Finance Act 1977

Part IU.K.Customs and excise

1

(1)–(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(6)(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

(8)(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

2

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(4)–(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4

3 Replacement by tobacco products duty of other tobacco duties. U.K.

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

(2)If it is shown to the satisfaction of the Commissioners that any tobacco which has borne duty under section 4 of [F6the M1Finance Act 1964] on or after 10th May 1976 has been or will be used in the manufacture of tobacco products chargeable with duty under section 4 of [F6the M2Finance Act 1976] on or after the said 1st January [F7or under section 2 of the M3Tobacco Products Duty Act 1979 on or after 1st April 1979], they shall make a repayment at the appropriate rate specified in Schedule 3 to this Act in respect of the duty borne by that tobacco as aforesaid; and the rate per pound at which drawback is allowable on tobacco in respect of which a repayment has been made under this subsection shall be reduced by an amount equal to the rate per pound at which the repayment was made.

(3)Drawback in respect of any duty charged under section 4 of the said Act of 1964 shall not be allowed by virtue of any event occurring after 30th June 1978; but if it is shown to the satisfaction of the Commissioners after that date—

(a)that any tobacco which has borne duty under that section has been used in the manufacture of products which have become unmerchantable through natural causes; and

(b)that no drawback or repayment in respect of the duty has been allowed or made under any other provision,

the Commissioners shall repay the duty to the manufacturer, but any such repayment shall be conditional on the products being disposed of in such manner as the Commissioners may require.

(4)Part V of the Customs and Excise Act 1952 (which contains provisions for the collection and management of the duties charged by section 4 of the said Act of 1964 and for the protection of the revenue arising from them) shall cease to have effect on 1st January 1978 except as respects drawback by virtue of events occurring on or before the date mentioned in subsection (3) above.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8U.K.

5 Vehicles excise duty : Great Britain.U.K.

(1)The M4Vehicles (Excise) Act 1971 shall be amended as follows.

(2), (3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10

(5)This section has effect in relation to licences taken out after 29th March 1977.

6 Vehicles excise duty : Northern Ireland.U.K.

(1)The M5Vehicles (Excise) Act (Northern Ireland) 1972 shall be amended as follows.

(2)For the provisions of Part II of Schedules 1 to 5 (annual rates of duty) there shall be substituted the provisions set out in Schedule 5 to this Act.

(3)In subsection (6) of section 16 (rates of duty for trade licences), including that subsection as set out in paragraph 12 of Part I of Schedule 7, for “£20" and “£3.35" there shall be substituted respectively “£25" and “£5".

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

(5)This section has effect in relation to licences taken out after 29th March 1977.

7 Units and methods of measurement in customs and excise Acts.U.K.

(1)The Treasury may by order amend the customs and excise Acts for the purpose of—

(a)replacing any unit of measurement by a metric unit;

(b)replacing the proof system of ascertaining the alcoholic strength of spirits and other liquids by a system of measurement by reference to percentages of alcohol by volume;

(c)replacing any temperature expressed in degrees Fahrenheit by a temperature expressed in degrees Celsius;

(d)replacing any pressure expressed in atmospheres by a pressure expressed in millibars.

(2)Any amendment of an enactment under this section shall be such as to preserve the effect of the enactment except to such extent as the Treasury consider necessary to enable a substituted unit or method of measurement to be applied in a convenient and suitable manner.

(3)An order under this section may contain such transitional and other supplementary provisions as the Treasury think necessary.

(4)The power to make orders under this section includes power to vary or revoke a previous order and shall be exercisable by statutory instrument.

(5)Subject to subsection (6) below, any order under this section shall be laid before the House of Commons after being made; and unless it is approved by that House before the expiration of twenty-eight days beginning with the date on which it was made, it shall cease to have effect on the expiration of that period, but without prejudice to anything previously done thereunder or to the making of a new order.

In reckoning any such period no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than four days.

(6)Subsection (5) above shall not apply to any order containing a statement by the Treasury that the order does not involve a greater charge to duty or a reduction of any relief, drawback, rebate or allowance; and any such order shall be subject to annulment in pursuance of a resolution of the House of Commons.

8, 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12U.K.

10 Duties or levies on goods passing into free circulation etc.U.K.

(1)In any case where—

(a)goods which are not for the time being in free circulation in member States are imported into the United Kingdom from another member State, and

(b)in accordance with the Treaties the goods either are allowed to be put on the market in the United Kingdom or to be destroyed or otherwise cease to be subject to special arrangements involving the suspension of, or the giving of relief from, duties or levies in another member State,

then, in such circumstances as may be prescribed, duties of customs or levies shall be charged on or in respect of the goods by virtue of this section.

(2)Any question whether goods are at any time in free circulation in member States shall be determined in accordance with the Treaties.

(3)The amount of the duty of customs or levy which, in any particular prescribed circumstances, is charged on or in respect of any goods by virtue of this section shall be such as, in accordance with the Treaties, may either be prescribed or determined in a prescribed manner.

(4)Duties of customs charged by virtue of this section shall be treated as Community customs duties charged under subsection (1) of section 5 of the M6European Communities Act 1972 and levies charged by virtue of this section shall be treated as agricultural levies, as defined in subsection (8) of section 6 of that Act; and the provisions of, and of the enactments referred to in, [F13the said section 6] shall apply accordingly.

(5)In this section “prescribed” means prescribed by regulations [F14made by statutory instrument by the Commissioners which shall be subject to annulment in pursuance of a resolution of either House of Parliament].

(6)This section and, except in so far as any such regulations otherwise provide, any regulations made under it shall have effect in relation to goods imported into the United Kingdom on or after 1st July 1977.

11 Recovery of duty etc. due in other member States. O.J. No. L73/18.U.K.

(1)This section applies where, in accordance with the Directive of the Council of the European Communities dated 15th March 1976 No. 76/308/EEC, an authority in a member State makes a request for the recovery in the United Kingdom of any sum claimed by that authority in that State.

(2)Subject to the following provisions, where this section applies the Commissioners or the Intervention Board for Agricultural Produce may recover the sum specified in the request as if it were a debt due to the Crown.

(3)Proceedings for the recovery of any sum under this section shall be stayed if the defendant satisfies the court that proceedings relevant to his liability on the claim in relation to which the request has been made are pending, or are about to be instituted, before a court, tribunal or other competent body in the member State in question; but any such stay may be removed if the proceedings in the member State are not prosecuted or instituted with reasonable expedition.

(4)It shall be a defence to proceedings under this section for the defendant to show that a final decision on the claim has been given in his favour by a court, tribunal or other competent body in the member State in question; and if he shows that such a decision has been given in respect of part of the claim it shall be a defence to the proceedings in so far as they relate to that part.

(5)For the purposes of subsection (3) above proceedings shall be regarded as pending so long as an appeal may be brought against any decision in the proceedings; and for the purposes of subsection (4) above a final decision is one against which no appeal lies or against which an appeal lies within a period which has expired without an appeal having been brought.

(6)In proceedings under this section any averment in the pleadings that a request has been made as mentioned in subsection (1) above for the recovery of the sum which is the subject of the proceedings shall be conclusive evidence of that fact; and except as provided in subsection (4) above no question shall be raised in any such proceedings as to the defendant’s liability on the claim in relation to which the request has been made.

(7)In relation to proceedings under this section in Scotland—

(a)the reference in subsection (3) above—

(i)to proceedings being stayed shall be construed as a reference to their being sisted;

(ii)to a stay being removed shall be construed as a reference to a sist being recalled; and

(b)the references in subsections (3), (4) and (6) above to a defendant shall be construed as references to a defender.

(8)This section shall not have effect in relation to a request for the recovery of any sum which became due before 15th March 1976.

12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15U.K.

13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16U.K.

Part IIU.K.

14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F17U.K.

15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18U.K.

16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19U.K.

PART IIIU.K. INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX

17–39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20U.K.

40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21U.K.

41 Capital gains; company reconstructions and amalgamations involving transfer of business assets. U.K.

(1)In section 267 of the Taxes Act (relief where reconstruction or amalgamation involves transfer of business assets) after subsection (3) there shall be inserted—

“(3A)This section does not apply unless the reconstruction or amalgamation is effected for bona fide commercial reasons and does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to corporation tax, capital gains tax or income tax: but the foregoing provisions of this subsection shall not affect the operation of this section in any case where, before the transfer, the Board have, on the application of the acquiring company, notified the company that the Board are satisfied that the reconstruction or amalgamation will be effected for bona fide commercial reasons and will not form part of any such scheme or arrangements as aforesaid.

Subsections (4) to (7) of section 40 of the Finance Act 1977 shall have effect in relation to this subsection as they have effect in relation to subsection (3)(b) of that section.

(3B)Where, if the company making the disposal had not been wound up, tax could have been assessed on it by virtue of subsection (3A) above, that tax may be assessed and charged (in the name of the company making the disposal) on the company to which the disposal is made.

(3C)If any tax assessed on a company (the chargeable company) by virutue of subsection (3a) or (3B) above is not paid within six months from the date when it is payable, and other person who—

(a)holds all or any part of the assets in respect of which the tax is charged; and

(b)either is the company to which the disposal was made or has acquired the assets without there having been any subsequent disposal not falling within this section or section 273 below,”

(2)This section applies where the transfer takes effect after 19th April 1977.

42 Capital gains: transfers of assets to non-resident companies.U.K.

(1)For section 268 of the Taxes Act (postponement of charge on transfer of assets to non-resident company) there shall be substituted— [for text see 1970 s.268A].

(2)This section shall be deemed to have come into force on 29th March 1977.

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

44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23U.K.

45–48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24U.K.

Part IVU.K. CAPITAL TRANSFER TAX

49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25U.K.

50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F26U.K.

[F2751

(1)Paragraph 19 of Schedule 5 to the Finance Act 1975 (trusts for mentally disabled persons) shall be amended as follows.

(2)In sub-paragraph (1) after the words “a mentally disabled person" there shall be inserted the words “ or of a person in receipt of an attendance allowance".

F28(3)(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) At the end of Sub-paragragh (4) there shall be added the words “and“ attendance allowance" means an allowance under section 35 of the Social Security Act 1975 or the Social Security (Northern Ireland) Act 1975"]

F2952,53.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

PART VU.K. MISCELLANEOUS AND SUPPLEMENTARY

54 Petroleum revenue tax.U.K.

(1)After paragraph 6 of Schedule 3 to the M7Oil Taxation Act 1975 there shall be inserted—

6AWhere the whole or part of the share of a participator (“the transferor") of oil won from an oil field became the share, or part of the share, of another participator (“the transferee") in pursuance of an agreement between them under which the transferor undertook to remain responsible for carrying out the transferee’s obligations in connection with the field so far as they relate to the transferred share or part, then, for the purposes of this Part of this Act—

(a)the shares of the transferor and the transferee of oil won from the field shall be taken to be the same as they would have been if the transfer had not occurred, and

(b)any oil comprised in the transferred share or part and taken up by or on the authority of the transferee in pursuance of the agreement shall be regarded as being disposed of and delivered to him by the transferor at the time when it is taken up.”.

(2)In the said paragraph 6, in sub-paragraph (1), for the words “another person (in this paragraph referred to as “the owner")" there shall be substituted the words “a person (in this paragraph referred to as “the owner") who is not a participator and".

55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F30U.K.

56 Annuities under Tithe Acts 1936 and 1951.U.K.

The amount payable on 1st October 1977 on account of any annuity under the Tithe Acts 1936 and 1951 shall be double what it would be apart from this section; and as from 2nd October 1977 all annuities then charged under those Acts shall be extinguished.

57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F31U.K.

58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F32U.K.

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

(1)This Act may be cited as the Finance Act 1977.

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

(3)In this Act—

(a)Part I (except sections 5 and 6) shall be construed as one with [F33such of the Customs and Excise Acts 1979 as the provision in question requires.]

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F34

(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 . . . F35

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F36

(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 9 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.