SCHEDULES

Section 1.

SCHEDULE 1U.K. Wine and Made-Wine

InterpretationU.K.

1(1)Subject to sub-paragraph (3) below, for the purposes of this Act, wine or made-wine which is for the time being in a closed container is sparkling if, due to the presence of carbon dioxide or any other gas, the pressure in the container, measured at a temperature of 20° C, is not less than 1 bar in excess of atmospheric pressure.U.K.

(2)For the purposes of this Act, wine or made-wine which is not for the time being in a closed container is sparkling if it has characteristics similar to those of wine or made-wine which has been removed from a closed container and which, before removal, fell within sub-paragraph (1) above.

(3)Notwithstanding anything in sub-paragraph (1) above, wine or made-wine which is for the time being in a closed container shall not be regarded as sparkling for the purposes of the rates of duty set out above, if—

(a)the container does not have a mushroom-shaped stopper (whether solid or hollow) held in place by a tie or fastening; and

(b)the pressure in the container, measured at a temperature of 20° C, is less than 3 bars in excess of atmospheric pressure.

2U.K.For the purposes of this Act, wine or made-wine shall be regarded as having been rendered sparkling if—

(a)as a result of aeration, fermentation or any other process, it either falls within paragarph 1(1) above or takes on such characteristics as are referred to in paragraph 1(2) above; or

(b)being sparkling wine or made-wine which, by virtue only of 1(3) above, was not chargeable to duty as sparkling wine or made-wine, it is transferred into a closed container which has a mushroom-shaped stopper (whether solid or hollow) held in place by a tie or fastening.

Section 4.

SCHEDULE 2U.K. VEHICLES EXCISE DUTY

Part IU.K.

1—5.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

Part IIU.K. Amendment of Part I of Schedule 4 to the M1Vehicles (Excise) Act 1971 and the M2Vehicles (Excise) Act (Northern Ireland) 1972

Amendments made in both ActsU.K.

6(1)Part I of Schedule 4 to the Act of 1971 and the Act of 1972 (annual rates of duty on goods vehicles: general provisions) shall be amended as follows.

(2)In paragraph 1(1), for “£150" there shall be substituted “£130".

(3)In paragraph 2, for “£320" there shall be substituted “£290".

(4)(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

Section 7.

SCHEDULE 3U.K. GAMING MACHINE LICENCE DUTY

Part IU.K. Special Licences and Staggered Starting Dates for Whole-Year Licences in Respect of Premises

1U.K.The M3Betting and Gaming Duties Act 1981 shall be amended as follows.

2U.K.For section 21 there shall be substituted—

“21 Gaming machine licences.

(1)Except in the cases specified in Part I of Schedule 4 to this Act, no gaming machine (other than a two-penny machine) shall be provided for gaming on any premises situated in Great Britain unless there is for the time being in force—

(a)a licence granted under this Part of this Act with respect to the premises; or

(b)a licence so granted with respect to the machine.

(2)A licence of either kind granted under this Part of this Act shall be known as a gaming machine licence; and in this Part “ordinary licence” means a licence falling within subsection (1)(a) above and “special licence” means one falling within subsection (1)(b).

(3)A special licence may be a whole-year or half-year licence and an ordinary licence may be a whole-year, half-year or quarter-year licence; and the period for which a gaming machine licence is to be granted shall be determined by reference to the following Table.

In this Table any reference to a named region is a reference to that part of Great Britain which has been designated by the Commissioners, for the purposes of this Act, as that named region.

(4)For the purposes of this Part of this Act, any premises which consist of a means of transport shall be treated as being situated in the fourth region except in any case where the Commissioners direct that they are to be treated as being situated in another named region.”.

3After section 21 there shall be inserted the following section—

“21A Special licences.

“21A(1)No special licence shall authorise more than one machine.

(2)An application for a special licence shall only be granted if—

(a)the Commissioners are satisfied that at least nine other special licences will be granted to the applicant, for the period to which that application relates, on applications made together with that application; or

(b)at least ten special licences, granted for that period and for the time being in force, are held by the applicant.

(3)A special licence shall be taken not to be in force with respect to a gaming machine at any time when either that machine is provided for gaming on premises which are not at that time treated by section 22 below as having local authority approval under the Gaming Acts or the licence is not displayed in such manner as may be prescribed by regulations made by the Commissioners.”.

4In section 22(1), for paragraphs (a) and (b) there shall be substituted—

“(a)in the case of an ordinary licence—

(i)to whether the premises in respect of which the licence is granted have or have not local authority approval under the Gaming Acts; and

(ii)to the number of machines which it authorises; and

(b)in any case, to whether the licence authorises the provision of machines chargeable at the lower or higher rate.”.

5In section 23(1)(a), after the word “apply" there shall be inserted “to special licences and shall apply to ordinary licences".

6In section 24—

(a)subsection (1) shall cease to have effect;

(b)in subsection (2), for the words “gaming machine" there shall be substituted “whole-year ordinary licence, one half-year ordinary licence and one quarter-year" and after the word “one", in the second and fourth place, there shall be inserted “of each such";

(c)in subsection (3), after the word “licence" there shall be inserted “or licences" and at the end there shall be added “; but any gaming machine with respect to which there is in force a special licence shall be disregarded for the purposes of this subsection.";

(d)in subsection (4), there shall be added at the end “or there are special licences in force with respect to those machines";

(e)in subsections (5) and (6), in each case after the words “contravention of" there shall be inserted “section 21(1) above or"; and

(f)in subsection (6)(a)(ii), for the words “gaming machine" there shall be substituted “ordinary".

7(1)Part II of Schedule 4 shall be amended as follows.

(2)In paragraphs 6 and 8(2), the words “in respect of any premises" shall, in each case, be omitted.

(3)For sub-paragraph (3) of paragraph 7 there shall be substituted—

“(3)A gaming machine licence shall expire at the end of the period for which it is granted.”.

(4)In paragraph 8(1), for the words from “transfer" to the end there shall be substituted—

“(a)transfer an ordinary licence in respect of any premises to a successor in title to the interest in those premises of the person to whom the licence was granted; and

(b)where—

(i)a person holding special licences so requests; and

(ii)the proper officer is satisfied that it is appropriate to do so and will not result in any person holding any number of special licences less than ten,

transfer such number of special licences to such other person, as may be specified in the request.”.

(5)In paragraph 9—

(a)for the words “a gaming machine" there shall be substituted “an ordinary";

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(c)in paragraph (b), for the word “licence", where it first occurs, there shall be substituted “ordinary licence for the same period" and for the word “the", where it last occurs, there shall be substituted “any such".

(6)In paragraph 10, in sub-paragraph (1), for the words “a gaming machine" there shall be substituted “an ordinary" and in sub-paragraph (3) the words from “except" to the end shall be omitted.

(7)For sub-paragraphs (1) and (2) of paragraph 11 there shall be substituted the following sub-paragraphs—

“(1)Where the holder of a gaming machine licence surrenders it to the proper officer at a time when the licence has at least three months to run, he shall, subject to any provision made by regulations under paragraph 11A below, be entitled to a repayment of duty equal to the appropriate fraction of the duty paid on the grant of the licence, the appropriate fraction being—

(a)in the case of a half-year licence, 5 / 11ths

(b)in the case of a whole-year licence surrendered not more than three months after the date on which the period for which it was granted began, 7/10ths

(c)in the case of a whole-year licence surrendered more than three, but not more than six, months after that date, 9/20ths; and

(d)in the case of a whole-year licence surrendered more that six months after that date, 3/20ths.

(2)A special licence shall not be surrendered unless the Commissioners are satisfied that, if it is surrendered, its holder will (having regard to any other licences surrendered at the same time) hold at least ten, or cease to hold any, special licences.”

(8)In sub-paragraph (3) of paragraph 11 for the words “Sub-paragraph (2)" there shall be substituted “Sub-paragraph (1)" and for the words “that section" there shall be substituted the words “section 21(1) or 24 of this Act".

(9)After paragraph 11 there shall be inserted—

“11A Reduction of duty in certain cases

“11A(1)For the purpose of giving credit, on the taking out of a gaming machine licence in certain circumstances where duty has been paid on one or more previous licences, the Commissioners may make regulations providing that, in prescribed cases, the amount of duty payable on a gaming machine licence shall, subject to prescribed conditions, be reduced by a prescribed amount.

(2)Regulations under this paragraph may make provision modifying, or excluding, the application of paragraph 11 above in cases in which duty is reduced in accordance with the regulations.”.

(10)In paragraph 12, for the words “a gaming machine" there shall be substituted “, an ordinary".

(11)In paragraph 13, for the words from “gaming machines provided" to “in force" there shall be substituted—

“(a)gaming machines provided on any premises in respect of which an ordinary licence is in force; and

(b)gaming machines in respect of which special licences are in force”.

(12)In paragraph 17(1), for the words “section 24" there shall be substituted “section 21(1) or 24".

(13)In paragraph 18, for the words from “either" to the end of paragraph (b) there shall be substituted “the officer is satisfied, having regard to the number and description of—

(a)those machines which are authorised by the ordinary licence or licences produced to him; and

(b)those machines displaying special licences;

that there has been a contravention of section 21(1) or 24 of this Act,".

Part IIU.K. Transitional Provisions

Whole-year licences during transitional periodU.K.

8(1)A whole-year ordinary licence in respect of any premises shall, if first having effect after 30th September 1984 but before the latest date specified (in relation to the region in which the premises are situated) in the second column of the following Table, be granted for a period determined by reference to the Table.U.K.

References in this Table to named regions shall be construed as in section 21 of the M4Betting and Gaming Duties Act 1981.

(2)Where, by virtue of sub-paragraph (1) above, a whole-year licence is granted for a period of 7, 8 or 10 months, the duty payable on the licence shall be 7/12ths, 8/12ths or, as the case may be, 10/12ths of the appropriate amount set out in the relevant Table in section 23 of the Act of 1981.

(3)In relation to a whole-year licence falling within sub-paragraph (1) above, paragraph 11 of Schedule 4 to the Act of 1981 shall have effect as if—

(a)in a case falling within paragraph 11(1)(b), the appropriate fraction were 17/35ths for a seven-month licence, 11/20ths for an eight-month licence and 16/25ths for a ten-month licence;

(b)in a case falling within paragraph 11(1)(c), the appropriate fraction were 2/35ths for a seven-month licence, 7/40ths for an eight-month licence and 17/50ths for a ten-month licence; and

(c)in a case falling within paragraph 11(1)(d), no provision were made for repayment of duty.

Section 8.

Schedule 4U.K. Free Zones

Part IU.K. Provisions Inserted in M5 Customs and Excise Management Act 1979 as Part VIIIA

“Part VIIIAU.K. Free Zones

100A Designation of free zones.

(1)The Treasury may by order designate any area in the United Kingdom as a special area for customs purposes.

(2)An area so designated shall be known as a “free zone".

(3)An order under subsection (1) above—

(a)shall have effect for such period as shall be specified in the order;

(b)may be made so as to take effect, in relation to the area or any part of the area designated by a previous order under this section, on the expiry of the period specified in the previous order;

(c)shall appoint one or more persons as the responsible authority or authorities for the free zone;

(d)may impose on any responsible authority such conditions or restrictions as may be specified; and

(e)may be revoked if the Commissioners are satisfied that there has been a failure to comply with any condition or restriction.

(4)The Treasury may by order—

(a)from time to time vary—

(i)the conditions or restrictions imposed by a designation order; or

(ii)with the agreement of the responsible authority, the area designated; or

(b)appoint one or more persons as the responsible authority or authorities for a free zone either in addition to or in substitution for any person appointed as such by a designation order.

(5)In this Act “designation order" means an order made under subsection (1) above.

(6)Any order under this section shall be made by statutory instrument.

100B Free zone regulations.

(1)The Commissioners may by regulations (in this Act referred to as “free zone regulations") make provision with respect to the movement of goods into, and the removal of goods from, any free zone and the keeping, securing and treatment of goods which are within a free zone.

(2)Subject to any provision of the regulations, references in this Act to “free zone goods" are references to goods which are within a free zone.

100C Free zone goods: customs duties, etc.

(1)Subject to any contrary provision made by any directly applicable Community provision, goods which are chargeable with any customs duty or agricultural levy, or in respect of which any negative monetary compensatory amount is payable, may be moved into a free zone and may remain as free zone goods without payment of that duty, levy or amount.

(2)Except in such cases as may be specified in free zone regulations, subsection (1) above shall not apply in relation to goods which are chargeable with any excise duty unless that duty has been paid and not repaid.

(3)Without prejudice to the generality of section 100B above, free zone regulations may make provision—

(a)for enabling the Commissioners to allow goods to be removed from a free zone without payment of customs duty, agricultural levy, or any negative monetary compensatory amount, in such circumstances and subject to such conditions as they may determine;

(b)for determining, where any customs duty, agricultural levy or negative monetary compensatory amount becomes payable in respect of goods which cease to be free zone goods—

(i)the rates of any duty, levy or monetary compensatory amount applicable; and

(ii)the time at which those goods cease to be free zone goods;

(c)for determining, for the purpose of enabling customs duty or agricultural levy to be charged or any negative monetary compensatory amount to be paid in respect of free zone goods in a case where a person wishes to pay that duty or levy or to receive the negative monetary compensatory amount notwithstanding that the goods will continue to be free zone goods, the rate of duty, levy or negative monetary compensatory amount to be applied; and

(d)permitting free zone goods to be destroyed without payment of any customs duty, agricultural levy or negative monetary compensatory amount in such circumstances and subject to such conditions as the Commissioners may determine.

(4)Without prejudice to the generality of section 100B above, free zone regulations may make provision—

(a)for relief from the whole or part of any value added tax chargeable on the importation of goods into the United Kingdom in such circumstances as they may determine;

(b)in place of, or in addition to, any provision made by section 4 or 5 of the Value Added Tax Act 1983 or any other enactment, for determining the time when a supply of goods which are or have been free zone goods is to be treated as taking place for the purposes of the charge to value added tax; and

(c)as to the treatment, for the purposes of value added tax, of goods which are manufactured or produced within a free zone from other goods or which have other goods incorporated in them while they are free zone goods.

(5)In this section—

• “agricultural levy” means any tax or charge, not being a customs duty, provided for under the common agricultural policy or under any special arrangements which, pursuant to Article 235 of the EEC Treaty, are applicable to goods resulting from the processing of agricultural products;

• “negative monetary compensatory amount” means an amount granted on importation under the Regulation of the Commission of the European Communities dated 19th May 1981 No. 1371/81 or any Community provision for the time being amending or replacing that Regulation.

100D Free zone regulations: supplemental.

(1)Without prejudice to the generality of section 100B above, free zone regulations may make provision—

(a)specifying the circumstances in which goods which are within a free zone are to be treated, for the purposes of this Act and the regulations, as not being free zone goods;

(b)specifying the circumstances in which goods which are not within a free zone are to be treated, for those purposes, as being within a free zone;

(c)requiring any goods which are within a free zone to be produced to, or made available for inspection by, an officer on request by him;

(d)imposing, or providing for the Commissioners to impose by direction, conditions and restrictions to which free zone goods are to be subject;

(e)prohibiting the carrying out on free zone goods of operations other than those prescribed by, or allowed under, the regulations;

(f)requiring any permitted operations to be carried out in such manner and subject to such conditions and restrictions as may be imposed by or under the regulations ;

(g)imposing, or providing for the Commissioners to impose by direction, obligations on responsible authorities in relation to the security of free zones and in respect of conditions and restrictions imposed by designation orders;

(h)enabling the Commissioners to recover from any responsible authority expenditure incurred by the Commissioners in consequence of any failure by that authority to comply with any requirements imposed by or under the regulations;

(i)imposing, or providing for the Commissioners to impose by direction, requirements on the occupier of any premises, or proprietor of any goods, within a free zone to keep and preserve records relating to his business as such an occupier or proprietor and to produce them to an officer when required to do so for the purpose of allowing him—

(i)to inspect them;

(ii)to copy or take extracts from them; or

(iii)to remove them at a reasonable time and for a resonable period;

(j)imposing, or providing for the Commissioners to impose by direction, on the responsible authority requirements in connection with any provision made by virtue of paragraph (i) above;

(k)providing for the Commissioners to specify by direction the information which must be given to them in connection with free zone goods and the form in which, persons by whom and time within which, it must be given;

(l)for the forfeiture of goods in the event of non-compliance with any condition or restriction imposed by virtue of paragraph (f) above or in the event of the carrying out of any operation on free zone goods which is not by virtue of paragraph (e) above permitted to be carried out on such goods.

(2)Free zone regulations may make different provision for goods or services of different classes or descriptions or for goods or services of the same class or description in different circumstances.

(3)If any person fails to comply with any free zone regulation or with any condition, restriction or requirement imposed under a free zone regulation he shall be liable on summary conviction to a penalty of level 3 on the standard scale together with a penalty of £20 for each day on which the failure continues.

100E Control of trading in free zones.

(1)No person shall carry on any trade or business in a free zone unless he is authorised to do so by the Commissioners.

(2)An authorisation under this section may be granted for such period and subject to such conditions as the Commissioners consider appropriate.

(3)The Commissioners may at any time for reasonable cause revoke, or vary the terms of, any authorisation under this section.

(4)If any person—

(a)contravenes subsection (1) above, or

(b)fails to comply with any condition imposed under subsection (2) above,

he shall be liable on summary conviction to a penalty of level 3 on the standard scale.

100F Powers of search.

(1)Any person entering or leaving a free zone shall answer such questions as any officer may put to him with respect to any goods and shall, if required by the officer, produce those goods for examination at such place as the Commissioners may direct.

(2)At any time while a vehicle is entering or leaving a free zone, any officer may board the vehicle and search any part of it.

(3)Any officer may at any time enter upon and inspect a free zone and all buildings within the zone.”

Part IIU.K. Further Amendments of 1979 Act

1U.K.In section 1 (interpretation) the following definitions shall be inserted at the appropriate places—

““designation order” has the meaning given by section 100A(5);

“free zone” has the meaning given by section 100A(2);

“free zone goods” has the meaning given by section 100B(2);

“free zone regulations” has the meaning given by section 100B(1);.”

2U.K. In section 31(1) (power to make regulations controlling the movement of goods)—

(a)in paragraph (a) after the words “clearance out of charge of such goods" there shall be inserted the words “ , a free zone ”; and

(b)after paragraph (a) there shall be inserted—

“(aa)the movement of goods between—

(i)a free zone and a place approved by the Commissioners for the clearance out of charge of such goods,

(ii)such a place and a free zone, and

(iii)a free zone and another free zone;”.

3In section 37 (entry of goods on importation)—

(a)in subsection (2), the following paragraph shall be inserted after paragraph (a)—

“(aa)free zone goods (other than goods which are chargeable with any excise duty);”

(b)in subsection (3), the following shall be inserted after paragraph (a)—

“(aa)in the case of goods which are chargeablewith any excise duty, as free zone goods;”.

4U.K.In section 119(1) (delivery of imported goods on giving of security for duty) after “warehouse" there shall be inserted the words “ or free zone ”.

5U.K.In section 159 (power to examine and take account goods), in subsection (1) there shall be inserted after paragraph (b)—

“(bb)which are in a free zone; or”.

6U.K.In section 164 (power to search persons) in subsection (4) there shall be inserted after paragraph (e)—

“(ee)any person in, entering or leaving a free zone;”.

Section 9.

Schedule 5U.K. Entry on Importation:

M6 Amendment of Customs and Excise Management Act 1979U.K.

1In paragraph (d) of subsection (3) of section 37 (entry of goods on importation for inward processing) after the words “inward processing" there shall be inserted the words “or other processing under Community arrangements".

2U.K.The following sections shall be inserted after section 37—

“37A Initial and supplementary entries.

(1)Without prejudice to section 37 above, a direction under that section may—

(a)provide that where the importer is authorised for the purposes of this section, the entry may consist of an initial entry and a supplementary entry; and

(b)may make such supplementary provision in connection with entries consisting of initial and supplementary entries as the Commissioners think fit.

(2)Where an initial entry of goods has been accepted the goods may, on the importer giving security by deposit of money or otherwise to the satisfaction of the Commissioners for payment of the unpaid duty, be delivered without payment of any duty chargeable in respect of the goods, but any such duty shall be paid within such time as the Commissioners may direct.

(3)An importer who makes an initial entry shall complete the entry by delivering the supplementary entry within such time as the Commissioners may direct.

(4)For the purposes of the customs and excise Acts an entry of goods shall be taken to have been delivered when an initial entry of the goods has been delivered, and accepted when an initial entry has been accepted.

37B Postponed entry.

(1)The Commissioners may, if they think fit, direct that where—

(a)such goods as may be specified in the direction are imported by an importer authorised for the purposes of this subsection;

(b)the importer has delivered a document relating to the goods to the proper officer, in such form and manner, containing such particulars and accompanied by such documents as the Commissioners may direct; and

(c)the document has been accepted by the proper officer.

the goods may be delivered before an entry of them has been delivered or any duty chargeable in respect of them has been paid.

(2)The Commissioners may, if they think fit, direct that where—

(a)such goods as may be specified in the direction are imported by an importer authorised for the purposes of this subsection;

(b)the goods have been removed from the place of importation to a place approved by the Commissioners for the clearance out of charge of such goods; and

(c)the conditions mentioned in subsection (3) below have been satisfied,

the goods may be delivered before an entry of them has been delivered or any duty chargeable in respect of them has been paid.

(3)The conditions are that—

(a)on the arrival of the goods at the approved place the importer delivers to the proper officer a notice of the arrival of the goods in such form and containing such particulars as may be required by the directions;

(b)within such time as may be so required the importer enters such particulars of the goods and such other information as may be so required in a record maintained by him at such place as the proper officer may require; and

(c)the goods are kept secure in the approved place for such period as may be required by the directions.

(4)The Commissioners may direct that the condition mentioned in subsection (3)(a) above shall not apply in relation to any goods specified in the direction and such a direction may substitute another condition.

(5)No goods shall be delivered under this section unless the importer gives security by deposit of money or otherwise to the satisfaction of the Commissioners for the payment of any duty chargeable in respect of the goods which is unpaid.

(6)Where goods of which no entry has been made have been delivered under this section, the importer shall deliver an entry of the goods under section 37(1) above within such time as the Commissioners may direct.

(7)For the purposes of section 43(2)(a) below such an entry shall be taken to have been accepted—

(a)in the case of goods delivered by virtue of a direction under subsection (1) above, on the date on which the document mentioned in that subsection was accepted; and

(b)in the case of goods delivered by virtue of a direction under subsection (2) above, on the date on which particulars of the goods were entered as mentioned in subsection (3)(b) above.

37C Provisions supplementary to ss. 37A and 37B.

(1)The Commissioners may, if they think fit—

(a)authorise any importer for the purposes of section 37A, or 37B(1) or (2) above; and

(b)suspend or cancel the authorisation of any importer where it appears to them that he has failed to comply with any requirement imposed on him by or under this Part of this Act or that there is other reasonable cause for suspension or cancellation.

(2)The Commissioners may give directions—

(a)imposing such requirements as they think fit on any importer authorised under this section; or

(b)varying any such requirements previously imposed.

(3)If any person without reasonable excuse contravenes any requirement imposed by or under section 37A, 37B or this section he shall be liable on summary conviction to a penalty of level 4 on the standard scale.”

3In section 171 (general provisions as to offences and penalties) after subsection (2) there shall be inserted the following subsection—

“(2A)In this Act “the standard scale" has the meaning assigned to it by section 75 of the Criminal Justice Act 1982 and for the purposes of this subsection—

(a)section 37 of that Act; and

(b)an order under section 143 of the Magistrates’ Courts Act 1980 which alters the sums specified in subsection (2) of section 37.

shall extend to Northern Ireland, and section 75 of the 1982 Act shall have effect as if after the words “England and Wales" there were inserted the words “or Northern Ireland" ”.

Section 10.

Schedule 6U.K. Modifications of Schedule 5 to M7 Value Added Tax Act 1983

Part IU.K. Food

1In Group 1 (Food), in Note (3) (which provides that a supply in the course of catering includes a supply for consumption on the premises) after the word “includes" there shall be inserted “(a)" and at the end of the Note there shall be added “and

(b)any supply of hot food for consumption off those premises;

and for the purpose of paragraph (b) above “hot food" means food which, or any part of which,—

(i)has been heated for the purpose of enabling it to be consumed at a temperature above the ambient air temperature; and

(ii)is at the time of the supply above that temperature.”

Part IIU.K.

F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

2—7.

Part IIIU.K. Protected Buildings

8After Group 8 there shall be inserted the following—

“ Group 8A-Protected BuildingsU.K.

Item No.

1

The granting by a person substantially reconstructing a protected building, of a major interest in, or in any part of, the building or its site.

2

The supply, in the course of an approved alteration of a protected building, of any services other than services of an arcitect, surveyor or any person acting as consultant or in a supervisory capacity.

Notes

(1)“Protected building” means a building which is—

(a)a listed building, within the meaning of—

(i)the Town and Country Planning Act 1971; or

(ii)the Town and Country Planning (Scotland) Act 1972; or

(iii)the Planning (Northern Ireland) Order 1972 or

(b)a scheduled monument, within the meaning of—

(i)the Ancient Monuments and Arcaelogical Areas Act 1979; or

(ii)the Historic Monuments Act (Northern Ireland) 1971.

(2)For the purposes of item 1, a protected building shall not be regarded as substantially reconstructed unless the reconstruction is such that at least one of the following conditions is fulfilled when the reconstruction is completed—

(a)that, of the works carried out to effect the reconstruction, at least three-quarters, measured by reference to cost, are of such a nature that the supply of services (other than excluded services) materials and other items to carry out the works, would, if supplied by a taxable person, be within either item 2 of this Group or item 3 of Group 8 above, as it applies to a supply by a person supplying services within item 2 of this Group; and

(b)that the reconstructed building incorporates no more of the original building (that is to say, the building as it was before the reconstruction began) than the external walls, together with other external features of architectural or historic interest;

and, in paragraph (a) above “excluded services” means the services of an architect, surveyor or other person acting as consultant or in a supervisory capacity.

(3)“Approved alteration” means,—

(a)in the case of a protected building which is an ecclesiastical building which is for the time being used for ecclesiastical purposes or would be so used but for the works in question, any works of alteration; and

(b)in the case of a protected building which is a scheduled monument within the meaning of the Historic Monuments Act (Northern Ireland) 1971 and in respect of which a protection order, within the meaning of that Act, is in force, works of alteration for which consent has been given under section 10 of that Act; and

(c)in any other case, works of alteration which may not, or but for the existence of a Crown interest or Duchy interest could not, be carried out unless authorised under, or under any provision of,—

(i)Part IV of the Town and Country Planning Act 1971,

(ii)Part IV of the Town and Country Planning (Scotland) Act 1972,

(iii)Part V of the Planning (Northern Ireland) Order 1972, or

(iv)Part I of the Ancient Monuments and Archaelogical Areas Act 1979,

and for which, except in the case of a Crown interest or Duchy interest, consent has been obtained under any provision of that Part;

and in paragraph (c) above “Crown interest" and “Duchy interest" have the same meaning as in section 50 of the said Act of 1979.

(4)For the purposes of paragraph (a) of Note (3), a building used or available for use by a minister of religion wholly or mainly as a residence from which to perform the duties of his office shall be treated as not being an ecclesiastical building.

(5)Where the benefit of the consideration for the grant of a major interest as described in item 1 accrues to the person substantially reconstructing the protected building but that person is not the grantor, he shall be treated for the purposes of that item as the person making the grant.

(6)In item 2 “alteration" does not include repair or maintenance; and where any work consists partly of an approved alteration and partly of other work, an apportionment shall be made to determine the supply which falls within item 2.

(7)Note (2) to Group above applies in relation to item 2 of this Group as it applies in relation to item 2 of that Group.”

F5F5Schedules 7—9U.K.

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

F6F6SCHEDULE 10U.K.

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

Section 50(1)

SCHEDULE 11U.K. FURNISHED HOLIDAY LETTINGS

Treatment of lettings as a trade for certain purposesU.K.

1(1)Subject to the provisions of this Schedule, for the purposes of the provisions mentioned in sub-paragraph (2) below—

(a)the commercial letting of furnished holiday accommodation in respect of which the profits or gains are chargeable under Case VI of Schedule D shall be treated as a trade; and

(b)all such lettings made by a particular person or partnership or body of persons shall be treated as one trade.

(2)The provisions mentioned in sub-paragraph (1) above are—

(a)—(e). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F7

2, 3.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F8

Capital gains taxU.K.

4(1)Subject to sub-paragraph (2) below, for the purposes of the provisions mentioned in sub-paragraph (2)(f) to (i) of paragraph 1 above as they apply by virtue of that paragraph, where in any year of assessment a person makes a commercial letting of furnished holiday accommodation—

(a)the accommodation shall be taken to be used in that year only for the purposes of the trade of making such lettings; and

(b)that trade shall be taken to be carried on throughout that year.

(2)Sub-paragraph (1) above does not apply to any period in a year of assessment during which the accommodation is neither let commercially nor available to be so let unless it is prevented from being so let or available by any works of construction or repair.

5Where—

(a)a gain to which section 101 of the Capital Gains Tax Act 1979 (relief on disposal of private residence) applies accrues to any individual on the disposal of an asset; and

(b)by virtue of paragraph 1 above the amount or value of the consideration for the acquisition of the asset is treated as reduced under section 115 or 116 of that Act,

the gain to which section 101 applies shall be reduced by the amount of the reduction mentioned in paragraph (b) above.

Power to make apportionmentsU.K.

6Where there is a letting of accommodation only part of which is holiday accommodation such apportionments shall be made for the purposes of this Schedule as appear to the inspector, or on appeal the Commissioners, to be just and reasonable.

Adjustments of tax chargedU.K.

7Where a person has been charged to . . . F9 capital gains tax otherwise than in accordance with the provisions of this Schedule, such assessment, reduction or discharge of an assessment or, where a claim for repayment is made, such repayment, shall be made as may be necessary to give effect to those provisions.

F10F10SCHEDULE 12U.K.

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

Section 64.

SCHEDULE 13U.K. QUALIFYING CORPORATE BONDS

PART IU.K. APPLICATION OF PROVISIONS RELATING TO GILT-EDGED SECURITIES

Capital Gains Tax Act 1979U.K.

1In section 64 of the Capital Gains Tax Act 1979 (interpretation provisions relating to shares and securities) after the definition of “gilt-edged securities" there shall be inserted—

““qualifying corporate bonds" has the meaning given by section 64 of the Finance Act 1984”

2, 3.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F11

Other enactmentsU.K.

4U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12

5U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13

6In Schedule 6 to the Finance Act 1983 (election for pooling) in paragraph 1(2) (definition of qualifying securities) after paragraph (a) there shall be inserted—

“(aa)qualifying corporate bonds, as defined in section 64 of the Finance Act 1984; nor”.

PART IIU.K. REORGANISATIONS, CONVERSIONS, RECONSTRUCTIONS ETC.

7(1)In this Part of this Schedule “relevant transaction” means a reorganisation, conversion of securities or other transaction such as is mentioned in subsection (7) of section 64 of this Act.

(2)Where the qualifying corporate bond referred to in paragraph (b) of that subsection would constitute the original shares for the purposes of sections 78 to 81 of the principal Act, it is in this Part of this Schedule referred to as “the old asset" and the shares or securities which would constitute the new holding for those purposes are referred to as “the new asset".

(3)Where the qualifying corporate bond referred to in section 64(7)(b) of this Act would constitute the new holding for the purposes of sections 78 to 81 of the principal Act, it is in this Part of this Schedule referred to as “the new asset" and the shares or securities which would constitute the original shares for those purposes are referred to as “the old asset".

(4)In this Part of this Schedule “the principal Act” means the Capital Gains Tax Act 1979.

8(1)So far as the relevant transaction relates to the old asset and the new asset, sections 78 to 81 of the principal Act shall not apply in relation to it.

(2)In accordance with sub-paragraph (1) above, the new asset shall not be treated as having been acquired on any date other than the date of the relevant transaction or, subject to sub-paragraphs (3) and (4) below, for any consideration other than the market value of the old asset as determined immediately before that transaction.

(3)If, on the relevant transaction, the person concerned receives, or becomes entitled to receive, any sum of money which, in addition to the new asset, is by way of consideration for the old asset, that sum shall be deducted from the consideration referred to in sub-paragraph (2) above.

(4)If, on the relevant transaction, the person concerned gives any sum of money which, in addition to the old asset, is by way of consideration for the new asset, that sum shall be added to the consideration referred to in sub-paragraph (2) above.

9In any case where—

(a)the old asset consists of a qualifying corporate bond, . . . F14

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14

then, so far as it relates to the old asset and the new asset, the relevant transaction shall be treated for the purposes of that Act as a disposal of the old asset and an acquisition of the new asset.

10(1)Except in a case falling within paragraph 9 above, so far as it relates to the old asset and the new asset, the relevant transaction shall be treated for the purposes of the principal Act as not involving any disposal of the old asset but—

(a)there shall be calculated the chargeable gain or allowable loss that would have accrued if, at the time of the relevant transaction, the old asset had been disposed of for a consideration equal to its market value immediately before that transaction; and

(b)subject to paragraph 11 below, the whole or a corresponding part of the chargeable gain or allowable loss mentioned in paragraph (a) above shall be deemed to accrue on a subsequent disposal of the whole or part of the new asset (in addition to any gain or loss that actually accrues on that disposal); and

(c)[F15on that subsequent disposal section 67 of the principal Act] shall have effect only in relation to any gain or loss that actually accrues and not in relation to any gain or loss which is deemed to accrue by virtue of paragraph (b) above.

(2)Paragraphs (b) and (c) of sub-paragraph (1) above shall not apply to any disposal falling within the provisions of—

(a)section 44(1) of the principal Act (disposals between husband and wife); or

(b)section 49(4) of that Act (disposals by personal representatives to legatees); or

[F16(bb)section 267 of the Taxes Act (company reconstructions and amalgamations); or]

(c)section 273(1) [F17or 273A] of the Taxes Act (disposals within a group of companies);

but a person who has acquired the new asset on a disposal falling within those provisions (and without there having been a previous disposal [F16not] falling within those provisions or a devolution on death) shall be treated for the purposes of paragraphs (b) and (c) of sub-paragraph (1) above as if the new asset had been acquired by him at the same time and for the same consideration as, having regard to paragraph 8 above, it was acquired by the person making the disposal.

11(1)In any case where—

(a)on the calculation under paragraph 10(1)(a) above, a chargeable gain would have accrued, and

(b)the consideration for the old asset includes such a sum of money as is referred to in paragraph 8(3) above,

then, subject to sub-paragraph (2) below, the proportion of that chargeable gain which that sum of money bears to the market value of the old asset immediately before the relevant transaction shall be deemed to accrue at the time of that transaction.

(2)If the inspector is satisfied that the sum of money referred to in sub-paragraph (1)(b) above is small, as compared with the market value of the old asset immediately before the relevant transaction, and so directs, sub-paragraph (1) above shall not apply.

(3)In a case where sub-paragraph (1) above applies, the chargeable gain which, apart from this paragraph, would by virtue of paragraph 10(1)(b) above be deemed to accrue on a subsequent disposal of the whole or part of the new asset shall be reduced or, as the case may be, extinguished by deducting therefrom the amount of the chargeable gain which, by virtue of sub-paragraph (1) above, is deemed to accrue at the time of the relevant transaction.

[F1812(1)This paragraph applies in a case where—

(a)the new asset mentioned in paragraph 10 above is a qualifying corporate bond in respect of which an allowable loss is treated as accruing under section 136A(2) of the principal Act, and

(b)the loss is treated as accruing at a time falling after the relevant transaction but before any actual disposal of the new asset subsequent to the relevant transaction.

(2)For the purposes of paragraph 10 above, a subsequent disposal of the new asset shall be treated as occurring at (and only at) the time the loss is treated as accruing.]

Section 70.

SCHEDULE 14U.K. BENEFICIARY’S LIABILITY FOR TAX ON GAINS OF NON-RESIDENT TRUSTEES

InterpretationU.K.

1(1)In this Schedule—

• “attributed gain”, in relation to the beneficiary, means the chargeable gain which, as mentioned in paragraph (b) of subsection (1) of the principal section, is treated as accruing to him;

• “the beneficiary” means the beneficiary referred to in that paragraph and paragraph (c) of that subsection;

• “claim” means a claim under paragraph 2(1) below;

• “close relative”, in relation to any person, means his spouse or a child or remoter descendant of his;

• “ineligible gain" shall be construed in accordance with paragraph 2(3) below;

• “offshore income gain” has the same meaning as in Chapter [F19V of Part XVII of the Taxes Act 1988] of this Act;

• “the principal Act” means the Capital Gains Tax Act 1979;

• “the principal section” means section 70 of this Act;

• “related settlement" shall be construed in accordance with paragraph 5(6) below;

• “relevant benefit" shall be construed in accordance with paragraph 5 below; and

• “the relevant year of assessment”, in relation to an attributed gain, means the year of assessment in which the gain is treated as accruing to the beneficiary.

(2)Subject to subsection (4) of the principal section, section 83 of the Finance Act 1981 (meaning of “capital payment” etc.) applies for the purposes of this Schedule as it applies for the purposes of sections 80 to 82 of that Act.

(3)In any case where the beneficiary is a married woman, any reference in the following provisions of this Schedule to the payment of capital gains tax by the beneficiary shall be construed as including a reference to the payment by her husband of capital gains tax which, under subsection (1) of section 45 of the principal Act, is assessed and charged on him.

Claims for postponement of taxU.K.

2(1)Subject to sub-paragraph (3) below, in a case falling within the principal section, the provisions of this Schedule have effect to determine whether, on a claim made to the Board, payment of any of the capital gains tax referable to an attributed gain may be postponed and, if so, to what extent and for how long.

(2)A claim must be made before 1st July 1985 or, if it is later, the expiry of the period of thirty days beginning with the date of the issue of a notice of assessment requiring the payment of an amount of capital gains tax assessed, in whole or in part, by reason of an attributed gain to which the claim relates.

(3)The provisions of this Schedule do not have effect to allow postponement of the payment of the capital gains tax referable to an attributed gain if the capital gains tax chargeable on the gain—

(a)has previously been postponed under section 17(4)(b) of the principal Act (pre-6th April 1965 settlements); or

(b)subject to sub-paragraph (4) below, carries interest, by virtue of section 88(1) of the Taxes Management Act 1970 (interest on tax recovered to make good tax lost due to fraud, wilful default or neglect), from the date on which the tax ought to have been paid until payment;

and an attributed gain falling within paragraph (a) or paragraph (b) above is in this Schedule referred to as an ineligible gain.

(4)Sub-paragraph (3)(b) above does not apply where the tax carries interest by reason only of the neglect of any person and that neglect is remedied before 1st July 1985.

(5)In relation to a claim, any reference in this Schedule to an attributed gain to which the claim relates is a reference to such a gain—

(a)which is specified in the claim, and

(b)which is not an ineligible gain, and

(c)in respect of which the claim is not out of time by virtue of sub-paragraph (2) above,

and any reference to the settlement to which the claim relates is a reference to the settlement under which the beneficiary is a beneficiary and to the trustees of which accrued the chargeable gain which gives rise to the attributed gain or gains to which the claim relates.

(6)In a case where a claim relates to attributed gains accruing to the beneficiary by virtue of more than one settlement, the provisions of this Schedule shall have effect as if there were separate claims, each relating to the attributed gain or gains accruing by virtue of a single settlement.

(7)Without prejudice to the application of sub-paragraph (2) above in a case where the personal representatives of the beneficiary receive a notice of assessment requiring the payment by them of an amount of capital gains tax assessed, in whole or in part, by reason of an attributed gain, if—

(a)before his death the beneficiary or, where paragraph 1(3) above applies, the beneficiary’s husband received a notice of assessment requiring the payment by him of such an amount of capital gains tax, and

(b)at the time of his death the period within which he might make a claim in respect of any of the tax assessed by that notice had not expired,

a claim by his personal representatives relating to that tax may be made at any time before the expiry of the period of six months beginning on the date of the death of the beneficiary or, as the case may be, her husband (or, if it is later, before 1st July 1985).

(8)In relation to any claim by the personal representatives of the beneficiary, references in this Schedule to the postponement of the payment of any tax shall be construed as references to the discharge of that tax and, accordingly, paragraphs 11 and 12 below do not apply where a claim is made by the personal representatives.

Tax referable to attributed gainsU.K.

3Any reference in this Schedule to the tax referable to an attributed gain is a reference to the amount determined by multiplying the total capital gains tax on chargeable gains accruing to the beneficiary in the relevant year of assessment by a fraction—

(a)of which the numerator is the amount of the attributed gain; and

(b)the denominator is the total of the chargeable gains accruing to the beneficiary in the relevant year of assessment.

Initial calculations relevant to tax which may be postponedU.K.

4(1)Where a claim is made, the determination referred to in paragraph 2(1) above shall, in the first instance, be made (in accordance with paragraph 6 below) by reference to—

(a)the amount defined in sub-paragraph (4) below as the unpaid tax;

(b)the amount defined in sub-paragraph (5) below as the tax already paid; and

(c)the aggregate value of any relevant benefits which, by virtue of paragraph 5 below, fall to be taken into account in relation to the claim.

(2)Subject to sub-paragraph (3) below, in this paragraph and paragraph 5 below “the base year” means the year of assessment which precedes the relevant year of assessment in relation to the attributed gain or, as the case may be, the earliest of the attributed gains to which the claim relates.

(3)Where the relevant year of assessment referred to in sub-paragraph (2) above is the year 1965-66, the base year is also that year of assessment.

(4)In relation to a claim, “the unpaid tax” means the amount of tax—

(a)which is referable to the attributed gain (or attributed gains) to which the claim relates; and

(b)which remains unpaid at the date of the claim.

(5)In relation to a claim, “the tax already paid” means the amount of tax—

(a)which has been paid at the date of the claim, excluding any tax which was so paid, or is or was otherwise borne, by the trustees of the settlement to which the claim relates; and

(b)which is referable to any attributed gains—

(i)which have accrued to the beneficiary by virtue of the settlement to which the claim relates; and

(ii)for which the relevant year of assessment is, or is later than, the base year; and

(iii)which are not ineligible gains.

Relevant benefitsU.K.

5(1)The provisions of this paragraph have effect to determine what are the relevant benefits to be taken into account (as mentioned in paragraph 4(1)(c) above) in relation to a claim; and in the following provisions of this paragraph “the calculation period” means the period beginning at the beginning of the base year and ending on 9th March 1981.

(2)Subject to sub-paragraph (3) below, if, under or by reference to the settlement to which the claim relates or a related settlement, the beneficiary received a capital payment from the trustees of the settlement—

(a)at any time in the calculation period, or

(b)after the end of that period but before 6th April 1984, in so far as that payment represented a chargeable gain which, before 6th April 1981, accrued to the trustees of the settlement to which the claim relates,

the amount of that capital payment is a relevant benefit.

(3)In any case where, apart from this sub-paragraph, sub-paragraph (2) above would bring into account, as a relevant benefit in relation to a claim, a capital payment received under or by reference to a related settlement, and either—

(a)on a claim relating to the related settlement, the payment falls to be taken into account under this paragraph as a relevant benefit, or

(b)it appears to the Board to be likely that the payment will fall to be so taken into account on a claim relating to the related settlement,

the payment shall not be taken into account as a relevant benefit in relation to the claim referred to in sub-paragraph (2) above except to the extent that it constitutes a surplus benefit by virtue of paragraph 6(5) below.

(4)If, at any time in the period beginning at the beginning of the base year and ending at the beginning of the year of assessment in which the claim is made, the beneficiary disposed of his interest in the settlement to which the claim relates in circumstances such that, by virtue of section 58(1) of the principal Act, no chargeable gain could accrue on the disposal, then the amount or value of the consideration for the disposal is a relevant benefit.

(5)Where the disposal referred to in sub-paragraph (4) above was made before 6th April 1984, the reference in that sub-paragraph to the consideration for the disposal shall be construed as a reference only to such consideration (if any) as was actually given for the disposal.

(6)For the purposes of this Schedule, a settlement is a related settlement in relation to the settlement to which a claim relates if, by the exercise in the base year or later (whether before or after the making of the claim) of a power conferred by one of the settlements, or by the combination of such an exercise and any other transactions, property of any description forming part of the settled property of one of the settlements is at any time appointed to the other settlement or otherwise dealt with so as to increase the value of the settled property of the other settlement.

The basic rules as to postponementU.K.

6(1)Unless on a claim the aggregate of—

(a)the unpaid tax (as defined in paragraph 4(4) above), and

(b)the tax already paid (as defined in paragraph 4(5) above),

exceeds 30 per cent. of the aggregate of the relevant benefits referred to in paragraph 4(1)(c) above, there is no postponement of the payment of any of the capital gains tax referable to the attributed gains to which the claim relates.

(2)Subject to the following provisions of this Schedule, the amount of capital gains tax payment of which is, on a claim, postponed by virtue of this Schedule is whichever is the smaller of—

(a)the unpaid tax; and

(b)the amount of the excess referred to in sub-paragraph (1) above;

and, where the amount in paragraph (b) above is the smaller, payment of tax assessed for a later year shall be postponed in priority to payment of tax assessed for an earlier year.

(3)Without prejudice to paragraph 2(8) above, if at any time after a claim is made the beneficiary dies, any tax the payment of which would, by virtue of this Schedule, still be postponed at the date of his death shall be discharged on that date.

(4)Notwithstanding anything in Part IX of the Taxes Management Act 1970 (interest on overdue tax), where payment of an amount of capital gains tax is postponed by virtue of this Schedule none of that tax shall carry interest (or be taken to have carried interest) for any period before the time when the tax becomes payable in accordance with paragraph 11 below.

(5)In any case where, by virtue of sub-paragraph (1) above, there is on a claim no postponement of the payment of capital gains tax, there shall be determined—

(a)whether there would still be no postponement if there were left out of account all relevant benefits (if any) referable to capital payments received under or by reference to a related settlement, and

(b)if so, what is the excess of all the other relevant benefits over 3;FO’ times the aggregate of the tax referred to in paragraphs (a) and (b) of sub-paragraph (1) above,

and so much of those other relevant benefits as are referable to capital payments falling within sub-paragraph (2) of paragraph 5 above and equal (or do not exceed) that excess shall be regarded as a surplus benefit for the purposes of sub-paragraph (3) of that paragraph.

Effect of subsequent capital payments received by the beneficiaryU.K.

7(1)The provisions of this paragraph apply if—

(a)on a claim there would, in accordance with paragraph 6(2) above, be an amount of capital gains tax payment of which is postponed by virtue of this Schedule; but

(b)before the beginning of the year of assessment in which the claim is made, the beneficiary has received from the trustees of the settlement to which the claim relates or a related settlement a capital payment which is not a relevant benefit and has not been brought into account under subsections (3) and (4) of section 80 of the Finance Act 1981 (new provisions as to gains of non-resident settlements) in determining whether chargeable gains or offshore income gains should be attributed to the beneficiary by reference to any trust gains for any previous year of assessment.

(2)If the amount of capital gains tax referred to in paragraph (a) of sub-paragraph (1) above exceeds 30 per cent. of the aggregate of the amount of the capital payments which fall within paragraph (b) of that sub-paragraph, then, subject to paragraph 9 below, the amount of capital gains tax payment of which is postponed by virtue of this Schedule is an amount equal to that excess.

(3)If the amount of capital gains tax referred to in paragraph (a) of sub-paragraph (1) above is less than or equal to 30 per cent. of the aggregate of the amount of the capital payments which fall within paragraph (b) of that sub-paragraph, then there is no postponement of the payment of any of that capital gains tax.

(4)In any case where—

(a)the amount of capital gains tax referred to in sub-paragraph (1)(a) above equals or exceeds 30 per cent. of the aggregate of those capital payments falling within sub-paragraph (1)(b) above which the beneficiary has received from the trustees of the settlement to which the claim relates, and

(b)apart from this paragraph, those capital payments would fall to be brought into account under subsections (3) and (4) of section 80 of the Finance Act 1981 (new provisions as to gains of non-resident settlements) in determining whether chargeable gains or offshore income gains should be attributed to the beneficiary by reference to any trust gains for the year of assessment in which the claim is made.

then, as respects that year of assessment and any subsequent year, those capital payments shall be left out of account for the purposes of the said subsections (3) and (4).

(5)If any case where—

(a)the condition in sub-paragraph (4)(a) above is not fulfilled, but

(b)the condition in sub-paragraph (4)(b) above is fulfilled,

then, as respects the year of assessment in which the claim is made and any subsequent year, so much of the capital payments referred to in sub-paragraph (4) above as is equal to 3½ times the amount of capital gains tax referred to in sub-paragraph (1)(a) above shall be left out of account for the purposes of subsections (3) and (4) of section 80 of the Finance Act 1981.

(6)Where, by virtue of sub-paragraph (4) or sub-paragraph (5) above, the whole or any part of a capital payment falls to be left out of account as mentioned in that sub-paragraph,—

(a)the payment shall to the same extent be left out of account for the purposes of the application on any other occasion of any provision of paragraphs 7 to 12 of this Schedule; and

(b)section [F20740 of the Taxes Act 1988] (transfer of assets abroad: liability of non-transferors) shall have effect in relation to a benefit received by the beneficiary which, in whole or in part, consists of that payment as if, in the year of assessment in which the claim is made, chargeable gains equal to so much of that payment as falls to be so left out of account were, by reason of that payment, treated under section 80 of that Act as accruing to the beneficiary.

(7)Where any capital payments falling within sub-paragraph (1)(b) above which the beneficiary has received from the trustees of the settlement to which the claim relates are not such as are referred to in sub-paragraph (4)(b) above, sub-paragraph (6)(a) above shall apply to each of those payments in like manner as if it had been such a payment as is referred to in sub-paragraph (4)(b) above and the amount of it to be left out of account had been determined accordingly under sub-paragraph (4) or sub-paragraph (5) above.

8(1)The provisions of this paragraph apply if, in a case where paragraph 7 above applies, the amount of capital gains tax referred to in sub-paragraph (1)(a) of that paragraph exceeds 30 per cent. of the aggregte of those capital payments falling within sub-paragraph (1)(b) of that paragraph which the beneficiary has received from the trustees of the settlement to which the claim relates.

(2)In the following provisions of this paragraph—

(a)the capital payments falling within sub-paragraph (1)(b) of paragraph 7 above which the beneficiary has received otherwise than from the trustees of the settlement to which the claim relates are referred to as “related payments"; and

(b)any of those related payments which, apart from this paragraph, would fall to be brought into account as mentioned in sub-paragraph (4)(b) of paragraph 7 above is referred to as a “related section 80 payment".

(3)If sub-paragraph (2) of paragraph 7 above applies, then—

(a)as respects the year of assessment in which the claim is made and any subsequent year, any related section 80 payment shall be left out of account for the purposes of sub-paragraphs (3) and (4) of section 80 of the Finance Act 1981; and

(b)all the related payments shall be left out of account for the purposes of the application on any other occasion of any provision of paragraphs 7 to 12 of this Schedule.

(4)If sub-paragraph (3) of paragraph 7 above applies, then—

(a)as respects the year of assessment in which the claim is made and any subsequent year, so much of any related section 80 payment as is equal to 3⅓ times the amount of capital gains tax released by that payment shall be left out of account for the purposes of subsections (3) and (4) of section 80 of the Finance Act 1981; and

(b)so much of each of the related payments as is equal to 3⅓ times the amount of capital gains tax released by the payment shall be left out of account for the purposes mentioned in sub-paragraph (3)(b) above.

(5)For the purposes of sub-paragraph (4) above, the amount of capital gains tax released by a related payment shall be determined by the formula—

(6)Where, by virtue of sub-paragraph (3)(a) or sub-paragraph (4)(a) above, the whole or any part of a related section 80 payment falls to be left out of account as mentioned in that sub-paragraph, section [F21740 of the Taxes Act 1988] shall have effect in relation to the benefit received by the beneficiary which, in whole or in part, consists of that payment as if, in the year of assessment in which the claim is made, chargeable gains equal to so much of that payment as falls to be so left out of account were, by reason of that payment, treated under section 80 of that Act as accruing to the beneficiary.

Effect of related benefits derived from payments received by close relatives of the beneficiaryU.K.

9(1)The provisions of this paragraph apply if,—

(a)on a claim, payment of an amount of capital gains tax determined in accordance with paragraph 6(2) or paragraph 7(2) above would, apart from this paragraph, be postponed by virtue of this Schedule; and

(b)as a result of a capital payment received by a close relative of the beneficiary, there is, in accordance with paragraph 10 below, a related benefit which falls to be taken into account in relation to the claim.

(2)If the amount of capital gains tax referred to in sub-paragraph (1)(a) above exceeds 30 per cent. of the aggregate of the related benefits which fall to be taken into account in relation to the claim, then the amount of capital gains tax payment of which is postponed by virtue of this Schedule is an amount equal to that excess.

(3)If the amount of capital gains tax referred to in sub-paragraph (1)(a) above is less than or equal to 30 per cent. of the aggregate of the related benefits which fall to be taken into account in relation to the claim, then there is no postponement of the payment of any of that capital gains tax.

Related benefitsU.K.

10(1)The provisions of this paragraph have effect to determine what are, in relation to a claim, the related benefits which are to be taken into account under paragraph 9 above.

(2)If, on or after 6th April 1984 and before the beginning of the year of assessment in which the claim is made, a close relative of the beneficiary has received from the trustees of the settlement to which the claim relates or a related settlement a capital payment which has not been brought into account under subsections (3) and (4) of section 80 of the Finance Act 1981 in determining whether chargeable gains or offshore income gains should be attributed to the close relative by reference to any trust gains for any previous year of assessment, then, subject to sub-paragraphs (3) and (4) below, that capital payment is a related benefit which falls to be taken into account in relation to the claim.

(3)A capital payment falling within sub-paragraph (2) above is not a related benefit which falls to be taken into account as mentioned in that sub-paragraph to the extent that it has already been taken into account on any previous operation of sub-paragraph (4) or sub-paragraph (5) of paragraph 7 above on the occasion of a claim in respect of which the close relative himself or a close relative of his or a person whose close relative he is was the beneficiary.

(4)A capital payment falling within sub-paragraph (2) above is not a related benefit which falls to be taken into account as mentioned in that sub-paragraph if the Board so direct on the grounds that it appears likely that the payment will fall to be taken into account, either as giving rise to a relevant benefit or under paragraph 7 above, in relation to such a claim as is referred to in sub-paragraph (3) above.

(5)Sub-paragraphs (3) to (6) of paragraph 8 above shall have effect for the purposes of this paragraph—

(a)as if any reference to a provision of paragraph 7 above were a reference to the corresponding provision of paragraph 9 above; and

(b)as if any reference to a related payment were a reference to a related benefit which falls to be taken into account as mentioned in sub-paragraph (2) above; and

(c)as if any reference to a related section 80 payment were a reference to a related benefit which falls to be taken into account as mentioned in sub-paragraph (2) above and which, apart from this paragraph, would fall to be taken into account under sub-paragraphs (3) and (4) of section 80 of the Finance Act 1981 in determining whether chargeable gains or offshore income gains should be attributed to the close relative concerned by reference to any trust gains for the year of assessment in which is made the claim referred to in sub-paragraph (2) above; and

(d)as if “B" in the formula in sub-paragraph (5) were nil; and

(e)as if any reference in sub-paragraph (6) to the beneficiary were a reference to the close relative concerned.

Time when postponed tax becomes payableU.K.

11(1)The provisions of this paragraph apply where, as a result of a claim, payment of an amount of capital gains tax, determined in accordance with paragraphs 6 to 9 above, is postponed by virtue of this Schedule; and, subject to sub-paragraph (6) below, any reference in the following provisions of this paragraph to postponed tax is a reference to tax the payment of which is so postponed.

(2)Postponed tax shall become payable in accordance with sub-paragraph (5) below if, at any time in the year of assessment in which the claim is made or any later year, the beneficiary disposes of his interest in the settlement to which the claim relates in circumstances such that, by virtue of section 58(1) of the principal Act, no chargeable gain could accrue on the disposal; and in sub-paragraph (5) below “the relevant consideration” means the amount or value of the consideration for such a disposal.

(3)Subject to paragraph 12 below, postponed tax shall become payable in accordance with sub-paragraph (5) below if, in the year of assessment in which the claim is made or any later year, the beneficiary or a close relative of his receives a capital payment from the trustees of the settlement to which the claim relates or a related settlement.

(4)In the following provisions of this paragraph and paragraph 12 below, any reference to a material year of assessment is a reference to one in which the beneficiary disposes of his interest as mentioned in sub-paragraph (2) above or in which sub-paragraph (3) above applies.

(5)For any material year of assessment, so much of the postponed tax as does not exceed 30 per cent. of the aggregate of—

(a)the relevant consideration in respect of any disposal in that year, and

(b)subject to paragraph 12 below, the capital payments received in that year as mentioned in sub-paragraph (3) above,

shall become payable as if it were capital gains tax assessed in respect of gains accruing in that year.

(6)If, for any material year of assessment, the amount of the postponed tax exceeds 30 per cent. of the aggregate referred to in sub-paragraph (5) above, only the excess shall continue after the end of that year to be postponed tax for the purposes of this paragraph, but without prejudice to the subsequent operation of this paragraph in relation to a later year of assessment which is a material year.

(7)Where part, but not the whole, of any postponed tax becomes payable in accordance with sub-paragraph (5) above, tax assessed for an earlier year shall be regarded as becoming so payable before tax assessed for a later year.

Balance of capital paymentsU.K.

12(1)If any capital payments received in any year of assessment as mentioned in paragraph 11(3) above fall to be brought into account for that year for the purposes of subsections (3) and (4) of section 80 of the Finance Act 1981, those capital payments shall be disregarded for the purposes of sub-paragraph (5) or, as the case may be, sub-paragraph (6) of paragraph 11 above except to the extent that the aggregate of those payments exceeds the chargeable gains and offshore income gains which in that year are treated under the said section 80 as accruing to the beneficiary or, as the case may be, the close relative; and any such excess is in the following provisions of this paragraph referred to as the balance of section 80 payments for that year.

(2)Subject to the following provisions of this paragraph, as respects any year of assessment subsequent to a material year of assessment for which there is a balance of section 80 payments there shall be left out of account for the purposes of subsections (3) and (4) of section 80 of the Finance Act 1981 so much of the capital payments as made up that balance.

(3)If paragraph 11(6) above did not apply for any material year of assessment for which there is a balance of section 80 payments then, as respects years of assessment subsequent to that year, sub-paragraph (2) above shall apply only to so much of the capital payments mentioned therein as is equal to 3⅓ times the amount of postponed tax released by that balance.

(4)For any material year of assessment, the amount of postponed tax released by a balance of section 80 payments for that year shall be determined by the formula:—

(5)If, in a case where sub-paragraph (2) above applies in accordance with sub-paragraph (3) above, there were, for the material year of assessment concerned,—

(a)a balance of section 80 payments derived from payments received by the beneficiary, and

(b)another such balance derived from payments by a close relative of his,

sub-paragraph (2) above shall apply (in accordance with sub-paragraph (3) above) to the capital payments which made up the balance derived from payments received by the beneficiary in priority to capital payments which made up the other balance.

(6)Subject to sub-paragraph (5) above, where there is more than one capital payment to which sub-paragraph (2) above applies, the proportion of each of them which is left out of account as mentioned in that sub-paragraph shall be the same.

(7)Where, by virtue of the preceding provisions of this paragraph, the whole or any part of a capital payment falls to be left out of account as mentioned in sub-paragraph (2) above, section [F22740 of the Taxes Act 1988] shall have effect in relation to a benefit which is received by the beneficiary or, as the case may be, a close relative of his and which, in whole or in part, consists of that payment as if, in the material year of assessment concerned, chargeable gains equal to so much of that payment as falls to be so left out of account were, by reason of that payment, treated under section 80 of that Act as accruing to the beneficiary or, as the case may be, the close relative.

13(1)Where, by virtue of sub-paragraph (2) of paragraph 12 above, the whole or any part of a capital payment falls to be left out of account as mentioned in that sub-paragraph, it shall to the same extent be left out of account for the purposes of the application on any other occasion of any provision of paragraphs 7 to 12 of this Schedule.

(2)Where sub-paragraph (6) of paragraph 11 above applies for any material year of assessment, any capital payments which—

(a)fall to be taken into account under sub-paragraph (5)(b) of that paragraph for that year, and

(b)are not such as to fall within paragraph 12(1) above,

shall be left out of account for the purposes referred to in sub-paragraph (1) above.

(3)Where sub-paragraph (6) of paragraph 11 above does not apply for any material year of assessment, so much of any capital payment falling within paragraphs (a) and (b) of sub-paragraph (2) above as is equal to 3;FO’ times the amount of postponed tax released by that payment shall be left out of account for the purposes referred to in sub-paragraph (1) above.

(4)The amount of postponed tax released by a capital payment shall be determined for the purposes of sub-paragraph (3) above by the formula in paragraph 12(4) above, except that, in applying that formula for those purposes, “G" shall be the amount of the capital payment in question.

(5)In this paragraph, “material year of assessment" shall be construed in accordance with paragraph 11(4) above.

Second and later claimsU.K.

14(1)This paragraph applies where—

(a)as a result of a claim (in this paragraph referred to as “the earlier claim"), payment of an amount of capital gains tax (in this paragraph referred to as “the original tax"), determined in accordance with paragraph 6 or paragraph 7 above, is or was postponed by virtue of this Schedule; and

(b)after the making of the earlier claim, another claim (in this paragraph referred to as “the later claim") is made in relation to an attributed gain to which the earlier claim did not relate; and

(c)the settlement to which the earlier and the later claims relate is the same.

(2)If the year of assessment which is the relevant year of assessment in relation to any attributed gain to which the later claim relates is earlier than the earliest year of assessment which is the relevant year of assessment in relation to any attributed gain to which the earlier claim related, then,—

(a)the earlier claim and the postponement resulting from it shall be set aside; and

(b)the provisions of this Schedule shall have effect as if (notwithstanding paragraph 2(2) above) the attributed gains to which the later claim relates included the attributed gains to which the earlier claim related.

(3)Where sub-paragraph (2) above does not apply and, at the time the later claim is made, payment of any of the original tax remains postponed by virtue of this Schedule, then, subject to sub-paragraph (4) below,—

(a)paragraphs 4 to 10 above shall not apply in relation to the later claim; and

(b)payment of the tax referable to the attributed gain or gains to which the later claim relates shall be postponed by virtue of this Schedule; and

(c)paragraphs 11 and 12 above shall apply as if the payment of that tax had been postponed as a result of the earlier claim and, accordingly, that tax shall be added to the original tax.

(4)If, in a case where sub-paragraph (3) above applies, the relevant year of assessment in relation to an attributed gain (in this sub-paragraph referred to as “the later gain") to which the later claim relates is the same as the relevant year of assessment in relation to an attributed gain to which the earlier claim related,—

(a)paragraph 3 above shall not apply in relation to the later gain; and

(b)in relation to the later gain, the references in sub-paragraph (3) above to the tax referable to the gain shall be construed as references to the capital gains tax assessed by reason of the gain.

(5)Where sub-paragraph (2) above does not apply and, at the time the later claim is made, there is no longer any postponement of the payment of any of the original tax, then, in the application of the provisions of this Schedule in relation to the later claim, paragraph 4(2) above shall not apply and “the base year" for the purposes of paragraphs 4 and 5 above shall be that year of assessment which was the base year in relation to the earlier claim.

InformationU.K.

15(1)The Board may by notice in writing require any person to furnish them, within such time as they may direct, not being less than twenty-eight days, with such particulars as they think necessary for the purposes of section 70 of this Act and this Schedule.

(2)Subsections (2) to [F23(6) of Section 745 of the Taxes Act 1988] shall have effect in relation to sub-paragraph (1) above as they have effect in relation to subsection (1) of that section; but, in the application of those subsections by virtue of this sub-paragraph, references to Chapter III of Part XVII of the Taxes Act shall be construed as references to section 70 of this Act and this Schedule.

(3)In any case where—

(a)a claim has been made, and

(b)as a result of the claim, payment of an amount of capital gains tax was postponed by virtue of this Schedule, and

(c)at a time when any of that tax remains unpaid, there is a disposal to which paragraph 11(2) above applies or the beneficiary or a close relative of his receives such a capital payment as is referred to in paragraph 11(3) above,

then, not later than three months after the end of the year of assessment in which the disposal occurs or the payment is received, the beneficiary shall inform the Board of the disposal or receipt, as the case may be.

(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F24

16U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F25

F26F26Schedules 15—20U.K.

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

SCHEDULE 21U.K.

1—17.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F27

18, 19.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F28

20—26.U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F29

Section 127.

SCHEDULE 22U.K. SPECIAL AND GENERAL COMMISSIONERS

Appointment of Special CommissionersU.K.

1U.K.For section 4 of the Taxes Management Act 1970 (appointment of Special Commissioners) there shall be substituted—

“4 Special Commissioners.

(1)The Lord Chancellor shall, after consultation with the Lord Advocate, appoint such persons as he thinks fit as “Commissioners for the special purposes of the Income Tax Acts" (in the Taxes Acts referred to as “Special Commissioners") and shall designate one of the Special Commissioners as the Presiding Special Commissioner.

(2)No person shall be appointed under subsection (1) above unless he is a barrister, advocate or solicitor of not less than ten years’ standing.

(3)If the Presiding Special Commissioner is temporarily absent or unable to act or there is a vacancy in his office, the Lord Chancellor may designate another Special Commissioner to act as deputy Presiding Special Commissioner and the Commissioner so designated shall, when so acting, have all the functions of the Presiding Special Commissioner.

(4)The Lord Chancellor may, if he thinks fit, and after consultation with the Lord Advocate, remove a Special Commissioner from office on the grounds of incapacity or misbehaviour.

(5)By virtue of their appointment the Special Commissioners shall have authority to execute such powers, and to perform such duties, as are assigned to them by any enactment.

(6)Such sums shall be allowed to Special Commissioners in respect of salary and incidental expenses and such pensions (including allowances and gratuities) shall be paid to, or in respect of, them as the Lord Chancellor may, with the approval of the Treasury, determine.

(7)Officers and staff may be appointed under section 27 of the Courts Act 1971 (court staff) for carrying out the administrative work of the Special Commissioners.

4A Deputy Special Commissioners.

(1)If it appears to the Lord Chancellor expedient to do so in order to facilitate the performance of any functions of the Special Commissioners, he may, after consultation with the Lord Advocate, appoint a person to be a deputy Special Commissioner during such period or on such occasions as the Lord Chancellor thinks fit.

(2)A person shall not be qualified for appointment as a deputy Special Commissioner unless he is qualified for appointment as a Special Commissioner.

(3)A deputy Special Commissioner while acting under this section shall have all the jurisdiction and functions of a Special Commissioner and any reference to a Special Commissioner in the following provisions of this Act or in any other enactment or any instrument made under any enactment (whenever passed or made) shall include a reference to a deputy Special Commissioner.

(4)The duty under section 6(1) below shall only apply to a deputy Special Commissioner on his first appointment to that office.

(5)Notwithstanding the expiry of any period for which a person is appointed under this section, he may continue to act under the appointment for the purpose of continuing to deal with any matter with which he was concerned during that period.

(6)The Lord Chancellor may pay to any person appointed under this section such remuneration and allowances as he may, with the approval of the Treasury, determine.”

Special Commissioners: quorumU.K.

2(1)Section 45 of the Act of 1970 (quorum of Special Commissioners) shall be amended as follows.U.K.

(2)In subsection (1), for the word “may" there shall be substituted the words “ shall, except in any case where the Presiding Special Commissioner directs otherwise, ” and the words “or any two or more Special Commissioners" shall be omitted.

(3)In subsection (3), after the word “brought" there shall be inserted the words “ , in accordance with a direction of the Presiding Special Commissioner ”.

(4)Subsections (2) and (4) to (6) shall be omitted.

Elections to bring appeals before Special CommissionersU.K.

3(1)In section 31 of the Act of 1970 (appeals against assessments) the following subsections shall be inserted after subsection (5)—

“(5A)An election under subsection (4) above shall be disregarded if—

(a)the appellant and the inspector or other officer of the Board agree in writing, at any time before the determination of the appeal, that it is to be disregarded; or

(b)the General Commissioners have given a direction under subsection (5C) below and have not revoked it.

(5B)At any time before the determination of an appeal in respect of which an election has been made under subsection (4) above, the inspector or other officer of the Board after giving notice to the appellant may refer the election to the General Commissioners.

(5C)On any such reference the Commissioners shall, unless they are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, direct that the election be disregarded.

(5D)If, at any time after the giving of a direction under subsection (5C) above (but before the determination of the appeal) the General Commissioners are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, they shall revoke the direction.

(5E)Any decision to give a direction under subsection (5C) above or revoke such a direction under subsection (5D) above shall be final.”

(2)In Schedule 2 to the Act of 1970 (appeals against decisions on claims), in paragraph 1, the following sub-paragraphs shall be inserted after sub-paragraph (1)—

“(1A)An election under sub-paragraph (1) above shall be disregarded if—

(a)the appellant and the inspector or other officer of the Board agree in writing, at any time before the determination of the appeal, that it is to be disregarded; or

(b)the General Commissioners have given a direction under sub-paragraph (1C) below and have not revoked it.

(1B)At any time before the determination of an appeal in respect of which an election has been made under sub-paragraph (1) above, the inspector or other officer of the Board after giving notice to the appellant may refer the election to the General Commissioners.

(1C)On any such reference the Commissioners shall, unless they are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, direct that the election be disregarded.

(1D)If, at any time after the giving of a direction under sub-paragraph (1C) above (but before the determination of the appeal) the General Commissioners are satisfied that the appellant has arguments to present or evidence to adduce on the merits of the appeal, they shall revoke the direction.

(1E)Any decision to give a direction under sub-paragraph (1C) or revoke such a direction under sub-paragraph (1D) above shall be final.”.

Procedural rulesU.K.

4After section 57A of the Act of 1970 there shall be inserted the following section—

“57B Commissioners: procedural rules.

“57B(1)The Lord Chancellor may, with the consent of the Lord Advocate, make rules—

(a)as to the procedure of the Special Commissioners and the procedure in connection with the bringing of matters before them;

(b)as to the time within which matters may be brought before the Special Commissioners; and

(c)providing for appeals which have been heard by the Special Commissioners in the absence of the appellant to be reheard, in such circumstances and subject to such conditions, as the rules may prescribe.

(2)Rules under this section may make such consequential provision (including the amendment of any enactment or instrument made under any enactment) as the Lord Chancellor considers necessary.

(3)Rules under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.”

Transfer of appeals from General to Special CommissionersU.K.

5U.K.In section 44 of the Act of 1970 (jurisdiction of General Commissioners) the following subsection shall be inserted after subsection (3)—

“(3A)Where in any case (including one in which proceedings may be brought as mentioned in subsection (3) above)—

(a)an appeal has been brought before the General Commissioners; and

(b)those Commissioners consider that, because of the complexity of the appeal or the length of time likely to be required for hearing it, the appeal should be brought before the Special Commissioners;

the General Commissioners may, with the agreement of the Special Commissioners, and having considered any representations made to them by the parties, arrange for the transfer of the proceedings to the Special Commissioners.”.

Fee for statement of caseU.K.

6U.K.In section 56(3) of the Act of 1970 . . . F30 (fee for statement of case for opinion of High Court) for “£1" there shall be substituted “ £25 ”.

Statement of case from Special Commissioners to Court of AppealU.K.

7In the Act of 1970, the following section shall be inserted after section 56 (statement of case for opinion of High Court)—

“56A Statement of case: Special Commissioners to Court of Appeal.

“56A(1)The Lord Chancellor may by order provide that—

(a)in such classes of appeal in England and Wales as may be prescribed by the order; and

(b)subject to the consent of the parties and to such other conditions as may be so prescribed;

a case stated by the Special Commissioners under section 56 above, for the opinion of the High Court, shall be referred to the Court of Appeal.

(2)An order under this section—

(a)may provide that section 56 above shall have effect, in relation to any appeal to which the order applies, with such modifications as may be specified in the order; and

(b)shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.”.

SavingU.K.

8U.K.Nothing in this Schedule shall affect the appointment of any person who, immediately before the passing of this Act, held office as a Special Commissioner.

Section 128(6).

SCHEDULE 23U.K. REPEALS

Part IU.K. Made-Wine

Part IIU.K. Gaming Machine Licence Duty

These repeals do not affect licences granted for periods beginning before 1st October 1984.

Part IIIU.K. Value Added Tax

Part IVU.K. Customs and Excise: Miscellaneous

PART VU.K. INCOME TAX AND CORPORATION TAX: GENERAL

1U.K.The repeals in section 310 of the Income and Corporation Taxes Act 1970 and Schedule 18 to the Finance Act 1972 do not have effect with respect to any financial year ending before 1st April 1986.

2U.K.The repeals in section 343 of the Income and Corporation Taxes Act 1970 and section 58 of the Finance Act 1980 have effect from 6th April 1985.

3U.K.The repeals in section 96 of the Finance Act 1972 and section 10(3) of the Finance Act 1974 do not have effect with respect to any financial year ending before 1st April 1985.

4U.K.The repeals in Schedule 1 to the Finance Act 1974 shall have effect in relation to payments of interest made after the passing of this Act.

5U.K.The repeal of section 17(3) of the Oil Taxation Act 1975 has effect with respect to any advance corporation tax which is, within the meaning of section 77 of this Act, advance corporation tax paid by the company in respect of distributions in an accounting period of the company ending on or after 1st April 1984.

6U.K.The repeal in paragraph 13 of Schedule 10 to the Finance Act 1980 has effect from the day appointed under section 39(9) of this Act.

7U.K.The repeal in section 40 of the Finance Act 1982 has effect in relation to any right to acquire shares which is obtained after 5th April 1984.

8U.K.The repeal in section 20(4) of the Finance Act 1983 has effect in relation to payments made on or after 6th April 1984.

PART VIU.K. INCOME TAX: THE ADDITIONAL RATE

The repeal in subsection (6) of section 87 of the Finance Act 1972 does not have effect for the purpose of determining whether a person has paid tax in respect of excess liability, within the meaning of that subsection, for the year 1983-84 or any earlier year of assessment or the amount so paid.

PART VIIU.K. FOREIGN EARNINGS AND EMOLUMENTS

1U.K.The repeals in subsection (2) of section 188 of, and in Schedule 8 to, the Taxes Act have effect where the relevant date (within the meaning of that section) falls after 13th March 1984 but subject to subsection (8) of section 30 of this Act.

2U.K.The repeal of section 23(3) of the Finance Act 1974 and the repeal in Schedule 12 of the Taxes Act have effect in relation to the year 1985-86 and subsequent years of assessment but subject to subsection (4) of section 30 of this Act.

3U.K.The repeal in Schedule 2 of the Finance Act 1974 has effect in relation to the year 1989-90 and subsequent years of assessment.

4U.K.The repeals in the Acts of 1975, section 31(2) of, and Schedule 7 to, the Finance Act 1977 and the Finance Act 1978 have effect for the year 1985-86 and subsequent years of assessment.

PART VIIIU.K. CAPITAL GAINS

1U.K.The repeal of sections 6, 8, 9 and 148 of the Capital Gains Tax Act 1979 and of section 82 of the Finance Act 1980 and section 85 of the Finance Act 1982 has effect with respect to disposals on or after 6th April 1984.

2U.K.The repeals in section 29A of the Capital Gains Tax Act 1979 have effect in relation to disposals and acquisitions on or after 6th April 1983.

3U.K.The repeals in section 32 of that Act have effect where the disposal by the person who is neither resident nor ordinarily resident in the United Kingdom is made on or after 6th April 1985.

4U.K.The repeals in sections 137(4)(aa) and 138(1)(aa) of that Act have effect in relation to any abandonment or other disposal on or after 6th April 1984.

Part IXU.K. Capital Transfer Tax

The repeal of section 114(8) of the Finance Act 1976 has effect as from 1st April 1983.

Part XU.K. Stamp Duty

Part XIU.K. National Insurance Surcharge

These repeals have effect with respect to earnings paid on or after 6th April 1985.

Part XIIU.K. Development Land Tax

PART XIIIU.K. SPECIAL AND GENERAL COMMISSIONERS

Part XIVU.K. Miscellaneous