Introductory Text
Part 1 Excise duties
Tobacco products duty
1.Rates of tobacco products duty
Alcoholic liquor duties
2.Rate of duty on beer
3.Rates of duty on wine and made-wine
Hydrocarbon oil duties
4.Rates of hydrocarbon oil duties
5.Rebates on hydrocarbon oil duties
Betting and gaming duties
6.General betting duty and pool betting duty: relief for losses
7.General betting duty: betting exchanges
8.General betting duty: restriction of exemption for on-course bets
9.Bingo duty
10.Amusement machines not operated by coins or tokens
11.Amusement machines: use of currencies other than sterling
12.Responsibility for unlicensed amusement machines
13.Rates of gaming duty
Vehicle excise duty
14.Vehicle excise duty: rates
15.Disclosure for exemptions: Northern Ireland
16.Duty at higher rate: exception for tractive units
Part 2 Value added tax
17.Requirement of evidence or security
18.Joint and several liability for unpaid VAT of another trader
19.Face-value vouchers
20.Supplies arising from prior grant of fee simple
21.Business gifts
22.Non-business use of business property
23.Supply of electronic services in member States: special accounting scheme
Part 3 Taxes and duties on importation and exportation: penalties
Preliminary
24.Introductory
The penalties
25.Penalty for evasion
26.Penalty for contravention of relevant rule
27.Exceptions from section 26
28.Liability of directors etc where body corporate liable to penalty for evasion
Reduction of amount of penalty
29.Reduction of penalty under section 25 or 26
Demand notices
30.Demands for penalties
31.Time limits for demands for penalties
32.No prosecution after demand notice for penalty under section 26
Reviews
33.Right to review of certain decisions
34.Time limit and right to further review
35.Powers of Commissioners on a review
Appeals
36.Appeals to a tribunal
37.Appeal tribunals
Evidence
38.Admissibility of certain statements and documents
Miscellaneous and supplementary
39.Service of notices
40.Penalties not to be deducted for income tax or corporation tax purposes
41.Regulations and orders
Part 4 Stamp duty land tax
Introduction
42.The tax
Land transactions
43.Land transactions
44.Contract and conveyance
45.Contract and conveyance: effect of transfer of rights
46.Options and rights of pre-emption
47.Exchanges
Chargeable interests, chargeable transactions and chargeable consideration
48.Chargeable interests
49.Chargeable transactions
50.Chargeable consideration
51.Contingent, uncertain or unascertained consideration
52.Annuities etc: chargeable consideration limited to twelve years' payments
53.Deemed market value where transaction involves connected company
54.Exceptions from deemed market value rule
Amount of tax chargeable
55.Amount of tax chargeable: general
56.Amount of tax chargeable: rent
Reliefs
57.Disadvantaged areas relief
58.Relief for certain exchanges of residential property
59.Relocation relief
60.Compulsory purchase facilitating development
61.Compliance with planning obligations
62.Group relief and reconstruction or acquisition relief
63.Demutualisation of insurance company
64.Demutualisation of building society
65.Incorporation of limited liability partnership
66.Transfers involving public bodies
67.Transfer in consequence of reorganisation of parliamentary constituencies
68.Charities relief
69.Acquisition by bodies established for national purposes
70.Right to buy transactions, shared ownership leases etc
71.Certain acquisitions by registered social landlord
72.Alternative property finance: land sold to financial institution and leased to individual
73.Alternative property finance: land sold to financial institution and re-sold to individual
74.Collective enfranchisement by leaseholders
75.Crofting community right to buy
Returns and other administrative matters
76.Duty to deliver land transaction return
77.Notifiable transactions
78.Returns, enquiries, assessments and related matters
79.Registration of land transactions etc
80.Adjustment where contingency ceases or consideration is ascertained
81.Further return where relief withdrawn
82.Loss or destruction of, or damage to, return etc
83.Formal requirements as to assessments, penalty determinations etc
84.Delivery and service of documents
Liability for and payment of tax
85.Liability for tax
86.Payment of tax
87.Interest on unpaid tax
88.Interest on penalties
89.Interest on repayment of tax overpaid etc
90.Application to defer payment in case of contingent or uncertain consideration
91.Collection and recovery of tax etc
92.Payment by cheque
Compliance
93.Information powers
94.Power to inspect premises
95.Offence of fraudulent evasion of tax
96.Penalty for assisting in preparation of incorrect return etc
97.Power to allow further time and reasonable excuse for failure
98.Admissibility of evidence not affected by offer of settlement etc
99.General provisions about penalties
Application of provisions
100.Companies
101.Unit trust schemes
102.Open-ended investment companies
103.Joint purchasers
104.Partnerships
105.Trustees
106.Persons acting in a representative capacity etc
107.Crown application
Supplementary provisions
108.Linked transactions
109.General power to vary this Part by regulations
110.Approval of regulations under general power
111.Claim for repayment if regulations under general power not approved
112.Power to amend certain provisions before implementation
113.Functions conferred on “the Inland Revenue”
114.Orders and regulations made by the Treasury or the Inland Revenue
115.General and Special Commissioners, appeals and other proceedings
Interpretation etc
116.Meaning of “residential property”
117.Meaning of “major interest” in land
118.Meaning of “market value”
119.Meaning of “effective date” of a transaction
120.Meaning of “lease” and other supplementary provisions
121.Minor definitions
122.Index of defined expressions
Final provisions
123.Consequential amendments
124.Commencement and transitional provisions
Part 5 Stamp duty
125.Abolition of stamp duty except on instruments relating to stock or marketable securities
126.Circumstances in which group relief withdrawn
127.Circumstances in which relief for company acquisitions withdrawn
128.Exemption of certain leases granted by registered social landlords
129.Relief for certain leases granted before section 128 has effect
130.Registered social landlords: treatment of certain leases granted between 1st January 1990 and 27 March 2000
Part 6 Income tax and corporation tax: charge and rate bands
Income tax
131.Charge and rates for 2003-04
132.Indexed rate bands for 2003-04: PAYE deductions etc
Corporation tax
133.Charge and main rate for financial year 2004
134.Small companies' rate and fraction for financial year 2003
135.Corporation tax starting rate and fraction for financial year 2003
Part 7 Income tax, corporation tax and capital gains tax: general
Employment income and related matters
136.Provision of services through intermediary
137.Exemption where homeworker’s additional expenses met by employer
138.Taxable benefits: lower threshold for cars with a CO2 emissions figure
139.Approved share plans and schemes
140.Employee securities and options
141.Corporation tax relief for employee share acquisitions
142.Ending of relief for contributions to QUESTS
143.Restriction of deductions for employee benefit contributions
144.PAYE on notional payments: reimbursement period
145.PAYE: regulations and notional payments
146.Payroll giving: extension of 10% supplement to 5th April 2004
147.Sub-contractor deductions etc: interest on late payment or repayment
Taxation of non-resident companies and related matters
148.Meaning of “permanent establishment”
149.Non-resident companies: basis of charge to corporation tax
150.Non-resident companies: assessment, collection and recovery of corporation tax
151.Non-resident companies: extent of charge to income tax
152.Non-resident companies: transactions carried out through broker, investment manager or Lloyd’s agent
153.General replacement of references to branch or agency of company
154.Double taxation relief: profits attributable to overseas permanent establishment
155.Consequential amendments
156.Overseas life insurance companies
Chargeable gains
157.Life insurance policies and deferred annuity contracts
158.Application of market value rule in case of exercise of option
159.Reporting limits and annual exempt amount
160.Taper relief: assets qualifying as business assets
161.Earn-out rights to be treated as securities unless contrary election
162.Deferred unascertainable consideration: election for treatment of loss
163.Transfers of value: attribution of gains to beneficiaries
Capital allowances and related matters
164.Avoidance affecting proceeds of balancing event
165.Extension of first-year allowances for ICT expenditure by small enterprises
166.Expenditure on software for sub-licensing
167.First-year allowances for expenditure on environmentally beneficial plant or machinery
168.Relief for research and development
169.Tonnage tax: extension of capital allowance restrictions on lessors of ships
Life insurance and pensions
170.Insurance companies
171.Policies of life insurance etc: miscellaneous amendments
172.Charges under life insurance policies for exceptional risk of disability
173.Gains on policies of life insurance etc: rate of tax
174.Personal pension arrangements: limit on contributions
Miscellaneous
175.Payments to adopters
176.Foster carers
177.Currency contracts and currency options
178.Loan relationships: amendments
179.Derivative contracts: transactions within groups
180.Contributions to urban regeneration companies
181.Repos etc
182.Relevant discounted securities: withdrawal of relief for costs and losses, etc
183.Court common investment funds
184.Intangible fixed assets: tax avoidance arrangements and related parties
Part 8 Other taxes
Inheritance tax
185.Gifts with reservation
186.Authorised unit trusts, OEICs and common investment funds
Landfill tax
187.Rate of landfill tax
Climate change levy
188.Exemption for fuel used in recycling processes
189.CHP exemption to be based on current efficiency
190.Supplies not known to be taxable when made, etc
191.Deemed supplies
192.Amendments about registration, payment etc
193.Electricity from renewable sources etc
Insurance premium tax
194.Higher rate of tax: divided companies
Part 9 Miscellaneous and supplementary provisions
Provisions consequential on changes to company law
195.Companies acquiring their own shares
196.Companies in administration
International matters
197.Exchange of information between tax authorities of member States
198.Arrangements for mutual exchange of tax information
199.Savings income: Community obligations and international arrangements
200.Controlled foreign companies: exempt activities
201.Application of CFC provisions to Hong Kong and Macao companies
Administrative matters
202.Deduction of tax from interest: recognised clearing houses etc
203.Authorised unit trusts: interest distributions paid gross
204.Mandatory electronic payment by large employers
205.Use of electronic means of payment under other provisions
206.Admissibility of evidence not affected by offer of settlement etc
207.Consequential claims etc
National Savings
208.Ordinary accounts and investment accounts
209.Abolition of accounting requirements relating to investment deposits
Other financial matters
210.Payments for service of national debt
211.Definition of liabilities and assets of National Loans Fund
212.Accounts of Consolidated Fund and National Loans Fund
213.Debt Management Account: abolition of borrowing cap
214.Payments in error from or to National Loans Fund
Supplementary
215.Interpretation
216.Repeals
217.Short title
SCHEDULES
SCHEDULE 1
VAT: face-value vouchers
1.In Part 3 of the Value Added Tax Act 1994...
2.After Schedule 10 to that Act insert— SCHEDULE 10A Face-value...
3.In Schedule 6 to the Value Added Tax Act 1994...
4.The amendments made by this Schedule apply to supplies of...
SCHEDULE 2
Supply of electronic services in member States: VAT special accounting scheme
Introductory
1.The Value Added Tax Act 1994 (c. 23) is amended...
Insertion of new section 3A
2.After section 3 insert— Supply of electronic services in member...
Persons registered under Schedule 1
3.In Schedule 1 (registration in respect of taxable supplies) in...
The special accounting scheme
4.After Schedule 3A insert— SCHEDULE 3B Supply of electronic services...
SCHEDULE 3
Stamp duty land tax: transactions exempt from charge
No chargeable consideration
1.A land transaction is exempt from charge if there is...
Grant of certain leases by registered social landlords
2.(1) The grant of a lease of a dwelling is...
Transactions in connection with divorce etc
3.A transaction between one party to a marriage and the...
Variation of testamentary dispositions etc
4.(1) A transaction following a person’s death that varies a...
Power to add further exemptions
5.(1) The Treasury may by regulations provide that any description...
SCHEDULE 4
Stamp duty land tax: chargeable consideration
Money or money’s worth
1.(1) The chargeable consideration for a transaction is, except as...
Value added tax
2.The chargeable consideration for a transaction shall be taken to...
Postponed consideration
3.The amount or value of the chargeable consideration for a...
Just and reasonable apportionment
4.(1) For the purposes of this Part consideration attributable—
Exchanges
5.(1) This paragraph applies to determine the chargeable consideration where...
Partition etc: disregard of existing interest
6.In the case of a land transaction giving effect to...
Valuation of non-monetary consideration
7.Except as otherwise expressly provided, the value of any chargeable...
Debt as consideration
8.(1) Where the chargeable consideration for a land transaction consists...
Conversion of amounts in foreign currency
9.(1) References in this Part to the amount or value...
Carrying out of works
10.(1) Where the whole or part of the consideration for...
Provision of services
11.Where the whole or part of the consideration for a...
Land transaction entered into by reason of employment
12.(1) Where a land transaction is entered into by reason...
Obligations under lease
13.(1) In the case of the grant of a lease...
Surrender of existing lease in return for new lease
14.(1) This paragraph applies where a lease is granted in...
Reverse premium
15.(1) In the case of the grant, assignment or surrender...
Indemnity given by purchaser
16.Where the purchaser agrees to indemnify the vendor in respect...
SCHEDULE 5
Stamp duty land tax: amount of tax chargeable: rent
Introduction
1.This Schedule provides for calculating the tax chargeable—
Calculation of tax chargeable in respect of rent
2.(1) Tax is chargeable under this Schedule in respect of...
Net present value of rent payable over term of lease
3.The net present value (v) of the rent payable over...
Rent payable
4.(1) For the purposes of this Schedule a single sum...
Effect of provision for rent review
5.(1) This paragraph applies where the lease contains provision for...
Term of lease
6.(1) For the purposes of this Schedule the term of...
Treatment of lease for indefinite term
7.(1) For the purposes of this Schedule a lease for...
Temporal discount rate
8.(1) For the purposes of this Schedule the “temporal discount...
Tax chargeable in respect of consideration other than rent
9.(1) Where in the case of a transaction to which...
Increase of rent treated as grant of new lease
10.(1) Where a lease is varied so as to increase...
Interpretation
11.In Scotland any reference in this Part to the term...
SCHEDULE 6
Stamp duty land tax: disadvantaged areas relief
Part 1 Disadvantaged areas
Meaning of “disadvantaged area”
1.(1) For the purposes of this Schedule a “disadvantaged area”...
Continuation of regulations made for purposes of stamp duty
2.Any regulations made by the Treasury— (a) designating areas as...
Part 2 Land wholly situated in a disadvantaged area
Introduction
3.This Part of this Schedule applies to a land transaction...
Land all non-residential
4.If all the land is non-residential property, the transaction is...
Land all residential
5.(1) This paragraph applies where all the land is residential...
Land partly non-residential and partly residential
6.(1) This paragraph applies where the land is partly non-residential...
Part 3 Land partly situated in a disadvantaged area
Introduction
7.(1) This Part of this Schedule applies to a land...
Land all non-residential
8.If all of the land situated in a disadvantaged area...
Land all residential
9.(1) This paragraph applies where all the land situated in...
Land partly non-residential and partly residential
10.(1) This paragraph applies where the land situated in a...
Part 4 Interpretation
Relevant consideration and relevant rental value
11.(1) References in this Schedule to the “relevant consideration” in...
Rent and annual rent
12.For the purposes of this Schedule “rent” has the same...
SCHEDULE 7
Stamp duty land tax: group relief and reconstruction and acquisition reliefs
Part 1 Group relief
Group relief
1.(1) A transaction is exempt from charge if the vendor...
Restrictions on availability of group relief
2.(1) Group relief is not available if at the effective...
Withdrawal of group relief
3.(1) Where in the case of a transaction (“the relevant...
Cases in which group relief not withdrawn
4.(1) Group relief is not withdrawn under paragraph 3 in...
Recovery of group relief from another group company or controlling director
5.(1) This paragraph applies where— (a) tax is chargeable under...
Recovery of group relief: supplementary
6.(1) The Inland Revenue may serve a notice on a...
Part 2 Reconstruction and acquisition reliefs
Reconstruction relief
7.(1) Where— (a) a company (“the acquiring company”) acquires the...
Acquisition relief
8.(1) Where— (a) a company (“the acquiring company”) acquires the...
Withdrawal of reconstruction or acquisition relief
9.(1) Where in the case of a transaction (“the relevant...
Cases in which reconstruction or acquisition relief not withdrawn
10.(1) Reconstruction or acquisition relief is not withdrawn under paragraph...
Withdrawal of reconstruction or acquisition relief on subsequent non-exempt transfer
11.(1) Where paragraph 10(4) (change of control of acquiring company...
Recovery of reconstruction or acquisition relief from another group company or controlling director
12.(1) This paragraph applies where— (a) tax is chargeable under...
Recovery of reconstruction or acquisition relief: supplementary
13.(1) The Inland Revenue may serve a notice on a...
SCHEDULE 8
Stamp duty land tax: charities relief
Charities relief
1.(1) A land transaction is exempt from charge if the...
Withdrawal of charities relief
2.(1) Where in the case of a transaction (“the relevant...
SCHEDULE 9
Stamp duty land tax: right to buy, shared ownership leases etc
Right to buy transactions
1.(1) In the case of a right to buy transaction—...
Shared ownership lease: election for market value treatment
2.(1) This paragraph applies where— (a) a lease is granted—...
Transfer of reversion under shared ownership lease where election made for market value treatment
3.The transfer of the reversion to the lessee or lessees...
Shared ownership lease: election where staircasing allowed
4.(1) This paragraph applies where— (a) a lease is granted...
Shared ownership leases: meaning of “qualifying body” and “preserved right to buy”
5.(1) This paragraph has effect for the purposes of paragraphs...
Rent to mortgage or rent to loan: chargeable consideration
6.(1) The chargeable consideration for a rent to mortgage or...
SCHEDULE 10
Stamp duty land tax: returns, enquiries, assessments and appeals
Part 1 Land transaction returns
Contents of return
1.(1) A land transaction return must— (a) be in the...
Meaning of filing date and delivery of return
2.(1) References in this Part of this Act to the...
Failure to deliver return: flat-rate penalty
3.(1) A person who is required to deliver a land...
Failure to deliver return: tax-related penalty
4.(1) A purchaser who is required to deliver a land...
Formal notice to deliver return: daily penalty
5.(1) If it appears to the Inland Revenue—
Amendment of return by purchaser
6.(1) The purchaser may amend a land transaction return given...
Correction of return by Revenue
7.(1) The Inland Revenue may amend a land transaction return...
Penalty for incorrect or uncorrected return
8.(1) A purchaser who— (a) fraudulently or negligently delivers in...
Part 2 Duty to keep and preserve records
Duty to keep and preserve records
9.(1) A purchaser who is required to deliver a land...
Preservation of information instead of original records
10.(1) The duty under paragraph 9 to preserve records may...
Penalty for failure to keep and preserve records
11.(1) A person who fails to comply with paragraph 9...
Part 3 Enquiry into return
Notice of enquiry
12.(1) The Inland Revenue may enquire into a land transaction...
Scope of enquiry
13.(1) An enquiry extends to anything contained in the return,...
Notice to produce documents etc for purposes of enquiry
14.(1) If the Inland Revenue give notice of enquiry into...
Appeal against notice to produce documents etc
15.(1) An appeal may be brought against a requirement imposed...
Penalty for failure to produce documents etc
16.(1) A person who fails to comply with a notice...
Amendment of self-assessment during enquiry to prevent loss of tax
17.(1) If at a time when an enquiry is in...
Amendment of return by taxpayer during enquiry
18.(1) This paragraph applies if a return is amended under...
Referral of questions to Special Commissioners during enquiry
19.(1) At any time when an enquiry is in progress...
Withdrawal of notice of referral
20.(1) The Inland Revenue or the purchaser may withdraw a...
Effect of referral on enquiry
21.(1) While proceedings on a referral under paragraph 19 are...
Effect of determination
22.(1) The determination of a question referred to the Special...
Completion of enquiry
23.(1) An enquiry under paragraph 12 is completed when the...
Direction to complete enquiry
24.(1) The purchaser may apply to the General or Special...
Part 4 Revenue determination if no return delivered
Determination of tax chargeable if no return delivered
25.(1) If in the case of a chargeable transaction no...
Determination to have effect as a self-assessment
26.(1) A Revenue determination has effect for enforcement purposes as...
Determination superseded by actual self-assessment
27.(1) If after a Revenue determination has been made the...
Part 5 Revenue assessments
Assessment where loss of tax discovered
28.(1) If the Inland Revenue discover as regards a chargeable...
Assessment to recover excessive repayment of tax
29.(1) If an amount of tax has been repaid to...
Restrictions on assessment where return delivered
30.(1) If the purchaser has delivered a land transaction return...
Time limit for assessment
31.(1) The general rule is that no assessment may be...
Assessment procedure
32.(1) Notice of an assessment must be served on the...
Part 6 Relief in case of excessive assessment
Relief in case of double assessment
33.(1) A person who believes he has been assessed to...
Relief in case of mistake in return
34.(1) A person who believes he has paid tax under...
Part 7 Appeals against Revenue decisions on tax
Right of appeal
35.(1) An appeal may be brought against—
Notice of appeal
36.(1) Notice of an appeal under paragraph 35 must be...
Settling of appeals by agreement
37.(1) If, before an appeal under paragraph 35 is determined,...
Recovery of tax not postponed by appeal
38.(1) Where there is an appeal to the Commissioners under...
Direction by Commissioners to postpone payment
39.(1) If the appellant has grounds for believing that he...
Agreement to postpone payment of tax
40.(1) If the appellant and the relevant officer of the...
SCHEDULE 11
Stamp duty land tax: self-certificates
Part 1 General
Introductory
1.In this Schedule— (a) references to a self-certificate are to...
Form and contents of self-certificate
2.(1) A self-certificate must— (a) be in the prescribed form,...
Tax-related penalty for fraud or negligence
3.(1) A person who— (a) fraudulently or negligently gives a...
Part 2 Duty to keep and preserve records
Duty to keep and preserve records
4.(1) A purchaser who may be required to give a...
Preservation of information instead of original records
5.(1) The duty under paragraph 4 to preserve records may...
Penalty for failure to keep and preserve records
6.(1) A person who fails to comply with paragraph 4...
Part 3 Enquiry into self-certificate
Notice of enquiry
7.(1) The Inland Revenue may enquire into a self-certificate if...
Scope of enquiry
8.An enquiry extends to anything contained in the certificate, or...
Notice to produce documents etc for purposes of enquiry
9.(1) If the Inland Revenue give notice of enquiry into...
Appeal against notice to produce documents etc
10.(1) An appeal may be brought against a requirement imposed...
Penalty for failure to produce documents etc
11.(1) A person who fails to comply with a notice...
Referral of questions to Special Commissioners during enquiry
12.(1) At any time when an enquiry is in progress...
Withdrawal of notice of referral
13.(1) The Inland Revenue or the purchaser may withdraw a...
Effect of referral on enquiry
14.(1) While proceedings on a referral under paragraph 12 are...
Effect of determination
15.(1) The determination of a question referred to the Special...
Completion of enquiry
16.(1) An enquiry under paragraph 7 is completed when the...
Direction to complete enquiry
17.(1) The purchaser may apply to the General or Special...
SCHEDULE 12
Stamp duty land tax: collection and recovery of tax
Part 1 General
Issue of tax demands and receipts
1.(1) Where tax is due and payable, a collector may...
Recovery of tax by distraint
2.(1) In England and Wales or Northern Ireland, if a...
Recovery of tax by diligence in Scotland
3.(1) In Scotland, where any tax is due and has...
Part 2 Court proceedings
Civil proceedings in magistrates' court or court of summary jurisdiction
4.(1) An amount not exceeding £2,000 due and payable by...
Proceedings in county court or sheriff court
5.(1) Tax due and payable may be sued for and...
Proceedings in High Court or Court of Session
6.Tax may be sued for and recovered from the person...
Evidence of unpaid tax
7.(1) A certificate of an officer of the Board—
SCHEDULE 13
Stamp duty land tax: information powers
Part 1 Power of authorised officer to call for documents or information from taxpayer
Notice requiring taxpayer to deliver documents or provide information
1.(1) An authorised officer of the Board may by notice...
Requirement of consent of General or Special Commissioner
2.(1) The consent of a General or Special Commissioner is...
Contents of notice under this Part
3.(1) A notice under paragraph 1 must—
Summary of reasons to be given
4.(1) An officer who gives a notice under paragraph 1...
Power to take copies of documents etc
5.The person to whom documents are delivered, or to whom...
Part 2 Power of authorised officer to call for documents from third party
Notice requiring documents to be delivered or made available
6.(1) An authorised officer of the Board may for the...
Requirement of consent of General or Special Commissioner
7.(1) The consent of a General or Special Commissioner is...
Contents of notice under paragraph 6
8.(1) A notice under paragraph 6 must—
Copy of notice to be given to taxpayer
9.(1) Where a notice is given to a person under...
Summary of reasons to be given
10.(1) An officer who gives a notice under paragraph 6...
Power to give notice relating to unnamed taxpayer or taxpayers
11.(1) If, on an application made by an officer of...
Contents of notice under paragraph 11
12.(1) A notice under paragraph 11 must—
Power to take copies of documents etc
13.The person to whom documents are delivered or made available...
Part 3 Power to call for papers of tax accountant
Power to call for papers of tax accountant
14.(1) Where a person who has stood in relation to...
When notice may be given
15.(1) No notice under paragraph 14 may be given for...
Requirement of consent of appropriate judicial authority
16.(1) The consent of the appropriate judicial authority is required...
Contents of notice
17.(1) A notice under paragraph 14 must—
Power to take copies of documents etc
18.The officer to whom documents are delivered in pursuance of...
Part 4 Restrictions on powers under Parts 1 to 3
Introduction
19.The provisions of Parts 1 to 3 of this Schedule...
Personal records or journalistic material
20.(1) Parts 1 to 3 of this Schedule do not...
Documents or information relating to pending appeal
21.(1) A notice under Part 1 of this Schedule does...
Barristers, advocates and solicitors
22.(1) A notice under Part 2 or 3 of this...
Provision of copies instead of original documents
23.(1) To comply with a notice under Part 1 or...
Documents originating more than six years before date of notice
24.(1) A notice under Part 2 of this Schedule does...
Documents subject to legal privilege
25.(1) A notice under Part 2 or 3 of this...
Documents belonging to auditor or tax adviser
26.(1) A notice under Part 2 of this Schedule—
Documents belonging to auditor or tax adviser: information to be disclosed
27.(1) This paragraph applies where a notice is given under...
Part 5 Powers of board to call for documents or information
Notice requiring delivery of documents or provision of information
28.(1) The Board may by notice in writing require a...
Contents of notice
29.A notice under paragraph 28 must— (a) specify or describe...
Power to take copies of documents etc
30.The person to whom documents are delivered, or to whom...
Exclusion of personal records or journalistic material
31.(1) This Part of this Schedule does not apply to...
Part 6 Order of judicial authority for the delivery of documents
Order for the delivery of documents
32.(1) The appropriate judicial authority may make an order under...
Notice of application for order
33.(1) A person is entitled— (a) to notice of the...
Obligations of person given notice of application
34.(1) A person who has been given notice of intention...
Exception of items subject to legal privilege
35.(1) This Part of this Schedule does not apply to...
Resolution of disputes as to legal privilege
36.(1) The Inland Revenue may make provision by regulations for...
Complying with an order
37.(1) The Inland Revenue may make provision by regulations as...
Document not to be retained if photograph or copy sufficient
38.Where a document delivered to an officer of the Board...
Access to or supply of photograph or copy of documents delivered
39.(1) If a request for permission to be granted access...
Sanction for failure to comply with order
40.(1) A person who fails to comply with an order...
Notice of order, etc
41.The Inland Revenue may make provision by regulations as to...
General provisions about regulations
42.Regulations under this Part of this Schedule may contain such...
Part 7 Entry with warrant to obtain evidence of offence
Power to issue warrant
43.(1) The appropriate judicial authority, if satisfied on information on...
Meaning of offence involving serious fraud
44.(1) An offence that involves fraud is for the purposes...
Approval of application by Board
45.(1) The Board shall not approve an application for a...
Extent of powers conferred by warrant
46.The powers conferred by a warrant under this Part of...
Exercise of powers conferred by warrant
47.(1) An officer of the Board seeking to exercise the...
Items subject to legal privilege
48.(1) Nothing in this Part of this Schedule authorises the...
Procedure where documents etc are removed
49.(1) An officer of the Board who removes anything in...
Document not to be retained if photograph or copy sufficient
50.Where anything that has been removed by an officer of...
Access to or supply of photograph or copy of items removed
51.(1) If a request for permission to be granted access...
Endorsement and custody etc of warrant
52.(1) Where entry has been made with a warrant under...
Part 8 Falsification etc of documents
Falsification etc of documents
53.(1) A person commits an offence if he intentionally—
SCHEDULE 14
Stamp duty land tax: determination of penalties and related appeals
Determination of penalties and appeals
1.The provisions of this Schedule apply in relation to penalties...
Determination of penalty by officer of the Board
2.(1) An officer of the Board authorised for the purposes...
Alteration of penalty determination
3.(1) After notice has been served of the determination of...
Liability of personal representatives
4.If a person liable to a penalty has died—
Appeal against penalty determination
5.(1) An appeal lies to the General or Special Commissioners...
Further appeal
6.(1) An appeal lies against the amount of a penalty...
Penalty proceedings before the court
7.(1) Where in the opinion of the Board the liability...
Time limit for determination of penalties
8.(1) The following time limits apply in relation to the...
SCHEDULE 15
Stamp duty land tax: partnerships
Part 1 General provisions
Partnerships
1.In this Part of this Act a “partnership” means—
Legal personality of partnership disregarded
2.(1) For the purposes of this Part of this Act—...
Continuity of partnership
3.For the purposes of this Part of this Act a...
Partnership not to be regarded as unit trust scheme etc
4.A partnership is not to be regarded for the purposes...
Part 2 Ordinary partnership transactions
Introduction
5.(1) This Part of this Schedule applies to transactions entered...
Responsibility of partners
6.(1) Anything required or authorised to be done under this...
Joint and several liability of responsible partners
7.(1) Where the responsible partners are liable—
Representative partners
8.(1) Anything required or authorised to be done by or...
Part 3 Transactions excluded from stamp duty land tax
Introduction
9.(1) This Part of this Schedule excludes from stamp duty...
Transfer of interest in land into a partnership
10.(1) This paragraph applies to a transaction by which—
Acquisition of partnership interest
11.An acquisition of an interest in a partnership is excluded...
Transfer of interest in land out of a partnership
12.(1) This paragraph applies to a transaction by which an...
Effect of exclusion of transaction from stamp duty land tax
13.(1) A transaction that is excluded from stamp duty land...
Construction of references to partnership property
14.Any reference in this Part of this Schedule to partnership...
SCHEDULE 16
Stamp duty land tax: trusts and powers
Meaning of “settlement” and “bare trust”
1.(1) In this Part “settlement” means a trust that is...
Interests of beneficiaries under certain trusts
2.Where property is held in trust under the law of...
Acquisition etc by bare trustee attributed to beneficial owner
3.Where a person acquires a chargeable interest as bare trustee,...
Acquisition by trustees of settlement
4.Where persons acquire a chargeable interest as trustees of a...
Responsibility of trustees of settlement
5.(1) Where the trustees of a settlement are liable—
Relevant trustees for purposes of return etc
6.(1) A return or self-certificate in relation to a land...
Consideration for exercise of power of appointment or discretion
7.Where a chargeable interest is acquired by virtue of—
SCHEDULE 17
Stamp duty land tax: General and Special Commissioners, appeals and other proceedings
General and Special Commissioners: application of general provisions
1.Part 1 of the Taxes Management Act 1970 (c. 9)...
Prescribed matters to be determined by Commissioners or Lands Tribunal
2.(1) The Lord Chancellor may make regulations providing that a...
General or Special Commissioners: jurisdiction
3.(1) Where the General or Special Commissioners have jurisdiction in...
Proceedings brought out of time
4.(1) An appeal under this Part to the General or...
Quorum etc of the Commissioners
5.The Lord Chancellor may make regulations about the number of...
Procedure
6.(1) The Lord Chancellor may make regulations about the practice...
Consequences of determination by the Commissioners
7.The Lord Chancellor may make regulations prescribing the consequences of...
Costs
8.The Lord Chancellor may make regulations about—
Finality of decisions of the Commissioners
9.(1) The Lord Chancellor may make regulations about the following...
Publication of reports of decisions
10.(1) The Lord Chancellor may make regulations authorising the Special...
Supplementary provisions
11.(1) Any power to make regulations under this Schedule is...
SCHEDULE 18
Stamp duty land tax: consequential amendments
Provisional Collection of Taxes Act 1968
1.In section 1(1) of the Provisional Collection of Taxes Act...
Inheritance Tax Act 1984
2.In section 190(4) of the Inheritance Tax Act 1984 (c....
Income and Corporation Taxes Act 1988
3.(1) The Income and Corporation Taxes Act 1988 (c. 1)...
Finance Act 1989
4.In section 178(2) of the Finance Act 1989 (c. 26)...
Taxation of Chargeable Gains Act 1992
5.In section 38(2) of the Taxation of Chargeable Gains Act...
Income Tax (Earnings and Pensions) Act 2003
6.In section 277 of the Income Tax (Earnings and Pensions)...
SCHEDULE 19
Stamp duty land tax: commencement and transitional provisions
Introduction
1.(1) Subject to the provisions of this Schedule, the provisions...
The implementation date
2.(1) A transaction is not an SDLT transaction unless the...
Contract entered into before first relevant date
3.(1) Subject to the following provisions of this paragraph, a...
Contract substantially performed before implementation date
4.(1) This paragraph applies where a transaction—
Credit for ad valorem stamp duty paid
5.(1) Where a transaction chargeable to stamp duty land tax...
Effect for stamp duty purposes of stamp duty land tax being paid or chargeable
6.(1) Where in the case of a contract that, apart...
Earlier related transactions under stamp duty
7.(1) In relation to a transaction that is not an...
Time for stamping agreement for lease: lease subject to stamp duty land tax
8.(1) This paragraph makes provision corresponding to section 240 of...
Exercise of option or right of pre-emption acquired before implementation date
9.(1) This paragraph applies where— (a) an option binding the...
Supplementary
10.In this Schedule “contract” includes any agreement.
SCHEDULE 20
Stamp duty: restriction to instruments relating to stock or marketable securities
Part 1 Supplementary provisions
Reduction of stamp duty where instrument partly relating to stock or marketable securities
1.(1) This paragraph applies where stamp duty under Part 1...
Apportionment of consideration for stamp duty purposes
2.(1) Where part of the property referred to in section...
Part 2 Consequential amendments and repeals
Removal of unnecessary references to “conveyance”
3.In the enactments relating to stamp duty for “conveyance or...
Finance Act 1895
4.In section 12 of the Finance Act 1895 (c. 16)...
Finance Act 1990
5.In section 108 of the Finance Act 1990 (c. 29)...
Finance Act 1999
6.In paragraph 1(2) of Schedule 13 to the Finance Act...
Power to make further consequential amendments or repeals
7.(1) The Treasury may by regulations make such other amendments...
SCHEDULE 21
Approved share plans and schemes
Part 1 Share incentive plans
Introductory
1.Schedule 2 to the Income Tax (Earnings and Pensions) Act...
Participation in more than one connected plan in a tax year
2.After paragraph 18 insert— Participation in more than one connected...
3.In paragraph 13 (eligibility of individuals: introduction), for the entry...
4.In paragraph 14(7) (eligibility to participate dependent on certain requirements...
5.In paragraph 18 (requirement not to participate in connected SIPs),...
6.After paragraph 71 insert— Duty to monitor participants in connected...
Partnership shares
7.(1) Paragraph 46 (maximum amount of partnership share money deductions)...
8.In paragraph 47 (minimum amount of deductions)—
Part 2 SAYE option schemes
Introductory
9.Schedule 3 to the Income Tax (Earnings and Pensions) Act...
Minor correction
10.In paragraph 25(3)(a) (limit on contributions under CCS schemes linked...
Exercise of options: scheme-related employment ends because of change of control or transfer
11.(1) Paragraph 34 (exercise of options: scheme-related employment ends) is...
Alteration of schemes
12.(1) Paragraph 42 (withdrawal of approval) is amended as follows....
Part 3 CSOP schemes
Introductory
13.The Income Tax (Earnings and Pensions) Act 2003 (c. 1)...
Exercise of options: exclusion of income tax liability
14.(1) Section 524 (no charge in respect of exercise of...
15.(1) Schedule 4 (approved CSOP schemes) is amended as follows....
Meaning of “material interest”
16.(1) In paragraphs 10(2) and (3), 11(3) and (4) and...
Alteration of schemes
17.(1) Paragraph 30 (withdrawal of approval) is amended as follows....
PAYE
18.(1) Section 701(2)(c) (PAYE: exclusions from meaning of “asset”) is...
SCHEDULE 22
Employee securities and options
Introductory
1.The Income Tax (Earnings and Pensions) Act 2003 (c. 1)...
Main provisions
2.(1) For Chapter 1 of Part 7 (and the heading...
3.(1) For Chapter 2 of Part 7 substitute— Introduction Application...
4.(1) For Chapter 3 of Part 7 substitute— Introduction Application...
5.(1) After Chapter 3 of Part 7 insert— Introduction Application...
6.(1) After Chapter 3A of Part 7 (inserted by paragraph...
7.(1) After Chapter 3B of Part 7 (inserted by paragraph...
8.(1) After Chapter 3C of Part 7 (inserted by paragraph...
9.(1) For Chapter 4 of Part 7 substitute— Charge on...
10.(1) For Chapter 5 of Part 7 substitute— Introduction Options...
PAYE
11.(1) Section 509 (modification of section 696 where charge on...
12.(1) For sections 698 and 699 (PAYE: conditional interests in...
13.(1) For section 700 (PAYE: gains from share options) substitute—...
14.(1) In section 701(2)(b) (“asset” not to include vouchers or...
15.(1) Section 702 (meaning of “readily convertible asset”) is amended...
Consequential amendments
16.(1) In section 3(1) (structure of employment income Parts), in...
17.(1) In section 7(6)(b) (employment income), for “(share-related income and...
18.(1) In section 19(2) (year in which earnings treated as...
19.(1) In section 32(2) (receipt of non-money earnings), omit the...
20.(1) In section 63(1) (the benefits code), omit the entries...
21.(1) In section 64 (relationship between earnings and benefits code),...
22.(1) Omit Chapter 8 of Part 3.
23.(1) Omit Chapter 9 of Part 3.
24.(1) Section 216 (provisions not applicable to lower-paid employments) is...
25.(1) Section 227(4) (employment income: exemptions) is amended as follows....
26.(1) Omit section 491 (no charge under Chapter 8 of...
27.(1) Omit section 494 (no charge on removal of restrictions...
28.(1) Omit section 495 (approved share incentive plan shares: value...
29.(1) Omit section 518 (no charge in respect of acquisition...
30.(1) In section 519 (no charge in respect of exercise...
31.(1) Omit section 520 (approved SAYE option schemes: no charge...
32.(1) Omit section 523 (no charge in respect of acquisition...
33.(1) In section 524 (no charge in respect of exercise...
34.(1) Omit section 525 (approved CSOP schemes: no charge in...
35.(1) In section 526(4) (charge where approved CSOP scheme option...
36.(1) Omit section 528 (enterprise management incentives: no charge in...
37.(1) In section 531(4) (enterprise management incentives: limitation of charge...
38.(1) In section 532(5) (enterprise management incentives: modified tax consequences...
39.(1) In section 538 (share conversions excluded for purposes of...
40.(1) In section 540(1) (enterprise management incentives: notional loan provisions...
41.(1) In section 541 (enterprise management incentives: effect on other...
42.(1) Part 2 of Schedule 1 (index of defined expressions)...
43.(1) In paragraph 35 of Schedule 2 (approved share incentive...
44.(1) In paragraph 42(3) of Schedule 3 (approved SAYE option...
45.(1) Schedule 5 (enterprise management incentives) is amended as follows....
46.(1) Schedule 7 (transitionals and savings) is amended as follows....
Consequential amendments of other enactments
47.(1) In section 98 of the Taxes Management Act 1970...
48.(1) In section 4(4)(a) of— (a) the Social Security Contributions...
49.The Taxation of Chargeable Gains Act 1992 (c. 12) is...
50.(1) After section 119 insert— Increase in expenditure by reference...
51.In section 120 (increase in expenditure by reference to tax...
52.(1) After section 149A insert— Restricted and convertible employment-related securities...
53.In section 149B (employee incentive schemes: conditional interests in shares),...
54.(1) In section 288 (interpretation), after subsection (1) insert—
55.(1) The Social Security Contributions (Share Options) Act 2001 (c....
56.In section 2(3)(b) (effect of notice under section 1), insert...
57.(1) Section 3 (special provision for roll-overs) is amended as...
58.In section 5(2)(c) (interpretation), for “483(1)” substitute “ 477(6) ”....
59.Schedule 23 to this Act (corporation tax relief for employee...
60.(1) Paragraph 1 is amended as follows.
61.(1) For paragraph 5(2) substitute— (2) Where the shares acquired...
62.(1) For paragraph 11(2) substitute— (2) Where the shares acquired...
63.(1) In paragraph 12, for “in exercise of” substitute “...
64.(1) Paragraph 13 is amended as follows.
65.(1) For paragraph 14 substitute— Income tax position of the...
66.(1) Paragraph 15 is amended as follows.
67.(1) In paragraph 17(1), for “in exercise of” substitute “...
68.(1) For Part 4 substitute— Part 4 Provisions applying in...
69.(1) After Part 4 insert— Part 4A Provisions applying in...
70.(1) In paragraph 23(2)(a), for “or 22” substitute “ ,...
71.(1) In paragraph 26 before paragraph (a) insert—
72.(1) For paragraph 27 substitute— Acquisition of shares pursuant to...
73.(1) Paragraph 31 is amended as follows.
SCHEDULE 23
Corporation tax relief for employee share acquisition
Part 1 General provisions
Introduction
1.(1) This Schedule provides for corporation tax relief for a...
Requirements for relief
2.Relief under this Schedule is available only if the requirements...
Business must be within the charge to corporation tax
3.(1) The business for the purposes of which the award...
Kind of shares acquired
4.(1) The shares acquired must meet the following requirements.
Part 2 Award of shares
Introduction
5.(1) The provisions of this Part of this Schedule apply...
The company whose shares are acquired
6.(1) The shares acquired must be shares in—
Income tax position of employee
7.(1) It must be the case that the employee—
Amount of relief
8.(1) The amount of the relief is equal to the...
How relief is given
9.(1) The amount of the relief is allowed as a...
Timing of relief
10.(1) The relief is given for the accounting period in...
Part 3 Grant of option
Introduction
11.(1) The provisions of this Part of this Schedule apply...
The company whose shares are acquired
12.The company whose shares are acquired in exercise of the...
Takeover of company whose shares are subject of option
13.(1) This paragraph applies where— (a) there is a takeover...
Income tax position of the employee
14.(1) It must be the case that the employee—
Amount of relief
15.(1) The amount of the relief is equal to the...
How relief is given
16.(1) The amount of the relief is allowed as a...
Timing of relief
17.(1) The relief is given for the accounting period in...
Part 4 Provisions applying in case of shares subject to forfeiture
Introduction
18.In the case of— (a) an award of shares that...
Meaning of shares being “subject to forfeiture”
19.(1) This paragraph explains what is meant in this Schedule...
Income tax position of the employee in case of shares subject to forfeiture
20.(1) Where the recipient acquires shares that are subject to...
Amount of relief in case of shares subject to forfeiture
21.(1) Where the recipient acquires shares that are subject to...
Timing of relief in case of shares subject to forfeiture
22.(1) Where the recipient acquires shares that are subject to...
Part 5 Supplementary provisions
Transfer of business within a group
23.(1) This paragraph applies where— (a) between the time when...
Relationship between relief and other deductions: priority of deductions under SIP code
24.(1) Deductions available under any of the following provisions of...
Relationship between relief and other deductions: exclusion of other deductions
25.(1) Where relief under this Schedule is available for any...
Meaning of “employment”
26.For the purposes of this Schedule— (a) references to employment...
Exercise of option after death of employee or recipient
27.(1) Where an option to acquire shares obtained by reason...
Meaning of “group company” and “parent company”
28.For the purposes of this Schedule— (a) a company is...
Meaning of “consortium” and “commercial association of companies”
29.(1) For the purposes of this Schedule a company is...
Minor definitions
30.In this Schedule— “the Contributions and Benefits Act” means— the...
Index of defined expressions
31.In this Schedule the following expressions are defined or otherwise...
Part 6 Commencement and transitional provisions
Commencement
32.This Schedule applies to accounting periods of the employing company...
Transitional provisions
33.(1) Relief is not available under this Schedule in respect...
SCHEDULE 24
Restriction of deductions for employee benefit contributions
Restriction of deductions
1.(1) This Schedule applies where— (a) a calculation is required...
“Provision of qualifying benefits”
2.(1) For the purposes of this Schedule qualifying benefits are...
“Qualifying expenses”
3.In this Schedule “qualifying expenses”— (a) does not include expenses...
Payment “out of” employee benefit contributions
4.(1) For the purposes of paragraph 1(3)(a) any qualifying benefits...
Transfer of asset to employee
5.(1) This paragraph applies where the provision of a qualifying...
Provisional calculation of profits
6.Where the calculation referred to in paragraph 1(1) is made...
Life assurance business
7.(1) In the case of an insurance company carrying on...
Deductions to which Schedule does not apply
8.This Schedule does not apply to any deduction that is...
Interpretation
9.(1) In this Schedule— “accident benefit scheme” means an employee...
Consequential amendments
10.(1) In section 43 (Schedule D) and section 44 (investment...
Commencement and transitory provisions
11.(1) This Schedule has effect in relation to deductions that...
SCHEDULE 25
Determination of profits attributable to permanent establishment: supplementary provisions
The Schedule inserted in the Taxes Act 1988 as Schedule...
SCHEDULE 26
Non-resident companies: transactions through broker, investment manager or Lloyd’s agent
Introduction
1.(1) This Schedule makes provision about transactions carried out on...
Brokers
2.(1) In relation to a transaction carried out on behalf...
Investment managers
3.(1) In relation to an investment transaction carried out on...
Investment managers: the 20% rule
4.(1) The requirements of the 20% rule are—
Investment managers: application of 20% rule to collective investment schemes
5.(1) This paragraph applies where amounts arise or accrue to...
Lloyd’s agents
6.(1) Where a non-resident company is a member of Lloyd’s...
General supplementary provisions
7.(1) For the purposes of this Schedule a person is...
SCHEDULE 27
Permanent establishment etc: consequential amendments
Taxes Act 1988
1.(1) The Taxes Act 1988 is amended as follows.
Taxation of Chargeable Gains Act 1992
2.(1) The Taxation of Chargeable Gains Act 1992 (c. 12)...
Finance Act 1993
3.(1) In sections 93 and 93A of the Finance Act...
Finance Act 1995
4.(1) Section 126 of the Finance Act 1995 (c. 4)...
5.(1) Section 127 of the Finance Act 1995 (persons not...
6.In section 128 of the Finance Act 1989 (limit on...
7.Omit section 129 of the Finance Act 1995 (c. 4)...
Finance Act 1996
8.In Schedule 15 to the Finance Act 1996 (c. 8)...
Finance Act 2000
9.In Schedule 15 to the Finance Act 2000 (c. 17)...
SCHEDULE 28
Capital gains tax: reporting limits and annual exempt amount
Part 1 Reporting limits
1.After section 3 of the Taxation of Chargeable Gains Act...
2.(1) In the heading to Schedule 1 to that Act...
Part 2 Annual exempt amount
3.(1) Section 3 of the Taxation of Chargeable Gains Act...
4.(1) Paragraph 1 of Schedule 1 to that Act is...
5.(1) Paragraph 2 of that Schedule is amended as follows....
6.In the first column of the Table in section 98...
Part 3 Commencement
7.The amendments in paragraphs 1, 2, 3(2) and (3), 4(2)(a)...
8.The amendments in paragraphs 3(4), 4(2)(b), (3) and (4)(b) and...
9.The amendments in paragraphs 4(5), 5(6) and 6 of this...
SCHEDULE 29
Transfers of value: attribution of gains to beneficiaries
Introduction
1.Schedule 4C to the Taxation of Chargeable Gains Act 1992...
Scope and scheme of Schedule
2.For paragraphs 1 and 2 (introduction and general scheme of...
Other gains to be brought into Schedule 4C pool
3.After paragraph 7 insert— Outstanding section 87/89 gains (1) The amount of outstanding section 87/89 gains of a...
Attribution of gains to beneficiaries
4.(1) For paragraphs 8 and 9 (attribution of gains to...
Gains attributed to settlor
5.(1) Paragraph 6 is amended as follows.
Minor and consequential amendments
6.(1) In paragraph 10(1) for “of the transferor settlement, or...
SCHEDULE 30
First-year allowances for expenditure on environmentally beneficial plant or machinery
Introductory
1.The Capital Allowances Act 2001 (c. 2) is amended as...
Types of expenditure for which first-year allowances available
2.In section 39— (a) after “under” insert “ any of...
First-year qualifying expenditure on environmentally beneficial plant or machinery
3.After section 45G insert— Expenditure on environmentally beneficial plant or...
General exclusions affecting first-year qualifying expenditure
4.(1) In section 46(1)— (a) after “under” insert “ any...
Amount of first-year allowances
5.In section 52(3), in the Table, after the entries relating...
Penalty for failure to provide information etc
6.In the second column of the Table in section 98...
Transitory provision: expenditure incurred etc before first order made
7.(1) For the purposes of section 45H(2) of the Capital...
SCHEDULE 31
Tax relief for expenditure on research and development
Part 1 Small and medium-sized enterprises: Schedule 20 to Finance Act 2000
Introductory
1.Schedule 20 to the Finance Act 2000 (c. 17) (tax...
Required minimum aggregate expenditure: reduction from £25,000 to £10,000
2.(1) Paragraph 1 (entitlement to R&D tax relief) is amended...
Required minimum aggregate expenditure: inclusion of new class of expenditure
3.(1) Paragraph 1 is also amended as follows.
Qualifying R&D expenditure: expenditure on externally provided workers
4.In paragraph 3 (qualifying R&D expenditure) for sub-paragraph (4) (the...
Staffing costs: persons partly engaged directly and actively in relevant R&D
5.(1) In paragraph 5 (staffing costs) sub-paragraph (3) (person partly...
Qualifying expenditure on externally provided workers
6.After paragraph 8 (subsidised expenditure) insert— Qualifying expenditure on externally...
Qualifying expenditure on sub-contracted R&D: externally provided workers
7.(1) Paragraph 10 (treatment of qualifying expenditure on sub-contracted research...
Part 2 Large companies: Part 1 of Schedule 12 to Finance Act 2002
Introductory
8.Part 1 of Schedule 12 to the Finance Act 2002...
Required minimum aggregate expenditure: reduction from £25,000 to £10,000
9.(1) Paragraph 1 (entitlement to relief under Part 1 of...
Qualifying expenditure on externally provided workers
10.In paragraph 4 (qualifying expenditure on direct research and development)...
Part 3 Work sub-contracted to SMEs: Part 2 of Schedule 12 to Finance Act 2002
Introductory
11.Part 2 of Schedule 12 to the Finance Act 2002...
Required minimum aggregate expenditure: reduction from £25,000 to £10,000
12.(1) Paragraph 7 (entitlement to relief under Part 2 of...
Required minimum aggregate expenditure: inclusion of new class of expenditure
13.(1) Paragraph 7 is also amended as follows.
R&D directly undertaken by SME: qualifying expenditure on externally provided workers
14.In paragraph 9 (expenditure on research and development directly undertaken...
Part 4 Entitlement of SME to certain relief available to large companies
Insertion of Part 2A of Schedule 12 to the Finance Act 2002
15.After Part 2 of Schedule 12 to the Finance Act...
Part 5 Supplementary: amendments to Parts 3 to 6 of Schedule 12 to Finance Act 2002
Introductory
16.Parts 3 to 6 of Schedule 12 to the Finance...
Deduction in computing profits of trade
17.(1) Paragraph 11 is amended as follows.
Refunds of contributions to independent research and development
18.In paragraph 15(1) (refunds of certain payments) omit the word...
Meaning of “qualifying expenditure on externally provided workers”
19.(1) Paragraph 17 (which applies certain definitions from Schedule 20...
Part 6 Expenditure on vaccine research etc: Schedule 13 to Finance Act 2002
Introductory
20.Schedule 13 to the Finance Act 2002 (tax relief for...
Reduction of required qualifying expenditure from £25,000 to £10,000
21.(1) Paragraph 1 (entitlement to relief under the Schedule) is...
Direct research and development: qualifying expenditure on externally provided workers
22.In paragraph 3 (qualifying expenditure on direct research and development)...
Meaning of “qualifying expenditure on externally provided workers”
23.(1) Paragraph 5(3) (which applies certain definitions in Schedule 20...
Relevant expenditure of sub-contractor: qualifying expenditure on externally provided workers
24.In paragraph 9 (relevant expenditure of sub-contractor) for sub-paragraph (3)...
SCHEDULE 32
Tonnage tax: restrictions on capital allowances for lessors of ships
The ring fence: amendments to the provisions about capital allowances and ship leasing
1.(1) In Schedule 22 to the Finance Act 2000 (c....
Consequential amendments
2.(1) In paragraph 41(4) of that Schedule (the requirement not...
Commencement and temporary provision
3.(1) Subject to paragraph 4(2), the amendments made by paragraphs...
4.(1) This paragraph applies in relation to any lease entered...
5.In paragraphs 3 and 4 “lease” means any arrangements that...
SCHEDULE 33
Insurance companies
Case I profits
1.(1) For section 82 of the Finance Act 1989 (c....
2.(1) Section 83 of the Finance Act 1989 (receipts etc...
3.(1) In the Finance Act 1989 (c. 26), after section...
4.(1) In section 83AA of the Finance Act 1989 (c....
5.(1) In section 83AB(1)(c) of the Finance Act 1989 (treatment...
6.(1) In section 88 of the Finance Act 1989 (c....
7.(1) In section 89(7) of the Finance Act 1989 (which...
8.(1) In section 76(1) of the Taxes Act 1988 (expenses...
9.(1) In section 432D of the Taxes Act 1988 (section...
10.(1) Section 432E of the Taxes Act 1988 (apportionment of...
11.(1) In section 804B(7) of the Taxes Act 1988 (double...
12.(1) In section 76(2B)(b) of the Taxes Act 1988 (expenses...
Rate of tax on policy holders' share of life assurance profits
13.(1) The Finance Act 1989 is amended as follows.
Chargeable gains
14.(1) In the Taxation of Chargeable Gains Act 1992 (c....
15.(1) In the Taxation of Chargeable Gains Act 1992 (c....
16.(1) Section 213 of the Taxation of Chargeable Gains Act...
17.(1) Section 171A of the Taxation of Chargeable Gains Act...
Transfers of business
18.(1) In the Taxes Act 1988, after section 444A insert—...
19.(1) In the Taxes Act 1988, after section 444AA (inserted...
20.(1) In the Taxes Act 1988, after section 444AB (inserted...
21.(1) In the Taxation of Chargeable Gains Act 1992 (c....
22.(1) In section 431 of the Taxes Act 1988 (interpretative...
23.(1) Section 442A of the Taxes Act 1988 (investment return...
24.(1) Section 444A of the Taxes Act 1988 (transfers of...
Meaning of “investment reserve” etc
25.In section 431(2) of the Taxes Act 1988 (interpretative provisions...
26.In section 432A(9A) of the Taxes Act 1988 (apportionment of...
27.In paragraph 4(5) of Schedule 19AA to the Taxes Act...
28.Paragraphs 25 to 27 have effect in relation to periods...
Meaning of “period of account”
29.In section 431(2) of the Taxes Act 1988 (interpretative provisions...
Rationalisation of interpretation provisions
30.In section 84(2) and (3) of the Finance Act 1989...
31.In the Finance Act 1989, after section 90 insert— Interpretation...
32.In the Taxation of Chargeable Gains Act 1992 (c. 12),...
SCHEDULE 34
Policies of life insurance etc: miscellaneous amendments
Part 1 Group life policies
Exception of certain group life policies from Chapter 2 of Part 13
1.(1) Section 539 of the Taxes Act 1988 (introductory) is...
Excepted group life policies
2.After section 539 of the Taxes Act 1988 insert— The...
Retrospective exception of past and present pure protection group life policies
3.(1) For the purposes of Chapter 2 of Part 13...
Existing group life policies: time for compliance with the conditions in section 539A
4.(1) Where— (a) on 9th April 2003 a policy of...
Deaths before 6th April 2004: period for insurer to give certificate under section 552(1)(a)
5.(1) If any death giving rise to benefits under a...
Part 2 Charitable and non-charitable trusts
Interpretation
6.In section 539 of the Taxes Act 1988 (introductory) in...
Method of charging gain to tax
7.(1) Section 547 of the Taxes Act 1988 is amended...
Method of charging gain to tax: multiple interests
8.(1) Section 547A of the Taxes Act 1988 is amended...
Deemed surrender of certain loans
9.(1) Section 548(1) of the Taxes Act 1988 is amended...
Right of individual to recover tax from trustees
10.In section 551 of the Taxes Act 1988, in subsection...
Right of company to recover tax from trustees
11.In section 551A of the Taxes Act 1988, in subsection...
Section 547(1)(cc) and (d)(ia): exception for certain old policies and contracts
12.(1) Paragraph 7(1) of Schedule 14 to the Finance Act...
Part 3 Meaning of “life annuity”
Restriction of “life annuity” to contracts to which section 656 of the Taxes Act 1988 applies
13.In section 539 of the Taxes Act 1988 (introductory) in...
Part 4 Rollover of gain on maturity into new policy
Repeal of section 540(2) of the Taxes Act 1988
14.(1) Section 540(2) of the Taxes Act 1988 (maturity not...
Saving for certain policies maturing on or after 9th April 2003
15.(1) The maturity of a policy of life insurance (“the...
SCHEDULE 35
Gains on policies of life insurance etc: rate of tax
Application of the lower rate
1.(1) Section 1A of the Taxes Act 1988 (application of...
Method of charging gains from policies of life insurance etc to tax
2.(1) Section 547 of the Taxes Act 1988 is amended...
Relief where gain charged at a higher rate
3.In section 550(3) of the Taxes Act 1988 (rates of...
Gains included in aggregate income of estate of deceased
4.In section 699A(4)(b) of the Taxes Act 1988 (sums included...
Income to be disregarded in determining highest part of person’s income
5.In section 833(3)(b) of the Taxes Act 1988 (which provides...
SCHEDULE 36
Foster carers
Part 1 Introduction
Introductory
1.(1) This Schedule provides relief on income from the provision...
Individuals qualifying for relief
2.(1) An individual qualifies for relief under this Schedule for...
Meaning of “foster care receipts”
3.(1) For the purposes of this Schedule, receipts are “foster...
Meaning of “provision of foster care”
4.(1) In this Schedule, the “provision of foster care” means...
Meaning of “total foster care receipts”
5.(1) For the purposes of this Schedule, an individual’s “total...
The individual’s limit
6.The individual’s limit for a year of assessment is the...
The individual’s share of the fixed amount
7.(1) The fixed amount is £10,000. (2) If, in a...
The amount per child
8.(1) An individual’s amount per child for a year of...
Power to alter amounts
9.The Treasury may by order amend the amounts for the...
Part 2 The exemption and the alternative methods of calculation
The exemption
10.(1) This paragraph applies to an individual for a year...
Alternative calculation of profits where amount is above the limit
11.The alternative method of calculating profits given in paragraphs 12...
Alternative calculation of profits: income from trade etc
12.(1) This paragraph applies if— (a) the alternative method of...
Alternative calculation of profits: income charged under Case VI of Schedule D
13.(1) This paragraph applies if— (a) the alternative method of...
Election for alternative method
14.(1) An individual may elect— (a) for the alternative method...
Periods of account ending otherwise than on 5th April
15.(1) This paragraph applies to an individual for a year...
Part 3 Capital allowances
Introductory
16.(1) Paragraphs 17 to 19 make provision for the application...
Provisions applying in relation to carried forward unrelieved qualifying expenditure
17.(1) This paragraph applies in any case where—
Expenditure incurred in a relevant chargeable period not qualifying expenditure
18.Capital expenditure (“excluded capital expenditure”) which is incurred—
Excluded capital expenditure: subsequent treatment of asset
19.Where a relevant individual incurs excluded capital expenditure in a...
Interpretation of this Part
20.Expressions which— (a) are used in this Part, and
Part 4 Supplementary
Interpretation
21.In this Schedule— “CAA 2001” means the Capital Allowances Act...
SCHEDULE 37
Loan relationships: amendments
Part 1 Amendments to Schedule 9 to the Finance Act 1996
Introductory
1.Schedule 9 to the Finance Act 1996 (c. 8) (loan...
Late interest
2.(1) Paragraph 2 is amended as follows.
Continuity of treatment: groups etc
3.(1) Paragraph 12 is amended as follows.
Discounted securities where companies have a connection
4.(1) In paragraph 17, for sub-paragraph (8) (reference to person...
Discounted securities of close companies
5.(1) Paragraph 18 is amended as follows.
Part 2 Transitional provisions
Transitional provisions
6.(1) In Schedule 25 to the Finance Act 2002 (c....
SCHEDULE 38
Sale and repurchase of securities etc
Increase of repurchase price of UK securities by amount of deemed manufactured dividend
1.In section 737C of the Taxes Act 1988 (deemed manufactured...
Deemed manufactured payment where transferor or connected person makes payment representative of dividend
2.(1) Section 737A of the Taxes Act 1988 (deemed manufactured...
3.In section 737C of the Taxes Act 1988 (deemed manufactured...
Provisions to cover both “put” and “call” options
4.In section 727A(1) of the Taxes Act 1988 (accrued income...
5.In section 730A(1) of the Taxes Act 1988 (treatment of...
6.In section 731(2D) of the Taxes Act 1988 (provisions about...
7.In section 737A(1) of the Taxes Act 1988 (deemed manufactured...
8.In section 737E(8) of the Taxes Act 1988 (power to...
9.In paragraph 12(4) of Schedule 7AC to the Taxation of...
Option premium to be reflected in sale price unless brought into account under derivative contracts provisions
10.In section 730A of the Taxes Act 1988 (treatment of...
Exchange gains and losses
11.(1) Section 730A of the Taxes Act 1988 (treatment of...
12.After section 730B of the Taxes Act 1988 insert— Exchange...
13.(1) Section 737E of the Taxes Act 1988 (power to...
14.In section 100 of the Finance Act 1996 (c. 8)...
Exceptions
15.In section 727A(1) of the Taxes Act 1988 (accrued income...
16.In section 730A(8)(b) of the Taxes Act 1988 (treatment of...
17.In section 737C(11A) of the Taxes Act 1988 (purposes for...
18.(1) Paragraph 15 of Schedule 9 to the Finance Act...
Connected persons
19.In paragraph 15(3)(b) of Schedule 9 to the Finance Act...
Correction of section 730A(6B) of the Taxes Act 1988
20.In section 730A(6B) of the Taxes Act 1988 (trading loan...
Commencement
21.(1) Paragraph 1 has effect in relation to repurchase prices...
SCHEDULE 39
Relevant discounted securities: withdrawal of relief for costs and losses, etc
Withdrawal of relief for incidental costs
1.(1) In Schedule 13 to the Finance Act 1996 (discounted...
Withdrawal of relief for losses
2.Omit paragraph 2 of that Schedule (income tax relief for...
Withdrawal of loss relief: exception for strips of government securities
3.After paragraph 14 of that Schedule (gilt strips) insert— Strips...
Extension of provisions about strips to strips of foreign government securities
4.In the definition of “strip” in paragraph 15(1) of that...
Consequential amendments
5.(1) In paragraph 6 of that Schedule (trustees and personal...
Commencement and transitional provisions
6.(1) Subject to sub-paragraph (2)— (a) the amendments made by...
SCHEDULE 40
Acquisition by company of its own shares
Venture capital trusts
1.In Schedule 15B to the Taxes Act 1988 (venture capital...
Stamp duty and stamp duty reserve tax
2.In section 66 of the Finance Act 1986 (c. 41)...
3.In section 90 of that Act (exemptions from stamp duty...
4.(1) Section 92 of that Act (stamp duty reserve tax:...
5.In Schedule 13 to the Finance Act 1999 (c. 16)...
SCHEDULE 41
Companies in administration
Accounting period for company in administration
1.(1) Section 12 of the Taxes Act 1988 (corporation tax:...
Responsibility of officers of company in administration
2.(1) Section 108 of the Taxes Management Act 1970 (c....
Tax on companies in administration
3.After section 342 of the Taxes Act 1988 (tax on...
Debit for bad debt where parties connected and creditor insolvent
4.(1) Paragraph 6A of Schedule 9 to the Finance Act...
Commencement
5.(1) Subject to sub-paragraph (2), this Schedule has effect in...
SCHEDULE 42
Controlled foreign companies: exempt activities
Introductory
1.Part 2 of Schedule 25 to the Taxes Act 1988...
Companies engaged in wholesale, distributive, financial or service business
2.(1) Paragraph 6 (meaning of “engaged in exempt activities”) is...
Companies engaged in business of banking etc
3.(1) Paragraph 11 (provisions relating to wholesale, distributive, financial or...
Interpretation of paragraph 6(2B)
4.After paragraph 11 insert— (1) This paragraph has effect for the interpretation of paragraph...
SCHEDULE 43
Repeals
Part 1 Excise duties
1.The repeal of section 5A has effect in accordance with...
2.The repeals in section 5C have effect in accordance with...
These repeals have effect in accordance with section 9 of...
These repeals have effect in accordance with section 11(3) of...
This repeal has effect in accordance with section 16 of...
Part 2 Value added tax
This repeal has effect in accordance with paragraph 4 of...
Part 3 Income tax, corporation tax and capital gains tax
These repeals have effect in accordance with section 136(4) of...
These repeals have effect in accordance with Schedule 22 to...
These repeals have effect in accordance with paragraph 11(1) of...
These repeals have effect in relation to accounting periods beginning...
These repeals have effect in accordance with paragraph 7 of...
These repeals have effect in accordance with section 161 of...
These repeals have effect in accordance with section 167 of...
These repeals have effect in accordance with section 168 of...
These repeals have effect in relation to any lease (within...
1.The repeals in sections 432A, 436, 439B and 441(4)(a) of...
2.The repeals in section 432E of the Taxes Act 1988...
3.The repeals in section 438B of, and in Schedule 28AA...
4.The repeal in section 442A of the Taxes Act 1988...
5.The repeal in section 83(8) of the Finance Act 1989...
6.The repeals in section 87 of the Finance Act 1989,...
7.The repeal of section 45(5) of the Finance Act 1990...
8.The repeals in section 213 of the Taxation of Chargeable...
1.The repeal in section 1A of the Taxes Act 1988...
2.The repeal of section 540(2) of that Act has effect...
3.The repeal in Schedule 15 to that Act has effect...
This repeal has effect in accordance with paragraph 2(4) of...
1.The repeals in the Taxes Act 1988 have effect in...
2.The repeal in the Finance Act 1996 has effect in...
These repeals have effect in accordance with paragraph 6 of...
These repeals have effect in relation to income arising to...
Part 4 Other taxes
These repeals have effect in relation to transfers of value...
These repeals, except the ones in paragraphs 41(1)(c) and 100(1),...
Part 5 Miscellaneous
This repeal has effect in accordance with section 200 of...
These repeals have effect in relation to interest distributions made...
The repeal of section 21(3) of the National Loans Act...
