Part II Income Tax, Corporation Tax and Capital Gains Tax
Chapter I General
Income tax rates and allowances
F5417 Rates and main allowances.
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F5518 Relief for blind persons.
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Corporation tax rates
C119 Charge and rate of corporation tax for 1990.
Corporation tax shall be charged for the financial year 1990 at the rate of 35 per cent.
F6520 Small companies.
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Benefits in kind
F4621 Care for children.
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22 Car benefits.
1
In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—
Part I Tables of Flat Rate Cash Equivalents
Table ACars with an original market value up to £19,250 and having a cylinder capacity
Cylinder capacity of car in cubic centimetres
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
1400 or less
£1,700
£1,150
More than 1400 but not more than 2000
£2,200
£1,500
More than 2000
£3,550
£2,350
Table BCars with an original market value up to £19,250 and not having a cylinder capacity
Original market value of car
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
Less than £6,000
£1,700
£1,150
£6,000 or more but less than £8,500
£2,200
£1,500
£8,500 or more but not more than £19,250
£3,550
£2,350
Table CCars with an original market value of more than £19,250
Original market value of car
Age of car at end of relevant year of assessment
Under 4 years
4 years or more
More than £19,250 but not more than £29,000
£4,600
£3,100
More than £29,000
£7,400
£4,900
(2) This section shall have effect for the year 1990-91 and subsequent years of assessment.
Mileage allowances
F123. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Charities
F224. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 Donations to charity by individuals.
F581
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F582
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F583
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F583A
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F584
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F585
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F585A
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F585B
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F585C
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F585D
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F585E
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F585F
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F585G
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F585H
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F585I
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F585J
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F586
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F587
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F588
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F589
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F589A
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F6610
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F6810A
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F5711
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F6712
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F5613
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F6926 Company donations to charity.
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27 Maximum qualifying company donations.
F31
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F702
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F33
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F714
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Savings
28 Tax-exempt special savings accounts.
F521
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F522
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F4F523
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F5329 Extension of SAYE.
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30 Building societies.
Schedule 5 to this Act (which contains provisions relating to building societies, deposit-takers and investors) shall have effect.
Insurance companies and friendly societies
F7641 Apportionment of income etc.
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F7742 Overseas life assurance business.
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F4943 Deduction for policy holders’ tax.
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F5144 Reinsurance commissions.
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45 Policy holders’ share of profits etc.
F781
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F782
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F783
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F784
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F505
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F156
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F787
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F168
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F179
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F7910
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F7911
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F1846. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F1947. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8048 Transfers of long term business.
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49 Friendly societies: increased tax exemption.
F811
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F812
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F813
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F814
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5
In paragraph 3(8)(b)(ii) of Schedule 15 to that Act (amount of premiums to be disregarded in determining whether a policy meets conditions for it to be a qualifying policy), after the word “premiums” there shall be inserted the words “
or, where those premiums are payable otherwise than annually, an amount equal to 10 per cent. of those premiums if that is greater
”
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F8250 Friendly societies: application of enactments.
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Unit and investment trusts etc.
F2051. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52 Unit trusts: repeals.
1
The Taxes Act 1988 shall have effect subject to the following provisions of this section.
2
In section 468 (authorised unit trusts) subsection (5) shall not apply as regards a distribution period beginning after 31st December 1990.
3
Where a particular distribution period is by virtue of subsection (2) above the last distribution period as regards which section 468(5) applies in the case of a trust, the trustees’ liability to income tax in respect of any source of income chargeable under Case III of Schedule D shall be assessed as if they had ceased to possess the source of income on the last day of that distribution period.
4
But where section 67 of the Taxes Act 1988 applies by virtue of subsection (3) above, it shall apply with the omission from subsection (1)(b) of the words from “and shall” to “this provision”.
5
Section 468B (certified unit trusts: corporation tax) shall not apply as regards an accounting period ending after 31st December 1990.
6
Section 468C (certified unit trusts: distributions) shall not apply as regards a distribution period ending after 31st December 1990.
7
Section 468D (funds of funds: distributions) shall not apply as regards a distribution period ending after 31st December 1990.
8
In this section “distribution period” has the same meaning as in section 468 of the Taxes Act 1988.
F5953 Unit trust managers: exemption from bond-washing provisions.
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F2154. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F7255 Investment trusts.
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Securities
F2256. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2357 Deep gain securities.
1
In Schedule 11 to the M1Finance Act 1989 (deep gain securities) paragraph 1 (meaning of deep gain security) shall be amended as follows.
2
The following sub-paragraph shall be inserted after sub-paragraph (3)—
3A
In the case of a security issued on or after 9th June 1989, for the purposes of sub-paragraph (2) above “redemption” does not include any redemption which may be made before maturity only if—
a
the person who issued the security fails to comply with the duties imposed on him by the terms of issue,
b
the person who issued the security becomes unable to pay his debts, or
c
the security was issued by a company and a person gains control of the company in pursuance of the acceptance of an offer made by that person to acquire shares in the company.
3
The amendment made by this section shall be deemed always to have had effect.
F2458. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2559. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Oil industry
F2660. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2761. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62 CT treatment of PRT repayment.
F731
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F732
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F74F753
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F2863. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F2964. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
International
F3065. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3166. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67 Dual resident companies: controlled foreign companies.
F321
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F322
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3
In Schedule 25 to that Act—
a
paragraphs 2(1)(c) and 4(1)(c) shall be omitted,
F62b
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F62c
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4
Subsections (1) and (2) above shall apply on and after 20th March 1990 and subsection (3) above shall apply to dividends paid on or after that date.
68 Movements of capital between residents of member States.
F631
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F632
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3
M2In section 98 of the Taxes Management Act 1970 (penalties for failure to furnish information and for false information)—
a
in subsection (1), after the words “Subject to” there shall be inserted the words “
the provisions of this section and
”
;
F64b
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F64c
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F64d
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4
This section shall apply to transactions carried out on or after 1st July 1990.
69 European Economic Interest Groupings.
Schedule 11 to this Act (which makes provision about the taxation of income and gains in the case of European Economic Interest Groupings) shall have effect.
F3370. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Miscellaneous
71 Relief for interest.
For the year 1990-91 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.
F3472. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3573. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3674. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F3775. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F6076 Training and enterprise councils and local enterprise companies.
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F4777 Expenses of entertainers.
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F6178 Waste disposal.
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F4879 Priority share allocations for employees etc.
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80 Broadcasting: transfer of undertakings of Independent Broadcasting Authority and Cable Authority.
Schedule 12 to this Act shall have effect.
81 Futures and options: exemptions.
1
F38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
The following section shall be inserted at the end of Part XIV of the Taxes Act 1988 (pension schemes etc.)—
659A Futures and options.
1
For the purposes of sections 592(2), 608(2)(a), 613(4), 614(3) and (4), 620(6) and 643(2)—
a
“investments” (or “investment”)
includes futures contracts and options contracts, and
b
income derived from transactions relating to such contracts shall be regarded as income derived from (or income from) such contracts,
and paragraph 7(3)(a) of Schedule 22 to this Act shall be construed accordingly.
2
For the purposes of subsection (1) above a contract is not prevented from being a futures contract or an options contract by the fact that any party is or may be entitled to receive or liable to make, or entitled to receive and liable to make, only a payment of a sum (as opposed to a transfer of assets other than money) in full settlement of all obligations.
F393
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4
Section 659 of the Taxes Act 1988 (financial futures and traded options) shall cease to have effect.
5
Subsections (1) and (2) above apply in relation to income derived after the day on which this Act is passed.
F396
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7
Insofar as section 659 of the Taxes Act 1988 relates to provisions of that Act, subsection (4) above applies in relation to income derived after the day on which this Act is passed.
8
Insofar as section 659 of the Taxes Act 1988 relates to section 149B of the M3Capital Gains Tax Act 1979, subsection (4) above applies in relation to disposals made after the day on which this Act is passed.
F4082. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4183. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4284. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4385. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4486. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F4587. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88 Capital allowances: miscellaneous amendments.
Schedule 13 to this Act shall have effect.
89 Correction of errors in Taxes Act 1988.
Schedule 14 to this Act shall have effect.