Finance Act 2002

[^key-95e353df91956ba0a4ceeabc495a0ae9]: S. 107 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 12 (with Sch. 9 paras. 1-9, 22)

[^key-c450ec776c29ec647d086be9d23e4203]: S. 107 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 2 (with Sch. 2)

[^key-ef80e42b513f9a2d523476494aaf43c4]: S. 103(4)(e) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 2 (with Sch. 2)

[^key-feffb3a8dddedb22b31709b2603e4b5f]: Sch. 9 para. 4(7) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-b4eb0d842b4327738d36c7de33e2e379]: Sch. 9 para. 8(4) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-270a9d632f49b8cedcf230b0218d6d7b]: Sch. 17 para. 1 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-ed79d39b0e4e0e95f9c4dc49f2fe9cde]: Sch. 23 paras. 17, 18 repealed (1.4.2010) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-9e03d5a90da050de57fbc08f59bbf36f]: Sch. 23 para. 21 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 2 (with Sch. 9 paras. 1-9, 22)

[^key-e883b9fe8f4dec946f2d7f6343f9cd2c]: Sch. 25 para. 45 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-b5e3607d4c1785766ade021d03a9a381]: Sch. 25 para. 49 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-b0e41353bb7f4c1402ffb0d93b4e05cd]: Sch. 25 paras. 54, 55 repealed (1.4.2010) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22)

[^key-c14442e3c10b28351070f892b774fb35]: Sch. 25 para. 56 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-290df428cda7910dff6983a3add384e9]: Sch. 27 para. 12(2)(3) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22)

[^key-f4e6dde49830979a64b4e19c06860ddc]: Sch. 27 para. 13 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-e4afb6194649fcbd9816b1bd36b1d11d]: Sch. 27 para. 15 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 2 (with Sch. 9 paras. 1-9, 22)

[^key-f319a7f13c938b16945967d4599dd3dc]: Sch. 30 para. 1(2) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-ab971f629006c739c6557634de5000ee]: Sch. 30 para. 1(4) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-a2ea4b66f692a82b07e7145eb19723af]: Sch. 30 para. 5 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22)

[^key-25e9a3d3d77d1835d14e5da90a72edc7]: Words in Sch. 34 para. 8(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 375(a) (with Sch. 2)

[^key-9899542d60dcd61d3d3ebb6c9a5db0f1]: Words in Sch. 34 para. 8(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 375(b) (with Sch. 2)

[^key-1de47b7bf42ca50d6a71d99e03a802dc]: Words in Sch. 37 para. 2(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 377 (with Sch. 2)

[^key-e92e92f93f25a3f5245941e9649e4559]: Sch. 25 para. 58 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2)

[^key-26924be26e9099384c0083a62af6e984]: Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 6 (with arts. 3(2)(3), 4(2), 6(4)(5))

[^key-59784cb51130fdb75cf24539481bc0b5]: Sch. 39 repealed (with effect in accordance with Sch. 25 paras. 17(1), 19 of the amending Act) by Finance Act 2011 (c. 11), Sch. 25 para. 17(1)

[^key-a8de86c0f4f727b6d62652dc75b0c7c0]: S. 42(3)(a) repealed (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance Act 2011 (c. 11), Sch. 10 para. 8(b)

[^key-4eeaf2c147b97bc0e57dce48fee57803]: S. 42(1) repealed (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance Act 2011 (c. 11), Sch. 10 para. 8(b)

[^key-3601493e516a67e47c2f8839c61f863a]: S. 134 repealed (with effect in accordance with Sch. 25 paras. 17(1), 19 of the amending Act) by Finance Act 2011 (c. 11), Sch. 25 para. 17(1)

[^key-9c82855cb0768176678fd4fd563f187d]: Sch. 9 para. 5(2)(3) repealed (with effect in accordance with Sch. 9 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 9 para. 5(d)

[^key-36a80a014d4a61e95a0c1ec6e83e3166]: Sch. 30 para. 6 repealed (with effect in accordance with Sch. 9 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 9 para. 5(e)

[^key-9d532628acb1c17f9dcba1f2696f99dc]: Sch. 35 repealed (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 39 para. 5(1)(b) (with Sch. 39 paras. 11-13)

[^key-de2f8ceb8c302f490eb5ea7e1df9589b]: S. 43(3) repealed (17.7.2012) by Finance Act 2012 (c. 14), s. 37(3)

[^key-766cc28748a4929b78c8a3c540ce5a79]: S. 90 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 20 para. 21 (with Sch. 20 para. 50(9))

[^key-9b514375253b9f8d2acaf0cf8e7d1825]: S. 110 omitted (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 39 para. 7(2)(a) (with Sch. 39 paras. 11-13)

[^key-1ef1ba26eda028be757a129c8102e9d1]: S. 112 omitted (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 39 para. 5(2)(d) (with Sch. 39 paras. 11-13)

[^key-ef0b0de3f2ad2e5222d78af922424607]: S. 113 repealed (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 39 para. 5(1)(b) (with Sch. 39 paras. 11-13)

[^key-1baa3ce9113b44452fdad203c7acde6e]: S. 88(2)(a) repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1

[^key-be43139d2ed4f946949735f91c437de1]: S. 25 repealed (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 132(d) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

[^key-357061e84d991d740ab89216f56b9ec7]: Sch. 8 para. 3 repealed (with effect in accordance with Sch. 5 para. 13 of the amending Act) by Finance Act 2025 (c. 8), Sch. 5 paras. 11(c), 13 (with Sch. 5 paras. 14, 15, 18(4), 19)

[^key-2bc50ce67f8866b2a7c956ff5208e8dd]: Words in s. 135(4)(a) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 260(2)(a)

[^key-20d18db2784afd6a4837b1a40313365d]: Words in s. 135(4)(a) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 260(2)(b)

Employee share ownership plans: minor amendments

Reallocation within group of gain or loss accruing under section 179

Supplementary charge: transitional provisions

Supplementary charge: transitional provisions

Deduction of tax by persons dealing in financial instruments

Discounted securities etc

Valuation of trading stock on transfer of trade

Land in disadvantaged areas

Restriction of relief for company acquisitions

Controlled foreign companies: territorial exclusions from s.748 exemptions

Gifts of real property to charity

IHT: rate bands

Climate change levy: electricity produced from coal mine methane

Abolition of duty on instruments relating to goodwill

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

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

Climate change levy: certification requirement

Climate change levy: exemption for renewable sources

IHT: rate bands

Climate change levy: electricity produced from coal mine methane

Climate change levy: exemption for renewable sources

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

IHT: variation of dispositions taking effect on death

Deduction of tax by persons dealing in financial instruments

Manufactured dividends and interest

Aggregates levy: miscellaneous amendments

Land in disadvantaged areas

Share options

Finance Act 2000

Restriction of relief for company acquisitions

“Inland Revenue"

Amount of first-year allowances

Treatment of furnished holiday lettings

The Finance Act 2000

Duty of transferee company to notify particulars

Meaning of “aggregate" etc

The register

Introduction

Restriction on powers to provide for set-off

The Finance Act 1994

Anti-avoidance: change of accounting period

Surrender of non-trading loss by way of group relief

Meaning of “aggregate" etc

Commercial exploitation

Provision in relation to bioblend corresponding to that made by section 6 of the Finance Act 1998 in relation to section 6 of the Hydrocarbon Oil Duties Act 1979

Aggregates levy: amendments to provisions exempting spoil etc

Meaning of “related transaction”

Section 86

Transactions not at arm’s length

Loan relationships for unallowable purposes

Repeals

Special provisions for insurers: apportionments

Amount of first-year allowances

First-year qualifying expenditure: plant and machinery for use wholly in a ring fence trade

Plant or machinery used for less than five years in a ring fence trade

Calculation of adjustment

Provision not at arm’s length: foreign exchange gains and losses

Non-trading deficit carried forward from last old accounting period

Meaning of “loan relationship” etc: method of settlement

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

Commercial woodlands

Interpretation

Open to the whole community

Provision not at arm’s length: foreign exchange gains and losses

Duty of transferee company to notify particulars

The register

Introduction

Joint enterprise companies

Introduction

Introduction

Section 86

Restriction on powers to provide for set-off

Interpretation: miscellaneous

Claim to carry back deficit to previous accounting periods

Interpretation: miscellaneous

Claims to treat deficit as eligible for group relief

Deficit carried forward and set against non-trading profits of succeeding accounting periods

Other expressions

Introductory

Amount of first-year allowances

Deficit carried forward and set against non-trading profits of succeeding accounting periods

First-year qualifying expenditure

First-year allowances

First-year allowances

Artificially inflated claims for first-year allowances

Provision not at arm’s length: foreign exchange gains and losses

Group relief

Bad debt etc: parties having connection and creditor company in insolvent liquidation etc

Building society shares: incidental costs of issuing qualifying shares

Extension of section 100 to exchange gains and losses and to items other than money debts

Bad debt etc: cases where departure allowed from assumption of prompt payment in full

Transactions not at arm’s length

Loan relationships for unallowable purposes

Life assurance business

Savings and transitional provisions in the Finance Act 1996

Special provisions for insurers: apportionments

Savings and transitional provisions in the Finance Act 1996

Supplementary charge in respect of ring fence trades

Provision not at arm’s length: foreign exchange gains and losses

Derivative contracts with non-residents

Miscellaneous amendments

Tonnage tax

Intangible fixed assets: assets entirely excluded: financial assets

Commercial woodlands

Non-trading deficit carried forward from last old accounting period

Exchange gains and losses where derivative contracts not on arm’s length terms

Transactions within groups

Derivative contracts with non-residents

Authorised accounting methods

Authorised accounting methods

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

Surrender of non-trading loss by way of group relief

The Finance Act 1994

Value-shifting provisions

Meaning of “VCT-in-liquidation"

Investment trusts

Claim to carry back deficit to previous accounting periods

The Finance Act 2002

Qualifying contracts to which company ceases to be party before commencement day

Basis of accounting for contracts falling within paragraph 6, 7 or 8

Change in ownership of investment company

Life assurance policies and capital redemption policies

Interest charged to capital

Exchange gains and losses where derivative contracts not on arm’s length terms

Derivative contracts ceasing to be held for purposes of trade

Carry back of net losses on derivative contracts to which paragraph 45A applies

Partnerships involving companies

Group relief

Apportionment of income and gains

Payments between group members in respect of reliefs

Change in ownership of company with unused non-trading loss

Change in ownership of company with unused non-trading loss

Corporate bodies

Penalties for non-compliance with regulations under this Schedule

Duty of transferee company to notify particulars

Exempt processes

Introduction

Interest

Exempt processes

Change in ownership of company with unused non-trading loss

Contracts where part of underlying subject matter of excluded type

Profits arising from derivative contracts

Individuals

Corporate bodies

Power to treat VCT-in-liquidation as VCT

Penalties for non-compliance with regulations under this Schedule

Duty of transferee company to notify particulars

The Finance Act 1994

The Finance Act 1996

The Finance Act 2000

Anti-avoidance: change of accounting period

Writing down on accounting basis

Extension of charitable exemption to non-trading gains

Value-shifting provisions

Extension of existing powers to give effect to VCT reliefs

Value-shifting provisions

Exempt processes

Commercial exploitation

Extension of existing powers to give effect to VCT reliefs

Responsibility for commercial exploitation

Exempt processes

Responsibility for commercial exploitation

The register

These repeals have effect in accordance with section 59 of this Act.

1 The repeal of section 9(4) of the Betting and Gaming Duties Act 1981 has effect in accordance with section 14(6) of this Act.

The repeals in Schedule 6 to the Finance Act 2001 shall be deemed to have come into force on 1st May 2002.

These repeals have effect in accordance with section 59 of this Act.

The repeals in Schedule 6 to the Finance Act 2001 shall be deemed to have come into force on 1st May 2002.

Commercial exploitation

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

2 The repeal of paragraph 7 of Schedule 4 to the Finance Act 1995 has effect in accordance with section 18(3) of this Act.

The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 67(4)(a) of this Act.

The other repeals shall be deemed to have come into force on 1st April 2002.

Interpretation

Amendments in Schedule 5 to the Finance Act 1994

Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting

Finance Act 2000

Taxation of Chargeable Gains Act 1992

Single asset pool in relation to cars above cost threshold

Share options

The basic rule: sterling to be used

Non-trading deficit on loan relationships

Provision not at arm’s length: foreign exchange gains and losses

Corporate bodies

Power to treat VCT-in-liquidation as VCT

Commercial exploitation

Commercial exploitation

Restriction on powers to provide for set-off

The Finance Act 1996

Interpretation

Interpretation

Meaning of “trading group"

Bad debt etc: cases where departure allowed from assumption of prompt payment in full

Exchange gains and losses where loan not on arm’s length terms

Savings and transitional provisions in the Finance Act 1996

Share options

Meaning of “related transaction”

Double taxation relief

Commercial woodlands

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

Interpretation

Double taxation relief

Corporate bodies

Commercial exploitation

Transactions not at arm’s length

Meaning of “trading company"

Section 86

Meaning of “VCT-in-liquidation"

Bad debts and consortium relief

Responsibility for commercial exploitation

Part 2A — Entitlement of SME to additional relief available to large companies

Entitlement to relief under this Part

10A

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

Qualifying additional Small or Medium-sized EnterpriseSME expenditure

10B

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

Responsibility for commercial exploitation

Restriction on powers to provide for set-off

Amount of first-year allowances

Partnerships involving companies

Adjustments in the case of chargeable assets etc

Double taxation relief

Bad debt etc: cases where departure allowed from assumption of prompt payment in full

Exchange gains and losses where loan not on arm’s length terms

Commercial woodlands

Meaning of “underlying subject matter”

Power to make further provision by regulations

Miscellaneous amendments

Tonnage tax

Intangible fixed assets: assets entirely excluded: financial assets

Anti-avoidance: change of accounting period

Interpretation

Meaning of “underlying subject matter”

Power to make further provision by regulations

Transactions within groups

Interpretation of Schedule 9: “major interest”

Recovery of degrouping charge from another group company or controlling director: time limit

Building society shares: incidental costs of issuing qualifying shares

Responsibility for commercial exploitation

Investment trusts

Derivative contracts and relevant contracts

Change in ownership of investment company

Life assurance policies and capital redemption policies

Commercial woodlands

Meaning of “underlying subject matter”

Power to make further provision by regulations

Contracts becoming held for purposes of trade

Adjustments in the case of chargeable assets etc

Payments between group members in respect of reliefs

Surrender of non-trading loss by way of group relief

Meaning of “aggregate" etc

Extension of existing powers to give effect to VCT reliefs

Payments between group members in respect of reliefs

Interpretation

Profits arising from derivative contracts

Surrender of non-trading loss by way of group relief

Associated transactions

Exchange gains and losses where derivative contracts not on arm’s length terms

The Finance Act 1994

The Finance Act 1996

The Finance Act 2000

Anti-avoidance: change of accounting period

Writing down on accounting basis

Recovery of degrouping charge from another group company or controlling director: time limit

Corporate bodies

Meaning of “VCT-in-liquidation"

Interest

Meaning of “aggregate" etc

1 The repeal in the Hydrocarbon Oil Duties Act 1979 has effect in accordance with section 5(8)(c) of this Act.

1 The repeal of section 9(4) of the Betting and Gaming Duties Act 1981 has effect in accordance with section 14(6) of this Act.

1 The repeal of paragraph 2(4) of Schedule 1 to the Vehicle Excise and Registration Act 1994 has effect subject to the saving in section 20(3) of this Act.

Controlled foreign companies: territorial exclusions from s.748 exemptions

Postponement of change to mark to market in certain cases

Capital gains tax: variation of dispositions taking effect on death

Accounting method where rate of interest etc is reset

Election to continue postponement of mark to market

Discounted securities etc

Abolition of duty on instruments relating to goodwill

IHT: variation of dispositions taking effect on death

IHT: variation of dispositions taking effect on death

Withdrawal of relief for company acquisitions

IHT: variation of dispositions taking effect on death

Amendment in the Excise Duties (Surcharges or Rebates) Act 1979

Duty charged before 31st March 2002

Climate change levy: certification requirement

Exclusion of bioblend from rebates on heavy oil

Duty charged before 31st March 2002

First-year qualifying expenditure: plant and machinery for use wholly in a ring fence trade

Calculation of adjustment

Tonnage tax

Tonnage tax

Intangible fixed assets: assets entirely excluded: financial assets

Deferred foreign exchange gains

“Inland Revenue"

First-year qualifying expenditure: plant and machinery for use wholly in a ring fence trade

General scheme

Meaning of “related transaction”

Provision not at arm’s length: foreign exchange gains and losses

Corporate bodies

Interest

Meaning of “aggregate" etc

Exempt processes

Responsibility for commercial exploitation

Restriction on powers to provide for set-off

Meaning of “related transaction”

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

Overseas life insurance companies

Exchange gains and losses where loan not on arm’s length terms

General commencement date

Double taxation relief

Introductory

Penalty for failure to provide information etc

Introduction

Section 86

Miscellaneous amendments

Qualifying contracts to which company ceases to be party before commencement day

Introductory

Change in ownership of company with unused non-trading loss

Meaning of “loan relationship” etc: method of settlement

The Finance Act 1994

Individuals

Penalty for failure to provide information etc

First-year qualifying expenditure

First-year allowances

Meaning of “aggregate" etc

Amount of allowances and charges: balancing charge for period in which expenditure incurred

Amount of allowances and charges: balancing charge for period in which expenditure incurred

First-year allowances

Artificially inflated claims for first-year allowances

Introduction

Building society shares: regulations for deduction of tax

Repo transactions and stock lending

Adjustments in the case of chargeable assets etc

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

Building society shares: regulations for deduction of tax

Building society shares: regulations for deduction of tax

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

Claims to treat deficit as eligible for group relief

Change in ownership of investment company

Investment trusts

Life assurance policies and capital redemption policies

Distributions

Group relief

European Economic Interest Groupings

Discounted securities where companies have a connection

Group relief

Writing down on accounting basis

Group relief

The Finance Act 1996

Interest

Restriction of relief for payments of interest

Exempt processes

Transactions within groups

Carry back of net losses on derivative contracts to which paragraph 45A applies

Derivative contracts and relevant contracts

Derivative contracts: contract held by company to provide insurance benefits

The Finance Act 1994

17B

• (1) Any reference in this Schedule to an amount being recognised in determining a company’s profit or loss for a period is to an amount being recognised for accounting purposes—

• (a) in the company’s profit and loss account,

• (b) in the company’s statement of recognised gains and losses or statement of changes in equity, or

• (c) in any other statement of items brought into account in computing the company’s profits and losses for that period.

• (2) Sub-paragraph (1) does not apply to an amount recognised for accounting purposes by way of correction of a fundamental error.

17C

• (1) The Treasury may by regulations make provision—

• (a) excluding amounts of a prescribed description from paragraph 17B(1);

• (b) requiring amounts of a prescribed description that do not fall within paragraph 17B (1) (by virtue of regulations under paragraph (a) above or otherwise) to be brought into account in determining a company’s profit or loss for a period in prescribed circumstances;

• (c) as to the manner in which any such amounts are to be brought into account.

• (2) The regulations may (in particular) make provision by reference to the fact that amounts derive from or otherwise relate to amounts brought into account in a prescribed manner in a previous period of account.

• (3) The power to make regulations under this paragraph includes—

• (a) power to make different provision for different cases; and

• (b) power to make provision subject to an election or to other prescribed conditions.

• (4) Regulations under this paragraph may apply, exclude or modify any of the provisions of this Schedule in relation to cases for which provision is made by the regulations.

22A

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

The Finance Act 1996

30E

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

38A

• (1) Capital profits, gains or losses arising to an investment trust from a creditor relationship must not be brought into account as credits or debits for the purposes of this Schedule.

• (2) For the purposes of this paragraph “capital profits, gains or losses”—

• (a) in the case of an investment trust that prepares accounts in accordance with UK generally accepted accounting practice, has the meaning given by sub-paragraphs (3) and (4), and

• (b) in the case of an investment trust that prepares accounts in accordance with international accounting standards, has the meaning given by order made by the Treasury.

• (3) In the cases mentioned in sub-paragraph (2)(a) capital profits, gains or losses arising from a creditor relationship in an accounting period are profits, gains or losses that are carried to or sustained by a capital reserve in accordance with the Statement of Recommended Practice.

• (4) For the purposes of this paragraph the Statement of Recommended Practice is, for an accounting period for which it is required or permitted to be used—

• (a) the Statement of Recommended Practice relating to Investment Trust Companies, issued by the Association of Investment Trust Companies in January 2003, as from time to time modified, amended or revised, or

• (b) any subsequent Statement of Recommended Practice relating to investment trusts, as from time to time modified, amended or revised.

The Finance Act 1996

Derivative contracts which are to be taxed on a chargeable gains basis

51

Notwithstanding anything in section 349 of the Taxes Act 1988 or any other provision of the Tax Acts, where the profits and losses arising from a derivative contract of a company are computed in accordance with this Schedule, the company shall not be required, on making a payment under the contract, to deduct out of it any sum representing an amount of income tax on it.

The Finance Act 1994

Value-shifting provisions

Exempt processes

Commercial exploitation

Introduction

73A

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

116A

• (1) This paragraph applies where—

• (a) there is a change of accounting policy in drawing up a company’s accounts from one period of account (the “earlier period”) to the next (the “later period”), and

• (b) the approach in each of those periods accorded with the law and practice applicable in relation to that period.

• (2) This paragraph applies, in particular, where—

• (a) the company prepares accounts for the earlier period in accordance with UK generally accepted accounting practice and for the later period in accordance with international accounting standards, or

• (b) the company prepares accounts for the earlier period in accordance with international accounting standards and for the later period in accordance with UK generally accepted accounting practice.

• (3) If there is a difference between—

• (a) the accounting value of an intangible fixed asset of the company at the end of the earlier period, and

• (b) the accounting value of that asset at the beginning of the later period,

a corresponding debit or credit (as the case may be) shall be brought into account for tax purposes in the later period.

• (4) The amount of the debit or credit to be brought into account for tax purposes is:

$$Accounting Difference×TaxValueAccountingValue$where—Accounting Difference is the amount of the difference specified in sub-paragraph (3);Tax Value is the tax written down value of the asset at the end of the earlier period; andAccounting Value is the accounting value of the asset at the end of the earlier period.$

• (5) This paragraph does not apply in relation to an intangible fixed asset in respect of which an election has been made under paragraph 10 (election for writing down at fixed-rate).

• (6) This paragraph does not apply to a difference between the accounting value of an intangible fixed asset in different periods of account to the extent that, in respect of that difference, a credit or debit is brought into account for tax purposes under—

• (a) paragraph 12 (reversal of accounting gain),

• (b) paragraph 15 (gain on revaluation), or

• (c) paragraph 17 (reversal of accounting loss).

• (7) Where or to the extent that an adjustment is made under this paragraph, no adjustment under Schedule 22 (computation of profits: adjustment on change of basis) shall be made.

Meaning of “aggregate" etc

Exempt processes

Commercial exploitation

The register

Introduction

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

2 The other repeals have effect in accordance with section 12 of this Act.

2 The repeal of paragraph 7 of Schedule 4 to the Finance Act 1995 has effect in accordance with section 18(3) of this Act.

The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 67(4)(a) of this Act.

The other repeals shall be deemed to have come into force on 1st April 2002.

5A

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

23

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

45A

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

45B

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

45C

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

45D

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

45E

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

45F

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

45G

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

45H

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

45I

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

Profits arising from derivative contracts

Definition of terms relating to derivative contracts

Basis of accounting for contracts falling within paragraph 6, 7 or 8

Derivative contracts which are to be taxed on a chargeable gains basis

Non-life mutual business

Duty of transferee company to notify particulars

Exempt processes

Commercial exploitation

The register

Restriction on powers to provide for set-off

Value-shifting provisions

Interest

Meaning of “aggregate" etc

Meaning of “aggregate" etc

Exempt processes

Commercial exploitation

Responsibility for commercial exploitation

Restriction on powers to provide for set-off

Responsibility for commercial exploitation

Restriction on powers to provide for set-off

1 The repeal of paragraph 2(4) of Schedule 1 to the Vehicle Excise and Registration Act 1994 has effect subject to the saving in section 20(3) of this Act.

These repeals have effect in accordance with section 59 of this Act.

The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 67(4)(a) of this Act.

The repeals in Schedule 6 to the Finance Act 2001 shall be deemed to have come into force on 1st May 2002.

The repeals in Schedule 6 to the Finance Act 2001 shall be deemed to have come into force on 1st May 2002.

Aggregates levy: crushing and cutting rock

Amendment in the Excise Duties (Surcharges or Rebates) Act 1979

Penalties for late stamping

Land in disadvantaged areas

Restriction of relief for company acquisitions

Plant or machinery used for less than five years in a ring fence trade

Miscellaneous amendments

Tonnage tax

Aggregates levy: transitional relief for Northern Ireland

Amount of first-year allowances

Share options

Extension of charitable exemption to non-trading gains

Meaning of “aggregate" etc

Meaning of “VCT-in-liquidation"

Commercial exploitation

Mixing biodiesel and rebated heavy oil

The requirements

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

General scheme

Bad debts etc where parties have a connection

Section 87

First-year qualifying expenditure

Debits and credits brought into account

The Finance Act 1994

The Finance Act 2000

Surrender of non-trading loss by way of group relief

Anti-avoidance: change of accounting period

Amount of first-year allowances

First-year qualifying expenditure

Power to treat VCT-in-liquidation as VCT

Exempt processes

Meaning of “VCT-in-liquidation"

The register

Exempt processes

Miscellaneous amendments

Investment trusts

Authorised accounting methods

European Economic Interest Groupings

Venture capital trusts

Exclusions from paragraph 45D

Interpretation of Schedule 9: “major interest”

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

Building society shares: regulations for deduction of tax

Discounted securities where companies have a connection

The Finance Act 1994

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

Extension of charitable exemption to non-trading gains

Corporate bodies

Meaning of “aggregate" etc

Commercial exploitation

Definition of terms relating to derivative contracts

Non-trading deficit carried forward from last old accounting period

Non-trading deficit carried forward from last old accounting period

Meaning of “aggregate" etc

The register

Introduction

Meaning of “aggregate" etc

Surrender of non-trading loss by way of group relief

Corporate bodies

Meaning of “VCT-in-liquidation"

Commercial exploitation

Introduction

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

2 The repeal of paragraph 7 of Schedule 4 to the Finance Act 1995 has effect in accordance with section 18(3) of this Act.

The other repeals shall be deemed to have come into force on 1st April 2002.

45J

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

45K

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

45L

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

48A

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

50A

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

4A

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

45M

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

Restriction on powers to provide for set-off

Interest

1 The repeal in the Hydrocarbon Oil Duties Act 1979 has effect in accordance with section 5(8)(c) of this Act.

1 The repeal of section 9(4) of the Betting and Gaming Duties Act 1981 has effect in accordance with section 14(6) of this Act.

Introduction

Writing down on accounting basis

Surrender of non-trading loss by way of group relief

Meaning of “VCT-in-liquidation"

Extension of existing powers to give effect to VCT reliefs

Responsibility for commercial exploitation

1 The repeal in the Hydrocarbon Oil Duties Act 1979 has effect in accordance with section 5(8)(c) of this Act.

1 The repeal of section 9(4) of the Betting and Gaming Duties Act 1981 has effect in accordance with section 14(6) of this Act.

1 The repeal of paragraph 2(4) of Schedule 1 to the Vehicle Excise and Registration Act 1994 has effect subject to the saving in section 20(3) of this Act.

These repeals have effect in accordance with section 59 of this Act.

The repeals in Schedule 6 to the Finance Act 2001 shall be deemed to have come into force on 1st May 2002.

European Economic Interest Groupings

Distributions

Bad debt etc: parties having connection and creditor company in insolvent liquidation etc

Restriction of relief for payments of interest

17A

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

17B

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

17C

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

25A

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

31A

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

38A

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

42A

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

Part 13A — Adjustment on change of accounting policy

116A

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

116B

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

116C

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

116D

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

116E

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

116F

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

116G

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

116H

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

European Economic Interest Groupings

Change in ownership of investment company

Late interest: further cases where paragraph 2 of Schedule 9 applies

Repo transactions and stock lending

Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss

European Economic Interest Groupings

Limits on credit: corporation tax

Foreign tax on items giving rise to a non-trading credit

Foreign tax on items giving rise to a non-trading credit

Foreign tax on items giving rise to a non-trading credit

Payments between group members in respect of reliefs

Corporate bodies

Carry back of net losses on derivative contracts to which paragraph 45A applies

Transactions within groups

30A

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

30B

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

Qualifying contracts to which company ceases to be party before commencement day

The register

51A

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

85A

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

87A

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

Value-shifting provisions

Commercial exploitation

Responsibility for commercial exploitation

Introduction

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

2 The repeal of paragraph 7 of Schedule 4 to the Finance Act 1995 has effect in accordance with section 18(3) of this Act.

2 The repeal of paragraph 7 of Schedule 4 to the Finance Act 1995 has effect in accordance with section 18(3) of this Act.

The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 67(4)(a) of this Act.

The other repeals shall be deemed to have come into force on 1st April 2002.

4B

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

4C

• (1) This paragraph applies to a company if the conditions in sub-paragraph (2) are satisfied in relation to a relevant contract to which it becomes a party on or after 28th July 2005.

• (2) The conditions are that (apart from this paragraph) the relevant contract—

• (a) is not a derivative contract on the date on which the company becomes a party to it, but

• (b) would be a derivative contract on that date, if an accounting period of the company began on that date, and

• (c) is a chargeable asset when the company becomes a party to it.

• (3) The relevant contract shall be treated for the purposes of this Schedule as a derivative contract on and after that date.

• (4) Sub-paragraph (4) of paragraph 4A (meaning of chargeable asset) also applies for the purposes of this paragraph.

Amount of first-year allowances

Introductory

Other expressions

Qualifying contracts to which company ceases to be party before commencement day

The Finance Act 1996

Surrender of non-trading loss by way of group relief

Section 86

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

Bad debt etc: cases where departure allowed from assumption of prompt payment in full

Finance Act 2000

Joint enterprise companies

“Inland Revenue"

Types of expenditure for which first-year allowances available

Power to treat VCT-in-liquidation as VCT

Venture capital trusts

Funding bonds issued in respect of interest on certain debts

Investment trusts

Discounted securities of close companies

Building society shares: incidental costs of issuing qualifying shares

Limits on credit: corporation tax

Restriction of relief for payments of interest

Writing down at fixed rate: election for fixed-rate basis

Surrender of non-trading loss by way of group relief

Derivative contracts which are to be taxed on a chargeable gains basis

The Finance Act 1994

The Finance Act 2002

Commercial exploitation

Change in ownership of company with unused non-trading loss

Meaning of “VCT-in-liquidation"

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

2 The other repeals have effect in accordance with section 12 of this Act.

The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 67(4)(a) of this Act.

The other repeals shall be deemed to have come into force on 1st April 2002.

45FA

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

45HA

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

45H

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

45JA

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

Interpretation of Schedule 9: “major interest”

The Finance Act 2000

Venture capital trusts

Investment trusts

Extension of charitable exemption to non-trading gains

Profits arising from derivative contracts

45LA

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

The Finance Act 1994

The Finance Act 1996

Qualifying contracts to which company ceases to be party before commencement day

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

Flat-rate scheme

Exemptions for disposals by companies with substantial shareholding

Capital gains tax: variation of dispositions taking effect on death

Transitional provision

Supplementary charge: transitional provisions

Discounted securities etc

Gifts of real property to charity

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

Climate change levy: certification requirement

Penalties for late stamping

Aggregates levy: miscellaneous amendments

Abolition of duty on instruments relating to goodwill

Repeals

Exclusion of bioblend from rebates on heavy oil

Provision in relation to bioblend corresponding to that made by section 6 of the Finance Act 1998 in relation to section 6 of the Hydrocarbon Oil Duties Act 1979

Biodiesel and bioblend not to be treated as fuel substitute

Repeals

Aggregates levy: miscellaneous amendments

Venture capital trusts

Withdrawal of relief for company acquisitions

Finance Act 2000

Exchange gains and losses from loan relationships etc

Meaning of “related transaction”

Taxation of Chargeable Gains Act 1992

Exclusion of bioblend from rebates on heavy oil

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

Non-trading deficit carried forward from last old accounting period

Meaning of “trading company"

Meaning of “related transaction”

Meaning of “control” in section 87

Transfers of income arising from securities

Bad debts and consortium relief

The Finance Act 1996

Interpretation

The Finance Act 1994

The Finance Act 1996

The Finance Act 2000

Meaning of “aggregate" etc

Commercial exploitation

Corporate bodies

1 The repeal in the Hydrocarbon Oil Duties Act 1979 has effect in accordance with section 5(8)(c) of this Act.

Derivative contracts

Controlled foreign companies: territorial exclusions from s.748 exemptions

Mark to market: miscellaneous amendments

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

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

IHT: rate bands

Abolition of duty on instruments relating to goodwill

Aggregates levy: amendments to provisions about civil penalties

Closure of UK gilts registers kept in Ireland

Banks etc in compulsory liquidation

Manufactured dividends and interest

Repayment of duty in case of biodiesel used otherwise than as road fuel

Share exchanges

Taxation of Chargeable Gains Act 1992

Introductory

Treatment of furnished holiday lettings

Share exchanges

Interpretation

Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting

The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)—

Transactions not at arm’s length

Charges on income

Venture capital trusts

Section 2

Section 86

Intangible fixed assets: assets entirely excluded: financial assets

Provision not at arm’s length: foreign exchange gains and losses

European Economic Interest Groupings

Foreign tax on items giving rise to a non-trading credit

Contracts which cease to be derivative contracts

Qualifying contracts to which company ceases to be party before commencement day

Qualifying contracts to which company ceases to be party before commencement day

14A

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

127A

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

127B

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

Power to treat VCT-in-liquidation as VCT

2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act.

2A

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

2B

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

4D

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

43A

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

43B

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