or (ii) if it does so believe, cannot reasonably do so.

(4) This section applies in relation to payments made on or after 1st October 2002.

Charitable giving

Gifts of real property to charity

97

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

Gift aid: election to be treated as if gift made in previous tax year

98

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

Films

Restriction of relief to films genuinely intended for theatrical release

...

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

Exclusion of deferments from production expenditure

...

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

Restriction of relief for successive acquisitions of the same film

101

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

Miscellaneous

Distributions: reasonable commercial return for use of principal secured

102

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

References to accounting practice and periods of account

103

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

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

(3) In section 288(1) of the Taxation of Chargeable Gains Act 1992 (interpretation), at the appropriate place insert—

“period of account” has the meaning given by section 832(1) of the Taxes Act;

(4) In the following provisions for “normal accounting practice” or “normal accountancy practice”, wherever occurring, substitute “ generally accepted accounting practice ”

(a) in the Taxes Act 1988, sections ......, ..., 798B(1) ..., ...;

(b) in the Finance Act 1993 (c. 34), sections ... 150(6)(c) and (11)(c), 154(11)(c), (12)(d), (13)(b), (13A)(d) and (13B)(d), 155(7), (11)(d) and (12)(b), 156(2)(e) and (4)(b) and 159(1)(b);

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) in the Finance Act 2000 (c. 17), ... in Schedule 15, paragraph 29(4), ...;

(g) in the Capital Allowances Act 2001 (c. 2), sections 179(1)(f), 219(1) ...;

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

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

(6) The amendments made by subsections (1) to (3) above have effect for the purposes of provisions of this Act using the expressions mentioned (including provisions inserted by amendment in other enactments) whenever those provisions are expressed to have effect or to come, or to have come, into force.

This is without prejudice to the general effect of those amendments.

Discounted securities etc

104

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

Financial trading stock

105

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

(2) In Schedule 12 to the Finance Act 1988 (c. 39) (building societies: change of status)—

(a) in paragraph 1 (which provides that paragraphs 2 to 7 apply where there is a transfer of the whole of a building society’s business to a successor company in accordance with section 97 etc of the Building Societies Act 1986 (c. 53)) for “2” substitute “ 3 ”; and

(b) omit paragraph 2 (which relates to gilt-edged securities and other financial trading stock and is superseded by Chapter 2 of Part 4 of the Finance Act 1996).

Valuation of trading stock on transfer of trade

106

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

Banks etc in compulsory liquidation

107

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

Manufactured dividends and interest

108

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

Venture capital trusts

109

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

Part 4 — Stamp duty and stamp duty reserve tax

Stamp duty

Land in disadvantaged areas

110

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

Withdrawal of group relief

111

(1) This section applies where—

(a) an instrument (“the relevant instrument”) transferring land in the United Kingdom from one company (“the transferor company”) to another (“the transferee company”) has been stamped on the basis that group relief applies,

(b) before the end of the period of three years beginning with the date on which the instrument was executed the transferee company ceases to be a member of the same group as the transferor company, and

(c) at the time when the transferee company ceases to be a member of the same group as the transferor company it or a relevant associated company holds an estate or interest in land—

(i) that was transferred to the transferee company by the relevant instrument, or

(ii) that is derived from an estate or interest that was so transferred,

and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed.

(2) In those circumstances—

(a) group relief in relation to the relevant instrument, or an appropriate proportion of it, is withdrawn, and

(b) the stamp duty that would have been payable on stamping the relevant instrument but for group relief if the estate or interest in land transferred by that instrument had been transferred at market value, or an appropriate proportion of the duty that would have been so paid, is payable by the transferee company within 30 days after that company ceases to be a member of the same group as the transferor company.

(3) In subsection (2)(a) and (b) “an appropriate proportion” means an appropriate proportion having regard to what was transferred to the transferee company by the relevant instrument and what is held by that company or, as the case may be, that company and any relevant associated companies, at the time it or they cease to be members of the same group as the transferor company.

(4) In this section “group relief” means relief under any of the following provisions—

(a) section 42 of the Finance Act 1930 (c. 28) or section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N.I.)) (transfer of property between associated bodies corporate);

(b) section 151 of the Finance Act 1995 (c. 4) (leases etc between associated bodies corporate).

(4A) In this section “relevant associated company”, in relation to the transferee company, means a company that—

(a) is a member of the same group as the transferee company immediately before that company ceases to be a member of the same group as the transferor company, and

(b) ceases to be a member of the same group as the transferor company in consequence of the transferee company so ceasing.

(5) In this section—

(a) references to the transfer of land include the grant or surrender of an estate or interest in or over land;

(b) “company” includes any body corporate; and

(c) references to a company being in the same group as another company are to the companies being associated bodies corporate within the meaning of the relevant group relief provision.

(6) Schedule 34 to this Act contains provisions supplementing this section.

(7) Where the relevant instrument transfers land in the United Kingdom together with other property, the provisions of this section and of Schedule 34 apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property.

(8) This section applies where the relevant instrument is executed after 23rd April 2002.

(9) But this section does not apply to an instrument giving effect to a contract made on or before 17th April 2002, unless—

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date.

(10) This section shall be deemed to have come into force on 24th April 2002.

Restriction of relief for company acquisitions

112

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

Withdrawal of relief for company acquisitions

113

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

Penalties for late stamping

114

(1) Section 15B of the Stamp Act 1891 (c. 39) (late stamping: penaties) is amended as follows.

(2) In subsection (1)—

(a) in paragraph (a) (penalty where instrument not stamped within 30 days of execution), after “is executed in the United Kingdom” insert “ or relates to land in the United Kingdom ”;

(b) in paragraph (b) (penalty where instrument not stamped within 30 days of instrument being first received in the United Kingdom), after “is executed outside the United Kingdom” insert “ and does not relate to land in the United Kingdom ”.

(3) After that subsection insert—

(1A) For the purposes of subsection (1) every instrument that (whether or not it also relates to any other transaction) relates to a transaction which to any extent involves land in the United Kingdom is an instrument relating to land in the United Kingdom.

(4) This section applies in relation to instruments executed on or after the day on which this Act is passed.

Contracts for the sale of an estate or interest in land chargeable as conveyances

115

(1) This section applies to a contract or agreement for the sale of an estate or interest in land in the United Kingdom where—

(a) the amount or value of the consideration exceeds £10 million, or

(b) the instrument forms part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds £10 million.

(2) If, in the case of such a contract or agreement that is not otherwise chargeable to stamp duty, a conveyance or transfer made in conformity with the contract or agreement is not presented to the Commissioners for stamping with the ad valorem duty chargeable on it—

(a) within the period of 90 days after the execution of the contract or agreement, or

(b) within such longer period as the Commissioners may think reasonable in the circumstances of the case,

the contract or agreement shall be chargeable with the same ad valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate or interest contracted or agreed to be sold.

(3) The Commissioners—

(a) may refuse to allow a longer period unless they are provided with a copy of the contract or agreement and such other evidence as they may reasonably require as to the facts and circumstances relevant to their decision,

(b) may allow a longer period subject to compliance with such conditions as they think fit, and

(c) shall not allow any longer period if it appears to them that the whole, or substantially the whole, of the intended consideration has been paid or transferred.

(4) Where an instrument to which this section applies is presented for stamping before the end of the period mentioned in subsection (2)—

(a) any adjudication to the effect that stamp duty is not chargeable does not affect the operation of this section, and

(b) the fact that duty may be chargeable under this section may be denoted on the instrument in such manner as the Commissioners think fit.

(5) Where an instrument is chargeable with duty under this section—

(a) section 14(4) of the Stamp Act 1891 (c. 39) (inadmissibility of unstamped instruments) does not apply in relation to it until after the end of the period mentioned in subsection (2) above, and

(b) sections 15A and 15B of that Act (late stamping: interest and penalties), apply in relation to it as if it had been executed at the end of that period.

(6) The ad valorem duty paid upon a contract or agreement under this section shall be repaid by the Commissioners if the contract or agreement is afterwards rescinded or annulled or is for any other reason not substantially performed or carried into effect.

(7) Schedule 36 contains provisions supplementing this section.

(8) This section and that Schedule apply to contracts or agreements executed after the day on which this Act is passed.

Abolition of duty on instruments relating to goodwill

116

(1) No stamp duty is chargeable on an instrument for the sale, transfer or other disposition of goodwill.

(2) Schedule 37 to this Act contains provisions supplementing this section.

(3) This section and that Schedule shall be construed as one with the Stamp Act 1891 (c. 39).

(4) This section applies to instruments executed on or after 23rd April 2002.

(5) This section shall be deemed to have come into force on that date.

Stamp duty and stamp duty reserve tax

Power to extend exceptions relating to recognised exchanges

117

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

Part 5 — Other taxes

Inheritance tax

IHT: rate bands

118

(1) For the Table in Schedule 1 to the Inheritance Tax Act 1984 (c. 51) substitute—

Portion of value	Portion of value	Rate of tax
Lower limit (£)	Upper limit (£)	Per cent.
0	250,000	Nil
250,000		40

(2) Subsection (1) shall apply to any chargeable transfer made on or after 6th April 2002; and section 8(1) of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 2000 and that for the month of September 2001.

IHT: powers over, or exercisable in relation to, settled property or a settlement

119

(1) The Inheritance Tax Act 1984 is amended in accordance with the following provisions of this section.

(2) After section 47 (meaning of “reversionary interest”) insert—

(47A) In this Act “settlement power” means any power over, or exercisable (whether directly or indirectly) in relation to, settled property or a settlement.

(3) After section 55 (reversionary interest acquired by beneficiary) insert—

(55A) (1) Where a person makes a disposition by which he acquires a settlement power for consideration in money or money’s worth— (a) section 10(1) above shall not apply to the disposition; (b) the person shall be taken for the purposes of this Act to make a transfer of value; (c) the value transferred shall be determined without bringing into account the value of anything which the person acquires by the disposition; and (d) sections 18 and 23 to 27 above shall not apply in relation to that transfer of value. (2) For the purposes of this section, a person acquires a settlement power if he becomes entitled— (a) to a settlement power, (b) to exercise, or to secure or prevent the exercise of, a settlement power (whether directly or indirectly), or (c) to restrict, or secure a restriction on, the exercise of a settlement power (whether directly or indirectly), as a result of transactions which include a disposition (whether to him or another) of a settlement power or of any power of a kind described in paragraph (b) or (c) above which is exercisable in relation to a settlement power.

(4) In section 272 (general interpretation)—

(a) insert the following definition at the appropriate place—

“settlement power” has the meaning given by section 47A above;

;

and

(b) in the definition of “property”, at the end insert “ but does not include a settlement power ”.

(5) In consequence of the amendments made by this section, the title of Chapter 2 of Part 3 of the Inheritance Tax Act 1984 (c. 51) becomes “Interests in possession, reversionary interests and settlement powers”.

(6) The amendments made by this section have effect in relation to transfers of value on or after 17th April 2002.

(7) The amendments made by subsections (2) and (4) shall also be deemed always to have had effect (subject to and in accordance with the other provisions of the Inheritance Tax Act 1984) for the purpose of determining the value, immediately before his death, of the estate of any person who died before 17th April 2002, for the purposes of the transfer of value which that person is treated by section 4(1) of that Act as having made immediately before his death.

IHT: variation of dispositions taking effect on death

120

(1) In section 142 of the Inheritance Tax Act 1984 (alteration of dispositions taking effect on death), for subsection (2) (election to treat subsequent variation of dispositions taking effect on death as if effected by deceased) substitute—

(2) Subsection (1) above shall not apply to a variation unless the instrument contains a statement, made by all the relevant persons, to the effect that they intend the subsection to apply to the variation. (2A) For the purposes of subsection (2) above the relevant persons are— (a) the person or persons making the instrument, and (b) where the variation results in additional tax being payable, the personal representatives. Personal representatives may decline to make a statement under subsection (2) above only if no, or no sufficient, assets are held by them in that capacity for discharging the additional tax.

(2) After section 218 of that Act insert—

(218A) (1) Where— (a) an instrument is made varying any of the dispositions of the property comprised in the estate of a deceased person immediately before his death, (b) the instrument contains a statement under subsection (2) of section 142 above, and (c) the variation results in additional tax being payable, the relevant persons (within the meaning of that subsection) shall, within six months after the day on which the instrument is made, deliver a copy of it to the Board and notify them of the amount of the additional tax. (2) To the extent that any of the relevant persons comply with the requirements of this section, the others are discharged from the duty to comply with them.

(3) In section 245A of that Act (failure to provide information etc)—

(a) after subsection (1) insert—

(1A) A person who fails to comply with the requirements of section 218A above shall be liable— (a) to a penalty not exceeding £100; and (b) to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the requirements are complied with.

(b) in subsection (4), insert “ (1A)(b), ” after “subsection (1)(b),” and after paragraph (a) insert—

(aa) he complies with the requirements of section 218A above,

(4) This section applies in relation to instruments made on or after 1st August 2002.

Air passenger duty

Air passenger duty: extension of area to which EEA rates apply

121

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

Landfill tax

Landfill tax: rate

122

(1) In section 42 of the Finance Act 1996 (c. 8) (amount of landfill tax), in subsections (1)(a) and (2) for “£12” substitute “ £13 ”.

(2) This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2002.

Climate change levy

Climate change levy: electricity produced in combined heat and power station

123

(1) In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 20 insert—

(20A) (1) A supply of electricity is exempt from the levy chargeable under paragraph 5(1) if— (a) the supply is not one that is deemed to be made under paragraph 23(3), (b) the supply is made under a contract that contains a CHP declaration given by the supplier, (c) prescribed conditions are fulfilled, and (d) the supplier, and each other person (if any) who is a generator of any CHP electricity allocated by the supplier to supplies under the contract, has in a written notice given to the Commissioners agreed that he will fulfil those conditions so far as they may apply to him. (2) Sub-paragraph (1) does not apply in relation to a supply to a person of electricity produced in a wholly or partly exempt combined heat and power station where the supply is made to that person from the station. (3) In this paragraph “CHP declaration” means a declaration that, in each averaging period, the amount of electricity supplied by exempt CHP supplies made by the supplier in the period will not exceed the difference between— (a) the total amount of CHP electricity that during that period is either acquired or generated by the supplier, and (b) so much of that total amount as is allocated by the supplier otherwise than to exempt CHP supplies made by him in the period. In this sub-paragraph “averaging period” has the same meaning as in paragraph 20B; and “exempt CHP supplies” means supplies made on the basis that they are exempt under this paragraph. (4) For the purposes of this paragraph and paragraph 20B, electricity is “CHP electricity” if— (a) the electricity was— (i) produced in a fully exempt combined heat and power station, or (ii) produced in a partly exempt combined heat and power station and originally supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded, (b) the electricity is not renewable source electricity (within the meaning of paragraph 19), and (c) prescribed conditions are fulfilled. (5) The conditions that may be prescribed under sub-paragraph (1)(c) include, in particular, conditions in connection with— (a) the giving of effect to CHP declarations; (b) the supply of information; (c) the inspection of records and, for that purpose, the production of records in legible form and entry into premises; (d) monitoring by the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, of the application of provisions of, or made under, this paragraph; (e) the doing of things to or by a person authorised by the Authority or the Director General (as well as the doing of things to or by the Authority or the Director General); (f) things being done at times or in ways specified by the Authority, the Director General or such an authorised person. (6) A condition prescribed under sub-paragraph (1)(c) may be one that is required to be fulfilled throughout a period, including a period ending after the time when a supply whose exemption turns on the fulfilment of the condition is treated as being made. (7) The conditions that may be prescribed under sub-paragraph (4)(c) include in particular conditions in connection with any of the matters mentioned in paragraphs (b) to (f) of sub-paragraph (5). (8) Each of— (a) the Gas and Electricity Markets Authority, and (b) the Director General of Electricity Supply for Northern Ireland, shall supply the Commissioners with such information (whether or not obtained under this paragraph), and otherwise give the Commissioners such co-operation, as the Commissioners may require in connection with the application of this paragraph (whether generally or in relation to any particular case). (9) Paragraph 19(10) (disclosure of information) applies in relation to sub-paragraph (8) above as it applies in relation to paragraph 19(8). (20B) (1) This paragraph applies where a person (“the supplier”) makes supplies of electricity on the basis that they are exempt under paragraph 20A (“exempt CHP supplies”). (2) The rules about balancing and averaging periods are— (a) a balancing period is a period of three months; (b) when a balancing period ends, a new one begins; (c) the first balancing period and the first averaging period begin at the same time; (d) unless the supplier specifies an earlier time, that time is the time when he is treated as making the first of the exempt CHP supplies; (e) when an averaging period ends, a new one begins; (f) an averaging period ends once it has run for two years (but may end sooner under paragraph (g) or sub-paragraph (4)(a) or (5)(a)); (g) if the supplier stops making exempt CHP supplies, the end of the balancing period in which he makes the last exempt CHP supply is also the end of the averaging period in which the balancing period falls. (3) At the end of each balancing period calculate— (a) the total of— (i) the quantity of CHP electricity that the supplier acquired or generated in that period, and (ii) any balancing credit carried forward to that balancing period; and (b) the total of— (i) the quantity of electricity supplied by exempt CHP supplies made by him in that period, and (ii) any balancing debit carried forward to that balancing period. (4) If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)— (a) the averaging period within which the balancing period fell ends at the end of the balancing period, and (b) a balancing credit equal to the difference between the two totals is carried forward to the next balancing period. (5) If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same— (a) the averaging period within which the balancing period fell ends at the end of the balancing period, and (b) no balancing credit or debit is carried forward to the next balancing period. (6) Sub-paragraphs (7) and (8) apply if the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a). (7) Where the end of the balancing period is by virtue of sub-paragraph (2)(g) the end of an averaging period, the supplier is liable to account to the Commissioners for an amount equal to the amount that would be payable by way of levy on a taxable supply that— (a) is made at the end of the balancing period, and (b) is a supply of a quantity of electricity equal to the difference between the two totals. For the purposes of this Schedule, the amount for which the supplier is liable to account shall be treated as an amount of levy for which he is liable to account for an accounting period ending at the end of the balancing period. (8) Where sub-paragraph (7) does not apply, a balancing debit equal to the difference between the two totals is carried forward to the next balancing period.

(2) Subsection (1) has effect in relation to supplies of electricity made on or after such day as the Treasury may by order made by statutory instrument appoint.

Climate change levy: certification requirement

124

In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 149 insert—

(149A) (1) The Commissioners may by regulations make provision for the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, to certify as respects any quantity of electricity that— (a) the electricity has been produced in a fully exempt combined heat and power station; (b) the electricity has been produced in a partly exempt combined heat and power station and supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded. (2) Regulations under this paragraph may provide that for any purposes of this Schedule (or any regulations made under it)— (a) electricity is not to be regarded as having been produced as specified in sub-paragraph (1)(a) unless it has been certified under that provision; (b) electricity is not to be regarded as having been produced and supplied as specified in sub-paragraph (1)(b) unless it has been certified under that provision. (3) Regulations under this paragraph may in particular provide that the supply of any electricity does not qualify for the exemption under paragraph 16(2) unless the electricity is certified as specified in sub-paragraph (1)(b). (4) Regulations under this paragraph may also make provision for determining whether electricity is produced and supplied as specified in sub-paragraph (1)(b).

Climate change levy: exemption for renewable sources

125

(1) In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), in paragraph 20(7), (exemption under paragraph 19: liability to account)—

(a) for the words from “(2)(c)” to “2 years)” substitute “ (2)(g) ”,

(b) after paragraph (a) insert “and”, and

(2) This section has effect in relation to averaging periods under paragraph 20 of that Schedule which end on or after the day on which this Act is passed.

Climate change levy: electricity produced from coal mine methane

126

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

Climate change levy: incorrect certificates

127

(1) In Schedule 6 to the Finance Act 2000 (climate change levy), in sub-paragraph (2)(a) of paragraph 101 (civil penalties: incorrect notifications etc)—

(a) in sub-paragraph (ii) for “18 and 21, or” substitute “ 15, 18 and 21, ”;

(b) before the word “and” at the end of sub-paragraph (iii) insert—

, or (iv) a reduced-rate supply (or reduced-rate supplies),

(2) This section applies in relation to certificates given in respect of any supplies made on or after 24th April 2002.

Climate change levy: invoices incorrectly showing levy due

128

(1) In Schedule 6 to the Finance Act 2000 (climate change levy), immediately before paragraph 142 insert—

(141A) (1) This paragraph applies where— (a) a person issues an invoice showing an amount as levy chargeable on a supply, and (b) no levy is chargeable on the supply, or the amount chargeable is less than the amount shown. (2) The person shall be liable to a penalty unless he satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the inclusion in the invoice of the false information. (3) The amount of the penalty is £50 or, if more, the following amount— (a) where no levy is chargeable, the amount shown as chargeable; (b) where an amount of levy is chargeable, the difference between that amount and the amount shown as chargeable. (4) It is irrelevant for the purposes of sub-paragraph (1) whether or not the supply shown on the invoice actually takes place or has taken place. (5) A reference in this paragraph to an invoice is a reference to any kind of invoice (and not just a climate change levy accounting document).

(2) This section applies only in relation to invoices issued on or after the day on which this Act is passed.

Aggregates levy

Aggregates levy: transitional relief for Northern Ireland

129

(1) After section 30 of the Finance Act 2001 (c. 9) (credit for aggregates levy) insert—

(30A) (1) The Commissioners may by regulations make provision of the kind described in section 30(2) above (entitlement to tax credit) in relation to cases where aggregate is used in Northern Ireland for a prescribed purpose— (a) on or after the commencement date, and (b) before 1st April 2007. (2) In relation to the use of aggregate in the year ending with a date shown in the first column of the following table, the amount of any tax credit to which a person would otherwise by entitled by virtue of the regulations shall be reduced by the percentage of that amount shown opposite that date in the second column.

Year ending	Reduction in tax credit
31st March 2004	20%
31st March 2005	40%
31st March 2006	60%
31st March 2007	80%

(3) Subsections (3) to (5) of section 30 above apply to regulations under this section as they apply to regulations under that section.

(2) In section 17(6) of that Act (certain tax credits to be disregarded in determining whether aggregate has already been charged to levy), in paragraph (a) after “section 30(1)(c)” insert “ or 30A ”.

Aggregates levy: amendments to provisions exempting spoil etc

130

(1) In section 17(3) of the Finance Act 2001 (c. 9) (aggregate that is exempt)—

(a) in paragraph (e) (by-products of extracting china clay or ball clay), after “or other by-products” insert “ , not including the overburden, ”;

(b) after that paragraph insert—

(f) it consists wholly of the spoil from any process by which— (i) coal, lignite, slate or shale, or (ii) a substance listed in section 18(3) below, has been separated from other rock after being extracted or won with that other rock;

(2) Omit section 17(4)(b) of that Act (aggregate exempt if it consists, or is part of anything consisting, wholly or mainly of spoil from the separation of coal from other rock after extraction).

(3) This section shall be deemed to have come into force on 1st April 2002.

Aggregates levy: crushing and cutting rock

131

(1) In section 17(3) of the Finance Act 2001 (exempt aggregate), omit paragraph (a) (exemption for rock that has not been subjected to an industrial crushing process).

(2) In section 18(2)(a) of that Act (exemption for production of dimension stone), for “dimension stone” substitute “ stone with one or more flat surfaces ”.

(3) The following amendments to that Act are consequential on that made by subsection (1)—

(a) in section 20(1) (originating sites), omit—

(i) the words “and is not rock” in paragraphs (a) and (b), and

(ii) paragraph (c);

(b) in section 21 (operators of sites), omit subsection (2)(b);

(4) This section shall be deemed to have come into force on 1st April 2002.

Aggregates levy: miscellaneous amendments

132

(1) Schedule 38 to this Act, which makes amendments to provisions in Part 2 of the Finance Act 2001 (aggregates levy), has effect.

(2) In section 197(2) of the Finance Act 1996 (c. 8) (enactments for which interest rates are set under section 197), in paragraph (h) (aggregates levy provisions) in sub-paragraph (ii) for “paragraph 8(3)(a)” substitute “ paragraphs 6 and 8(3)(a) ”.

(3) This section shall be deemed to have come into force on 1st April 2002.

Aggregates levy: amendments to provisions about civil penalties

133

(1) Part 2 of Schedule 6 to the Finance Act 2001 (c. 9) (aggregates levy: civil penalties) is amended as follows.

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

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

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

(5) After paragraph 9 insert—

(9A) (1) This paragraph applies where— (a) a claim is made for a tax credit in such a case as is mentioned in— (i) section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), or (ii) section 30A of this Act (transitional tax credit in Northern Ireland); (b) a record or other document is provided to the Commissioners as evidence for the claim; and (c) the record or document is incorrect. (2) The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty. (3) The amount of the penalty shall be equal to 105 per cent of the difference between— (a) the amount of tax credit that would have been due on the claim if the record or document had been correct, and (b) the amount (if any) of tax credit actually due on the claim. (4) The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it. (5) Where by reason of providing a record or other document— (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 or 9 above, that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph.

(6) This section shall be deemed to have come into force on 1st May 2002.

Part 6 — Miscellaneous and supplementary provisions

Recovery of taxes etc due in other member States

134

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

Mandatory e-filing

135

(1) The Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”) may make regulations requiring the use of electronic communications for the delivery by specified persons of specified information required or authorised to be delivered by or under legislation relating to a taxation matter.

(2) Regulations under this section may make provision—

(a) as to the electronic form to be taken by information delivered to the Revenue and Customs using electronic communications;

(b) requiring persons to prepare and keep records of information delivered to Revenue and Customs by means of electronic communications;

(d) as to conditions that must be complied with in connection with the use of electronic communications for the delivery of information;

(e) for treating information as not having been delivered unless conditions imposed by any of the regulations are satisfied;

(f) for determining the time at which and person by whom information is to be taken to have been delivered;

(g) for authenticating whatever is delivered.

(3) Regulations under this section may also make provision (which may include 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;

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

(d) the contents of anything so delivered;

(e) the contents of any records;

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

(4) Regulations under this section may—

(a) allow any authorisation , requirement or other provision (other than provision under subsection (7)(a) to (ba)) for which the regulations may provide to be given , imposed or made by means of a specific or general direction given by the Commissioners;

(b) provide that the conditions of any such authorisation or requirement are to be taken to be satisfied only where the Revenue and Customs 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 by means of electronic communications; or

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

(5) Regulations under this section may contain provision—

(a) requiring the Revenue and Customs to notify persons appearing to them to be, or to have become, a person of a specified description and accordingly required to use electronic communications for any purpose in accordance with the regulations,

(b) enabling a person so notified to have the question whether he is a person of such a description determined in the same way as an appeal.

(6) Regulations under this section may provide—

(a) that information delivered by means of electronic communications must meet standards of accuracy and completeness set by specific or general directions given by the Commissioners, and

(b) that failure to meet those standards may be treated—

(i) as a failure to deliver the information, or

(ii) as a failure to comply with the requirements of the regulations.

(7) The power to make provision by regulations under this section includes power—

(a) to provide for a contravention of, or any failure to comply with, the regulations to attract a penalty of a specified amount not exceeding £3,000;

(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) apply, with or without modifications, in relation to penalties under the regulations;

(ba) to specify other consequences of contravention of, or failure to comply with, the regulations (which may include disregarding a return delivered otherwise than by the use of electronic communications);

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

(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;

(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) Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

(10) In this section—

“the Revenue and Customs” means—the Commissioners,any officer of Revenue and Customs, andany other person who for the purposes of electronic communications is acting under the authority of the Commissioners;

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

“specified” means specified by or under regulations under this section;

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

“taxation matter” means any matter relating to a tax (or duty) for which the Commissioners are responsible.

Use of electronic communications under other provisions

136

(1) Any power to make subordinate legislation for or in connection with the delivery of information conferred in relation to a taxation matter on—

(a) the Commissioners of Inland Revenue, or

(b) the Treasury,

includes power to make any such provision in relation to the delivery of that information as could be made in exercise of the power conferred by section 135.

(2) Provision made in exercise of the powers conferred by section 135 or subsection (1) above has effect notwithstanding so much of any enactment or subordinate legislation as would otherwise—

(a) allow information to be delivered otherwise than by means of electronic communications, or

(b) preclude the use of an intermediary in connection with its delivery.

(3) Expressions used in this section and section 135 have the same meaning in this section as in that section.

(4) Nothing in this section shall be read as restricting the generality of the power conferred by section 135.

Lorry road-user charge

137

(1) A tax, to be known as lorry road-user charge, shall be charged in respect of use of roads by lorries.

(2) The persons by whom lorry road-user charge shall be payable, the rates at which it shall be charged, and the lorries, roads and use in respect of which it shall be charged, shall be such as Parliament may determine.

(3) The amount of lorry road-user charge charged in respect of use of any roads by a lorry shall be calculated, in such manner as Parliament may determine, by reference to the distance travelled on those roads by the lorry.

(4) Lorry road-user charge—

(a) shall be under the care and management of the Commissioners of Customs and Excise, and

(b) shall be administered and enforced in accordance with such provisions as Parliament may determine.

(5) All money and securities for money collected or received for or on account of lorry road-user charge shall—

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

(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.

(7) A Minister of the Crown or government department may—

(a) incur expenditure in connection with preparations for lorry road-user charge (including any fuel credit to be paid in respect of fuelling of lorries chargeable in respect of lorry road-user charge);

(b) enter into contracts in respect of the development or provision of equipment, systems or services to be used in connection with lorry road-user charge (including any fuel credit).

Registers of UK gilts

Authority of Bank of England to discharge functions in place of Bank of Ireland

138

(1) The Bank of England has authority, in the event of the Bank of Ireland ceasing to perform any of its functions in relation to United Kingdom government stock, to discharge any of the Bank of Ireland’s functions in relation to such stock in place of the Bank of Ireland.

(2) The enactments relating to United Kingdom government stock have effect in relation to anything done in the circumstances mentioned in subsection (1) for the purposes of discharging any such functions—

(a) as if any reference to the Bank of Ireland were a reference to the Bank of England, and

(b) as if any reference to an officer of the Bank of Ireland were a reference to the corresponding officer of the Bank of England.

(3) In particular, sections 59 and 66 of the National Debt Act 1870 (c. 71) (provisions protecting the Bank and its officers from liability) apply to the Bank of England and to officers of that Bank in relation to anything done in the circumstances mentioned in subsection (1) above for the purposes of discharging any functions of the Bank of Ireland in relation to United Kingdom government stock.

(4) In this section—

“enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978 (c. 30);

“United Kingdom government stock” means stock or bonds of any of the descriptions included in Part 1 of Schedule 11 to the Finance Act 1942 (c. 21) (whether on or after the passing of this Act).

(5) This section shall be deemed always to have had effect.

Closure of UK gilts registers kept in Ireland

139

(1) The Treasury may by order made by statutory instrument provide—

(a) that no further stock or bonds may be registered in either of the Irish gilts registers on or after such day as the order may appoint (“the appointed day”), and

(b) for the transfer to the English gilts register of the entries subsisting in each of those registers at the beginning of the appointed day.

(2) The power conferred by subsection (1)(b) includes power to make provision in relation to stock and bonds which were not registered in either of the Irish gilts registers on the appointed day, but which should have been.

(3) An order under this section may contain such consequential, incidental, supplementary and transitional provision as appears to the Treasury to be necessary or expedient, including provision amending, repealing or revoking any enactment.

(4) In subsection (3) “enactment” means any enactment contained in—

(a) an Act, whenever passed, or

(b) an instrument, whenever made, under an Act, whenever passed.

(5) In this section—

“the English gilts register” is the register required to be kept at the office of the Chief Registrar of the Bank of England under section 47 of the Finance Act 1942 (c. 21) (registration of government stock); and

“the Irish gilts registers” are—the register required to be kept in Belfast under that section, andthe register required to be kept in Dublin under that section.

(6) A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Administration of UK gilts

140

(1) In section 47 of the Finance Act 1942 (transfer and registration of government stock)—

(a) for subsection (1)(b) (power to provide for the keeping of stock and bond registers by the Banks of England and Ireland) substitute—

(b) for the administration of such stock and bonds (including the registration of holders) by such one or more persons as the Treasury may appoint in accordance with the regulations and the closure of any register;

and

(b) after subsection (1E) insert—

(1EA) Persons appointed in accordance with regulations under subsection (1)(b) shall be appointed on such terms (including terms as to the making of payments by the Treasury) as the Treasury consider appropriate, and the persons who may be so appointed include the Bank of England.

(2) The Treasury may by order made by statutory instrument make such consequential, incidental, supplementary and transitional provision as appears to the Treasury to be necessary or expedient in consequence of the amendments made by subsection (1), including provision amending, repealing or revoking any enactment.

(3) In subsection (2) “enactment” means any enactment contained in—

(a) an Act, whenever passed, or

(b) an instrument, whenever made, under an Act, whenever passed.

(4) A statutory instrument containing an order under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons.

(5) Sums payable by the Treasury by virtue of section 47(1EA) of the Finance Act 1942 (c. 21) (as inserted by subsection (1) above) shall be met out of the National Loans Fund with recourse to the Consolidated Fund.

(6) This section shall come into force on such day as the Treasury may by order made by statutory instrument appoint.

Supplementary

Repeals

141

(1) The enactments mentioned in Schedule 40 to this Act (which include provisions that are spent or of no practical utility) are repealed to the extent specified.

(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.

Interpretation

142

In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 (c. 1), and “ITA 2007” means the Income Tax Act 2007”.

Short title

143

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.