Finance Act 1976

Part IU.K. Customs and Excise

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1U.K.

2, 3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2U.K.

4, 5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3U.K.

6

(1)–(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6U.K.

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7U.K.

9, 10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8U.K.

Vehicles excise dutyU.K.

11 Information about goods vehicles and registration of trailers.U.K.

(1)The power to make regulations under the Vehicles (Excise) Act 1971 as to the declaration to be made and particulars to be furnished by a person applying for a licence under that Act shall, in the case of applications for licences for goods vehicles, include power to require the declaration and particulars to extend to any matter specified in subsection (2) below as to which the Secretary of State may require information with a view to an alteration in the basis on which duty is chargeable under that Act in respect of such vehicles.

(2)The matters referred to in subsection (1) above are—

(a)the construction of the vehicle;

(b)the plated weights of the vehicle under [F9Part II of the Road Traffic Act 1988];

(c)if the vehicle has no such plated weights, the weight, when laden with the maximum load which it is constructed or adapted to carry, of the vehicle or, if it falls within paragraph 6 of Schedule 4 to the said Act of 1971, of the single vehicle of which it is treated as forming part;

(d)the use to which the vehicle has been or is likely to be put.

(3)In section 23(d) of the said Act of 1971 (and subsection (3) of the section 23 set out in paragraph 20 of Part I of Schedule 7 to that Act) references to mechanically propelled vehicles in respect of which duty is not chargeable under that Act shall include references to trailers.

(4)In this section “goods vehicle” and “trailer” have the same meaning as in Schedule 4 to the said Act of 1971.

(5)This section shall apply to Northern Ireland with the substitution for references to the said act of 1971 of references to the Vehicles (Excise) Act (Northern Ireland) 1972 (and, in subsection (3), for the reference to Schedule 7 of a reference to Schedule 9) and with the substitution for the reference to [F10Part II of the Road Traffic Act 1988] of a reference to any corresponding provisions for the time being in force in Northern Ireland.

12 Charges on request for registration number.U.K.

(1)Regulations under the M1Vehicles (Excise) Act 1971 may provide for a prescribed charge to be made in cases where by request a particular registration mark is assigned to a vehicle (whether on its first registration or later), having previously been assigned to another vehicle.

(2)The regulations may—

(a)require the vehicle to which a mark is requested to be assigned, and also in prescribed cases the other vehicle, to be made available for inspection either at a place designated by or under the regulations, or elsewhere;

(b)provide for a prescribed charge to be made for the inspection, and for the whole or part of this charge to be retained whether or not the mark is assigned as requested.

(3)Charges prescribed for the purposes of this section may be of any amount approved by the Treasury, and need not be related to the costs of making the assignment or (as the case may be) of arranging for any vehicle to be inspected.

(4)The first regulations under the Vehicles (Excise) Act 1971 prescribing the amount of any charge by virtue of this section shall not be made unless a draft of a statutory instrument containing them has beeen laid before Parliament and approved by a resolution of each House; and those regulations shall not then be subject to annulment as otherwise provided for regulations under the Act.

(5)The Vehicles (Excise) Act 1971 and this section shall be construed as if this section (without this subsection) were contained in that Act; and this section shall apply to Northern Ireland with the substitution for references to that Act of references to the M2Vehicles (Excise) Act (Northern Ireland) 1972.

13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11U.K.

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12U.K.

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13U.K.

16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14U.K.

Part IIU.K. Value Added Tax

17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15U.K.

18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16U.K.

19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F17U.K.

20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18U.K.

21, 22.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19U.K.

23 Failure of resolution under Provisional Collection of Taxes Act 1968. U.K.

(1)Where—

(a)by virtue of a resolution having effect under the Provisional Collection of Taxes Act 1968 value added tax has been paid at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under section 10(2) of the Finance Act 1972, and

(b)by virtue of section 1(6) or (7) or 5(3) of the said Act of 1968 any of that tax is repayable in consequence of the restoration in relation to that supply of a lower rate,

the amount repayable shall be the difference between the tax paid by reference to that value at the rate specified in the resolution and the tax that would have been payable by reference to that value at the lower rate.

(2)Where—

(a)by virtue of such a resolution value added tax is chargeable at a rate specified in the resolution on the supply of any goods or services by reference to a value determined under the said section 10(2), but

(b)before the tax is paid it ceases to be chargeable at that rate in consequence of the restoration in relation to that supply of a lower rate,

the tax chargeable at the lower rate shall be charged by reference to the same value as that by reference to which tax would have been chargeable at the rate specified in the resolution.

(3)The tax that may be deducted as input tax under section 3(1) of the Finance Act 1972 or refunded under section 15 or 15A of that Act does not include tax that has been repaid by virtue of any of the provisions mentioned in subsection (1)(b) above or that would be repayable by virtue of any of those provisions if it had been paid.

Part IIIU.K. Income Tax, Corporation Tax and Capital Gains Tax

CHAPTER IU.K. General

24—38.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20U.K.

39—42.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21U.K.

43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F22U.K.

44—50.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23U.K.

51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24U.K.

52, 53.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25U.K.

54 Capital gains: compulsory acquisition of aircraft and shipbuilding shares.U.K.

(1)This section has effect where, in pursuance of any enactment to which this subsection applies, gilt-edged securities are exchanged for shares in a company and, immediately before the exchange, those shares are owned by another company—

(a)which is a member of the same group of companies as the first- mentioned company; or

(b)which is a member of a consortium by which the first-mentioned company is owned.

(2)Subsection (1) above applies to any enactment providing for the compulsory acquisition of shares in companies engaged in manufacturing aircraft or guided weapons or in shipbuilding or allied industries.

(3)In any case in which this section has effect the company owning the shares immediately before the exchange may by notice in writing given to the inspector within four years after the exchange, elect—

(a)that [F26section 84(3) of the Capital Gains Tax Act 1979] shall not apply to the exchange; and

(b)that [F26sections 115 to 121 of the Capital Gains Tax Act 1979] (replacement of business assets) shall have effect in relation to the disposal on the occasion of the exchange as if the shares were assets falling within the classes listed in [F26section 118 of that Act] and had, throughout the period of ownership, been used and used only for the purposes of a trade carried on by that company.

(4)For the purposes of this section—

(a)two companies shall be deemed to be members of a group of companies if one is the 75 per cent. subsidiary of the other or both are 75 per cent. subsidiaries of a third company;

(b)a company is owned by a consortium if all of the ordinary share capital of that company is directly and beneficially owned between them by five or fewer companies, and those companies are called the members of the consortium.

[F27(5)Subsection (6) of section 84 of the Capital Gains Tax Act 1979 (gilt-edged securities not issued until after the date when shares are compulsorily acquired) shall apply in relation to this section as it applies in relation to that section, and in this section—

• “gilt-edged securities” has the meaning given by Schedule 2 to that Act;

• “shares” includes securities within the meaning of section 82 of that Act.]

55, 56.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F28U.K.

57 Investigatory powers.U.K.

(1)For section 20 of the Taxes Management Act 1970 (power to call for documents relating to business profits and tax liability thereon) there shall be substituted the sections 20, 20A, 20B, 20C and 20D set out in Schedule 6 to this Act.

(2)In section 118(1) of that Act (interpretation), in the definition of “tax”, after the words “those taxes" there are inserted the words “except that in sections 20, 20A, 20B, 20C and 20D it does not include development land tax".

58 Recovery of tax in sheriff court.U.K.

(1)Section 67(1) of the Taxes Management Act 1970 (recovery of tax in sheriff court) shall be amended as follows—

(a)for the words “does not exceed £250" there shall be substituted the words “does not exceed the sum for the time being specified in section 35(1)(a) of the Sheriff Courts (Scotland) Act 1971";

(b)the words “or in the sheriff’s small debt court, whichever is appropriate" shall be omitted.

(2)this section shall come into force on 1st September 1976.

59 Post-war credits. U.K.

After section 131(3) of the Finance Act 1972 (power of Treasury to make order fixing time-limit for applications for repayment of post-war credits) there shall be inserted—

“(3A)An order under subsection (3) above may make different provision for different cases or classes of case and may provide that no amount shall be ascertained, recorded or notified under section 7 of the Finance Act 1941 after any such time as may be specified in the order.”

CHAPTER IIU.K. Benefits derived by Company Directors and others from their Employment

60–71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F29U.K.

72

(1)–(12). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F30

(13)The enactments specified in Schedule 9 to this Act shall be amended as there specified (which are amendments consequential on the replacement by this Chapter of Chapter II of Part VIII of the Taxes Act and other provisions); Part I of that Schedule substitutes a new section for section 15 of the Taxes Management Act 1970, and contains consequential amendments; Part II contains other amendments.

Part IVU.K.

73–125. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F31U.K.

Part VU.K. Miscellaneous and Supplementary

126. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F32U.K.

127Stamp duty: stock exchange transfersU.K.

(1)Stamp duty shall not be chargeable on any transfer to a stock exchange nominee which is executed for the purposes of a stock exchange transaction.

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F33

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F34

(4)In section 33(1) of the Finance Act 1970 (composition by Stock Exchange in respect of transfer duty) after the words “" the heading ” “Conveyance or Transfer on Sale ” there shall be inserted the words “ ““or”Conveyance or Transfer of any kind not hereinbefore described ” ”and the words “being instruments executed for the purposes of stock exchange transactions as defined in section 4(1) of the Stock Transfer Act 1963 ” shall be omitted.

(5)This section shall be construed as one with the Stamp Act 1891 F35 and in this section—

“ jobber” means a member of The Stock Exchange who is recognised by the Council thereof as carrying on the business of a jobber and carries on that business in the United Kingdom;

“stock exchange nominee” means any person designated for the purposes of this section as a nominee of The Stock Exchange by an order made by the Secretary of State;

“stock exchange transaction ” has the meaning given in section 4 of the Stock Transfer Act 1963 F36.

(6)The power to make an order under subsection (5) above shall be exercisable by statutory instrument and includes power to vary or revoke a previous order.

(7)Section 33 of the Finance Act 1970 F37 shall extend to Northern Ireland; and in the application of that section and this section to Northern Ireland for any reference to the Stock Transfer Act 1963 there shall be substituted a reference to the Stock Transfer Act (Northern Ireland) 1963 F38.

128. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F39U.K.

129. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40U.K.

130 Petroleum revenue tax. U.K.

(1)Schedule 2 to the Oil Taxation Act 1975 (management and collection) shall be amended as follows.

(2)In paragraph 12(1), after paragraph (c) there shall be inserted “or

(d)that for any chargeable period they ought to have made an assessment to tax instead of a determination of loss or a determination of loss instead of an assessment to tax;”

and for the words “adjustments in assessments or determinations" there shall be substituted the words “assessments or determinations or amendments of assessments or determinations".

(3)After paragraph 12(2) there shall be inserted—

“(3)Where under this paragraph the Board make an assessment or determination or amend an assessment or determination they shall give notice thereof to the participator concerned; and sub-paragraphs (4), (5) and (6) of paragraph 10 above shall apply in relation to any such assessment, determination or amendment as they apply in relation to an assessment or determination under that paragraph.”

(4)In paragraph 14(1) after the words “an assessment or determination" there shall be inserted the words “or an amendment of an assessment or determination" and at the end there shall be inserted the words “or of the notice of the amendment".

(5)In paragraph 14(9), in paragraph (a), for the words “or determination" there shall be substituted the words “, determination or amendment" and for the words from “on the adjustments" onwards there shall be substituted the words “on how the assessment, determination, amendment or decision should be varied or on what assessment or determination should be substituted in relation to the chargeable period in question, the same consequences shall ensue as if the Commissioners had determined the appeal to that effect."

(6)For paragraph 14(10) there shall be substituted—

“(10)If, on the appeal, it appears to a majority of the Commissioners present at the hearing that the assessment, determination or amendment is wrong—

(a)because no, or a smaller, assessable profit or a, or a larger, allowable loss has accrued for the chargeable period in question; or

(b)because a, or a larger, assessable profit or no, or a smaller, allowable loss has accrued for that period,

the Commissioners shall vary the assessment, determination or amendment in such manner, or substitute such assessment or determination, as may be required; and it shall be for the participator to satisfy the Commissioners as to any matter within paragraph (a) above.”

(7)In paragraph 14(11) for the words “the determination of the Special Commissioners in any proceedings" there shall be substituted the words “the determination by the Special Commissioners of any appeal".

131 Inter-American Development Bank.U.K.

(1)The following provisions of this section shall have effect on the United Kingdom’s becoming a member of the Inter-American Development Bank (“the Bank”).

(2)[F41A security issued by the Inter-American Development Bank] shall be taken for the purposes of capital transfer tax and capital gains tax to be situated outside the United Kingdom.

(3)No stamp duty shall be chargeable under the heading “Bearer Instrument” in Schedule 1 to the Stamp Act 1891 on the issue of any instrument by the Bank or on the transfer of the stock constituted by, or transferable by means of, any instrument issued by the Bank.

132 Citation, interpretation, construction and repeals.U.K.

(1)This Act may be cited as the Finance Act 1976.

(2)In this Act “the Taxes Act” means the Income and Corporation Taxes Act 1970.

(3)In this Act—

(a). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F42

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F43

(c)Part III, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax shall be construed as one with the Corporation Tax Acts and, so far as it relates to capital gains tax, shall be construed as one with [F44the Capital Gains Tax Act 1979];

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F45

(4)Except so far as the context otherwise requires, any reference in this Act to any enactment shall be construed as a reference to that enactment as amended, and as including a reference to that enactment as applied, by or under any other enactment, including this Act.

(5)The enactments mentioned in Schedule 15 to this Act (which include spent enactments) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.