SCHEDULES

Section 2.

SCHEDULE 1U.K. Reliefs For Shipbuilders

Part IU.K. Determination of Open Market Value

1(1)The open market value of any vessel or other structure and its fittings and equipment shall be taken for the purposes of section 2 of this Act to be the price which they would fetch at the time of their delivery pursuant to the contract in question on a sale in the open market between buyer and seller independent of each other.U.K.

(2)The said price shall be determined on the assumption that the buyer will bear freight, insurance and all other costs, charges and expenses incurred in respect of the vessel or structure and other items in question after their delivery as aforesaid or, where delivery is to be effected outside the United Kingdom, after their departure from the United Kingdom for the purpose.

(3)For the purposes of this paragraph, a sale in the open market between a buyer and seller independent of each other presupposes—

(a)that the vessel or structure and other items in question are the sole consideration for the price paid, and

(b)that the price is not influenced by any commercial, financial or other relationship, whether by contract or otherwise, between the seller or any person associated in business with him and the buyer or any person associated in business with him (other than the relationship created by the sale of the said vessel or structure and other items), and

(c)that neither the seller nor any person associated in business with him has provided any part of the price, and that no part of the price will be returned to the buyer or any person associated in business with him.

(4)For the purposes of the last foregoing sub-paragraph, two persons shall be deemed to be associated in business with one another if, whether directly or indirectly, either of them has any interest in the business or property of the other, or both have a common interest in any business or property, or some third person has an interest in the business or property of both of them.

Part IIU.K. Reductions in Purchase Price or Open Market Value

2(1)Where the amount payable in respect of any vessel or other structure under the said section 2 is, by virtue of subsection (3) thereof, to be determined by reference to the price payable as mentioned in that subsection, then—U.K.

(a)if the terms of the contract in question are such that the applicant for the payment will bear any of the following, that is, any freight, insurance or other costs, charges or expenses incurred in respect of the vessel or structure or its fittings or equipment after their delivery pursuant thereto or, where delivery is to be effected outside the United Kingdom, after their departure from the United Kingdom for the purpose, the price shall be treated for the purposes of that subsection as reduced by an amount reflecting the burden thus assumed by the applicant;

(b)if the whole or any part of the price is payable twelve months or more after the time when the property in the vessel or structure passes or, if later, the time of delivery of the vessel or structure or of its departure from the United Kingdom for the purpose of delivery, the price shall be treated for those purposes as reduced by an amount representing the discount which would be chargeable for obtaining payment at that earlier time at a rate of interest equal to the bank rate then prevailing.

(2)In the foregoing sub-paragraph “bank rate” means the minimum rate at which the Bank of England will lend to a discount house having access to the Discount Office of the Bank.

3U.K.If, after consultation with the Board of Trade, it appears to the Commissioners that the fittings and other equipment supplied with any vessel or other structure include any items the supply of which would not in the ordinary course of events be undertaken by a person building such a vessel or structure for delivery to another as that other’s property, the price or, as the case may be, open market value referred to in the said subsection (3) shall be treated for the purposes of that subsection as reduced by an amount equal to the open market value of the items in question; and the provisions of paragraph 1 of this Schedule shall apply for the purpose of determining that value, subject to any necessary modifications.

Part IIIU.K. Supplemental

4U.K.The following provisions of the [F1M1Customs and Excise Management Act 1979] shall apply in relation to payments under the said section 2 as they apply in relation to drawbacks, allowances or repayments under [F1the Customs and Excise Acts 1979], that is to say, [F1section 135] (time limit on payment), [F1section 136(1) and (2)] (offences in connection with claims) and [F1section 167(4)] (recovery of overpayments).

5(1)Any officer or person authorised by the Commissioners may require any person who has been concerned at any stage with a vessel or other structure in respect of which an application has been made under the said section 2, or with any fittings or other equipment supplied therewith, or with any payment in respect of the vessel or structure or any fittings or other equipment so supplied—U.K.

(a)to furnish, within such time as that officer or person may require, such information as may be reasonably necessary to enable the Commissioners to determine whether the applicant is entitled to a payment under that section, or liable to make any repayment thereunder, or to determine the amount of any payment to which the applicant is so entitled, and

(b)to produce for inspection by that officer or person, at such time and place as he may require, any books or accounts or other document of whatever nature relating to, or to any payment in respect of, the said vessel, structure, fittings or equipment.

(2)Any such officer or person shall be entitled to take extracts from or make copies of any document produced to him under the foregoing sub-paragraph.

(3)If any person fails to comply with any requirement under sub-paragraph (1) above, he shall be liable to a penalty of [F2level 3 on the standard scale], together with a further penalty of ten pounds for each day during which failure to comply with the requirement continues.

6(1)Any dispute as to the determination for the purposes of an application under the said section 2 of the price or value referred to in subsection (3) of that section, or of any amount by which that price or value is to be treated as reduced by virtue of subsection (4) thereof, shall be referred to a referee appointed in accordance with the next following sub-paragraph.U.K.

(2)A reference under the foregoing sub-paragraph shall be to a person (not being an official of any government department) appointed by the Lord Chancellor or, if the application for the purposes of which the determination is made relates to a vessel or structure constructed in Scotland or Northern Ireland, or was by a company incorporated in Scotland or Northern Ireland, and the applicant in either case so requires, appointed by the Lord President of the Court of Session or as the case may be, the Lord Chief Justice of Northern Ireland.

(3)The procedure on any such reference shall be such as the referee may determine.

(4)Sub-paragraph (1) above shall not have effect, and any price, value or amount falling to be determined for the purposes of the said subsection (3) or (4) shall be that fixed by the Commissioners, unless, within three months from the time when the Commissioners’ final determination thereof is communicated to him, or such longer time as the Commissioners may allow, a notice requiring a reference under that sub-paragraph has been served on the Commissioners by the person for the purposes of whose application the determination was made.

7U.K.The making by the Commissioners of a payment under the said section 2 determined by reference to the price or value referred to in subsection (3) of that section, or that price or value as reduced by virtue of subsection (4) thereof, shall not be taken as constituting the making by the Commissioners of a final decision under the said subsection (3).

SCHEDULE 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3U.K.

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Section 15.

SCHEDULE 3U.K. Supplementary Provisions as to Duties relating to Betting and Gaming

Part IU.K. Duties relating to Betting

1—5.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

6U.K.In Schedule 1 to the M2Betting, Gaming and Lotteries Act 1963 (which relates to the grant, renewal and cancellation of bookmaker’s permits, betting agency permits and betting office licences)—

(a)any reference to the appropriate officer of police—

(i)in paragraph 5, 7(b), 21(3), 25 or 27(1) shall include a reference to the Collector of Customs and Excise for the area in which the relevant premises within the meaning of that Schedule are, or are to be, situated;

(ii)in paragraph 11 or 27(2) shall include a reference to the Commissioners;

(b)in paragraph 34 (which relates to the right to inspect registers of bookmaker’s permits and betting agency permits), the reference to any constable shall include a reference to any officer;

and in considering for the purposes of paragraph 16(1), 17(b) or 27(4)(a) of that Schedule whether a person is or is not a fit and proper person to hold a bookmaker’s permit or, as the case may be, whether the applicant for the grant or renewal of a betting agency permit is or is not a fit and proper person to hold a betting office licence, the appropriate authority shall have regard to any failure of that person or applicant to pay any amount due from him by way of the general betting duty or the pool betting duty.

7—26.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

SCHEDULE 4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6U.K.

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Section 27

SCHEDULE 5U.K. Amendments of Corporation Tax Acts

1—18.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7

Transitional relief for company with overseas trading income which is a member of a groupU.K.

19In paragraph 3(3) of Schedule 20 to the M3Finance Act 1965 (which allows to a member of a group of companies as part of the current overspill under section 84(2) of that Act the appropriate part of another member’s excess of current overspill over its relief) for the words “the amount of the relief (before abatement) falling to be given to the other member”there shall be substituted the words “ the amount of the relief under the principal section (calculated apart only from any reduction under the proviso to subsection (1) of that section) falling to be given to the other member ”.

20U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

Section 27.

SCHEDULE 6U.K. Administration of Corporation Tax Acts

1—13.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

Priority of corporation tax and other tax in liquidationU.K.

14U.K.In . . . F10 . . . F11 (priority of debts) the reference to assessed taxes shall include a reference to corporation tax and a reference to capital gains tax chargeable under the Corporation Tax Acts or otherwise recoverable from a company, but nothing in this paragraph shall affect the powers conferred on the Parliament of Northern Ireland by section 16 of the M4Northern Ireland Act 1962.

15—22.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

Transitional relief for existing companies with overseas trading incomeU.K.

23(1)If a company fraudulently or negligently—

(a)makes any incorrect return, statement or declaration in connection with any claim for relief under section 84 of the M5Finance Act 1965 (companies with overseas trading income), or

(b)submits to an inspector or any Commissioners any incorrect accounts in connection with such a claim,

the company shall be liable to a penalty not exceeding the aggregate of fifty pounds and the amount or, in the case of fraud, twice the amount of the difference specified in sub-paragraph (2) below.

(2)The difference is that between—

(a)the amount of the relief obtained on the claim, or which would have been obtainable if the return, statement, declaration or accounts had been correct, and

(b)the amount, if any, of relief which is properly due to the company.

(3)[F13Section 99 of the M6Taxes Management Act 1970] (penalty for assisting in making incorrect returns etc.) shall apply in relation to any return, account, statement or declaration made for the purposes of obtaining relief under the said section 84 as it applies to any return, account, statement or declaration made for the purposes of income tax.

(4)[F13Subsections (1) and (2) of section 97 of the Taxes Management Act 1970] shall apply for the purposes of this paragraph as they apply for the purposes of [F13section 95 of that Act].

(5)[F13Section 88 of the Taxes Management Act 1970] (interest on tax recovered to make good loss due to taxpayer’s fault) shall apply in relation to proceedings brought for the recovery of relief under the said section 84 which is or has become excessive, where the bringing of the proceedings is wholly or partly attributable to the fraud, wilful default or neglect of the defendant as it applies in relation to an assessment made for the purpose of making good a loss of tax wholly or partly attributable to the fraud, wilful default or neglect of any person, and subject to any necessary modifications.

(6)The exception in section 30(1) proviso of the M7Limitation Act 1939 for proceedings for the recovery of any tax or duty or interest thereon, and any corresponding exceptions in any other enactment forming part of the law of any part of the United Kingdom and relating to the limitation of actions, shall apply in relation to proceedings for the recovery of relief under the said section 84 which is or has become excessive, or of interest thereon.

(7)Regulations under subsection (7) of the said section 84—

(a)may provide that where any relief given under that section is or becomes excessive, the excess may be recovered by being set off against any income tax, profits tax or corporation tax due to be repaid to the company, or against any relief from any such tax, to which the company is entitled, and

(b)may apply sections 500 to 505 of the M8Income Tax Act 1952 and any provisions of Part III of the Finance Act 1960 in relation to penalties under this paragraph and the recovery of relief under the said section 84 subject to such modifications and exceptions as may be prescribed by the regulations.

(8)This paragraph applies in relation to claims made before or after the passing of this Act.

24—27.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

SCHEDULE 7.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15U.K.

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SCHEDULE 8.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16U.K.

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SCHEDULE 9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F17U.K.

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SCHEDULE 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18U.K.

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SCHEDULE 11.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19U.K.

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SCHEDULE 12.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20U.K.

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Section 53.

SCHEDULE 13U.K. REPEALS