Introductory Text

Part I Duties of Excise

Alcoholic liquor duties

1. Low-strength wine, made-wine and cider.
2. Wine and made-wine: rates.
3. Spirits, beer and cider: rates.
4. Alcoholic ingredients relief.
5. Denatured alcohol.

Hydrocarbon oil duties

6. Rates of duty.
7. Rates of duty: further provisions.
8. Hydrocarbon oil: “road vehicle”.
9. Road fuel gas: old stock.

Tobacco products duty

10. Rates of duty.
11. Rates of duty: further provisions.

Pool betting duty
12. Pool betting duty.

Gaming machine licence duty

13. Rates of duty.
14. Extension of duty to amusement machines.

Air passenger duty

15. Rates of duty.
16. Assessment of interest on duty.
17. Preferential debts.

Vehicle excise duty

18. Increased rates on 30th November 1994.
19. Vehicle excise and registration: other provisions.

Recovery of overpaid duty
20. Recovery of overpaid excise duty.

Part II Value Added Tax and Insurance Premium Tax

Value added tax

21. Fuel and power for domestic or charity use.
22. Imported works of art, antiques, etc.
23. Agents acting in their own names.
24. Margin schemes.
25. Groups of companies.
26. Co-owners etc. of buildings and land.
27. Set-off of credits.
28. Transactions treated as supplies for purposes of zero-rating etc.
29. Goods removed from warehousing regime.
30. Fuel supplied for private use.
31. Appeals: payment of amounts shown in returns.
32. Penalties for failure to notify etc.
33. Correction of consolidation errors.

Insurance premium tax
34. Insurance premium tax.

Part III Income Tax, Corporation Tax and Capital Gains Tax

Income tax: charge, rates and reliefs

35. Charge and rates of income tax for 1995-96.
36. Personal allowance.

Corporation tax: charge and rate

37. Charge and rate of corporation tax for 1995.
38. Small companies.

Taxation of income from land

39. Income chargeable under Schedule A.
40. Non-residents and their representatives.
41. Income from overseas property.
42. Abolition of interest relief for commercially let property.

Benefits in kind

43. Cars available for private use.
44. Cars: accessories for the disabled.
45. Beneficial loan arrangements: replacement loans.

Chargeable gains

46. Relief on re-investment: property companies etc.
47. Relief on re-investment: amount of relief, etc.
48. Roll-over relief and groups of companies.
49. De-grouping charges.
50. Corporate bonds.

Insurance companies and friendly societies

51. Companies carrying on life assurance business.
52. Meaning of “insurance company”.
53. Transfer of life insurance business.
54. Friendly societies.

Insurance policies

55. Qualifying life insurance policies.
56. Foreign life policies etc.
57. Duties of insurers in relation to life policies etc.

Pensions

58. Personal pensions: income withdrawals.
59. Pensions: meaning of insurance company etc.
60. Application of section 59.
61. Cessation of approval of certain retirement benefits schemes.

Saving and investment: general

62. Follow-up TESSAs.
63. TESSAs: European institutions.
64. Personal equity plans: tax representatives.
65. Contractual savings schemes.
66. Enterprise investment scheme: ICTA amendments.
67. Enterprise investment scheme: TCGA amendments.
68. Business expansion scheme: ICTA amendments
69. Business expansion scheme: TCGA amendments.

Venture capital trusts

70. Approval of companies as trusts.
71. Income tax relief.
72. Capital gains.
73. Regulations.

Settlements and estates

74. Settlements: liability of settlor.
75. Deceased persons’ estates: taxation of beneficiaries.
76. Untaxed income of a deceased person’s estate.

Securities

77. Interest on gilt-edged securities payable without deduction of tax.
78. Periodic accounting for tax on interest on gilt-edged securities.
79. Sale and repurchase of securities: exclusion from accrued income scheme.
80. Treatment of price differential on sale and repurchase of securities.
81. Manufactured interest payments: exclusion from bond-washing provisions.
82. Manufactured interest on gilt-edged securities.
83. Power to make special provision for special cases.
84. Stock lending: power to modify rules.
85. Stock lending: interest on cash collateral.

Interest

86. Deduction of tax from interest on deposits.
87. Interest payments deemed to be distributions.

Debts

88. Generalisation of ss.63 to 66 of Finance Act 1993.
89. Application of ss.63 to 66 to debts held by associates of banks.

Reliefs

90. Relief for post-cessation expenditure.
91. Employee liabilities and indemnity insurance.
92. Post-employment deductions.
93. Incidental overnight expenses etc.

Capital allowances: ships

94. Deferment of balancing charges in respect of ships.
95. Reimposition of deferred charge.
96. Ships in respect of which charge may be deferred.
97. Procedural provisions relating to deferred charges.
98. Deferred charges: commencement and transitional provisions.

Capital allowances: other provisions

99. Highway concessions.
100. Arrangements affecting the value of a relevant interest.
101. Import warehouses etc.
102. Commencement of certain provisions.

Management: self-assessment etc.

103. Liability of trustees.
104. Returns and self-assessments.
105. Records for purposes of returns.
106. Return of employees’ emoluments etc.
107. Procedure for making claims etc.
108. Payments on account of income tax.
109. Surcharges on unpaid tax.
110. Interest on overdue tax.
111. Assessments in respect of income taken into account under PAYE.
112. Recovery of certain amounts deducted or paid under MIRAS.
113. Allowable losses: capital gains tax.
114. Liability of trustees and personal representatives: capital gains tax.
115. Minor amendments and repeals.
116. Transitional provisions.

Changes for facilitating self-assessment

117. Treatment of partnerships.
118. Loss relief: general.
119. Relief for losses on unquoted shares.
120. Relief for pre-trading expenditure.
121. Basis of apportionment for Cases I, II and VI of Schedule D.
122. Amendments of transitional provisions.
123. Prevention of exploitation of transitional provisions.

Change of residence and non-residents

124. Change of residence.
125. Non-resident partners.
126. UK representatives of non-residents.
127. Persons not treated as UK representatives.
128. Limit on income chargeable on non-residents: income tax.
129. Limit on income chargeable on non-residents: corporation tax.

Exchange gains and losses and currency contracts

130. Exchange gains and losses: general.
131. Exchange gains and losses: transitional provision.
132. Currency contracts: transitional provisions.

Provisions with a foreign element

133. Controlled foreign companies.
134. Offshore funds.

Miscellaneous

135. Change in ownership of investment company: deductions.
136. Profit-related pay.
137. Part-time workers: miscellaneous provisions.
138. Charities, etc.: lotteries.
139. Sub-contractors in the construction industry.
140. Valuation of trading stock on discontinuance of trade.
141. Incapacity benefit.
142. Annuities purchased where certain claims or actions are settled.
143. Lloyd’s underwriters: new-style special reserve funds.
144. Local government residuary body.
145. Payment of rent &c., under deduction of tax.

Part IV Petroleum Revenue Tax

146. Restriction of unrelievable field losses.
147. Removal of time limits for claims for unrelievable field losses.
148. Transfer of interests in fields: restriction of transferred losses.

Part V Stamp Duty

149. Transfer: associated bodies.
150. Northern Ireland transfer: associated bodies.
151. Lease or tack: associated bodies.

Part VI Miscellaneous and General

Miscellaneous

152. Open-ended investment companies.
153. Electronic lodgement of tax returns, etc.
154. Short rotation coppice.
155. Inheritance tax: agricultural property.
156. Proceedings for tax in sheriff court.
157. Certificates of tax deposit.
158. Amendment of the Exchequer and Audit Departments Act 1866.
159. Ports levy.
160.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General

161. Interpretation.
162. Repeals.
163. Short title.

SCHEDULES

SCHEDULE 1
Table of rates of duty on wine and made-wine

SCHEDULE 2
Denatured alcohol

The Alcoholic Liquor Duties Act 1979

1.In section 4(1) of the Alcoholic Liquor Duties Act 1979...
2.Section 9 of that Act (remission of duty on spirits...
3.In section 10 of that Act (remission of duty on...
4.In section 24(1)(a) of that Act (restriction on distiller or...
5.In sections 75, 77, 79 and 80 of that Act...
6.In section 77(2) of that Act (provisions supplemental to powers...
7.For section 78 of that Act (additional provisions relating to...

The Finance Act 1994
8.In paragraph 3(1)(d) of Schedule 5 to the Finance Act...

SCHEDULE 3
Amusement Machine Licence Duty

Introductory
1.The Betting and Gaming Duties Act 1981 shall be amended...

Amusement machine licences
2.(1) In section 21 (gaming machine licences)—

Amusement machine licence duty
3.(1) In subsection (1) of section 22 (duty on gaming...

Rate of duty
4.(1) In subsection (1) of section 23 (determination of rate...

Restrictions on provision of machines
5.In section 24 (restrictions on provision of gaming machines)—

Meaning of “amusement machine”

6.(1) For subsections (1) to (3) of section 25 (meaning...
7.After section 25 there shall be inserted the following section—...

Supplementary provisions

8.(1) In section 26 (supplementary provisions)— (a) for the words...
9.(1) In sections 31 and 33(2) (protection of officers and...
10.In Schedule 3 (bingo duty)— (a) in paragraph 5(1)(b), for...
11.(1) In Schedule 4 (supplementary provisions in relation to gaming...

Consequential amendment of the Customs and Excise Management Act 1979
12.In section 102(3)(a) of the Customs and Excise Management Act...

SCHEDULE 4
Vehicle Excise and Registration

Part I Introduction
1.In this Schedule “the 1994 Act” means the Vehicle Excise...

Part II Exemptions

Abolition of certain exemptions
2.The following paragraphs of Schedule 2 to the 1994 Act...

Exemption for police vehicles
3.In Schedule 2 to the 1994 Act the following shall...

Exemption for vehicles used between different parts of land
4.In Schedule 2 to the 1994 Act the following shall...

Commencement
5.This Part of this Schedule shall come into force on...

Part III Rates

General
6.(1) In Schedule 1 to the 1994 Act (annual rates...

Motorcycles
7.(1) Paragraph 2 of Schedule 1 to the 1994 Act...

Buses etc.
8.In Schedule 1 to the 1994 Act the following shall...

Special vehicles
9.(1) Part IV of Schedule 1 to the 1994 Act...

Special concessionary vehicles
10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recovery vehicles
11.(1) Paragraph 5 of Schedule 1 to the 1994 Act...

Vehicles used for exceptional loads
12.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Haulage vehicles
13.(1) Paragraph 7 of Schedule 1 to the 1994 Act...

Goods vehicles
14.(1) Part VIII of Schedule 1 to the 1994 Act...

Charge at higher rate
15.In section 17 of the 1994 Act (exceptions from charge...

Commencement
16.(1) This Part of this Schedule shall apply in relation...

Part IV Rates: Supplementary

Introduction
17.This Part of this Schedule (which supplements provisions of Part...

Issue of vehicle licences
18.In section 7(3) of the 1994 Act (matters that may...

Exchange of licences
19.In section 15(4) of the 1994 Act (exchange of licences...

Exceptions from charge at higher rate
20.In section 16 of the 1994 Act (exceptions from charge...

Combined road and rail transport
21.In section 20 of the 1994 Act (combined road and...

Relevant higher rate used in calculating penalty
22.In section 39 of the 1994 Act (relevant higher rate...

Relevant period used in calculating penalty
23.In section 40(2) of the 1994 Act (relevant period used...

False or misleading information etc.

24.In section 45 of the 1994 Act (false or misleading...
25.In section 60(2) of the 1994 Act (orders subject to...

Meaning of “revenue weight”
26.Immediately before section 61 of the 1994 Act there shall...

Interpretation
27.(1) In subsection (3) of section 61 of the 1994...

Certificates as to vehicle weight
28.After section 61 of the 1994 Act there shall be...

Commencement
29.Paragraph 16 above shall apply for the purposes of this...

Part V Licences

Applications for licences
30.(1) In section 7 of the 1994 Act (issue of...

Duration of trade licences
31.(1) In section 13 of the 1994 Act (duration of...

Payment for licences by cheque
32.(1) The following section shall be inserted after section 19...

Part VI Registration

33.In section 21 of the 1994 Act (registration of vehicles)...
34.(1) Section 22 of the 1994 Act (registration regulations) shall...

Part VII Offences

35.(1) In section 31 of the 1994 Act (relevant period...
36.(1) The following section shall be inserted after section 32...
37.(1) In section 37(2) of the 1994 Act (penalty where...

Part VIII Proceedings
38.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IX Transitionals

Higher rate not to apply
39.(1) This paragraph applies where a vehicle licence is taken...

Regulations
40.(1) This paragraph applies where regulations to determine the seating...

Part X Special Reliefs

Relief where exemption abolished
41.(1) This paragraph applies where— (a) a vehicle licence is...

Relief where vehicle changes category
42.(1) This paragraph applies where paragraph 41 above does not...

SCHEDULE 5
Insurance Premium Tax

1.Part III of the Finance Act 1994 (insurance premium tax)...
2.(1) Section 53 (registration of insurers) shall be amended as...
3.Section 53 shall be further amended by inserting the following...
4.The following section shall be inserted after section 53— Information...
5.(1) Section 59 (review of Commissioners’ decisions) shall be amended...
6.In section 73(1) (interpretation) after the entry relating to “conduct”...
7.(1) In Schedule 7 (information, powers, etc.) paragraphs 2(1) to...
8.(1) In Schedule 7 the following shall be inserted after...
9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 6
Amendments in connection with charge under Schedule A

The Taxes Act 1988

1.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.In section 18(3) of that Act (Cases under Schedule D),...
3.Sections 22 and 23 of that Act (assessments to income...
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16.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17.In section 368(3) and (4) of that Act (exclusion of...
18.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.(1) In Chapter I of Part X of that Act...
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25.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26.In section 692(1) of that Act (reimbursement of settlor), for...
27.In section 779(13)(a) of that Act (definition of relevant tax...
28.In section 832(1) of that Act (interpretation of the Tax...

The Capital Allowances Act 1990 (c. 1)

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The Taxation of Chargeable Gains Act 1992 (c. 12)

36.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Finance (No. 2) Act 1992 (c. 48)
38.In paragraph 2(1) of Schedule 10 to the Finance (No....

SCHEDULE 7

1.In subsection (6) of section 338 of the Taxes Act...
2.After section 338 of that Act there shall be inserted...

SCHEDULE 8
Life assurance business

Part I General amendments

Classes of life assurance business

1.In section 431(2) of the Taxes Act 1988 (interpretative provisions...
2.After section 431A of the Taxes Act 1988 insert— Classes...
3.In section 432C(2) of the Taxes Act 1988 after “assets...
4.(1) Section 438 of the Taxes Act 1988 is amended...
5.(1) Section 440 of the Taxes Act 1988 is amended...
6.In section 440A of the Taxes Act 1988, in subsection...
7.In section 76(1)(d) of the Taxes Act 1988 after “pension...
8.In Schedule 19AA to the Taxes Act 1988, in the...
9.(1) The Taxation of Chargeable Gains Act 1992 is amended...
10.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Linked assets

11.(1) In section 431(2) of the Taxes Act 1988, for...
12.(1) In the following provisions for “linked solely” substitute “...
13.(1) Section 432A of the Taxes Act 1988 is amended...
14.(1) Section 432C of the Taxes Act 1988 is amended...
15.(1) Section 432D of the Taxes Act 1988 is amended...

Receipts to be brought into account
16.(1) For section 83 of the Finance Act 1989 substitute—...

Supplementary provisions as to apportionment
17.(1) In section 432B of the Taxes Act 1988 (apportionment...

Franked investment income: supplementary provisions

18.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19.(1) Section 434 of the Taxes Act 1988 is amended...

Computation of losses
20.(1) For section 434A of the Taxes Act 1988 substitute—...

Treatment of interest and annuities
21.(1) After section 434A of the Taxes Act 1988 insert—...

Interest on repayment of advance corporation tax
22.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Capital allowances

23.(1) After section 434C of the Taxes Act 1988 (inserted...
24.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Treatment of tax-free income
25.(1) In the Taxes Act 1988 omit—

Taxation of pure reinsurance business
26.After section 439 of the Taxes Act 1988 insert— Taxation...

Life reinsurance business: separate charge on profits
27.(1) After section 439A of the Taxes Act 1988 (inserted...

Provisions applicable to charge under Case I of Schedule D

28.(1) After section 440A of the Taxes Act 1988 insert—...
29.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Overseas life assurance business

30.In section 441(1) of the Taxes Act 1988 omit the...
31.In section 441A of the Taxes Act 1988 for subsections...
32.After section 441A of the Taxes Act 1988 insert— Treatment...
33.In paragraph 1(2) of Schedule 19AA to the Taxes Act...

Taxation of investment return where risk reinsured
34.After section 442 of the Taxes Act 1988 insert— Taxation...

Part II Application of provisions to overseas life insurance companies

35.(1) After paragraph 5 of Schedule 19AC to the Taxes...
36.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.In paragraph 6 of Schedule 19AC to the Taxes Act...
38.After paragraph 6 of Schedule 19AC to the Taxes Act...
39.For paragraph 7 of Schedule 19AC to the Taxes Act...
40.(1) Paragraph 8 of Schedule 19AC to the Taxes Act...
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42.After paragraph 9 of Schedule 19AC to the Taxes Act...
43.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44.After paragraph 10 of Schedule 19AC to the Taxes Act...
45.(1) Paragraph 11 of Schedule 19AC to the Taxes Act...
46.After paragraph 11 of Schedule 19AC to the Taxes Act...
47.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48.After paragraph 14 of Schedule 19AC to the Taxes Act...
49.(1) Schedule 8A to the Finance Act 1989 is amended...

Part III Supplementary provisions

Penalties
50.In the Table in section 98 of the Taxes Management...

Miscellaneous
51.(1) The Taxes Act 1988 is amended as follows.

Commencement

52.The amendment made by paragraph 43(2) above shall be deemed...
53.(1) The amendments made by paragraph 17 above have effect...
54.The amendment made by paragraph 22 above applies in relation...
55.(1) Subject to sub-paragraphs (2) and (3) below, the amendments...
56.The amendments made by paragraphs 41(a) and 43(1) above have...
57.(1) Except as provided by paragraphs 52 to 56 above,...
58.Any power to make regulations exercisable by virtue of an...

SCHEDULE 9
Transfer of Life Insurance Business

Consequential amendment of references to sanctioned transfers
1.(1) In the enactments specified in sub-paragraph (2) below, for...

Modification of the Taxes Act 1988 in relation to overseas life insurance companies
2.(1) Schedule 19AC to the Taxes Act 1988 (modification of...

Modification of the Capital Allowances Act 1990
3.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Modification of the Taxation of Chargeable Gains Act 1992

4.In subsection (5) of section 213 of the Taxation of...
5.In subsection (7) of section 214A of that Act of...
6.(1) Schedule 7B to that Act of 1992 (modification of...

SCHEDULE 10
Friendly Societies

Tax exempt life or endowment business
1.(1) Section 460 of the Taxes Act 1988 (exemption from...

Maximum benefits payable to members
2.(1) Section 464 of that Act (maximum benefits payable to...

Qualifying policies

3.In paragraph 3 of Schedule 15 to that Act (friendly...
4.(1) This paragraph applies to any policy which—

SCHEDULE 11
Personal pensions: income withdrawals

Introductory
1.(1) Chapter IV of Part XIV of the Taxes Act...

Interpretation
2.(1) Section 630 (interpretation) is amended as follows.

Conditions of approval: benefits that may be provided
3.(1) Section 633(1) (conditions of approval: benefits that may be...

Income withdrawals
4.After section 634 (annuity to member) insert— Income withdrawals by...

Lump sum to member
5.(1) Section 635 (lump sum to member) is amended as...

Annuity after death of member
6.In section 636 (annuity after death of member), in subsection...

Income withdrawals after death of member
7.After section 636 (annuity after death of member) insert— Income...

Lump sum on death of member
8.For section 637 (lump sum on death of member) substitute—...

Other restrictions on approval
9.In section 638 (other restrictions on approval), after subsection (7)...

Maximum amount of deductions
10.In section 640 (maximum amount of deductions), in subsection (3)...

Treatment of personal pension income
11.In section 643 (employer’s contributions and personal pension income, &c.),...

Tax charge on return of contributions after pension date
12.Omit the heading before section 648A and after that section...

SCHEDULE 12
Contractual Savings Schemes

Introduction
1.In this Schedule references to section 326 are to section...

Curtailment of schemes
2.(1) The following provisions of section 326, namely—

European institutions
3.(1) Section 326 shall be further amended as follows.

Certification: Treasury specifications
4.(1) Section 326 shall be further amended as follows.

Treasury authorisation
5.(1) Section 326 shall be further amended by inserting the...

Section 326: supplementary
6.(1) Section 326 shall be further amended by inserting the...

Payments under certain contracts
7.(1) Any terminal bonus, interest or other sum payable under...

Transitional
8.(1) The Treasury may by regulations provide that at the...

SCHEDULE 13
Enterprise Investment Scheme

Introduction
1.The Taxation of Chargeable Gains Act 1992 shall be amended...

Amendments of section 150A
2.(1) Section 150A (enterprise investment scheme) shall be amended as...

Reduction of relief
3.The following section shall be inserted after section 150A— Enterprise...

Re-investment
4.(1) The following section shall be inserted after section 150B—...

SCHEDULE 14
Venture Capital Trusts: Meaning of “qualifying holdings”

Introductory
1.(1) This Schedule applies, where any shares in or securities...

Requirement that company must be unquoted company
2.(1) The requirement of this paragraph is that the relevant...

Requirements as to company’s business
3.(1) The requirements of this paragraph are as follows.

Meaning of “qualifying trade”
4.(1) For the purposes of this Schedule—

Provisions supplemental to paragraph 4
5.(1) In paragraph 4 above— “film” means an original master...

Requirements as to the money raised by the investment in question
6.(1) The requirements of this paragraph are that the money...

Requirement imposing a maximum on qualifying investments in the relevant company
7.(1) The requirement of this paragraph is that the relevant...

Requirement as to the assets of the relevant company
8.(1) The requirement of this paragraph is that the value...

Requirements as to the subsidiaries etc. of the relevant company
9.(1) The requirements of this paragraph are that, subject to...

Meaning of “qualifying subsidiary”
10.(1) Subject to the following provisions of this paragraph, a...

Winding up of the relevant company
11.None of the requirements of this Schedule shall be regarded,...

Power to amend Schedule
12.The Treasury may by order amend this Schedule for any...

General interpretation
13.(1) In this Schedule— “debenture” has the meaning given by...

SCHEDULE 15
Venture Capital Trusts: Relief from Income Tax

Part I Relief on investment

Entitlement to claim relief
1.(1) Subject to the following provisions of this Schedule, an...

Loan-linked investments
2.(1) An individual shall not be entitled to relief under...

Loss of investment relief
3.(1) This paragraph applies, subject to sub-paragraph (5) below, where—...

Assessment on withdrawal or reduction of relief
4.(1) Any relief given under this Part of this Schedule...

Provision of information
5.(1) Where an event occurs by reason of which any...

Interpretation of Part I
6.(1) In this Part of this Schedule “eligible shares”, in...

Part II Relief on distributions

7.(1) A relevant distribution of a venture capital trust shall...

Meaning of “permitted maximum”
8.(1) For the purposes of this Part of this Schedule...

Interpretation of Part II
9.(1) In this Part of this Schedule “ordinary shares”, in...

SCHEDULE 16
Venture Capital Trusts: Deferred charge on re-investment

Application of Schedule
1.(1) This Schedule applies where— (a) there would (apart from...

The postponement of the original gain
2.(1) On the making of a claim by the investor...

Chargeable events
3.(1) Subject to the following provisions of this paragraph, there...

Gain accruing on chargeable event
4.(1) On the occurrence of a chargeable event in relation...

Persons to whom gain accrues
5.(1) The chargeable gain which accrues in accordance with paragraph...

Interpretation
6.(1) In this Schedule “non-resident” means a person who is...

SCHEDULE 17
Settlements: liability of settlor

Part I The new provisions
1.In Part XV of the Taxes Act 1988 (settlements) the...

Part II Minor and consequential amendments of the Taxes Act 1988

2.In section 125(3)(a) of the Taxes Act 1988, for the...
3.In section 339(1)(a) of the Taxes Act 1988, for “section...
4.(1) Section 347A of the Taxes Act 1988 (annual payments...
5.In section 360A(2)(b) of the Taxes Act 1988, for “section...
6.In section 417(3)(b) of the Taxes Act 1988, for “section...
7.In section 505(6) of the Taxes Act 1988, for “section...
8.Before section 677 of the Taxes Act 1988 insert the...
9.(1) Section 677 of the Taxes Act 1988 is amended...
10.In section 678 of the Taxes Act 1988, omit subsection...
11.After section 682 of the Taxes Act 1988 insert— Supplementary...
12.For the heading before section 686 of the Taxes Act...
13.In section 686 of the Taxes Act 1988 (liability to...
14.(1) Section 687 of the Taxes Act 1988 (payments under...
15.Omit section 689 of the Taxes Act 1988 (recovery from...
16.In section 694(3) of the Taxes Act 1988, for “Chapters...
17.(1) Section 720 of the Taxes Act 1988 is amended...
18.In section 745(6) of the Taxes Act 1988, for “section...
19.In section 783(10)(b) of the Taxes Act 1988, for “section...
20.In section 839(3) of the Taxes Act 1988, for subsection...

Part III Consequential amendments of other enactments

Taxes Management Act 1970 (c.9)

21.In section 27(2) of the Taxes Management Act 1970, for...
22.In section 31(3) of the Taxes Management Act 1970 (including...
23.In column 1 of the Table in section 98 of...

Finance Act 1989 (c.26)

24.In section 59(1)(c) of the Finance Act 1989, for “section...
25.In section 60 of the Finance Act 1989, omit subsection...

Finance Act 1990 (c.29)
26.In section 25(12)(b) of the Finance Act 1990, for “section...

Taxation of Chargeable Gains Act 1992 (c.12)

27.For section 77 of the Taxation of Chargeable Gains Act...
28.In section 78 of the Taxation of Chargeable Gains Act...
29.(1) Section 79 of the Taxation of Chargeable Gains Act...
30.In section 97 of the Taxation of Chargeable Gains Act...
31.In section 286 of the Taxation of Chargeable Gains Act...
32.In Schedule 1 to the Taxation of Chargeable Gains Act...

SCHEDULE 18
Deceased persons’ estates

Introductory
1.Part XVI of the Taxes Act 1988 shall be amended...

Limited interests in residue
2.(1) In section 695 (limited interests in residue), the words...

Absolute interests in residue
3.(1) In section 696 (absolute interests in residue), for subsection...

Supplemental provisions relating to section 696
4.(1) After subsection (1) of section 697 (calculation of residuary...

Special provisions as to successive interests in residue
5.(1) For subsection (2) of section 698 (special provisions as...

Adjustments and information
6.After subsection (4) of section 700 (adjustments and information) there...

Interpretation
7.Subsection (14) of section 701 (cases where residuary income has...

SCHEDULE 19

Introductory
1.(1) In this Schedule— (a) “approved stock lending arrangement” means...

Treatment of interest earned on cash collateral
2.(1) This paragraph applies where in connection with an approved...

Application of paragraph 2 in case of chain of arrangements
3.(1) Where the lender under one or more approved stock...

Interpretation
4.In this Schedule— “relief” means relief by way of— deduction...

SCHEDULE 20
Claims etc. not included in returns

Making of claims
1.In Schedule 1A to the Management Act (claims etc. not...

Keeping and preserving of records
2.After paragraph 2 of that Schedule there shall be inserted...

Amendments of claims
3.In paragraph 3 of that Schedule (amendments of claims), in...

Giving effect to claims and amendments
4.(1) At the beginning of sub-paragraph (1) of paragraph 4...

Power to enquire into claims
5.In paragraph 5 of that Schedule (power to enquire into...

SCHEDULE 21
Self-assessment etc: transitional provisions

Notice of liability
1.Section 7 of the Management Act (notice of liability) shall...

Payments on account of income tax
2.(1) Section 59A of that Act (payments on account of...

Partnerships
3.(1) This paragraph applies in the case of a partnership...

SCHEDULE 22
Prevention of exploitation of Schedule 20 to Finance Act 1994

Part I Cases I and II of Schedule D

Increase of profits or gains of transitional period

1.(1) This paragraph applies where, in the case of a...
2.(1) This paragraph applies where, in the case of a...

Increase of profits or gains of transitional overlap period

3.(1) This paragraph applies where, in the case of a...
4.(1) This paragraph applies where, in the case of a...
5.(1) This paragraph applies where, in the case of a...

Part II Cases III, IV and V of Schedule D

Increase of trade etc. profits or gains arising in 1995-96 and 1996-97
6.(1) This paragraph applies where, in the case of any...

Increase of trade etc. profits or gains arising in transitional overlap period

7.(1) This paragraph applies where, in the case of any...
8.(1) This paragraph applies where, in the case of any...

Increase of interest arising in 1995-96 and 1996-97
9.(1) This paragraph applies where, in the case of any...

Increase of other income arising in 1995-96 and 1996-97
10.(1) This paragraph applies where, in the case of any...

Part III Procedural and other provisions

Time limits for purposes of paragraphs 1, 2, 4, 6 and 8 to 10
11.(1) Nothing in subsection (2) or (3) of section 29...

Advance notice for purposes of paragraphs 3, 5 and 7
12.(1) An officer of the Board shall not so amend...

Penalties not to apply in certain cases
13.(1) Where a relevant return (as originally made) states—

Part IV Interpretation

Relevant changes for purposes of paragraphs 1, 3, 6 and 7
14.(1) Any accounting change or change of business practice is...

Relevant transactions for purposes of paragraphs 1, 3, 6 and 7

15.Any self-cancelling transaction or transaction with a connected person is...
16.(1) An agreement by which the person by whom a...
17.(1) For the purposes of paragraph 15 above, any question...

Relevant arrangements for purposes of paragraph 9
18.(1) Any arrangements under which— (a) interest arises at irregular...

Relevant arrangements for purposes of paragraph 10
19.Any arrangements under which income arises at irregular intervals during...

Relevant transactions for purposes of paragraph 10
20.(1) Any transaction with a connected person is a relevant...

General
21.(1) In this Schedule “turnover”, in relation to a trade,...

SCHEDULE 23
Obligations etc. imposed on UK representatives

General imposition of obligations etc.
1.(1) Subject to the following provisions of this Schedule, the...

Discharge of obligations and liabilities
2.Subject to the following provisions of this Schedule—

Obligations and liabilities requiring notice
3.Where any obligation or liability such as is mentioned in...

Information requirements
4.(1) The obligations relating to the furnishing of information which...

Criminal offences and penalties etc
5.(1) A person shall not by virtue of this Schedule...

Indemnities
6.An independent agent of the non-resident shall be entitled—

Meaning of “independent agent”
7.(1) In this Schedule “independent agent”, in relation to the...

SCHEDULE 24
Exchange gains and losses

Part I Amendments of Finance Act 1993

Introduction
1.Chapter II of Part II of the Finance Act 1993...

Trading gains and losses
2.In section 128 (trading gains and losses) the following subsections...

Non-trading gains and losses
3.(1) Section 129 (non-trading gains and losses) shall be amended...

Assets and liabilities
4.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Chargeable gains

5.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part II Amendments of other provisions

Introduction
7.Paragraphs 8 to 12 below shall be deemed to have...

Interest on overdue tax

8.In section 87A of the Taxes Management Act 1970 (interest...
9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10.In section 91 of the Taxes Management Act 1970 (effect...

Interest on tax overpaid

11.In section 826 of the Taxes Act 1988 (interest on...
12.(1) In subsection (7) of that section (amounts of surplus...

SCHEDULE 25
Controlled Foreign Companies

Introduction
1.In this Schedule— (a) paragraph 2 contains an amendment designed...

The principal amendment
2.The following section shall be inserted after section 747 of...

Connected amendments

3.In section 747 of the Taxes Act 1988 (imputation of...
4.In section 748 of the Taxes Act 1988 (limitations on...
5.In section 750 of the Taxes Act 1988 (territories with...
6.(1) Schedule 24 to the Taxes Act 1988 (assumptions for...
7.The following section shall be inserted after section 168 of...

SCHEDULE 26
Change in ownership of investment company: deductions

Introductory
1.The Taxes Act 1988 shall have effect subject to the...

Main provisions
2.After section 768A there shall be inserted the following sections—...

Supplementary provisions
3.After Schedule 28 there shall be inserted— Schedule 28A Change...

Consequential amendments
4.(1) Section 769 (rules for ascertaining change in ownership of...

Application of Schedule
5.This Schedule shall apply in relation to a change in...

SCHEDULE 27
Sub-contractors in the construction industry

Payments to which provision for deductions applies
1.(1) In subsection (1) of section 559 of the Taxes...

Persons who are contractors and sub-contractors
2.(1) In subsection (2) of section 560 of that Act...

Individual partners and liabilities for certain contraventions
3.(1) In subsection (2)(b) of section 561 of that Act...

Turnover test etc.

4.(1) Section 562 of that Act (conditions for grant of...
5.Section 563 of that Act (conditions to be satisfied by...
6.For subsections (3) to (5) of section 564 of that...
7.(1) After subsection (2) of section 565 of that Act...

Commencement of paragraphs 3 to 7
8.(1) Except in the case of paragraph 3(2) and (3)...

Powers to make regulations
9.In section 566 of that Act (general powers to make...

SCHEDULE 28

1.In the Taxes Management Act 1970 after section 115 there...
2.After Schedule 3 to that Act there shall be inserted—...

SCHEDULE 29
Repeals

Part I Alcoholic Liquor

These repeals have effect in accordance with section 1 of...
The powers in section 5(6) and (7) of this Act...

Part II Road Fuel Gas

Part III Betting and Gaming etc.

1.These repeals, except the repeals of sections 28(4) and 29(4)...
2.The repeals of sections 28(4) and 29(4) of that Act...

Part IV Air Passenger Duty
This repeal has effect in accordance with section 16 of...

Part V Vehicle Excise and Registration

These repeals come into force on 1st July 1995.
These repeals have effect in accordance with Parts III, IV...
1.The repeal in section 31(5)(b) applies in relation to offences...
2.The repeals in sections 37(2) and 41(1)(b) apply in relation...

Part VI Value Added Tax

This repeal has effect in accordance with section 21 of...
This repeal has effect in accordance with section 23(4)(b) of...
This repeal comes into force on the day appointed by...
This repeal has effect in accordance with section 31 of...

Part VII Insurance Premium Tax
This repeal has effect in accordance with paragraph 2 of...

Part VIII Income Tax, Corporation Tax and Capital Gains Tax

These repeals come into force in accordance with section 39(4)...
These repeals come into force in accordance with section 42(3)...
This repeal has effect in accordance with section 45(5) of...
This repeal has effect where the acquisition of, or of...
1.The following repeals have effect in accordance with paragraph 55...
2.The repeals other than those listed above have effect in...
3.The repeal of the definitions of “general annuity business” and...
These repeals come into force, in accordance with section 55(1)...
These repeals have effect for the year 1995-96 and subsequent...
This repeal comes into force in accordance with section 86...
These repeals come into force in accordance with section 87(7)...
This repeal has effect in accordance with section 88(4) and...
1.The repeal of section 11A of the Taxes Management Act...
2.The other repeals, except that in the Finance Act 1994,...
1.The repeal of section 114(3) has effect in accordance with...
2.The other repeal has effect in accordance with section 120(2)...
1.The repeal of section 43 of the Taxes Act 1988...
2. The repeals in sections 115(7) of the Taxes Act...
3.The repeals in section 510A of the Taxes Act 1988...
4.The repeal of section 215(5)(b) of the Finance Act 1994...
5.The other repeals come into force— (a) for the purposes...
1.The repeal of sections 559(3) and 561(4) and (5) of...
2.The repeal of section 561(12) of the Taxes Act 1988...
3.The other repeals in the Taxes Act 1988 have effect...
4.The repeal of section 28 of the Finance Act 1988...
5.In Notes 1, 3 and 4 above, “the appointed day”...

Part IX Petroleum Revenue Tax
Part X Stamp Duty
Part XI Inheritance Tax: Agricultural Property
Part XII Ports Levy