Finance (No. 2) Act 1992

MiscellaneousU.K.

53 Car fuel: cash equivalents.U.K.

(1)Section 158 of the Taxes Act 1988 (car fuel) shall be amended as follows.

(2)For subsection (2) (cash equivalents) there shall be substituted—

“(2)Subject to the provisions of this section, the cash equivalent of that benefit shall be ascertained from—

(a)Table A below where the car has an internal combustion engine with one or more reciprocating pistons and is not a diesel car;

(b)Table AB below where the car has an internal combustion engine with one or more reciprocating pistons and is a diesel car;

(c)Table B below where the car does not have an internal combustion engine with one or more reciprocating pistons.

(2A)For the purposes of subsection (2) above a diesel car is a car which uses heavy oil as fuel; and “heavy oil” here means heavy oil as defined by section 1(4) of the Hydrocarbon Oil Duties Act 1979.

(2B)For the purposes of Tables A and AB in subsection (2) above a car’s cylinder capacity is the capacity of its engine calculated as for the purposes of the Vehicles (Excise) Act 1971.”

(3)In subsection (4) (Treasury orders) for “either" there shall be substituted “ any ”.

(4)This section shall have effect for the year 1992-93 and subsequent years of assessment.

F154 Foreign earnings.U.K.

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55 Oil extraction activities: extended transportation.U.K.

(1)In section 502 of the Taxes Act 1988 (defined expressions for Chapter V of Part XII of that Act - petroleum extraction activities), in subsection (1), in the definition of “oil extraction activities", in paragraph (c)—

(a)the words “as far as dry land in the United Kingdom" shall be omitted; and

(b)after the words “so held" there shall be inserted

“where the transportation is—

(i)to the place where the oil is first landed in the United Kingdom, or

(ii)to the place in the United Kingdom or, in the case of oil first landed in another country, the place in that or any other country (other than the United Kingdom) at which the seller in a sale at arm’s length could reasonably be expected to deliver it or, if there is more than one such place, the one nearest to the place of extraction”.

(2)Subsection (1) above has effect with respect to chargeable periods ending after 27th November 1991.

(3)In so far as the amendments made by paragraph 3 of Schedule 15 to this Act amend the definitions of “initial storage" and “initial treatment" as they have effect, by virtue of section 502(2) of the Taxes Act 1988, for the purposes of Chapter V of Part XII of that Act, those amendments have effect with respect to chargeable periods ending after 27th November 1991.

56 Friendly societies.U.K.

Schedule 9 to this Act (which makes provision in relation to friendly societies) shall have effect.

F257. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

F358. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .U.K.

F459 Furnished accommodation.U.K.

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F560 Deduction on account of certain payments.U.K.

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F661 Qualifying maintenance payments: extension to member States.U.K.

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F762 Qualifying maintenance payments: maintenance assessments etc.U.K.

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63 Paying and collecting agents etc.U.K.

Schedule 11 to this Act (which makes provision in relation to the payment of income tax on foreign dividends etc.) shall have effect.

F864 Reduced and composite rate.U.K.

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65 Life assurance business: I minus E basis.U.K.

(1)For the purposes of this section a claim is a relevant claim if it is made under or by virtue of any of the following provisions—

(a)section 393(1) of the Taxes Act 1988 (claim for carry forward of trading losses);

(b)section 393A(1) of the Taxes Act 1988 (claim for carry sideways and backwards of trading losses);

(c)section 402(2) of the Taxes Act 1988 (surrender of relief between members of groups and consortia: group claim);

(d)section 402(3) of the Taxes Act 1988 (surrender of relief between members of groups and consortia: consortium claim);

(e)any provision reproduced in any of the provisions mentioned in paragraphs (a) to (d) above (whether directly or indirectly and whether with or without modification).

(2)For the purposes of this section the following are relevant provisions—

(aa)section 434(1) and (1A) of the Taxes Act 1988 (section 208 not to apply in relation to life assurance profits computed in accordance with Case I of Schedule D etc);

F9(ab). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F10(a)section 434A(1) of the Taxes Act 1988 (profits derived from investments held for purposes of life assurance business treated as profits of that business in ascertaining loss);]

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

(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F11(d)section 83(2) of the M1Finance Act 1989 ( amounts to be taken into account as receipts or expenses);]

(e)section 37(1) of the M2Taxation of Chargeable Gains Act 1992 (exclusion from consideration for disposal of asset of any money or moneys worth taken into account in computing profits or losses etc.);

(f)any provision reproduced in any of the provisions mentioned in paragraphs (a) F12. . . and (e) above (whether directly or indirectly and whether with or without modification).

(3)For the purposes of this section—

(a)the I minus E basis is the basis commonly so called (under which a company carrying on life assurance business is charged to tax in respect of that business otherwise than under Case I of Schedule D);

(b)life assurance business includes annuity business [F13and capital redemption business].

(4)Neither the making of a relevant claim in respect of a trading loss incurred by a company in an accounting period nor the application of any commercial or accounting principle or practice in computing that loss—

(a)shall prevent the I minus E basis being applied for that or any other accounting period in respect of the company’s life assurance business;

(b)shall affect the calculation of the income or gains of that business for that or any other accounting period in applying that basis.

(5)The application of a relevant provision as regards a company for an accounting period shall not—

(a)prevent the I minus E basis being applied for that or any other accounting period in respect of its life assurance business;

(b)affect the calculation of the income or gains of that business for that or any other accounting period in applying that basis.

(6)This section—

(a)shall apply in relation to accounting periods beginning on or after the day on which this Act is passed;

(b)shall apply and be deemed always to have applied in relation to accounting periods beginning before that day[F14but, in relation to any case in which by virtue of section 99 of the Finance Act 1990 losses may be set off under subsection (1) of section 393 of the Taxes Act 1988 without the making of a claim, this section shall have effect as if references to the making of a claim under that subsection were references to the setting off of any loss under that subsection.]

66 Banks etc. in compulsory liquidation.U.K.

Schedule 12 to this Act (which makes provision in relation to companies that are or have been carrying on a deposit-taking business and are in compulsory liquidation) shall have effect.