SCHEDULES

Section 1.

SCHEDULE 1U.K. Alcoholic Liquor Duties

Part IU.K. Table of Rates of Duty on Wine and Made-Wine

Part IIU.K. Beverages of an Alcoholic Strength not Exceeding 5.5 per cent.

1(1)In subsection (2) of section 1 of the M1Alcoholic Liquor Duties Act 1979 (definition of “spirits”), for the words “subsections (7) and (8)” there shall be substituted the words “subsections (7) to (9)”.U.K.

F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3)In subsection (5) of that section (definition of “made-wine”), after the word “means” there shall be inserted the words “subject to subsection (10) below”.

(4)After subsection (8) of that section there shall be inserted—

“(9)Any beverage of an alcoholic strength exceeding 1.2 per cent. but not exceeding 5.5 per cent. which is made with spirits and is not of a description specified in an order made by the Treasury by statutory instrument shall be deemed not to be spirits.

(10)The Treasury may by order made by statutory instrument provide that any beverage of an alcoholic strength exceeding 1.2 per cent. but not exceeding 5.5 per cent. which is made with beer or cider and is of a description specified in the order shall be deemed to be beer or, as the case may be, cider, and not to be made-wine.”

F22U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F33U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4U.K.After subsection (4) of section 54 of that Act (wine: charge of excise duty) there shall be inserted—

“(4A)A person who, on any premises, produces wine to which section 55A below applies by rendering it sparkling, need not on that account hold an excise licence under subsection (2) above in respect of those premises.”

5(1)After subsection (4) of section 55 of that Act (made-wine: charge of excise duty), there shall be inserted—U.K.

“(4A)A person who, on any premises, produces made-wine to which section 55A below applies by rendering it sparkling, need not on that account hold an excise licence under subsection (2) above in respect of those premises.”

(2)In subsection (5) of that section, for the words “render any made-wine sparkling” there shall be substituted the words “render sparkling any made-wine other than made-wine to which section 55A below applies”.

6U.K.After section 55 of that Act there shall be inserted—

“55A Wine and made-wine of a strength not exceeding 5.5 per cent.

(1)This section applies to wine and made-wine of a strength exceeding 1.2 per cent. but not exceeding 5.5 per cent.

(2)The Commissioners may by regulations provide that, except in such cases and subject to such conditions as may be specified by or under the regulations, no wine or made-wine to which this section applies may be fortified at any time—

(a)after it leaves the entered or approved premises on which it was produced, or

(b)in the case of wine or made-wine produced outside the United Kingdom, after it is imported into the United Kingdom,

and before it is sold by retail or otherwise supplied for consumption.

(3)Any person who contravenes or fails to comply with any regulation under this section (including any conditions imposed by or under any such regulation) shall be liable on summary conviction to a penalty of level 3 on the standard scale, and the wine or made-wine and all vessels, utensils and materials for fortifying wine or made-wine found in his possession shall be liable to forfeiture.”

7U.K.In section 59 of that Act (rendering imported wine or made-wine sparkling in warehouse), for subsection (1) there shall be substituted—

“(1)Wine or made-wine which—

(a)is imported or is removed to the United Kingdom from the Isle of Man; and

(b)is not wine or made-wine of a strength exceeding 1.2 per cent. but not exceeding 5.5 per cent.,

shall not be rendered sparkling, whether by aeration, fermentation or any other process, except in warehouse in accordance with warehousing regulations.”

F48U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9U.K.Section 63 of that Act (repayment of duty on imported cider used in the production of other beverages etc.) shall be renumbered as subsection (1) of that section F5. . . .

10U.K.At the end of subsection (1) of section 71 of that Act (penalty for misdescribing liquor as spirits), there shall be added the words “or that the liquor is made with spirits and is a made-wine to which section 55A above applies”.

F611U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12U.K.At the end of subsection (1) of section 73 of that Act (penalty for misdescribing substances as beer), there shall be added the words “or that the substance is made with beer and is a made-wine to which section 55A above applies”.

13U.K.In Schedule 1 to that Act, for the Table of rates of duty there shall be substituted—

Section 4.

SCHEDULE 2U.K. Vehicles Excise Duty

F7Part IU.K.

Part IIU.K. Vehicles Carrying or Drawing Exceptional Loads

F81U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F92U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3F10U.K.

F114U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F125U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F136U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 35.

SCHEDULE 3U.K. Married Couples: Minor and Consequential Provisions

Part IU.K. Amendments of the Taxes Act 1988

IntroductoryU.K.

1U.K.The Taxes Act 1988 shall have effect subject to the following amendments.

Commencement of trade etc.U.K.

2U.K.In section 62 (special basis for early years following commencement of trade etc.) the following subsection shall be inserted after subsection (2)—

“(2A)Where—

(a)the second year of assessment is the year 1989-90,

(b)the person charged, or liable to be charged, for that year is a married man, and

(c)the person charged, or liable to be charged, for the year 1990-91 is his wife,

subsection (2) above shall have effect as if it conferred the right to give notice on her and not on him.”

Discontinuance of trade etc.U.K.

3U.K.In section 63 (special basis on discontinuance of trade etc.)—

(a)in subsection (1)(b), for the words “that person” and the word “he”, in both places where it occurs, there shall be substituted the words “ income tax ”, and

(b)in subsection (2), for the words “a person has been charged with income tax” there shall be substituted the words “ income tax has been charged ”.

UnderpaymentsU.K.

F144U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Additional relief in respect of childrenU.K.

F155U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F166U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Widow’s bereavement allowanceU.K.

7(1)The section set out in sub-paragraph (2) below shall have effect in substitution for section 262 (widow’s bereavement allowance) in relation to deaths occurring during the year 1989-90, and the section set out in sub-paragraph (3) below shall have effect in substitution for that section in relation to deaths occurring during the year 1990-91 or any subsequent year of assessment.U.K.

(2)The section first referred to in sub-paragraph (1) above is—

“262 Widow’s bereavement allowance.

Where a man dies in the year 1989-90 and for that year he is entitled to the higher (married person’s) relief under section 257(1), or would be so entitled but for an election under section 261 or 287, his widow shall be entitled—

(a)for that year of assessment, to a deduction from her total income of an amount equal to the amount referred to in section 259(2), and

(b)(unless she marries again before the beginning of it) for the year 1990-91, to a deduction from her total income of an amount equal to the amount specified in section 257A(1) for that year.”

F17(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Blind person’s allowanceU.K.

8U.K.For the year 1990-91 and subsequent years of assessment the following section shall be substituted for section 265—

“265 Blind person’s allowance.

(1)If the claimant proves that he is a registered blind person for the whole or any part of the year of assessment, he shall be entitled to a deduction of £540 from his total income.

(2)Where—

(a)a person entitled to relief under subsection (1) above is a married man whose wife is living with him for the whole or any part of the year of assessment, but

(b)the amount which he is entitled to deduct from his total income by virtue of that subsection exceeds what is left of his total income after all other deductions have been made from it,

his wife shall be entitled to a deduction from her total income of an amount equal to the excess.

(3)In determining for the purposes of subsection (2)(b) above the amount that is left of a person’s total income for a year of assessment after other deductions have been made from it, there shall be disregarded any deduction made—

(a)on account of any payments of relevant loan interest which become due in that year and to which section 369 applies, or

(b)under section 257A or section 289.

(4)Subsections (2) and (3) above shall have effect where a wife is entitled to relief under subsection (1) above as they have effect where the husband is entitled to that relief, but with the appropriate modifications (and in particular the omission from subsection (3) of the reference to section 257A).

(5)Subsections (2) to (4) above shall not apply for a year of assessment unless the person entitled to relief under subsection (1) has given to the inspector written notice that they are to apply; and any such notice—

(a)shall be given not later than six years after the end of the year of assessment to which it relates,

(b)shall be in such form as the Board may determine, and

(c)shall be irrevocable.

(6)A notice given under subsection (5) above in relation to a year of assesment by a husband shall have effect also as a notice under section 257B(3).

(7)In this section “registered blind person” means a person registered as a blind person in a register compiled under section 29 of the National Assistance Act 1948 or, in the case of a person ordinarily resident in Scotland or Northern Ireland, a person who is a blind person within the meaning of section 64(1) of that Act.”

Life assurance premiumsU.K.

9U.K.For the year 1990-91 and subsequent years of assessment section 266 (life assurance premiums) shall have effect with the substitution—

(a)in subsection (9), of the word “spouse” for the words “wife (but not the husband)”, and

(b)in subsection (11)(a), of the words “spouse, widow, widower or children or other dependants of any such employee or person,” for the word “wife” onwards.

Payments securing annuitiesU.K.

10U.K.For the year 1990-91 and subsequent years of assessment the following section shall be substituted for section 273 (payments securing annuities)—

“273 Payments securing annuities.

Subject to sections 274, 617(3) and 619(6), if the claimant is, under any Act of Parliament or under any terms and conditions of employment, liable to the payment of any sum, or to the deduction from any salary or stipend of any sum, for the purpose of securing a deferred annuity to a widow or widower of the claimant or provision for the claimant’s children after the claimant dies, the claimant shall be entitled to a deduction from the amount of income tax on which he or she is chargeable equal to income tax at the basic rate on the amount of the sum which he or she has paid or which has been deducted from his or her salary or stipend.”

Married couples living togetherU.K.

11U.K.For the year 1990-91 and subsequent years of assessment the following section shall be substituted for section 282 (construction of references to married women living with their husbands)—

“282 Construction of references to husband and wife living together.

A husband and wife shall be treated for income tax purposes as living together unless—

(a)they are separated under an order of a court of competent jurisdiction, or by deed of separation, or

(b)they are in fact separated in such circumstances that the separation is likely to be permanent.”

Business expansion schemeU.K.

12(1)For the year 1990-91 and subsequent years of assessment section 304 (business expansion scheme: husband and wife) shall have effect—U.K.

(a)with the omission of subsections (1) to (4), and

(b)with the substitution of the following subsections for subsections (5) and (6)—

“(5)Subsection (1) of section 299 shall not apply to a disposal made by a married man to his wife or a married woman to her husband at a time when they are living together; but where shares issued to one of them have been transferred to the other by a transaction inter vivos that subsection shall apply on the disposal of the shares by the transferee to a third person and any assessment for withdrawing relief in respect of the shares shall be made on the transferee.

(6)If any relief given for the year 1989-90 or any earlier year of assessment in respect of shares for which a married man or married woman has subscribed and which were issued while they were living together falls to be withdrawn in the year 1990-91 or any subsequent year of assessment by virtue of a disposal of those shares by the person who subscribed for them, any assessment for withdrawing that relief shall be made on the person making the disposal and shall be made by reference to the reduction of tax flowing from the amount of the relief regardless of any allocation of that relief under section 280 or of any allocation of the reduction under section 284 for the year of assessment for which the relief was given.”

(2)Sub-paragraph (3) below applies where—

(a)an amount is subscribed for shares in the year 1990-91 by one of a married couple who are living together,

(b)the couple were married and living together throughout the year 1989-90, and

(c)the subscriber claims that relief in respect of the amount be given partly by way of deduction from total income for the year 1989-90 in accordance with section 289(6).

(3)Where this sub-paragraph applies—

(a)the deduction shall be made from the husband’s total income (references in Chapter II of Part VII to the relief to which an individual is entitled in respect of any shares being construed accordingly), and

(b)the limits in sections 289(7) and 290 shall apply jointly to the husband and wife for the year 1989-90 as respects the amount subscribed.

Qualifying maintenance paymentsU.K.

13U.K.For the year 1990-91 and subsequent years of assessment section 347B(3) (qualifying maintenance payments) shall have effect with the substitution of the words “specified in section 257A(1) for the year” for the words “of the difference between” onwards.

Home loansU.K.

F1814U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loans for shares in employee-controlled companyU.K.

15(1)In section 361 (relief for interest on loans to acquire shares in employee-controlled company)—U.K.

(a)the words “or his spouse” in subsection (4)(d) and “, or whose spouses,” in subsection (5) shall cease to have effect, and

(b)the following subsection shall be substituted for subsections (6) and (7)—

“(6)Where an individual owns beneficially more than 10 per cent. of the issued ordinary share capital of, or voting power in, a company, the excess shall be treated for the purposes of subsection (5) above as being owned by an individual who is not a full-time employee of the company.”

(2)Sub-paragraph (1) above shall have effect in relation to payments of interest made on or after 6th April 1990 unless the proceeds of the loan were used before that date to defray money applied as mentioned in section 361(3).

(3)Interest paid on a loan made on or after 6th April 1990 to defray money applied in paying off another loan shall not be eligible for relief by virtue of paragraph (b) of subsection (3) of section 361 unless—

(a)the proceeds of the loan paid off were used on or after 6th April 1990 to defray money applied as mentioned in that subsection, or

(b)those proceeds were so used before that date but interest on the loan paid off would have been eligible for relief had they been so used on or after that date.

Close company loansU.K.

16(1)In section 420(2)(a)(i) (exception from charge in case where close company loans to borrower and spouse do not exceed £15,000) the words “or the wife or husband of the borrower” shall cease to have effect.U.K.

(2)This paragraph shall apply where the loan first mentioned in section 420(2) is made on or after 6th April 1990.

Trade unions and employers’ associationsU.K.

17(1)In section 467(2) (tax exemption in respect of income of trade unions and employers’ associations applied for provident benefits) for the word “wife” there shall be substituted the word “ spouse ”.U.K.

(2)This paragraph shall apply for any chargeable period beginning on or after 6th April 1990.

Retirement benefit schemesU.K.

18(1)In section 590 (conditions for approval of retirement benefit schemes)—U.K.

(a)after the word “widow,” in subsection (2)(a) there shall be inserted the word “ widower, ” and

(b)after the word “widow” in both places where it occurs in subsection (3)(b) there shall be inserted the words “ or widower ”.

(2)This paragraph shall have effect on and after 6th April 1990.

Partnership retirement annuitiesU.K.

19U.K.For the year 1990-91 and subsequent years of assessment section 628(1) (partnership retirement annuities) shall have effect with the substitution of the words “a widow, widower or dependant of the former partner” for the words “ his widow or a dependant of his ”.

F1920U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Earned incomeU.K.

21U.K.For the year 1990-91 and subsequent years of assessment section 833(4)(a) (meaning of “earned income”) shall have effect with the substitution of the word “spouse” for the word “ husband ”, in both places where it occurs.

Total incomeU.K.

22U.K.For the year 1990-91 and subsequent years of assessment section 835(5) (meaning of “total income”) shall have effect with the insertion of “ , 257A(5) ” after “257(5)”.

Part IIU.K. Other Provisions

Capital allowancesU.K.

F2023U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2124U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The transitionU.K.

25U.K.The operation of section 279(1) of the Taxes Act 1988 for a year of assessment earlier than the year 1990-91 in the case of a married woman shall not affect the question whether there is any income of hers chargeable to income tax for the year 1990-91 or any subsequent year of assessment or, if there is, what is to be taken to be its amount for income tax purposes.

ReturnsU.K.

26U.K.Where a man is required under section 8 of the M2Taxes Management Act 1970 to deliver a return which is—

(a)so far as relates to certain sources of income, a return of income chargeable to income tax for the year 1990-91, and

(b)so far as relates to the remaining sources of income, a return of income chargeable to income tax for the year 1989-90,

the same particulars shall be included in the return as would have been required had section 279 of the Taxes Act 1988 not been repealed by this Act.

27U.K.Where a man delivers a return such as is mentioned in paragraph 26 above, the reference in sections 93(2) and 95(2) of the Taxes Management Act 1970 (penalties) to tax charged on or payable by him shall include a reference to tax charged on or payable by his wife in respect of any income of hers.

28U.K.Where a woman is liable to a penalty under section 93(1) or 95(1) of the Taxes Management Act 1970, section 93(2) or 95(2) shall apply as if the reference to tax charged on or payable by her included a reference to any tax which is charged on or payable by her husband by virtue of section 279 of the Taxes Act 1988.

Time limits for assessmentsU.K.

F2229U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfers of allowancesU.K.

30U.K.For the year 1990-91 and subsequent years of assessment the Taxes Management Act 1970 shall have effect with the insertion of the following section after section 37—

“37A Effect of assessment where allowances transferred.

Where an assessment is made on any person for the purpose of making good a loss of tax wholly or partly attributable to fraud, wilful default or neglect, the fact that the person’s total income for any year of assessment is assessed as greater than it was previously taken to be shall not affect the validity of any deduction made from the total income of the person’s spouse by virtue of section 257B, 257D or 265 of the principal Act; and where any such deduction has been made in such a case, the total amount which the first-mentioned person is entitled to deduct from total income for the year in question shall be correspondingly reduced.”

Class 4 social security contributionsU.K.

F2331U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annual paymentsU.K.

32U.K.Section 36 of this Act shall have effect in relation to a payment which is due from a husband to his wife or from a wife to her husband at a time after 5th April 1990 when they are living together, notwithstanding that the payment is made in pursuance of an obligation which is an existing obligation for the purposes of subsection (3) of that section.

Maintenance paymentsU.K.

F2433U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F25SCHEDULE 4U.K.

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Section 58.

SCHEDULE 5U.K. Underwriters: Assessment and Collection of Tax

PreliminaryU.K.

1(1)In this Schedule—U.K.

• “agent”, in relation to a syndicate and a year of assessment, means—

(a)the person who was acting as underwriting agent for that syndicate at the end of the corresponding underwriting year; or

(b)such other person as may be determined in accordance with regulations made by the Board by statutory instrument;

• “closing year”, in relation to a year of assessment, means the year of assessment next but one following that year;

• “inspector” includes any officer of the Board;

• “profits” includes gains;

• “syndicate” means a syndicate of underwriting members of Lloyd’s formed for an underwriting year;

• “syndicate profit or loss”, in relation to a syndicate, means the aggregate amount of the profits or losses arising to all the members of the syndicate (taken together), and “syndicate profits” and “syndicate losses” shall be construed accordingly.

(2)References in this Schedule to profits or losses arising to a member of a syndicate are references to profits or losses which—

(a)arise to him in his capacity as such a member, whether from his underwriting business or from assets forming part of a premiums trust fund; and

(b)are chargeable or, as the case may be, allowable under Case I of Schedule D.

(3)Regulations under this paragraph may make provision with respect to the year of assessment next but one preceding the year of assessment in which they are made.

Returns by agentU.K.

2(1)An inspector may, at any time after the end of the closing year for a year of assessment, by notice in writing to the agent require him to deliver to the inspector, on or before the final day determined under sub-paragraph (2) below, a return of the syndicate profit or loss for the year of assessment—U.K.

(a)containing such information as may be required in pursuance of the notice; and

(b)accompanied by such accounts, statements and reports as may be so required; and

(c)in the case of a syndicate profit, containing a statement of the amount of tax which would be payable on that profit if the whole of it were charged to tax at the basic rate of income tax for that year.

(2)The final day for the delivery of any return required by a notice under sub-paragraph (1) above is whichever is the later of—

(a)the 1st September next following the end of the closing year for the year of assessment; and

(b)the end of the period of three months beginning on the day following that on which the notice was served.

(3)If the agent, having been required by a notice under sub-paragraph (1) above to deliver a return, fails to deliver the return on or before the final day for its delivery, he shall be liable to a penalty equal to the prescribed amount multiplied by the number of days on which the failure continues; and in this sub-paragraph “the prescribed amount” means £10 for each fifty members of the syndicate (counting any number of members left over as fifty).

(4)If the agent fraudulently or negligently delivers an incorrect return under sub-paragraph (1) above, he shall be liable to a penalty not exceeding the prescribed amount multiplied by the number of members of the syndicate; and in this sub-paragraph “the prescribed amount” means £500 in the case of fraud and £250 in the case of negligence.

(5)In relation to a return required by a notice under sub-paragraph (1) above—

(a)any reference in sub-paragraph (2) or (3) above to the delivery of the return is a reference to its delivery together with the accompanying documents referred to in sub-paragraph (1) above; and

(b)the reference in sub-paragraph (4) above to the return being incorrect includes a reference to any of those documents being incorrect.

Payments on account of taxU.K.

3(1)In the case of a syndicate profit for a year of assessment, the agent shall, on or before the 1st January next following the end of the closing year for that year—U.K.

(a)pay to the collector, on account of the liabilities to tax of the members of the syndicate, the amount stated in his return for that year under paragraph 2(1)(c) above; and

(b)deliver to the inspector a return apportioning, between those members, the amount so paid.

(2)Where an amount is paid to the collector under sub-paragraph (1)(a) above for a year of assessment, the following provisions shall apply as between each member of the syndicate and the agent—

(a)where the member’s proportion of the amount so paid exceeds the amount deducted by the agent in accounting to the member for his share of the syndicate profit for that year, the amount of the excess shall be paid by the member to the agent; and

(b)where the amount so deducted exceeds that proportion, the amount of the excess shall be paid by the agent to the member.

(3)Where an amount is paid to the collector under sub-paragraph (1)(a) above for a year of assessment, the following provisions shall apply as respects the liability to tax for that year of each member of the syndicate—

(a)where the amount in which the member is charged to tax exceeds his proportion of the amount so paid, the amount of the excess shall be the amount of tax due and payable; and

(b)where that proportion exceeds the amount in which the member is so charged, the amount of the excess shall be treated as tax overpaid.

(4)Any amount which is payable under sub-paragraph (1)(a) above shall carry interest at the prescribed rate from the date when it becomes payable until payment, whether or not that date is a non-business day within the meaning of the M10Bills of Exchange Act 1882; and—

(a)section 89 of the M11Taxes Management Act 1970 (the prescribed rate of interest); and

(b)section 90 of that Act (disallowance of relief for interest on tax),

shall apply for the purposes of this sub-paragraph as they apply for the purposes of any provision of Part IX of that Act.

Determinations by inspectorU.K.

4(1)If the inspector is satisfied that a return under paragraph 2(1) above affords correct and complete information concerning the syndicate profit or loss for a year of assessment, he shall determine that profit or loss accordingly.U.K.

(2)If for a year of assessment the inspector is dissatisfied with a return under paragraph 2(1) above, or there is no such return, the inspector shall determine the syndicate profit or loss for that year to the best of his judgment.

(3)If the inspector discovers that a determination under sub-paragraph (1) or (2) above—

(a)understates the syndicate profits for the year of assessment; or

(b)overstates the syndicate losses for that year,

he may, by a determination under this sub-paragraph, vary the first-mentioned determination accordingly.

(4)Notice of a determination under this paragraph shall be served on the agent and shall state the time within which any appeal against the determination may be made under paragraph 5 below.

(5)After notice of a determination under this paragraph has been served on the agent, the determination shall not be altered except in accordance with the express provisions of the Taxes Acts.

AppealsU.K.

5(1)The agent may appeal against a determination under paragraph 4 above by a notice of appeal in writing given to the inspector within thirty days after the date of the notice of determination.U.K.

(2)An appeal under this paragraph shall be to the General Commissioners, except that the agent may elect (in accordance with section 46(1) of the Taxes Management Act 1970) to bring the appeal before the Special Commissioners instead of the General Commissioners; and subsections (5) to (5E) of section 31 of that Act shall apply for the purposes of an election under this sub-paragraph as they apply for the purposes of an election under subsection (4) of that section.

Modification of determinations pending appealU.K.

6(1)Where the agent appeals against a determination under paragraph 4 above, then, for the purpose of establishing, in the event of a member of the syndicate appealing against an assessment made on him, the amount of tax the payment of which should, pending the determination of that appeal, be postponed under section 55 of the Taxes Management Act 1970, that section shall apply to the first-mentioned appeal with the modifications specified in sub-paragraph (2) below.U.K.

(2)The modifications are as follows—

(a)any reference to the notice of assessment shall be construed as a reference to the notice of determination;

(b)any reference to the appellant believing that he is overcharged to tax by the assessment shall be construed as a reference to him believing that the determination overstates the syndicate profits, or understates the syndicate losses, for the year of assessment, and any reference to the appellant having grounds for so believing, or there being reasonable grounds for so believing, shall be construed accordingly;

(c)any reference to a determination of the amount of tax the payment of which should be postponed pending the determination of the appeal shall be construed as a reference to a direction that the determination shall, pending the determination of the appeal, have effect for the purpose stated in sub-paragraph (1) above as if the syndicate profits there stated were reduced, or the syndicate losses there stated were increased, by such amount as may be specified in the direction, and any reference to an amount of tax so determined, or to the amount of tax which should be so postponed, shall be construed accordingly; and

(d)subsections (2) and (9) and, in subsection (6), paragraphs (a) and (b) and the word “and” immediately preceding paragraph (a) shall be omitted.

Apportionments of syndicate profit or lossU.K.

7(1)Where a determination of a syndicate profit or loss for a year of assessment is made, varied or modified (whether under the foregoing provisions of this Schedule or on appeal), the inspector may, by notice in writing to the agent, require him to make to the inspector, within the specified period, a return apportioning, between the members of the syndicate, the syndicate profit or loss as stated in the determination as so made, varied or modified.U.K.

(2)If the agent, having been required by a notice under sub-paragraph (1) above to deliver a return within the specified period, fails to deliver the return within that period, he shall be liable to a penalty equal to the prescribed amount multiplied by the number of days on which the failure continues; and in this sub-paragraph “the prescribed amount” means £5 for each fifty members of the syndicate (counting any number of members left over as fifty).

(3)In this paragraph “the specified period” means such period, not being less than thirty days and beginning with the day following the date of the notice under sub-paragraph (1) above, as may be specified in that notice.

Individual members: effect of determinationsU.K.

8(1)A determination of a syndicate profit or loss for a year of assessment (whether as originally made or as varied or modified) shall, for the purpose of determining the liability to tax of each member of the syndicate, be conclusive against that member that the syndicate profit or loss for that year is as there stated.U.K.

(2)Where a determination of a syndicate profit or loss for a year of assessment is varied or modified at any time after the issue of a notice of assessment assessing any member of the syndicate to tax—

(a)section 31 of the M12Taxes Management Act 1970 (right of appeal) and section 55 of that Act (postponement of tax) shall have effect, in relation to that member, as if any reference to the date of the notice of assessment, or the date of the issue of the notice of assessment, were a reference to the date of the variation or modification; and

(b)in the case of a variation, an assessment which gives effect to the determination as varied shall not be out of time if it is made within one year of the date of the variation.

(3)Sub-paragraph (2)(b) above shall not apply in the case of a variation under paragraph 4(3) above which is made later than six years after the end of the closing year.

Assessment of individual members: time limitsU.K.

9U.K.For the purposes of sections 36, 37, 40 and 41 of the M13Taxes Management Act 1970 (extension of time in cases of fraud, wilful default or neglect), anything done or omitted to be done by the agent shall be deemed to have been done or omitted to be done by each member of the syndicate.

Supplemental: penaltiesU.K.

10(1)If it appears to an inspector or the Board that the agent is liable to a penalty under paragraph 2(3) or 7(2) above, the amount appearing to be due may be assessed by the inspector or the Board as if it were tax for the year of assessment in which the failure to make the return occurred; and, subject to the provisions of this paragraph, the provisions of the Taxes Management Act 1970 relating to the assessment and collection of tax shall apply accordingly.U.K.

(2)An amount assessed by way of penalty under paragraph 2(3) or 7(2) above shall be due at the end of the period of thirty days beginning with the date of the issue of the notice of assessment.

(3)On an appeal against an assessment of an amount by way of penalty under sub-paragraph (3) of paragraph 2 or sub-paragraph (2) of paragraph 7 above, subsections (6) to (8) of section 50 of that Act shall not apply but the Commissioners—

(a)may confirm the amount of the assessment or, if it appears to them that the amount assessed is greater or smaller than the penalty provided for under that sub-paragraph, may reduce it or increase it to such an amount as is appropriate having regard to the provisions of that sub-paragraph; and

(b)if it appears to them that no penalty has been incurred, may set the assessment aside.

(4)Where an amount has been assessed by way of penalty under sub-paragraph (3) of paragraph 2 or sub-paragraph (2) of paragraph 7 above and either no appeal has been brought against that assessment or the amount assessed has been confirmed or varied on appeal—

(a)a certificate of an inspector or other officer of the Board that an amount is due by way of penalty under that sub-paragraph; and

(b)a certificate of a collector that payment of that amount has not been made to him or, to the best of his knowledge and belief, to any other collector, or to a person acting on his behalf or on behalf of another collector,

shall be sufficient evidence that the amount mentioned in the certificates is unpaid and is due to the Crown; and any document purporting to be such a certificate as is mentioned in this sub-paragraph shall be deemed to be such a certificate unless the contrary is proved.

(5)Section 100 of the Taxes Management Act 1970 (procedure for recovery of penalties) shall not apply to a penalty under paragraph 2(3) or 7(2) above.

Supplemental: interestU.K.

11(1)Interest charged under paragraph 3(4) above shall be treated for the purposes of the enactments mentioned in section 69 of the Taxes Management Act 1970 (interest on tax) as if it were tax charged and due and payable under an assessment.U.K.

(2)References to section 86 of that Act in sections 70(2) and 92 of that Act (evidence, and remission of interest in certain cases) shall include a reference to paragraph 3(4) above.

Section 65.

SCHEDULE 6U.K. Commercial Woodlands

PreliminaryU.K.

1U.K.In this Schedule “commercial woodlands” means woodlands in the United Kingdom which are managed on a commercial basis and with a view to the realisation of profits.

Abolition of charge under Schedule BU.K.

2(1)The charge to tax under Schedule B in respect of the occupation of commercial woodlands is hereby abolished.U.K.

(2)In any case where, as respects an accounting period of a company which begins before and ends on or after 6th April 1988, the charge to tax under Schedule B has effect in relation to one part of that period but does not have effect in relation to the other part—

(a)the income deemed to arise to the company for that period from the occupation of the woodlands concerned shall be apportioned between those parts; and

(b)so much of that income as is apportioned to the part beginning on 6th April 1988 shall not be regarded as income arising to the company for that period.

(3)This paragraph shall be deemed to have come into force on 6th April 1988.

Abolition of Schedule D election etc.U.K.

3(1)Section 54 of the Taxes Act 1988 and section 111 of the Taxes Act 1970 (which confer on a person occupying commercial woodlands the right to elect to be assessed and charged to tax in respect of them under Schedule D instead of under Schedule B) shall cease to have effect.U.K.

(2)Subject to paragraph 5(1) below, profits or gains or losses which arise to a person from the occupation of commercial woodlands on or after 15th March 1988 shall not be regarded for any purposes as profits or gains or losses chargeable under Schedule D.

(3)Subject to paragraph 5(1) below—

(a)F32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)interest which is paid by any person on or after that date and—

(i)is stated in section 360(1), 361(3) or 362 of the Taxes Act 1988 (loans to buy interest in close company, interest in employee-controlled company or into partnership) to be eligible for relief under section 353 of that Act; or

(ii)is stated in any of the corresponding enactments repealed by that Act to be eligible for relief under section 75 of the M14Finance Act 1972,

shall not be so eligible,

if the relevant business consists of the occupation of commercial woodlands.

(4)Where part only of the relevant business consists of the occupation of commercial woodlands—

(a)F33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)interest falling within paragraph (b) of that sub-paragraph shall not be eligible for relief under section 353 of the Taxes Act 1988 or section 75 of the M15Finance Act 1972,

to such extent as may be just and reasonable having regard to all the circumstances of the case and, in particular, to the proportion which that part of that business bears to the whole.

(5)In this paragraph “the relevant business” means—

(a)F34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b)F35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in relation to interest falling within paragraph (b) of sub-paragraph (3) above, the business carried on by the close company, employee-controlled company or partnership concerned;

and for the purposes of this paragraph two or more businesses carried on by a company, F36. . . or partnership shall be regarded as a single business.

(6)F37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)This paragraph shall be deemed to have come into force on 15th March 1988.

[ Transitional provisionsU.K.

F384(1)Where this paragraph applies in relation to a person’s occupation of any commercial woodlands—U.K.

(a)that person; or

(b)in the event of his death, any other person who occupies them by virtue of any disposition (whether effected by will, under the law relating to intestacy or otherwise) of property comprised in his estate immediately before his death,

may elect to be assessed and charged to tax in respect of them under Schedule D; and the reference in this sub-paragraph to a disposition includes a reference to a disposition as varied under section 142 of the M16Inheritance Tax Act 1984.

(2)This paragraph applies in relation to a person’s occupation of any commercial woodlands if—

(a)he had entered into a contract or made arrangements before 15th March 1988 for his occupation of them;

(b)he was occupying them on that date; or

(c)he is or was occupying them after that date and the requirements of sub-paragraph (3) below are satisfied with respect to the land which comprises them;

and in this sub-paragraph and sub-paragraph (3) below “arrangements” does not include arrangements which are not evidenced by an instrument or other document made before that date.

(3)The requirements of this sub-paragraph are satisfied with respect to any land which comprises commercial woodlands if, before 15th March 1988, the person who is or was occupying them after that date—

(a)had entered into a contract or made arrangements for the afforestation (including the replanting) of the land; or

(b)had made an application for a grant under section 1 of the M17Forestry Act 1979 or section 2(1)(e) of the M18Forestry Act (Northern Ireland) 1953 with respect to the land;

and for the purposes of paragraph (b) above an application shall be treated as made when it was received by the Forestry Commissioners or, in Northern Ireland, by the Department of Agriculture.

(4)Subject to sub-paragraph (5) below, an election under sub-paragraph (1) above—

(a)shall be made by notice in writing given to the inspector not later than two years after the end of the chargeable period to which the election relates;

(b)shall have effect not only in relation to that period but also, so long as the person by whom it is made continues to occupy the woodlands, in relation to subsequent chargeable periods; and

(c)shall extend to all woodlands on the same estate.

(5)An election made under sub-paragraph (1) above in respect of any commercial woodlands shall not have effect in relation to any chargeable period if before the beginning of that period a relevant grant has been made with respect to any land which comprises woodlands on the same estate.

(6)For the purposes of sub-paragraphs (4) and (5) above, woodlands shall be treated as being on a separate estate if the person occupying them so elects by notice in writing given to the inspector not later than two years after the time when they are planted or replanted.

(7)An election under section 111 of the Taxes Act 1970 made before 15th March 1988 in respect of any commercial woodlands by a person who, on that date, was occupying those woodlands shall have effect as if made under sub-paragraph (1) above.

(8)In this paragraph and paragraph 5 below “relevant grant” means a grant under section 1 of the Forestry Act 1979 or section 2(1)(e) of the Forestry Act (Northern Ireland) 1953 which—

(a)is made on terms and conditions first published after 15th March 1988; and

(b)is not made by way of supplement to a grant made on terms and conditions first published before that date.

(9)This paragraph shall be deemed to have come into force on 15th March 1988 and shall cease to have effect on 6th April 1993.]

5[F39(1)For any chargeable period in relation to which an election made under paragraph 4(1) above by any person has effect in respect of any commercial woodlands—U.K.

(a)any profits or gains or losses which arise to him before 6th April 1993 from the occupation of those woodlands shall for all purposes be regarded as profits or gains or losses of a trade chargeable under Schedule D;

(b)in computing those profits or gains or losses, no account shall be taken of any relevant grant and no deduction shall be made for any expenditure in respect of which any such grant was made; and

(c)the occupation of those woodlands shall not be taken into account under paragraph 3(3) or (4) above as respects any interest paid before that date.]

(2)In any case where, as respects an accounting period of a company which begins before and ends on or after 6th April 1993, sub-paragraph (1) above has effect in relation to one part of that period but does not have effect in relation to the other part—

(a)the profits or gains or losses arising to the company for that period from the occupation of the woodlands concerned shall be apportioned between those parts; and

(b)such of those profits or gains or losses as are apportioned to the part beginning on 6th April 1993 shall not be regarded as profits or gains or losses arising to the company for that period.

(3)In any case where—

(a)sub-paragraph (1) above, as it applies for income tax purposes, has effect for a year of assessment as respects a person’s occupation of any commercial woodlands;

(b)that year of assessment is the final year of assessment for which that sub-paragraph, as it so applies, has effect as respects that person’s occupation of those woodlands; and

(c)there is an interval between the end of the relevant basis period and the beginning of the next following year of assessment;

then, for the purpose of calculating any capital allowances which fall to be made in taxing his occupation of those woodlands, the interval shall be deemed to form part of that basis period.

(4)In sub-paragraph (3) above—

• “basis period” has the meaning given by section 72 of the M19Capital Allowances Act 1968;

• “the relevant basis period”, in relation to a year of assessment, means—

(a)except where that year of assessment is in relation to the occupation by the person of the woodlands concerned a year of loss within the meaning of section 383 of the Taxes Act 1988, the basis period for that year of assessment;

(b)in the excepted case, the basis period for the next following year of assessment.

(5)Sub-paragraph (1) above shall be deemed to have come into force on 15th March 1988 and shall cease to have effect on 6th April 1993.

Consequential amendmentsU.K.

6F40(1). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

(2)In section 67(1) of the Taxes Act 1970 (Schedule A), in paragraph 3 of Schedule A (exceptions), after paragraph (a) there shall be inserted—

“(aa)to any profits or gains arising from a person’s occupation of any woodlands which are managed on a commercial basis and with a view to the realisation of profits, or”

(3)In section 110 of the Taxes Act 1970 (farming and the commercial occupation of land), in subsection (3), for the proviso there shall be substituted—

• Provided that nothing in this subsection shall apply in relation to the occupation of land which comprises woodlands or is being prepared for use for forestry purposes.;

• but the amendment made by this sub-paragraph shall not apply in relation to land which is being prepared for use for forestry purposes if the requirements of paragraph 4(3) above are satisfied with respect to it.

(4)In sections 168(8), 169(10) and 171(5) of the Taxes Act 1970, for the words “section 111 of this Act” there shall be substituted the words “paragraph 4 of Schedule 6 to the Finance Act 1988”.

F41(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)In section 15(1) of the Taxes Act 1988 (Schedule A), in paragraph 3 of Schedule A (exceptions), after paragraph (a) there shall be inserted—

“(a)to any profits or gains arising from a person’s occupation of any woodlands which are managed on a commercial basis and with a view to the realisation of profits, or”

(7)In section 53 of the Taxes Act 1988 (farming and the commercial occupation of land), for subsection (4) there shall be substituted—

“(4)Subsection (3) above shall not apply in relation to the occupation of land which comprises woodlands or is being prepared for use for forestry purposes.”but the amendment made by this sub-paragraph shall not apply in relation to land which is being prepared for use for forestry purposes if the requirements of paragraph 4(3) above are satisfied with respect to it.

(8)In sections 380(4), 383(12)(a) and 385(6) of the Taxes Act 1988, for the words “section 54” there shall be substituted the words “paragraph 4 of Schedule 6 to the Finance Act 1988”.

(9)Sub-paragraphs (1), (4) and (8) above shall be deemed to have come into force on 15th March 1988; and sub-paragraphs (2), (3) and (5) to (7) above shall be deemed to have come into force on 6th April 1988.

Section 66.

SCHEDULE 7U.K. Exceptions to Rule in Section 66(1)

Cases where rule does not applyU.K.

1(1)Subject to sub-paragraphs (2) and (3) below, section 66(1) of this Act shall not apply in relation to a company which, immediately before the commencement date—U.K.

(a)was carrying on business;

(b)was not resident in the United Kingdom, having ceased to be so resident in pursuance of a Treasury consent; and

(c)where that consent was a general consent, was taxable in a territory outside the United Kingdom.

(2)If at any time on or after the commencement date a company falling within sub-paragraph (1) above—

(a)ceases to carry on business; or

(b)where the Treasury consent there referred to was a general consent, ceases to be taxable in a territory outside the United Kingdom,

section 66(1) of this Act shall apply in relation to the company after that time or after the end of the transitional period, whichever is the later.

(3)If at any time on or after the commencement date a company falling within sub-paragraph (1) above becomes resident in the United Kingdom, section 66(1) of this Act shall apply in relation to the company after that time.

2(1)Subject to sub-paragraphs (2) and (3) below, section 66(1) of this Act shall not apply in relation to a company which—U.K.

(a)carried on business at any time before the commencement date;

(b)ceases to be resident in the United Kingdom at any time on or after that date in pursuance of a Treasury consent; and

(c)is carrying on business immediately after that time.

(2)If at any time after it ceases to be resident in the United Kingdom a company falling within sub-paragraph (1) above ceases to carry on business, section 66(1) of this Act shall apply in relation to the company after that time or after the end of the transitional period, whichever is the later.

(3)If at any time after it ceases to be resident in the United Kingdom a company falling within sub-paragraph (1) above becomes resident in the United Kingdom, section 66(1) of this Act shall apply in relation to the company after that time.

Cases where rule does not apply until end of transitional periodU.K.

3(1)Subject to sub-paragraph (2) below, in relation to a company which—U.K.

(a)carried on business at any time before the commencement date;

(b)was not resident in the United Kingdom immediately before that date; and

(c)is not a company falling within paragraph 1(1) above,

section 66(1) of this Act shall not apply until after the end of the transitional period.

(2)If at any time on or after the commencement date a company falling within sub-paragraph (1) above becomes resident in the United Kingdom, section 66(1) of this Act shall apply in relation to the company after that time.

4(1)Subject to sub-paragraph (2) below, in relation to a company which—U.K.

(a)carried on business at any time before the commencement date;

(b)ceases to be resident in the United Kingdom at any time on or after that date in pursuance of a Treasury consent; and

(c)is not a company falling within paragraph 2(1) above,

section 66(1) of this Act shall not apply until after the end of the transitional period.

(2)If at any time after it ceases to be resident in the United Kingdom a company falling within sub-paragraph (1) above becomes resident in the United Kingdom, section 66(1) of this Act shall apply in relation to the company after that time.

SupplementalU.K.

5(1)In this Schedule—U.K.

• “the commencement date” means the date of the coming into force of this Schedule;

• “general consent” means a consent under any section to which sub-paragraph (2) below applies given generally within the meaning of subsection (4) of that section;

• “taxable” means liable to tax on income by reason of domicile, residence or place of management;

• “the transitional period” means the period of five years beginning with the commencement date;

• “Treasury consent” means a consent under any section to which sub-paragraph (2) below applies given for the purposes of subsection (1)(a) of that section.

(2)This sub-paragraph applies to the following sections (restrictions on the migration etc. of companies), namely—

• section 765 of the Taxes Act 1988;

• section 482 of the Taxes Act 1970;

• section 468 of the M20Income Tax Act 1952; and

• section 36 of the M21Finance Act 1951.

(3)Any question which arises under any of the provisions of this Schedule shall be determined without regard to the provision made by section 66(1) of this Act.

F42SCHEDULE 8U.K.

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

F57SCHEDULE 9U.K.

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

F67SCHEDULE 10U.K.

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

F78SCHEDULE 11U.K.

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

Section 145.

SCHEDULE 12U.K. Building Societies: Change of Status

IntroductoryU.K.

1U.K.Paragraphs [F863] to 7 below apply where there is a transfer of the whole of a building society’s business to a company (“the successor company”) in accordance with section 97 and the other applicable provisions of the M22Building Societies Act 1986.

Gilt-edged securities and other financial trading stockU.K.

2U.K.F87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital allowancesU.K.

3(1)For the purposes of the allowances and charges provided for by the [F88Capital Allowances Act 2001] the trade of the society shall not be treated as permanently discontinued and the trade of the successor company shall not be treated as a new trade set up and commenced by the successor company.U.K.

(2)There shall be made to or on the successor company in accordance with those Acts all such allowances and charges as would, if the society had continued to carry on the trade, have fallen to be made to or on it, and the amount of any such allowance or charge shall be computed as if the successor company had been carrying on the trade since the society began to do so and as if everything done to or by the society had been done to or by the successor company.

(3)No transfer of assets from the society to the successor company effected by section 97 of the Building Societies Act 1986 shall be treated as giving rise to any such allowance or charge.

Capital gains: assets acquired from society, etc.U.K.

F894U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital gains: shares, and rights to shares, in successor companyU.K.

F905U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DistributionsU.K.

6(1)Where, in connection with the transfer, qualifying benefits are conferred by the society or the successor company on members of the society, the conferring of those benefits shall not be regarded as either—U.K.

(a)the making of a distribution, within the meaning of the Corporation Tax Acts; or

(b)the payment or crediting of a dividend for the purposes of [F91section 477A] of the Taxes Act 1988 or any regulations under that section (building society interest etc.).

(2)Sub-paragraph (1) above does not preclude any qualifying benefit (and, in particular, any qualifying benefit which in the hands of the recipient would, apart from that sub-paragraph, constitute income for the purposes of income tax) from being a capital distribution for the purposes of section [F92122 of the Taxation of Chargeable Gains Act 1992], and in that section “distribution” shall be construed accordingly.

(3)In this paragraph “qualifying benefits” means—

(a)any such rights as are mentioned in paragraph 5(1)(a), (b) or (c) above, and any property obtained by the exercise of those rights;

(b)any shares issued or disposed of as mentioned in paragraph 5(2) above;

(c)any shares issued or disposed of, or to which a member becomes entitled, as mentioned in paragraph 5(3) or (4) above, and any interest in the settled property constituted by those shares;

(d)any payment in lieu of a qualifying benefit falling within paragraphs (a) to (c) above;

(e)any distribution made in pursuance of section 100(2)(b) of the M23Building Societies Act 1986.

(4)“Member” has the same meaning in this paragraph as in paragraph 5 above.

Contractual savings schemesU.K.

7U.K.The following provisions, namely—

(a)section 326 of the Taxes Act 1988 (certain sums to be disregarded for income tax purposes), and

F93(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

shall have effect in relation to any terminal bonus, or interest or other sum, payable after the transfer under a savings scheme which immediately before the transfer was a certified contractual savings scheme (within the meaning of section 326) in relation to the society notwithstanding that it ceased to be such a scheme by reason of the transfer.

Stamp dutyU.K.

8U.K.Section 109 of the M24Building Societies Act 1986 (exemption from stamp duty) shall be renumbered as subsection (1) of that section and after that provision as so renumbered there shall be inserted—

“(2)No transfer effected by subsection (6) or (7) of section 97 shall give rise to any liability to stamp duty.”

Section 146.

SCHEDULE 13U.K. Post-Consolidation Amendments

Part IU.K. Amendments of the Taxes Act 1988

1U.K.The Taxes Act 1988 shall have effect, and shall be deemed always to have had effect, subject to the amendments specified in paragraphs 2 to 14 of this Schedule.

2U.K.In section 61(4) after the word “where” there shall be inserted the words “ there is a change in the persons engaged in carrying on a trade, profession or vocation in partnership and ”.

F943U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F954U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5U.K.In section 533(4) after “1949” there shall be inserted the words “ , sections 55 to 59 of the Patents Act 1977 ”.

6U.K.In section 591(5) and (6) after the word “made” there shall be inserted the words “ by the Board ”.

7U.K.In section 824—

(a)in subsection (1) the following paragraphs shall be substituted for paragraphs (a) and (b)—

“(a)in the case of income tax or surtax paid by or on behalf of an individual for a year of assessment for which he was resident in the United Kingdom, a repayment of the tax of not less than £25 is made by the Board or an inspector after the end of the 12 months following that year of assessment; or

(b)in the case of the special charge under Part IV of the Finance Act 1968, a repayment of the charge of not less than £25 is made by the Board or an inspector,”

F96(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)in subsection (2) for the words “Subsection (1)” there shall be substituted the words “ Subsections (1) and (1A) ” and for the words “it applies to a repayment falling within that subsection” there shall be substituted the words “ they apply to a repayment falling within subsection (1) ”,

(d)the following subsection shall be inserted after that subsection—

“(2A)Subsection (1) above shall apply to a repayment made in consequence of a claim under section 228 of the Income Tax Act 1952 (relief in respect of income accumulated under trusts) as if the repayment were of income tax paid by the claimant for the year of assessment in which the contingency mentioned in that section happened.”

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

“(aa)if the repayment is of the special charge, the relevant time, as regards so much of the charge as was paid before the end of the year 1969-70, is the end of that year, and, as regards so much of the charge as was paid in any later year of assessment, is the end of the year of assessment in which it was paid;”

F96(f). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F978U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9U.K.In paragraph 2 of Schedule 10 after sub-paragraph (c) there shall be inserted the word “ or ”.

10U.K.In paragraph 17(2)(a) of Schedule 15 after the words “but the old policy was” there shall be inserted the word “ not ”.

11U.K.In paragraph 18(2) of that Schedule for “1 to 9” there shall be substituted “ 1, 2, 3(5) to (11), 4 to 9 ”.

12U.K.In paragraph 4(3)(b) of Schedule 27 for “416” there shall be substituted “ 75 ”.

13U.K.In paragraph 8 of Schedule 29 for the words “added after paragraph (f)” there shall be substituted the words “ substituted for paragraph (g) ”.

14U.K.In the Table in paragraph 32 of that Schedule the amendments of —

(a)section 55(1)(g) of the M25Taxes Management Act 1970,

(b)section 108(9)(b) of the M26Finance Act 1980, and

(c)section 80(5)(b) of the M27Finance Act 1985,

shall be omitted.

15U.K.The repeals made in section 47 of the Finance (No. 2) Act 1975 shall be treated as never having had effect.

Part IIU.K. Amendments of Other Enactments

The Capital Gains Tax Act 1979 (c.14)U.K.

F9816U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F9917U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10018U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Finance Act 1980 (c.48)U.K.

19U.K.In section 101 of the Finance Act 1980 for the words “60 above” there shall be substituted the words “468(5) of the Taxes Act 1988”.

20U.K.In section 109(8)(b) of that Act for the words “Part II of that Act” there shall be substituted the words “ Chapter V of Part XII of the Taxes Act 1988 ”.

The Finance Act 1981 (c.35)U.K.

F10121U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Finance Act 1984 (c.43)U.K.

22U.K.In section 80(5)(b) of the Finance Act 1984 for the words “13 of the M28Oil Taxation Act 1975” there shall be substituted the words “ 492 of the Taxes Act 1988 ”.

The Finance Act 1986 (c.41)U.K.

F10223U.K.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Finance Act 1987 (c.16)U.K.

24U.K.The repeals made by the Finance Act 1987 in section 47 of the M29Finance (No. 2) Act 1975 shall be treated as never having had effect.

CommencementU.K.

25U.K.The amendments made by paragraphs 16 to 23 of this Schedule shall be treated for the purposes of their commencement as if they had been made by the Taxes Act 1988.

Section 148.

SCHEDULE 14U.K. Repeals

Part IU.K. Customs and Excise

1U.K.The repeal in section 1 of the Alcoholic Liquor Duties Act 1979 comes into force on the day appointed under section 1(6) of this Act.

2U.K.The repeals in sections 42 and 43 of that Act have effect from 1st October 1988.

3U.K.The repeals in the Betting and Gaming Duties Act 1981 have effect in relation to offences committed after the passing of this Act.

Part IIU.K. Vehicles Excise Duty

Part IIIU.K. Value Added Tax

Part IVU.K. Income and Corporation Tax: General

1U.K.The repeals in section 482 of the Income and Corporation Taxes Act 1970 and sections 765 and 767 of the Income and Corporation Taxes Act 1988 have effect from 15th March 1988 but subject to section 105(6) of this Act.

2U.K.The repeals in Schedule 10 to the Income and Corporation Taxes Act 1970 and the Finance Act 1973 have effect for the years 1986-87 and 1987-88.

3U.K.The repeal in the Finance Act 1980 has effect from 16th March 1988.

4U.K.The repeals in section 278 of the Income and Corporation Taxes Act 1988 have effect for the year 1990-91 and subsequent years of assessment.

5U.K.The repeal of section 351(1) to (7) of that Act and the repeals in sections 348 and 349 have effect in relation to payments made on or after 6th April 1989; and the repeal of section 351(8) has effect in relation to orders and variations made on or after that date.

6U.K.The repeals in sections 355, 357 and 358 of that Act have effect in accordance with section 44 of this Act.

7U.K.The repeals in section 577 of that Act have effect in accordance with section 72 of this Act.

8U.K.The repeals in Schedule 11 to that Act have effect in relation to payments to which section 74 of this Act applies.

9U.K.The remaining repeals have effect for the year 1988-89 and subsequent years of assessment.

Part VU.K. Commercial Woodlands

1U.K.The repeals in the Taxes Management Act 1970, the repeals in sections 1, 67, 108, 109, 226(9)(c), 351(1)(a) and 530(1)(c) of the Income and Corporation Taxes Act 1970, the repeals of Part IV and section 360(1)(b) of that Act, the repeal in the Finance Act 1972, the repeal in the Finance Act 1984, the repeals in sections 1, 15, 18, 512(1)(a), 623(2)(c) and 833(4)(c) of the Income and Corporation Taxes Act 1988 and the repeal of sections 16 and 505(1)(b) of that Act have effect from 6th April 1988.

2U.K.The repeals of section 111 of the Income and Corporation Taxes Act 1970 and section 54 of the Income and Corporation Taxes Act 1988 have effect from 15th March 1988.

3U.K.The remaining repeals have effect from 6th April 1993.

Part VIU.K. Unapproved Employee Share Schemes

Part VIIU.K. Capital Gains: General

1U.K.The repeals in the Income and Corporation Taxes Act 1988 have effect for companies’ accounting periods ending after 5th April 1988.

2U.K.The remaining repeals have effect in relation to disposals made on or after 6th April 1988.

Part VIIIU.K. Married Couples

1U.K.The repeals in section 361 of the Income and Corporation Taxes Act 1988 have effect in accordance with paragraph 15 of Schedule 3 to this Act.

2U.K.The repeals in sections 382 and 574 of that Act have effect in relation to relief given for the year 1990-91 or a subsequent year of assessment.

3U.K.The repeal in section 420(2) of that Act has effect in accordance with paragraph 16 of Schedule 3 to this Act.

4U.K.The repeal in section 525 of that Act has effect in relation to tax paid or borne or payable or falling to be paid or borne for the year 1990-91 or a subsequent year of assessment.

5U.K.The repeals in sections 527 and 535 of that Act have effect in relation to tax payable for the year 1990-91 or a subsequent year of assessment.

6U.K.The remaining repeals have effect for the year 1990-91 and subsequent years of assessment.

Part IXU.K. Tax Appeals etc. in Northern Ireland

Part XU.K. Inheritance Tax

Part XIU.K. Stamp Duty