Finance Act 1980

Part IU.K. Excise Duties

1, 2.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1U.K.

3 Hydrocarbon oil etc. U.K.

(1)In section 6(1) of the M1Hydrocarbon Oil Duties Act 1979 for the words “a duty of excise at the rate of £0·0810 a litre in the case of light oil and £0·0920 a litre in the case of heavy oil” there shall be substituted the words “ a duty of excise at the rate of £0·10 a litre ”.

(2)In section 11(1)(b) of that Act (rebate on aviation turbine fuel and heavy oil other than kerosene at rate of £0·0066 a litre less than the rate at which duty is for the time being chargeable) for “£0·0066” there shall be substituted “ £0·0077 ”.

(3)In section 14(1) of that Act (rebate on light oil delivered to approved person for use as furnace fuel at rate of £0·0066 a litre less than the rate at which duty is charged) for “£0·0066” there shall be substituted “ £0·0077 ”.

(4)In consequence of subsection (1) above—

(a)for the words “light oil” in sections 7 and 8(3) and (4)(c) of that Act and Article 3 of the M2Excise Duties (Gas as Road Fuel) Order 1972; and

(b)for the words “heavy oil” in section 92(2) of the M3Finance Act 1965 and section 14(2) of the M4Finance Act (Northern Ireland) 1966,

there shall be substituted the words “ hydrocarbon oil ”.

(5)This section shall be deemed to have come into force at six o’clock in the evening on 26th March 1980.

4 Vehicles excise duty Great Britain. U.K.

(1)The M5Vehicles (Excise) Act 1971 shall be amended as follows.

(2)(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

(4)In section 4(1) (vehicles exempt from duty) before paragraph (a) there shall be inserted—

“(aa)electrically propelled vehicles;”.

(5)In section 2A(4) as set out in paragraph 5 of Part I of Schedule 7 (power to modify duration of licences and rates of duty) after the words “by statutory instrument” there shall be inserted the words “subject to annulment in pursuance of a resolution of either House of Parliament” and after the words “shall include power” there shall be inserted the words “to make transitional provisions,”.

(6)In section 7(2) (exemption for disabled persons) after the words “National Health Service Act 1977” there shall be inserted the words “or section 46(3) of the National Health Service (Scotland) Act 1978”.

(7)Subsections (1) to (3) above have effect in relation to licences taken out after 26th March 1980, subsection (4) above has effect from 27th March 1980 and the other provisions of this section from the passing of this Act.

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

(1)The M6Vehicles (Excise) Act (Northern Ireland) 1972 shall be amended as follows.

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

(4)In section 4(1) (vehicles exempt from duty) before paragraph (a) there shall be inserted—

“(aa)electrically propelled vehicles;”.

(5)Section 2A as set out in paragraph 5 of Part I of Schedule 9 (power to modify duration of licences and rates of duty) shall have effect with the amendments specified in subsections (6), (7) and (8) below, being amendments bringing that section into conformity with the corresponding provisions in the M7Vehicles (Excise) Act 1971.

(6)At the end of subsection (1) there shall be inserted the words “or in the case of vehicles of such description, or of such description and used in such circumstances, as may be so specified, periods of less than a month.”

(7)After subsection (4) there shall be inserted—

“(4A)An order under this section may be made so as to apply only to vehicles of specified descriptions and may make different provision for vehicles of different descriptions or for different circumstances.”

(8)In subsection (5) after the words “shall include power” there shall be inserted the words “to make transitional provisions and”.

(9)Subsections (1) to (3) above have effect in relation to licences taken out after 26th March 1980, subsection (4) above has effect from 27th March 1980 and the other provisions of this section from the passing of this Act.

[F46

(1)Subject to the provisions of this section, the duty charged by section 13 of the Betting and Gaming Duties Act 1972 on a gaming licence in respect of any premises for any period shall consist of—

(a)£250 payable when applying for the licence; and

(b)a further amount of duty payable after the end of that period and chargeable at the rates specified in the following Table on the gross gaming yield from the premises in that period.]

[F4TABLE]

[F4(2)Subsection (1) above has effect in relation to licences for periods beginning on or after 1st October 1980 but in the case of a licence for a period beginning before 1st October 1981—

(a)the amount payable when applying for the licence shall, instead of being £250, be determined as provided in section 14 of the said Act of 1972; and

(b)the further amount referred to in subsection (1)(b) above shall be payable only to the extent, if any, to which it exceeds the amount paid when applying for the licence.

(3)Subsection (2) above is without prejudice to any liability for additional duty by virtue of the provisions of regulations having effect under paragraph 1 of Schedule 2 to the said Act of 1972 (alteration of rateable value) or of paragraph 5 of that Schedule (amendment of licences); and if—

(a)any payment of additional duty is made by virtue of those provisions; or

(b)there is a repayment of duty by virtue of any such regulations or of paragraph 6 of that Schedule (surrender of licences),

the reference in subsection (2)(b) above to the amount paid when applying for the licence shall be construed as a reference to that amount as increased or, as the case may be, reduced by that payment or repayment.

(4)Schedule 5 to this Act shall have effect for defining “gross gaming yield”, for making new provision as to the duration of gaming licences, for modifying subsections (1) and (2) above in cases where a licence is in force for less than six months and otherwise for supplementing the provisions of this section.]

7

[F5(1)Sections 21 to 26 of the Betting and Gaming Duties Act 1972 and Schedule 4 to that Act (gaming machine licence duty) shall have effect with the amendments specified in Part I of Schedule 6 to this Act, being amendments which change the rates of duty payable in respect of licences and dispense with the need for a licence for the provision of penny machines.]

(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F6

(3)This section shall have effect from 1st October 1980.

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

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8U.K.

10 Regulator powers. U.K.

(1)The M8Excise Duties (Surcharges or Rebates) Act 1979 shall have effect with the following amendments, being amendments which remove the restrictions on the purposes for which and the period within which orders may be made under that Act and alter the provisions of that Act relating to parliamentary control.

(2)In section 1(2) for the words preceding paragraph (a) there shall be substituted the words “The Treasury may, by an order applying to one or more of the groups of duties to which this section applies, provide for an adjustment”.

(3)For section 2(2) there shall be substituted—

“(2)An order shall cease to be in force at the expiration of a period of one year from the date on which it takes effect unless continued in force by a further order.”

(4)For section 2(7), (8) and (9) there shall be substituted—

“(7)A statutory instrument containing an order which, with respect to all or any of the groups of duties—

(a)specifies a percentage by way of addition to duty or increases a percentage so specified; or

(b)withdraws or reduces a percentage specified by way of deduction from duty,

shall be laid before the House of Commons after being made; and unless the order 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 under it 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.

(8)A statutory instrument containing an order to which subsection (7) above does not apply shall be subject to annulment in pursuance of a resolution of the House of Commons.”.

Part IIU.K. Value Added Tax

11–16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9U.K.

17 Mutual recovery and disclosure of information between member States.U.K.

(1)In section 11(1) of the M9Finance Act 1977 (recovery of duty etc. due in other member States) the reference to the Directive there mentioned shall include a reference to that Directive as extended to value added tax by the Directive of the Council of the European Communities dated 6th December 1979 No. 79/1071/EEC.

(2)In section 77 of the M10Finance Act 1978 (disclosure of information to tax authorities in other member States)—

(a)references to the Directive mentioned in subsection (1) shall include references to that Directive as extended to value added tax by the Directive of the Council of the European Communities dated 6th December 1979 No. 79/1070/EEC; and

(b)references to the Commissioners of Inland Revenue and an authorised officer of those Commissioners shall include references to the Commissioners of Customs and Excise and an authorised officer of those Commissioners.

(3)Subsection (1) above shall have effect as respects any request made on or after 1st January 1981 for the recovery of a sum becoming due after the passing of this Act; and subsection (2) above shall come into force on 1st January 1981.

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

Chapter IU.K. General

18–56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F10U.K.

57 Registered friendly societies and trade unions.U.K.

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

(2)The M11Friendly Societies Act (Northern Ireland) 1970 and the M12Friendly Societies Act 1974 shall be amended as follows—

[F12(a)in section 1(3A) of the said Act of 1970 and in section 7(3A) of the said Act of 1974 (registration of societies) for “£1,000” and “£208” there shall be substituted respectively “ £2,000 ” and “ £416 ”; and]

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

(3)(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13

58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14U.K.

59, 60.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F15U.K.

61 Dates for payment of tax.U.K.

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F16

(2)In section 7 of the Capital Gains Tax Act 1979 (capital gains tax payable at or before expiration of the three months following the year in which the gains accrued) for the words “at or before the expiration of the three months following that year” there shall be substituted the words “on or before 1st December following the end of that year”.

(3)In paragraph 3 in the second column of the Table in section 86(4) of the Taxes Management Act 1970 (reckonable date for interest on unpaid tax) for the words “The 1st January following the end of the year of assessment” there shall be substituted the words “The 1st June following the 1st December mentioned in section 4(3) of the principal Act”and in paragraph 4 in the second column of that Table for the words “The 1st January following the end of the year of assessment” there shall be substituted the words “The 1st June following the 1st December mentioned in section 7 of the Capital Gains Tax Act 1979.”

(4)In section 88(5)(c) and (d) of the Taxes Management Act 1970 (interest on tax recovered to make good loss due to taxpayer’s fault) and paragraph 6(2) of Schedule 16 to the Finance Act 1972 (liability for tax on apportioned income) for the words “6th July” there shall be substituted the words “1st December”.

(5)This section has effect in relation to tax for the year 1980-81 and subsequent years of assessment.

[F1762 Interest on unpaid tax.U.K.

(1)In the provisions mentioned in subsection (2) below (remission of interest on unpaid tax where the amount of interest does not exceed £10) for “£10” there shall be substituted “ £30 ”.

(2)The provisions referred to above are—

(a)section 86(6) of the Taxes Management Act 1970 (income tax, corporation tax and capital gains tax);

(b)section 87(4) of that Act (advance corporation tax and income tax on company payments); and

(c)section 87(3) of that Act as originally enacted (income tax on company distributions).

(3)This section has effect in relation to interest on tax charged by assessments notice of which is issued after the passing of this Act.]

63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F18U.K.

Chapter IIU.K. Capital Allowances

64–69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19U.K.

70

(1)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21

(4)–(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F22

71–76. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23U.K.

Chapter IIIU.K. Capital Gains

77 Exemption for first £3,000 of gains of individuals.U.K.

(1)Section 5 of the Capital Gains Tax Act 1979 and Schedule 1 to that Act (relief for gains less than £9,500) shall have effect with the following amendments, being amendments which substitute an exemption from tax in respect of the first £3,000 of the net gains accruing to an individual in a year of assessment.

(2)For subsections (1) to (3) of section 5 there shall be substituted—

“5 Exemption for first £3,000 of gains.

(1)An individual shall not be chargeable to capital gains tax in respect of so much of his taxable amount for any year of assessment as does not exceed £3,000.”

(3)In subsections (4) and (5)(a) of section 5 for “£1,000”, wherever it occurs, there shall be substituted “£3,000”.

(4)In Schedule 1—

(a)the heading shall be changed to “EXEMPTION FOR FIRST £3,000 OF GAINS”;

[F24(b)in paragraphs 2(1) and (2)(b) for the words “subsections (1) to (4)” there shall be substituted the words “subsections (1) and (4)”;]

(c)in paragraphs 4 and 5(1) for the words “subsections (1) to (5)” there shall be substituted the words “subsections (1), (4) and (5)”;

[F25(d)in paragraph 2(1) for the words “the amounts of £1,000, £5,000 and £600” there shall be substituted the words “the amount of £3,000” and in paragraph 2(1)(b) for “£1,000” there shall be substituted “£3,000”.]

(5)This section has effect for the year 1980-81 and subsequent years of assessment.

78 Exemption for first £1,500 of gains of trusts.U.K.

(1)Paragraph 6 of Schedule 1 to the Capital Gains Tax Act 1979 (relief for small gains by trustees) shall have effect with the following amendments, being amendments which extend to trustees, with modifications, the exemption conferred by section 5 of that Act as amended by section 77 above.

(2)In sub-paragraph (1) for the words “subsections (1) to (5)” there shall be substituted the words “subsections (1), (4) and (5)”.

(3)For sub-paragraphs (2) to (5) there shall be substituted—

“(2)In subsections (1) and (4) for “£3,000” there shall be substituted “£1,500”.

(3)Subsection (5) shall apply only to the trustees of a settlement made before 7th June 1978 and, in relation to such trustees, shall have effect with the substitution for “£3,000” and “£5,000” of “£500” and “£2,500” respectively.

(4)In relation to a settlement which is one of two or more qualifying settlements comprised in a group, sub-paragraph (2) above shall have effect as if for the reference to £1,500 there were substituted a reference to £300 or, if it is more, to such amount as results from dividing £1,500 by the number of settlements in the group.

(5)For the purposes of sub-paragraph (4) above—

(a)a qualifying settlement is any settlement (other than an excluded settlement) which is made after 6th June 1978 and to the trustees of which this paragraph applies for the year of assessment; and

(b)all qualifying settlements in relation to which the same person is the settlor constitute a group.

(6)If, in consequence of two or more persons being settlors in relation to it, a settlement is comprised in two or more groups comprising different numbers of settlements, sub-paragraph (4) above shall apply to it as if the number by which the amount of £1,500 is to be divided were the number of settlements in the largest group.

(7)In this paragraph “settlor” has the meaning given by section 454(3) of the Taxes Act and includes, in the case of a settlement arising under a will or intestacy, the testator or intestate and “excluded settlement” means—

(a)any settlement the trustees of which are not for the whole or any part of the year of assessment treated under section 52(1) of this Act as resident and ordinarily resident in the United Kingdom; and

(b)any settlement the property comprised in which—

(i)is held for charitable purposes only and cannot become applicable for other purposes; or

(ii)is held for the purposes of any such scheme or fund as is mentioned in sub-paragraph (8) below (retirement benefits and compensation funds).

(8)The schemes and funds referred to in sub-paragraph (7)(b)(ii) above are funds to which section 218 of the Taxes Act applies, schemes and funds approved under section 226 or 226A of that Act, sponsored superannuation schemes as defined in section 226(11) of that Act, exempt approved schemes and statutory schemes as defined in Chapter II of Part II of the Finance Act 1970 and any such fund as is mentioned in paragraph 21 of Schedule 5 to the Finance Act 1975.

(9)An inspector may by notice in writing require any person, being a party to a settlement, to furnish him within such time as he may direct (not being less than twenty-eight days) with such particulars as he thinks necessary for the purposes of this paragraph.”

(4)This section has effect for the year 1980–81 and subsequent years of assessment.

[F2679 General relief for gifts. U.K.

(1)If after 5th April 1980 an individual (in this section referred to as “the transferor”) makes a disposal, otherwise than under a bargain at arm’s length, to an individual resident or ordinarily resident in the United Kingdom (in this section referred to as “the transferee”) and the transferor and transferee make a claim for relief under this section—

(a)the amount of any chargeable gain which, apart from this section, would accrue to the transferor on the disposal; and

(b)the amount of the consideration for which, apart from this section, the transferee would be regarded for the purposes of capital gains tax as having acquired the asset in question, shall each be reduced by an amount equal to the held-over gain on the disposal.

(2)Subject to subsection (3) below, the reference in subsection (1) above to the held-over gain on a disposal is a reference to the chargeable gain which would have accrued on that disposal apart from this section.

(3)In any case where—

(a)there is actual consideration (as opposed to the consideration equal to the market value which is deemed to be given by virtue of [F27any provision] of the Capital Gains Tax Act 1979) for a disposal in respect of which a claim for relief is made under this section; and

(b)that actual consideration exceeds the sums allowable as a deduction under section 32 of that Act,

the held-over gain on the disposal shall be reduced by the excess referred to in paragraph (b) above or, if part of the gain on the disposal is relieved under [F28Schedule 20 to the Finance Act 1985] (retirement relief), by so much, if any, of that excess as exceeds the part so relieved.

(4)Section 126 of the said Act of 1979 (relief for gifts of business assets) shall not apply to a disposal to an individual F29

(5)Where a disposal in respect of which a claim is made under this section is [F30(or proves to be)] a chargeable transfer (for capital transfer tax purposes) there shall be allowed as a deduction in computing (for capital gains tax purposes) the chargeable gain accruing to the transferee on the disposal of the asset in question an amount equal to whichever is the lesser of—

(a)the capital transfer tax [F31attributable to the value of the asset]; and

(b)the amount of the chargeable gain as computed apart from this subsection;

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F32[F33and, in the case of a disposal which, being a potentially exempt transfer, proves to be a chargeable transfer, all necessary adjustments shall be made, whether by the discharge or repayment of capital gains tax or otherwise].

(6)Where an amount of capital transfer tax—

(a)falls to be re-determined in consequence of the transferor’s death within [F33seven years] of making the chargeable transfer in question; or

(b)is otherwise varied,

after it has been taken into account under subsection (5) above, all necessary adjustments shall be made, whether by the making of an assessment to capital gains tax or by the discharge or repayment of such tax.]

80 Exemption for private residences.U.K.

(1)Where a gain to which section 101 of the Capital Gains Tax Act 1979 (disposals of private residences) applies accrues to any individual and the dwelling-house in question or any part of it is or has at any time in his period of ownership been wholly or partly let by him as residential accommodation the part of the gain, if any, which, apart from this section would be a chargeable gain by reason of the letting, shall be such a gain only to the extent, if any, to which it exceeds whichever is the lesser of—

(a)the part of the gain which is not a chargeable gain by virtue of the provisions of section 102 of that Act or that section as applied by section 104 of that Act; and

(b)[F34£20,000].

(2)In section 102(1) and (2)(a) of that Act (exemption for gain on disposal of dwelling-house which has been an individual’s only or main residence throughout the period of ownership or throughout that period except for the last twelve months) for the words “twelve months” there shall be substituted the words “twenty-four months”.

(3)This section has effect in relation to disposals after 5th April 1980.

81 Exemption for authorised unit trusts etc.U.K.

(1)Gains accruing to an authorised unit trust, an investment trust or a court investment fund shall not be chargeable gains.

(2)In section 267(3) of the Taxes Act (transfer of assets on company reconstruction etc.), the words “or 97” shall be omitted and at the end there shall be inserted the words “or which is an authorised unit trust within the meaning of Chapter VI of Part XII of this Act or to an investment trust within the meaning of that Chapter.”

(3)In subsection (1) of section 98 of the Capital Gains Tax Act 1979 (which refers to the said section 267) for the words from “to which at the time of the transfer” to “shall be treated” there shall be substituted the words “or a company which at the time of the transfer was not such a unit trust scheme or investment trust as is mentioned in subsection (3) of that section, then if—

(a)at any time after the transfer—

(i)the unit trust scheme becomes in a year of assessment one which is such as is mentioned in that subsection; or

(ii)the company becomes for an accounting period an investment trust such as is there mentioned, and

(b)at the beginning of that year of assessment or accounting period the unit trust scheme or company still owns any of the assets of the business transferred,

the unit trust scheme or company shall be treated ”; and in subsection (2) of that section after the words “year of assessment” and “unit trust scheme” there shall be inserted respectively the words “or accounting period” and “or company”.

(4)In section 273(2) of the Taxes Act (transfers within a group) after paragraph (b) there shall be inserted the words “or

(c)a disposal by or to an investment trust within the meaning of Chapter VI of Part XII of this Act;”.

(5)After section 275(2) of the Taxes Act (disposals outside a group) there shall be inserted—

“(3)Subsection (2) above does not apply where the asset was acquired on a disposal within section 273(2)(c) above.”

(6)Section 94 of the said Act of 1979 (reduction of tax on disposal of shares in unit trust etc.) shall cease to have effect.

(7)Subsections (1), (4) and (5) above have effect in relation to disposals after 31st March 1980, subsections (2) and (3) above have effect where the transfer referred to in section 267(3) is after that date and subsection (6) above has effect in relation to disposals after 5th April 1980.

82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F35U.K.

83 Consideration on disposal of assets.U.K.

(1)In section 31(2) of the Capital Gains Tax Act 1979 (consideration on disposal of an asset to include money or money’s worth which is taken into account in the making of a balancing charge under the Capital Allowances Act 1968) there shall be inserted at the end the words “or which is brought into account as the disposal value of machinery or plant under section 44 of the Finance Act 1971”.

(2)This section has effect in relation to disposals after 25th March 1980.

84 Traded options.U.K.

(1)Sections 137 and 138 of the Capital Gains Tax Act 1979 (options) shall have effect with the following amendments, being amendments which exempt traded options to buy or sell shares in a company from the rule that the abandonment of an option is not a disposal and from the restriction of allowable expenditure which applies to wasting assets.

(2)–(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F36

(5)In subsection (2) of section 138 for the words in brackets there shall be substituted the words “(other than an option falling within subsection (1)(a) or (aa) above)”.

(6)For subsection (4)(a) of section 138 there shall be substituted—

“(a)“quoted option” and “traded option” have the meanings given by section 137(9) above,”.

(7)This section has effect in relation to any abandonment or other disposal on or after 6th April 1980.

Part IVU.K. Capital Transfer Tax

85–87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F37U.K.

88

(1)–(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F38

(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F39

89–91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F40U.K.

92, 93.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F41U.K.

94 Delivery of accounts. U.K.

(1)–(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F42

(7)In section 12 of the M13Customs, Inland Revenue, and Savings Banks Act 1877 (transmission and custody of inventories in Scotland)—

(a)for the word “All”, where first occurring, there shall be substituted the words “ To the extent that the Registrar, Capital Taxes Office at Edinburgh may require, ” ; and

(b)the words “as often as required” shall cease to have the effect.

(8)(9). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F42

Part VU.K. Stamp Duty

95 Reduction of stamp duty on conveyances and leases.U.K.

(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F43

(2)In subsection (2) of the said section 55 and of the said section 4 (under which the relief afforded by subsection (1) of those sections is not available as respects the duty chargeable in respect of the premium for a lease if the consideration includes rent exceeding £150 a year) for “£150” there shall be substituted “£250”.

(3)In the heading “Lease or Tack” in Schedule 1 to the M14Stamp Act 1891 as it applies throughout the United Kingdom—

(a)in paragraph (2)(a) (duty where definite term less than a year of furnished dwelling-house and rent exceeds £250) for “£250” there shall be substituted “£400”, and

(b)in the Table in paragraph (3) (which provides for duty on rent in the case of any other term and the first column of which indicates the rent, the second column the duty where the term does not exceed 7 years or is indefinite, the third column the duty where the term exceeds 7 years but not 35 years, the fourth column the duty where the term exceeds 35 years but not 100 years and the fifth column the duty where the term exceeds 100 years) for the last entry there shall be substituted—

(4)This section applies to instruments executed on or after 6th April 1980 and shall be deemed to have come into force on that date.

96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F44U.K.

97 Shared ownership transactions. U.K.

(1)A lease to which this section applies shall, instead of being chargeable with stamp duty under the heading “Lease or Tack” in Schedule 1 to the M15Stamp Act 1891, be chargeable with stamp duty under the heading “Conveyance or Transfer on Sale” in that Schedule as if it were a conveyance for a consideration equal to the value [F45or sum] stated in the lease in accordance with subsection (2)(d) below ; and where stamp duty has been paid on a lease in accordance with this section stamp duty shall not be chargeable under that Act on any instrument executed in pursuance of the lease whereby the reversion is transferred to the lessee.

(2)This section applies to any lease granted by a body mentioned in subsection (3) below, being a lease which—

(a)is of a dwelling for the exclusive use of the lessee or, if there are joint lessees, of those lessees;

[F46(b)is granted partly in consideration of a premium calculated by reference to—

(i)the market value of the dwelling, or

(ii)a sum calculated by reference to that value, and partly in consideration of rent]

(c)provides for the lessee to acquire reversion; and

(d)contains a statement of the market value referred to in [F47paragraph (b)(i) above or, as the case may be, the sum referred to in paragraph (b)(ii) above] and a statement to the effect that the parties intend duty to be charged in accordance with this section by reference to that value [F48or as the case may be, to that sum].

(3)The bodies referred to in subsection (2) above are—

[F49(a)a local housing authority within the meaning of the Housing Act 1985;

(b)a housing association [F50within the meaning of] the Housing Associations Act 1985 or [F51Part VII] of the Housing (Northern Ireland) Order 1981;]

(c)a development corporation established by an order made, or having effect as if made, under the M16New Towns Act 1965 ;

[F52(cc)a housing action trust established under Part III of the Housing Act 1988;]

(d)the Commission for the New Towns;

(e)the Development Board for Rural Wales;

(f)the Northern Ireland Housing Executive;

(g). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F53

(4)For the purposes of subsection (1) above an instrument transferring a reversion shall not be regarded as executed in pursuance of a lease in respect of which duty has been paid in accordance with this section unless it contains a statement to the effect that it has been so executed.

98 Maintenance funds for historic buildings.U.K.

(1)No stamp duty shall be chargeable on any instrument whereby property ceases to be comprised in a settlement if as a result of the property or part of it becoming comprised in another settlement (otherwise than by virtue of the instrument itself) there is by virtue of [F54paragraph 9(1) or 17(1) of Schedule 4 to the Capital Transfer Tax Act 1984 there is no charge to capital transfer tax in respect of the property ceasing to be comprised in the settlement or a reduced charge to that tax by virtue of paragraph 9(4) or 17(4) of that Schedule] but where only part of the property becomes comprised in the other settlement this subsection shall not affect the stamp duty chargeable on the instrument by reference to the other part.

(2)An instrument in respect of which stamp duty is not chargeable by virtue only of this section or in respect of which the duty chargeable is reduced by virtue of this section shall not be treated as duly stamped unless it is stamped in accordance with section 12 of the M17Stamp Act 1891 with a stamp denoting that it is not chargeable with any duty or that it is duly stamped.

99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F55U.K.

100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F56U.K.

101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F57U.K.

102 Conveyance in consideration of debt.U.K.

(1)Where—

(a)any property is conveyed to any person wholly or in part in consideration of a debt due to him; and

(b)apart from this section the consideration in respect of which the conveyance would be chargeable in ad valorem duty by virtue of section 57 of the M18Stamp Duty Act 1891 (which deemed the debt to be the consideration) would exceed the value of the property conveyed,

that consideration shall be treated as reduced to that value.

(2)Where subsection (1) above applies in relation to any conveyance, it shall not be treated as stamp duty unless it is stamped in accordance with section 12 of the said Act of 1891 with a stamp denoting that it is not chargeable with any duty or that it is duly stamped.

103 Admission of Northern Ireland barristers etc. U.K.

Section 2 of the M19Finance (Stamp Duty) Act (Northern Ireland) 1926 (stamp duty on admission to degree of barrister-at-law or as student of the Inn of Court of Northern Ireland) and section 3 of that Act (payments to the Inn of Court of Northern Ireland out of the proceeds of stamp duty) shall cease to have effect.

Part VIU.K. Oil Taxation

104 Increase of petroleum revenue tax.U.K.

(1)In section 1(2) of the Oil Taxation Act 1975 (rate of petroleum revenue tax) for the words “60 per cent.” there shall be substituted the words “ 70 per cent. ”.

(2)This section has effect in relation to chargeable periods ending after 31st December 1979.

[F58105 Advance payments of tax. U.K.

(1)Every participator in an oil field shall when he delivers to the Board the statement which section 1(1)(a) of the Petroleum Revenue Tax Act 1980 requires him to deliver with his return for a chargeable period—

(a)deliver to the Board a statement showing whether any, and if so what, amount is payable by him under this section as an advance payment of tax in respect of the field for the next chargeable period; and

(b)if any amount is so payable, pay to the Board a sum equal to that amount.

(2)The statement under subsection (1)(a) above shall be in such form as the Board may prescribe.

(3)The amount payable by a participator as an advance payment of tax in respect of a field for a chargeable period shall be equal to 15 per cent. of whichever is the greater of—

(a)the amount of tax, if any, shown in the statement delivered by him under the said section 1(1)(a) as payable by him in respect of the field for the last chargeable period; and

(b)the amount of tax, if any, assessed on him in respect of the field for the last chargeable period but one, less any part of it withheld under paragraph 14 of Schedule 2 to the Oil Taxation Act 1975 (appeals).

(4)The Treasury may by an order made by statutory instrument alter the percentage for the time being specified in subsection (3) above, but no order increasing that percentage shall be made unless a draft of the order has been laid before, and approved by a resolution of, the House of Commons.

(5)The sum paid by a participator as an advance payment of tax in respect of a field for a chargeable period—

(a)shall, to the extent to which it does not exceed the sum which subsection (1)(b) of section 1 of the said Act of 1980 requires him to pay when delivering his return for that period in respect of the field—

(i)discharge his liability to pay the whole or a corresponding part of that sum; and

(ii)be treated for the purposes of subsection (3) of that section as if it were, or were part of, a sum paid by him under subsection (1)(b) of that section; and

(b)shall, to the extent to which it exceeds the sum required to be paid by him as aforesaid, be repaid to him.

(6)Any amount payable by a participator as an advance payment of tax in respect of a field for a chargeable period and not paid by him shall carry interest at the rate applying under paragraph 15 of Schedule 2 to the said Act of 1975 from two months after the beginning of that period until—

(a)two months after the end of that period; or

(b)payment of the sum referred to in subsection (5)(a) above,

whichever is the earlier.

(7)Where the sum paid by a participator as an advance payment of tax in respect of a field for a chargeable period (including any part of it repaid under subsection (5)(b) above) exceeds the amount of the tax assessed on him in respect of the field for that period (less any part of it withheld under paragraph 14 of the said Schedule 2) he shall be entitled to receive from the Board interest at the rate applying under paragraph 16 of that Schedule—

(a)on the excess, from—

(i)two months after the beginning of that period; or

(ii)the date on which that sum was paid,

whichever is the later, until two months after the end of that period; and

(b)if any of that sum falls to be repaid under subsection (5)(b) above, on the amount repayable (or, if less, the excess mentioned in paragraph (a) above) from—

(i)two months after the end of that period; or

(ii)the date on which he delivers the statement which section 1(1)(a) of the said Act of 1980 requires him to deliver with his return for that period,

whichever is the later, until [F59the order for repayment is issued];

(8)Certificates of tax deposit issued by the Treasury under section 12 of the M20National Loans Act 1968 on terms published on or before 14th May 1979 may be used for making advance payments under this section; and for that purpose those terms shall have effect with the necessary modifications and as if the tax in or towards the payment of which a certificate is used were due two months after the beginning of the chargeable period to which it relates.

(9)This section shall be construed as one with Part I of the said Act of 1975 and has effect where the chargeable period referred to in subsection (1)(a) above ends on or after 30th June 1981.]

106 Transfers of interests in oil fields.U.K.

Schedule 17 to this Act shall have effect for supplementing and modifying Part I of the Oil Taxation Act 1975 where after the passing of this Act a participator in an oil field transfers the whole or part of his interest in the field.

107 Transmedian fields. U.K.

(1)The Oil Taxation Acts shall have effect in accordance with this section where provision is made by an agreement between the government of the United Kingdom and the government of another country for—

(a)the exploitation as a single unit of oil in strata in the sea bed and subsoil of an area consisting of—

(i)an oil field within the meaning of Part I of the Oil Taxation Act 1975; and

(ii)a sector under the jurisdiction of the other country; and

(b)the apportionment of the oil between—

(i)the participators in that field; and

(ii)the persons who are, or have rights, interests or obligations of, licensees in respect of that sector under the law of the other country.

(2)The share of a participator in the oil won from the oil field shall be determined as if the oil won from the field consisted of so much of the oil won from the area as a whole as is apportioned to the participators in accordance with the agreement; and in section 10(3)(b) of the said Act of 1975 (restriction of allowable expenditure) and paragraphs 5(2)(a) and 7 of Schedule 2 to that Act (returns and information as to oil won from the field) references to oil won from the field shall be construed as references to so much of the oil won from the area as a whole as is so apportioned.

(3)Subject to subsection (2) above—

(a)the oil field shall be deemed to include the sector mentioned in subsection (1)(a)(ii) above;

(b)that sector shall be deemed to be a designated area; and

(c)references to oil shall include references to any substance that would be oil within the meaning of the said Act of 1975 if the enactments mentioned in section 1(1) extended to that sector;

but paragraph (a) above does not affect section 10(3)(a) of that Act or paragraph 4 of Schedule 2 to that Act (appointment of responsible person), and paragraph (b) above does not affect section 5(1)(b) of that Act (abortive exploration expenditure) or operate so as to apply section 38(4) of the Finance Act 1973 (taxation of non-residents engaged in activities in designated areas) to the persons referred to in subsection (1)(b)(ii) above.

(4)Where under the agreement there is a re-determination of the apportionment mentioned in subsection (1)(b) above and in consequence thereof the participators in the field receive a repayment in respect of expenditure which has been allowed for the field under section 3 of the said Act of 1975, the total amount of expenditure allowable under that section and section 4 of that Act for the field in the claim period in which the repayment is received shall be reduced by the amount of the repayment; and paragraph 6 of Schedule 4 to that Act (recovery of deductions from allowable expenditure) shall have effect as if the foregoing provisions of this subsection were relevant provisions within the meaning of that paragraph.

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F60

(6)In subsections (4) F61above references to a repayment include references to a credit or set-off.

(7)In this section “the Oil Taxation Acts” means the Oil Taxation Act 1975, any other enactment relating to petroleum revenue tax and the provisions of the Income Tax Acts and Corporation Tax Acts in their application to oil extraction activities and oil rights within the meaning of [F62Chapter V of Part XII of the Taxes Act 1988.]

(8)This section has effect whether the agreement mentioned in subsection (1) above is made before or after the passing of this Act and applies in relation to a chargeable period ending before the coming into force of this Act as well as to a chargeable period ending later.

108 Gas banking schemes. U.K.

(1)Subject to the provisions of this section, the Board may by regulations made by statutory instrument modify the operation of the Oil Taxation Acts in their application to cases where—

(a)a gas banking scheme is in force between the participators in two or more oil fields; and

(b)the participators in those fields elect that the modifications prescribed by the regulations shall apply.

(2)Subject to subsection (3)(a) below, a gas banking scheme for the purposes of this section is any scheme which provides for the transfer of oil consisting of gas won from one of the oil fields to which the scheme applies to or to the order of the participators in another of those fields in consideration wholly or mainly of the subsequent transfer of oil consisting of gas won from the other field to or to the order of the participators in the first-mentioned field.

(3)Regulations under this section may—

(a)prescribe additional conditions required to be satisfied for a scheme to constitute a gas banking scheme, including conditions requiring the gas to be of a description specified in the regulations;

(b)prescribe conditions subject to which, and the manner in which, an election may be made under this section and the time for which any such election is to continue in force; and

(c)contain such incidental, supplementary or transitional provisions as appear to the Board to be necessary or expedient.

(4)The foregoing provisions of this section shall apply to an international gas banking scheme as they apply to a gas banking scheme within the meaning of those provisions except that only the participators in the oil field or oil fields to which the scheme applies need make the election referred to in subsection (1)(b) above; and for the purposes of this section an international gas banking scheme is any scheme which—

(a)applies to areas that include both one or more oil fields and one or more areas under the jurisdiction of a country other than the United Kingdom; and

(b)would be a gas banking scheme within the meaning of the foregoing provisions if all the areas were oil fields and all the persons who are, or have rights, interests or obligations of, licensees in respect of those areas were participators.

(5)Regulations under this section may be made so as to apply only to gas banking schemes other than international gas banking schemes or so as to apply only to the latter; and regulations applying to a scheme of either description may differ from those applying to the other.

(6)No regulations shall be made under this section unless a draft of the regulations has been laid before, and approved by a resolution of, the House of Commons.

(7)In this section “the Board”, “oil”, “oil field” and “participator” have the same meaning as in Part I of the Oil Taxation Act 1975 and “the Oil Taxation Acts” has the same meaning as in section 107 above.

109 Fractionation.U.K.

(1)The Oil Taxation Act 1975 shall be amended as follows.

(2)In the definition of “initial treatment” in section 12(1) for paragraph (b) there shall be substituted—

(3)In paragraph (i) of that definition for the words “paragraph (a) or (b) of this definition” there shall be substituted the words “ any of paragraphs (a) to (e) of this definition ”.

(4)For paragraph (ii) of that definition there shall be substituted—

(5)After the definition of “production purposes” in section 12(1) there shall be inserted—

• ““refining”, in relation to oil, does not include subjecting it to initial treatment and “refined” and “refinery” shall be construed accordingly;”.

(6)In paragraph 2 of Schedule 3 (definition of market value of oil) after sub-paragraph (3) there shall be inserted—

“(3A)Where all or any of the oil whose market value falls to be ascertained in accordance with sub-paragraphs (1) and (2) above has been subjected to initial treatment before being disposed of or relevantly appropriated, the appropriate initial treatment referred to in sub-paragraph (2)(a) above shall, as respects that oil, include the whole of that treatment.”

(7)After the said paragraph 2 there shall be inserted—

“2A(1)Paragraph 2 above shall have effect in accordance with this paragraph where the oil whose market value falls to be ascertained at any time in accordance with sub-paragraphs (1) and (2) of that paragraph, or in accordance with those sub-paragraphs as modified by sub-paragraph (3) of that paragraph, consists of or includes gas.

(2)Sub-paragraph (2)(a) of paragraph 2 above shall not apply to so much of the oil as consists of gas unless—

(a)it has been subjected to initial treatment before being disposed of or relevantly appropriated; or

(b)it has, after being disposed of or relevantly appropriated, been subjected to initial treatment by or on behalf of the participator in question or by or on behalf of a person who is connected with him within the meaning of section 533 of the Taxes Act;

and where oil consisting of gas has, whether before or after being disposed of or relevantly appropriated, been subjected to initial treatment by or on behalf of the participator in question or by or on behalf of a person who is connected with him as aforesaid the appropriate initial treatment referred to in sub-paragraph (2)(a) of paragraph 2 above shall include the treatment to which it has been so subjected.

(3)Where the initial treatment mentioned in sub-paragraph (2) above includes treatment in order to separate gas of one or more kinds which are transported and sold in normal commercial practice, the market value of the gas of each such kind which is separated shall be ascertained in accordance with sub-paragraphs (1) and (2) of paragraph 2 as if that were the only oil whose market value fell to be ascertained at the time in question (with sub-paragraph (2)(b) of paragraph 2 applying accordingly.)

(4)Where the oil consists of or includes natural gas within the meaning of the Energy Act 1976, it shall be assumed for the purposes of paragraph 2—

(a)that any consent given under section 8 or 9 of that Act for the supply or use of the gas applies to the supply of the gas under the contract mentioned in sub-paragraph (2) of that paragraph and to the use of the gas supplied under it; and

(b)that no consent is required under those sections for that supply or use if no such consent would be required if that contract were in fact made by the participator in question.”

(8)Subject to the following provisions of this section, this section has effect—

(a)as respects Part I of the Oil Taxation Act 1975, in relation to chargeable periods (within the meaning of that Part) ending after 31st December 1979; and

(b)as respects [F63Chapter V of Part XII of the Taxes Act 1988], in relation to chargeable periods (within the meaning of that Part) ending after that date.

(9)Expenditure shall not by virtue of this section be allowable under section 3 of the said Act of 1975 unless it was incurred after the said 31st December or would have been allowable under section 4 of that Act but for the proviso to subsection (1) of that section.

(10)For the purposes of section 4 of the said Act of 1975 expenditure incurred in acquiring, bringing into existence or enhancing the value of an asset which before the passing of this Act was used for the purpose of any process which, if this Act had been in force, would by virtue of this section have constituted initial treatment of oil won from an oil field shall be treated as having been incurred on the date when the asset was first so used; and for the purposes of that section (but not of the foregoing provisions of this subsection) the use of the asset in connection with the field shall be treated as having begun—

(a)on 1st January 1980; or

(b)the date on which the asset was first used for that purpose,

whichever is the later.

(11). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F64

Part VIIU.K. Development Land Tax

110–116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F65U.K.

Part VIIIU.K. Miscellaneous and Supplementary

117 Demergers.U.K.

Schedule 18 to this Act shall have effect for facilitating certain transactions whereby trading activities carried on by a single company or group are divided so as to be carried on by two or more companies not belonging to the same group or by two or more independent groups.

118 National Heritage Memorial Fund. U.K.

(1)(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F66

[F67(3)The trustees of the National Heritage Memorial Fund shall be treated for the purposes of section 49(2) of the Finance Act 1974 and section 99 above as a body of persons established for charitable purposes only.]

[F68(4)Section 24 of the M21Development Land Tax Act 1976 (exemption of charities) and section 57 of the Finance Act 1977 (exemption of charities from national insurance surcharge) shall have effect as if the Trustees were a charity within the meaning of section 360 of the Taxes Act].

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F69

(6)This section shall be deemed to have come into force on 1st April 1980.

119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F70U.K.

120(1)Subject to subsection (2) below, all sums received by the Director of Savings as investment deposits with the National Savings Bank shall from time to time be paid by him into the National Loans Fund in accordance with directions given by the Treasury; and the sums required for repaying, or paying interest on, investment deposits with the Bank shall be charged on that Fund with recourse to the Consolidated Fund.

(2)There may be retained by the Director of Savings out of the sums received by him as mentioned in subsection (1) above such amounts as may be required by him as a working balance; and there shall be paid to him from time to time out of the National Loans Fund (or, as the case may be, the Consolidated Fund) the sums required for repaying, or paying interest on, investment deposits or for increasing his working balance.

(3)The amounts to be retained by or paid to the Director of Savings under subsection (2) above shall be determined by agreement between him and the Treasury.

(4)The Director of Savings shall keep an account of all sums—

(a)received and paid by him in respect of investment deposits;

(b)paid by him into or received by him out of the National Loans Fund; or

(c)received by him out of the Consolidated Fund,

and shall prepare a statement of that account as respects each year ending with 31st December.

(5)The statement prepared for each year under subsection (4) above shall, before the end of May next following the expiration of the year, be transmitted to the Comptroller and Auditor General who shall examine, certify and report on it and lay copies of it, together with copies of his report, before Parliament.

(6)The expenses of the Director of Savings in connection with investment deposits shall be defrayed out of moneys provided by Parliament.

(7)Sections 21 to 23 of the M22National Savings Bank Act 1971 and so much of section 25 of that Act as relates to investment deposits shall cease to have effect; and Schedule 19 to this Act shall have effect as respects the transition from those provisions to the foregoing provisions of this section.

(8)The rate of interest on investment deposits shall be determined by the Treasury instead of by the Director of Savings with the consent of the Treasury; and in the case of an alteration in a rate of interest not affecting deposits received before it is made, the notice of the alteration required by section 6 of the said Act of 1971 may be given after the making of the alteration.

(9)Subsections (1) to (7) above have effect from 1st January 1981 and subsection (8) above from the passing of this Act.

(10)This section and Schedule 19 to this Act shall be construed as one with the said Act of 1971.

121. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F71U.K.

122 Short title, interpretation, construction and repeals.U.K.

(1)This Act may be cited as the Finance Act 1980.

(2)In this Act “the Taxes Act” means the Income and Corporation Taxes Act [F721970 and the “Taxes Act 1988” means the Income and Corporation Taxes Act 1988.]

(3)In this Act—

(a)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 the Capital Gains Tax Act 1979; and

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F73

(4)The enactments mentioned in Schedule 20 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.