Finance Act 2002
Finance Act 2002 (2002 c. 23)
- Finance Act 2002 (2002 c. 23)
- Part 1 Excise duties
- Tobacco products duty
- 1 Rates of tobacco products duty
- Alcoholic liquor duties
- 2 Rates of duty on cider
- 3 Duty on beverages made with spirits to be at spirits rate
- 4 Reduced rates of duty on beer from small breweries
- Hydrocarbon oil duties
- 5 Biodiesel
- 6 Regulating trade in rebated heavy oil etc
- 7 Fuel substitutes
- Betting and gaming duties
- 8 Amusement machine licences: excepted machines
- 9 Amusement machine licence duty: rates
- 10 Rates of gaming duty
- 11 Gaming duty to be chargeable in respect of sic bo and three card poker
- 12 Pool betting duty etc
- 13 General betting duty: spread bets
- 14 General betting duty: overseas bet-brokers
- Vehicle excise duty
- 15 Cars registered on or after 1st March 2001: rates of duty
- 16 Vans registered on or after 1st March 2001: rates of duty
- 17 Disclosure of information for vehicle excise duty exemptions
- 18 Motorcycles (and motorcycle trade licences): rates of duty
- 19 Registered vehicles etc
- 20 Calculating cylinder capacity of vehicles
- General
- 21 Drawback of excise duty
- Part 2 Value added tax
- 22 Disallowance of input tax where consideration not paid
- 23 Flat-rate scheme
- 24 Invoices
- 25 Relief from VAT on acquisition if importation would attract relief
- Part 3 Income tax, corporation tax and capital gains tax
- Chapter 1 Charge and rate bands
- Income tax
- 26 Charge and rates for 2002-03
- 27 Indexed rate bands for 2002-03: PAYE deductions etc
- 28 Personal allowance for 2003-04 for those aged under 65
- 29 Personal allowances for 2003-04 for those aged 65 or over
- Corporation tax
- 30 Charge and main rate for financial year 2003
- 31 Small companies’ rate and fraction for financial year 2002
- 32 Corporation tax starting rate and fraction for financial year 2002
- Chapter 2 Other provisions
- Employment income and related matters
- 33 Employer-subsidised public transport bus services
- 34 Car fuel: calculation of cash equivalent of benefit
- 35 Statutory paternity pay and statutory adoption pay
- 36 Exemption of minor benefits: application to non-cash vouchers
- 37 Minor amendments to Schedule E charge
- 38 Provision of services through an intermediary: minor amendments
- 39 Employee share ownership plans: minor amendments
- 40 Treatment of deductions from payments to sub-contractors
- 41 Parliamentary visits to EU candidate countries: tax treatment of members’ expenses
- Chargeable gains
- 42 Reallocation within group of gain or loss accruing under section 179
- 43 Roll-over of degrouping charge on business assets
- 44 Exemptions for disposals by companies with substantial shareholding
- 45 Share exchanges and company reconstructions
- 46 Taper relief: holding period for business assets
- 47 Taper relief: minor amendments
- 48 Use of trading losses against chargeable gains
- 49 Election to forgo roll-over relief on transfer of business
- 50 Shares acquired on same day: election for alternative treatment
- 51 Deduction of personal losses from gains treated as accruing to settlors
- 52 Capital gains tax: variation of dispositions taking effect on death
- New reliefs
- 53 Tax relief for expenditure on research and development
- 54 Tax relief for expenditure on vaccine research etc
- 55 Gifts of medical supplies and equipment
- 56 R&D tax relief for small and medium-sized enterprises: minor and consequential amendments
- 57 Community investment tax relief
- 58 Relief for community amateur sports clubs
- Capital allowances and related matters
- 59 Cars with low carbon dioxide emissions
- 60 Expense of hiring cars with low carbon dioxide emissions
- 61 Plant or machinery for gas refuelling station: first-year allowances
- 62 Expenditure on green technologies: leasing
- 63 First-year allowances for expenditure wholly for a ring fence trade
- Computation of profits
- 64 Adjustment on change of basis
- 65 Postponement of change to mark to market in certain cases
- 66 Election to continue postponement of mark to market
- 67 Mark to market: miscellaneous amendments
- 68 Expenditure involving crime
- Financial instruments
- 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 70 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Loan relationships
- 71 Accounting method where rate of interest etc is reset
- 72 Convertible securities etc: loan relationships
- 73 Convertible securities etc: issuing company not to be connected company
- 74 Convertible securities etc: debtor relationships
- 75 Asset-linked loan relationships
- 76 Asset-linked loan relationships involving guaranteed returns
- 77 Loan relationships ceasing to be within section 93 of the Finance Act 1996
- 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Foreign exchange gains and losses, loan relationships and currency
- 79 Forex and exchange gains and losses from loan relationships etc
- 80 Corporation tax: currency
- 81 Transitional provision
- Loan relationships and other money debts
- 82 Loan relationships: general amendments
- Derivative contracts
- 83 Derivative contracts
- Intangible fixed assets
- 84 Gains and losses from intangible fixed assets of company
- Insurance
- 85 Gains of insurance company from venture capital investment partnership
- 86 Lloyd’s underwriters
- 87 Life policies etc: chargeable events
- International matters
- 88 Extension of power to give effect to double taxation arrangements
- 89 Controlled foreign companies: territorial exclusions from s.748 exemptions
- 90 Controlled foreign companies and treaty non-resident companies
- Supplementary charge in respect of ring fence trades
- 91 Supplementary charge in respect of ring fence trades
- 92 Assessment, recovery and postponement of supplementary charge
- 93 Supplementary charge: transitional provisions
- Deduction of tax
- 94 Deduction of tax: payments to exempt bodies etc
- 95 Deduction of tax by persons dealing in financial instruments
- 96 Cross-border royalties
- Charitable giving
- 97 Gifts of real property to charity
- 98 Gift aid: election to be treated as if gift made in previous tax year
- Films
- ... Restriction of relief to films genuinely intended for theatrical release
- ... Exclusion of deferments from production expenditure
- 101 Restriction of relief for successive acquisitions of the same film
- Miscellaneous
- 102 Distributions: reasonable commercial return for use of principal secured
- 103 References to accounting practice and periods of account
- 104 Discounted securities etc
- 105 Financial trading stock
- 106 Valuation of trading stock on transfer of trade
- 107 Banks etc in compulsory liquidation
- 108 Manufactured dividends and interest
- 109 Venture capital trusts
- Part 4 Stamp duty and stamp duty reserve tax
- Stamp duty
- 110 Land in disadvantaged areas
- 111 Withdrawal of group relief
- 112 Restriction of relief for company acquisitions
- 113 Withdrawal of relief for company acquisitions
- 114 Penalties for late stamping
- 115 Contracts for the sale of an estate or interest in land chargeable as conveyances
- 116 Abolition of duty on instruments relating to goodwill
- Stamp duty and stamp duty reserve tax
- 117 Power to extend exceptions relating to recognised exchanges
- Part 5 Other taxes
- Inheritance tax
- 118 IHT: rate bands
- 119 IHT: powers over, or exercisable in relation to, settled property or a settlement
- 120 IHT: variation of dispositions taking effect on death
- Air passenger duty
- 121 Air passenger duty: extension of area to which EEA rates apply
- Landfill tax
- 122 Landfill tax: rate
- Climate change levy
- 123 Climate change levy: electricity produced in combined heat and power station
- 124 Climate change levy: certification requirement
- 125 Climate change levy: exemption for renewable sources
- 126 Climate change levy: electricity produced from coal mine methane
- 127 Climate change levy: incorrect certificates
- 128 Climate change levy: invoices incorrectly showing levy due
- Aggregates levy
- 129 Aggregates levy: transitional relief for Northern Ireland
- 130 Aggregates levy: amendments to provisions exempting spoil etc
- 131 Aggregates levy: crushing and cutting rock
- 132 Aggregates levy: miscellaneous amendments
- 133 Aggregates levy: amendments to provisions about civil penalties
- Part 6 Miscellaneous and supplementary provisions
- Recovery of taxes etc due in other member States
- 134 Recovery of taxes etc due in other member States
- Mandatory e-filing
- 135 Mandatory e-filing
- 136 Use of electronic communications under other provisions
- Lorry road-user charge
- 137 Lorry road-user charge
- Registers of UK gilts
- 138 Authority of Bank of England to discharge functions in place of Bank of Ireland
- 139 Closure of UK gilts registers kept in Ireland
- 140 Administration of UK gilts
- Supplementary
- 141 Repeals
- 142 Interpretation
- 143 Short title
- SCHEDULES
- SCHEDULE 1 Beer from small breweries: reduced rate of duty
- SCHEDULE 2 Hydrocarbon oil duties: minor and consequential amendments relating to biodiesel
- Introduction
- Biodiesel and bioblend not to be treated as fuel substitute
- Exclusion of bioblend from rebates on heavy oil
- Repayment of duty in case of biodiesel used otherwise than as road fuel
- Mixing biodiesel and rebated heavy oil
- Interpretation
- Provision in relation to bioblend corresponding to that made by section 6 of the Finance Act 1998 in relation to section 6 of the Hydrocarbon Oil Duties Act 1979
- SCHEDULE 3 Hydrocarbon oil duties: rebated heavy oil etc
- Part 1 Regulating traders in rebated heavy oil
- Part 2 Minor amendments relating to rebates
- SCHEDULE 4 Pool betting duty etc
- Part 1 Amendments of the Betting and Gaming Duties Act 1981
- Part 2 Minor amendments and transitional provisions
- Amendment in the Excise Duties (Surcharges or Rebates) Act 1979
- Amendments in Schedule 5 to the Finance Act 1994
- Duty charged before 31st March 2002
- Notifications under paragraph 4(4) of Schedule 1 to that Act of premises used in connection with coupon betting
- SCHEDULE 5 Vehicle excise duty: registered vehicles etc
- SCHEDULE 6 Minor amendments to Schedule E charge
- Share options
- Credit-tokens and non-cash vouchers
- Taxation of benefit where income received free of tax
- Benefits in connection with termination of employment or change in duties or emoluments
- Priority between charges under sections 148 and 595 of the Taxes Act 1988
- SCHEDULE 7 Chargeable gains: roll-over of degrouping charge: modification of enactments
- SCHEDULE 8 Chargeable gains: exemptions in case of substantial shareholding
- Part 1 New Schedule 7AC to the Taxation of Chargeable Gains Act 1992
- Part 2 Consequential amendments
- Degrouping: time of accrual of chargeable gain or allowable loss
- Treatment of furnished holiday lettings
- Overseas life insurance companies
- Corporate venturing scheme
- SCHEDULE 9 Chargeable gains: share exchanges and company reconstructions
- Part 1 Provisions replacing sections 135 and 136 of the Taxation of Chargeable Gains Act 1992
- Share exchanges
- Scheme of reconstruction involving issue of securities
- Meaning of “scheme of reconstruction"
- Part 2 Consequential amendments
- Taxes Act 1988
- Taxation of Chargeable Gains Act 1992
- Finance Act 2000
- Part 3 Commencement
- General commencement date
- Commencement provision for certain consequential amendments
- SCHEDULE 10 Chargeable gains: taper relief: minor amendments
- Introduction
- Periods of share ownership that do not count because of change of activity by company
- Periods of share ownership not to count where company is not active
- Meaning of “holding company"
- Meaning of “interest in shares"
- Meaning of “joint venture company" and “qualifying shareholding"
- Meaning of “ordinary share capital"
- Debentures to be treated as shares
- Meaning of “trading company"
- Meaning of “trading group"
- Joint venture companies
- Joint enterprise companies
- SCHEDULE 11 Chargeable gains: deduction of personal losses from gains treated as accruing to settlors
- Introduction
- Section 2
- Section 77
- Section 86
- Section 86A
- Section 87
- Commencement
- Election for Schedule to apply for years earlier than 2003-04
- SCHEDULE 12 Tax relief for expenditure on research and development
- Part 1 Entitlement to relief for R&D expenditure: large companies
- Entitlement to relief under this Part
- Meaning of “large company" and “small or medium-sized enterprise"
- Qualifying R&D expenditure
- Qualifying expenditure on direct research and development
- Expenditure on research and development directly undertaken on company’s behalf
- Qualifying expenditure on contributions to independent research and development
- Part 2 Entitlement to relief for R&D expenditure: work subcontracted to small or medium-sized enterprise
- Entitlement to relief under this Part
- Qualifying sub-contracted R&D expenditure
- Expenditure on research and development directly undertaken by the SME
- Expenditure on research and development directly undertaken on SME’s behalf
- Part 2A Entitlement of SME to additional relief available to large companies
- Entitlement to relief under this Part
- Qualifying additional Small or Medium-sized EnterpriseSME expenditure
- Capped SME expenditure
- Part 3 The relief
- Deduction in computing profits of trade
- Part 4 Special provision for giving relief to insurance companies
- Treated as large companies
- Entitlement to relief in respect of “I minus E" basis
- Part 5 Supplementary provisions
- Research and development expenditure of group companies
- Refunds of contributions to independent research and development etc
- Artificially inflated claims for deduction
- Part 6 General provisions
- Meaning of “relevant research and development”, “staffing costs”, “ software or consumable items ” , “relevant payments to the subjects of a clinical trial” and “qualifying expenditure on externally provided workers"
- Meaning of “qualifying body"
- Other definitions etc
- Transitional provision
- SCHEDULE 13 Tax relief for expenditure on vaccine research etc
- Part 1 Entitlement to relief
- Entitlement to relief under this Schedule
- Qualifying expenditure
- Qualifying expenditure on direct research and development
- Qualifying R&D activity
- Meaning of “relevant R&D”, “small or medium-sized enterprise”, “staffing costs”, “software or consumable items”, “relevant payments to the subjects of a clinical trial”, “subsidised” and “qualifying expenditure on externally provided workers.
- Qualifying expenditure on sub-contracted research and development
- Conditions that must be satisfied by qualifying expenditure on sub-contracted research and development
- Treatment of sub-contractor payment where principal and sub-contractor are connected persons
- Relevant expenditure of the sub-contractor
- Election for connected persons treatment
- Treatment of sub-contractor payment in other cases
- Qualifying expenditure on contributions to independent research and development
- Part 2 Manner of giving effect to relief: small and medium-sized companies
- Application of this Part
- Deduction in computing profits of trade
- Alternative treatment of pre-trading expenditure: deemed trading loss
- Paragraphs 14 and 15: modifications for larger SMEs claiming R&D tax credits
- Entitlement to tax credit
- Entitlement to tax credit: modification for larger SMEs
- Amount of credit
- Payment in respect of tax credit
- Relief or tax credit only available where company is a going concern
- Restriction on losses carried forward
- Payment in respect of tax credit not income
- Part 3 Manner of giving effect to relief: large companies
- Deduction in computing profits of trade
- Part 4 Special provision for giving relief to insurance companies
- Treated as large companies
- Entitlement to relief in respect of “I minus E" basis
- Part 5 Supplementary provisions
- Artificially inflated claims for deduction or tax credit
- Refunds of contributions to independent research and development
- Funding of tax credits
- Interpretation
- Commencement and transitional provision
- SCHEDULE 14 Tax credits under Schedule 13: consequential amendments
- Interest
- Claim must be made in tax return
- Recovery of excessive tax credits
- Claims for tax credits
- Commencement
- SCHEDULE 15 R&D tax relief for small and medium-sized enterprises: minor and consequential amendments
- SCHEDULE 16 Community investment tax relief
- Part 1 Introduction
- Eligibility for tax relief
- Meaning of “investment"
- Meaning of “the five year period"
- Part 2 Accredited community development finance institutions
- Application of Chapter 2 of Part 7 of ITA 2007
- Part 3 Qualifying investments
- Introduction
- Conditions to be satisfied in relation to loans
- Conditions to be satisfied in relation to securities
- Conditions to be satisfied in relation to shares
- Tax relief certificates
- Pre-arranged protection against risks
- Part 4 General conditions
- No control of CDFI by investor
- Beneficial ownership
- Investor must not be accredited
- No acquisition of share in partnership
- No tax avoidance purpose
- Part 5 Form of relief
- Individual investors
- Company investors
- Determination of “the invested amount"
- Loans: no claim after disposal or excessive repayments or receipts of value
- Securities or shares: no claim after disposal or excessive receipts of value
- Loss of accreditation by the CDFI
- Accreditation of the investor
- Attribution
- Part 6 Withdrawal of relief
- Manner of withdrawal of relief
- Disposal of loan during five year period
- Disposal of shares or securities during five year period
- Repayments of loan capital
- Value received treated as repayment of loan
- Value received by investor where the investment consists of securities or shares
- Meaning of “period of restriction"
- Aggregation of receipts of insignificant value
- When value is received
- The amount of value received
- Value received where there is more than one investment
- Effect of receipt of value on future claims for relief
- Receipts of value by and from connected persons
- Part 7 Restructuring of CDFI
- Rights issues etc
- Company reconstructions etc
- Part 8 Supplementary and general
- Information to be provided by the investor
- Disclosure
- Nominees
- Application for postponement of tax pending appeal
- Meaning of “issue of securities or shares"
- Identification of securities or shares on a disposal
- Meaning of “disposal"
- Construction of references to investment being “held continuously"
- Meaning of “associate"
- Minor definitions etc
- Index of defined expressions
- SCHEDULE 17 Community investment tax relief: consequential amendments
- SCHEDULE 18 Relief for community amateur sports clubs
- Part 1 Clubs entitled to be registered
- The requirements
- Open to the whole community
- Organised on an amateur basis
- Part 2 Exemptions for registered clubs
- Exemption for trading income
- Exemption for interest and gift aid income
- Exemption for property income
- Exemption for chargeable gains
- Exemption reduced where club incurs non-qualifying expenditure
- Part 3 Reliefs for donors
- Part 4 Chargeable gains: property ceasing to be held for qualifying purposes
- Part 5 Registration
- Registration and termination
- Information etc
- Appeals
- Part 6 Interpretation
- “Eligible sport"
- “Inland Revenue"
- Other expressions
- SCHEDULE 19 Capital allowances: cars with low carbon dioxide emissions
- Introductory
- Types of expenditure for which first-year allowances available
- First-year qualifying expenditure: car with low carbon dioxide emissions
- General exclusions affecting first-year qualifying expenditure
- Amount of first-year allowances
- Single asset pool in relation to cars above cost threshold
- SCHEDULE 20 Capital allowances: plant or machinery for gas refuelling station
- Introductory
- Types of expenditure for which first-year allowances available
- First-year qualifying expenditure: plant or machinery for gas refuelling station
- General exclusions affecting first-year qualifying expenditure
- Amount of first-year allowance
- SCHEDULE 21 First-year allowances for expenditure wholly for a ring fence trade
- Part 1 Plant and machinery
- Introductory
- Types of expenditure for which first-year allowances available
- First-year qualifying expenditure: plant and machinery for use wholly in a ring fence trade
- Plant or machinery used for less than five years in a ring fence trade
- General exclusions affecting first-year qualifying expenditure
- Amount of first-year allowances
- Penalty for failure to provide information etc
- Part 2 Mineral extraction allowances
- Introductory
- First-year qualifying expenditure
- First-year allowances
- Artificially inflated claims for first-year allowances
- Amount of allowances and charges: balancing charge for period in which expenditure incurred
- Unrelieved qualifying expenditure: effect of first-year qualifying expenditure
- SCHEDULE 22 Computation of profits: adjustment on change of basis
- Part 1 Introduction
- General scheme
- Part 2 General rules
- Calculation of adjustment
- Meaning of items being brought into account
- Giving effect to positive adjustment
- Giving effect to negative adjustment
- Part 3 Special rules for certain cases
- No adjustment for certain expenses previously brought into account
- Cases where adjustment not required until asset realised or written off
- Change from realisation basis to mark to market
- Election for spreading where paragraph 8 applies
- Application of paragraphs 8 and 9 in case of transfer of insurance business
- Part 4 Supplementary provisions
- Application of provisions to partnerships
- Interpretation
- Part 5 Commencement
- General rule
- Application of provisions to certain earlier changes of basis
- Period in which change of basis takes effect
- SCHEDULE 23 Exchange gains and losses from loan relationships etc
- Part 1 Amendments of the Finance Act 1996
- Introductory
- Meaning of “related transaction”
- Exchange gains and losses from loan relationships etc
- Authorised accounting methods
- Convertible securities etc: exchange gains and losses
- Extension of section 100 to exchange gains and losses and to items other than money debts
- Interpretation
- Bad debt etc: cases where departure allowed from assumption of prompt payment in full
- Bad debts etc where parties have a connection
- Transactions not at arm’s length
- Exchange gains and losses where loan not on arm’s length terms
- Continuity of treatment: groups etc
- Loan relationships for unallowable purposes
- Life assurance business
- Special provisions for insurers: apportionments
- Savings and transitional provisions in the Finance Act 1996
- Part 2 Amendments of other legislation
- The Income and Corporation Taxes Act 1988
- Charges on income
- Supplementary charge in respect of ring fence trades
- Double taxation relief
- Provision not at arm’s length: foreign exchange gains and losses
- The Finance Act 1995
- Miscellaneous amendments
- The Finance Act 2000
- Tonnage tax
- The Finance Act 2002
- Intangible fixed assets: assets entirely excluded: financial assets
- Part 3 Transitional provisions etc
- Anti-avoidance: change of accounting period
- Deferred foreign exchange gains
- SCHEDULE 24 Corporation tax: currency
- The Finance Act 1993
- Introductory
- The basic rule: sterling to be used
- Use of currency other than sterling: accounts as a whole etc in foreign currency
- Use of currency other than sterling: accounts etc partly from statements in foreign currency
- Rules for ascertaining currency equivalents: general
- Rules for ascertaining sterling equivalent for section 93(4) or (5)
- The Finance Act 1994
- Lloyd’s underwriters: corporations etc
- SCHEDULE 25 Loan relationships
- Part 1 Amendments of the Finance Act 1996
- Introductory
- Meaning of “loan relationship” etc: method of settlement
- Non-trading deficit on loan relationships
- Debits and credits brought into account
- Authorised accounting methods
- Application of accounting methods
- Accounting method where parties have a connection
- Meaning of “control” in section 87
- Inconsistent application of accounting methods
- Changes of accounting method
- Payments subject to deduction of tax
- Indexed gilt-edged securities
- Manufactured interest
- Interpretation: “shares” not to include building society shares
- Interpretation: miscellaneous
- Provision continuing to be made on accruals basis after company ceases to be party
- Claims to treat deficit as eligible for group relief
- Claim to carry back deficit to previous accounting periods
- Deficit carried forward and set against non-trading profits of succeeding accounting periods
- Distributions
- Life assurance policies and capital redemption policies
- Late interest: further cases where paragraph 2 of Schedule 9 applies
- Bad debts and consortium relief
- Bad debt etc where parties have a connection
- Bad debt etc: parties having connection and creditor company in insolvent liquidation etc
- Bad debt etc: departure not permitted by paragraph 6: subsequent cessation of connection
- Imported losses etc
- Continuity of treatment: groups etc
- Loan relationships for unallowable purposes
- Debits and credits treated as relating to capital expenditure
- Repo transactions and stock lending
- Discounted securities where companies have a connection
- Discounted securities of close companies
- Partnerships involving companies
- Interpretation of Schedule 9: “major interest”
- Investment trusts and venture capital trusts: treatment of capital reserves
- Authorised unit trusts and open-ended investment companies
- Distributing offshore funds
- Life assurance business
- Adjustments in the case of chargeable assets etc
- Reduction of paragraph 11 credit where s.251(4) of 1992 Act prevents paragraph 8 loss
- Part 2 Amendments of other enactments
- The Taxes Act 1988
- Introductory
- Incidental costs of obtaining loan finance
- Group relief
- Building society shares: regulations for deduction of tax
- Building society shares: incidental costs of issuing qualifying shares
- European Economic Interest Groupings
- Funding bonds issued in respect of interest on certain debts
- Transfers of income arising from securities
- Treatment of price differential on sale and repurchase of securities
- Restriction of relief for payments of interest
- Limits on credit: corporation tax
- Foreign tax on items giving rise to a non-trading credit
- Investment trusts
- Venture capital trusts
- Change in ownership of investment company
- The Finance Act 1988
- Commercial woodlands
- The Taxation of Chargeable Gains Act 1992
- Interest charged to capital
- Part 3 Transitional provisions
- Interpretation
- Non-trading deficit carried forward from last old accounting period
- Discounted securities where companies have a connection
- Discounted securities of close companies
- Authorised unit trusts and open-ended investment companies
- SCHEDULE 26 Derivative contracts
- Part 1 Introduction
- Profits arising from derivative contracts
- Part 2 Derivative contracts
- Derivative contracts and relevant contracts
- Non-financial contracts with embedded derivatives
- Hybrid derivatives
- Contracts to satisfy accounting requirements etc
- Contracts excluded by virtue of their underlying subject matter
- Contracts which become derivative contracts: chargeable assets
- Treatment of credits and debits on former chargeable asset
- Underlying subject matter which is subordinate or of small value disregarded
- Meaning of “underlying subject matter”
- Definition of terms relating to derivative contracts
- Power to amend paragraphs 2 to 12 and Part 9
- Part 3 Method of taxation
- Method of bringing amounts into account
- Credits and debits brought into account
- Exchange gains and losses arising from derivative contracts
- Part 4 Computation of amounts to be brought into account
- Computation in accordance with generally accepted accounting practice
- Amounts recognised in determining company’s profit or loss
- Power to make further provision by regulations
- Basis of accounting for contracts falling within paragraph 6, 7 or 8
- Part 5 Special provision for release of liability
- Release of liability under derivative contract
- Part 6 Special computational provisions
- Deemed assignment of derivative contracts on company ceasing to be resident in UKetc
- Derivative contracts for unallowable purposes
- Derivative contracts for unallowable purposes: supplementary
- Debits and credits treated as relating to capital expenditure
- Debits and credits recognised in equity or shareholders' funds
- Transfers of value to connected companies
- Exchange gains and losses where derivative contracts not on arm’s length terms
- Disposals for consideration not fully recognised by accounting practice
- Transactions within groups
- Transactions within groups: exceptions relating to insurance
- Transactions within groups: fair value accounting
- Transferee leaving group after replacing transferor as party to derivative contract
- Derivative contracts with non-residents
- Amounts imputed under Schedule 28AA to the Taxes Act 1988
- Part 7 Collective investment schemes
- Authorised unit trusts: capital profits and losses
- Open-ended investment companies: capital profits and losses
- Power to amend paragraphs 32 and 33
- Distributing offshore funds
- Contracts relating to holdings in unit trust schemes, open-ended investment companies and offshore funds
- Contract which becomes contract to which paragraph 36 applies
- Investment trusts: capital profits, gains or losses
- Venture capital trusts: capital profits, gains or losses
- Investment trusts: approval for purposes of section 842 of the Taxes Act 1988
- Venture capital trusts: approval for purposes of section 842AA of the Taxes Act 1988
- Part 8 Insurance and mutual trading companies
- Application of Schedule to insurance and mutual trading companies
- Application of section 103(3)(c) of the Finance Act 1996
- ...
- Mutual trading and non-life mutual business
- Part 9 Miscellaneous
- Contracts which become derivative contracts
- Contracts which cease to be derivative contracts
- Derivative contracts which are to be taxed on a chargeable gains basis
- Carry back of net losses on derivative contracts to which paragraph 45A applies
- Derivative contracts relating to land or certain tangible movable property
- Creditor relationships: embedded derivatives which are options
- Exclusions from paragraph 45D
- Creditor relationships: embedded derivatives which are exactly tracking contracts for differences
- Creditor relationships: existing assets
- Property based total return swaps
- Treatment of net gains and losses on terminal exercise of option
- Treatment of net gains and losses on disposal of certain embedded derivatives
- Treatment of credits and debits on terminal exercise of non-embedded option or running to delivery of future
- Index-linked gilt-edged securities with embedded contracts for differences
- Issuers of securities with embedded derivatives: deemed options
- Issuers of securities with embedded derivatives: equity instruments
- Issuers of securities with embedded derivatives: deemed contracts for differences
- Securities with embedded options: existing liabilities
- Derivatives not embedded in a loan relationship
- Elections under paragraph 45L(2A): further provisions
- Treatment of host contract as a loan relationship
- Contracts where part of underlying subject matter of excluded type
- Partnerships involving companies
- Partnerships involving companies: use of fair value accounting
- Adjustment on company changing to international accounting standards
- Prevention of deduction of tax
- Part 10 Interpretation
- Statutory accounts
- Derivative and relevant contracts of person
- General interpretation
- SCHEDULE 27 Derivative contracts: minor and consequential amendments
- The Taxes Act 1988
- The Finance Act 1994
- The Finance Act 1996
- The Finance Act 2000
- The Finance Act 2002
- SCHEDULE 28 Derivative contracts: transitional provisions etc
- Anti-avoidance: change of accounting period
- Qualifying contracts to which company ceases to be party before commencement day
- Qualifying contracts which become derivative contracts
- Contracts which become derivative contracts: chargeable assets
- Contracts: election to treat as two assets
- Contracts which become derivative contracts: contracts within Schedule 5AA to the Taxes Act 1988
- Interpretation
- SCHEDULE 29 Gains and losses of a company from intangible fixed assets
- Part 1 Introduction
- Gains and losses in respect of intangible fixed assets
- Intangible assets
- Intangible fixed assets
- Goodwill
- Company not drawing up correct accounts
- Reference to consolidated group accounts
- Part 2 Debits in respect of intangible fixed assets
- Introduction
- Expenditure written off as it is incurred
- Writing down on accounting basis
- Writing down at fixed rate: election for fixed-rate basis
- Writing down at fixed rate: calculation
- Reversal of previous accounting gain
- Part 3 Credits in respect of intangible fixed assets
- Introduction
- Receipts recognised as they accrue
- Receipts in respect of royalties so far as not dealt with under paragraph 14
- Revaluation
- Negative goodwill
- Reversal of previous accounting loss
- Part 4 Realisation of intangible fixed assets
- Introduction
- Meaning of “realisation"
- Realisation of asset written down for tax purposes
- Realisation of asset shown in balance sheet and not written down for tax purposes
- Apportionment in case of part realisation
- Realisation of asset not shown in balance sheet
- Meaning of “proceeds of realisation"
- Relief in case of reinvestment
- Abortive expenditure on realisation
- Part 5 Calculation of tax written down value
- Asset written down on accounting basis
- Asset written down at fixed rate
- Effect of part realisation of asset
- Part 6 How credits and debits are given effect
- Introduction
- Asset held for purposes of trade
- Asset held for purposes of property business
- Assets held for purposes of mines, transport undertakings, etc
- Non-trading credits and debits
- Claim to set non-trading loss against total profits
- Special provisions relating to insurance companies
- Part 7 Roll-over relief in case of realisation and reinvestment
- The relief
- Conditions to be met in relation to the old asset and its realisation
- Conditions to be met in relation to the expenditure on other assets
- Claim for relief
- How the relief is given: general
- Determination of appropriate proportion or adjusted cost
- References to cost of asset where asset affected by change of accounting policy
- Declaration of provisional entitlement to relief
- Realisation and reacquisition
- Deemed realisations and deemed acquisitions to be disregarded
- Part 8 Groups of companies
- Introduction
- General rule: a company and its 75% subsidiaries form a group
- Membership of group restricted to effective 51% subsidiaries of principal company
- Principal company cannot be 75% subsidiary of another company
- Company cannot be member of more than one group
- Continuity of identity of group
- Meaning of “effective 51% subsidiary"
- Meaning of equity holder and profits or assets available for distribution
- Supplementary provisions
- Part 9 Application of provisions to groups of companies
- Transfers within a group
- Roll-over relief on reinvestment: application to group member
- Roll-over relief on reinvestment: acquisition of group company treated as equivalent to acquisition of underlying assets
- Company ceasing to be member of group (“degrouping")
- Degrouping: associated companies leaving group at the same time
- Degrouping: principal company becoming member of another group
- Degrouping: company ceasing to be member of group by reason of exempt distribution
- Degrouping: merger carried out for bona fide commercial reasons
- Degrouping: group member ceasing to exist
- Degrouping: supplementary provisions
- Degrouping: application of roll-over relief in relation to degrouping charge
- Reallocation of degrouping charge within group
- Application of roll-over relief in relation to reallocated degrouping charge
- Recovery of degrouping charge from another group company or controlling director
- Recovery of degrouping charge from another group company or controlling director: procedure etc
- Recovery of degrouping charge from another group company or controlling director: time limit
- Payments between group members in respect of reliefs
- Part 10 Excluded assets
- Introduction
- Assets entirely excluded: rights over tangible assets
- Assets entirely excluded: assets in respect of which capital allowance previously made
- Assets entirely excluded: oil licences
- Assets entirely excluded: financial assets
- Assets entirely excluded: rights in companies, trusts, etc
- Assets entirely excluded: non-commercial purposes etc
- Assets excluded except as regards royalties: life assurance business
- Assets excluded except as regards royalties: mutual trade or business
- Assets excluded except as regards royalties: films and sound recordings
- Assets excluded: certain films
- Assets excluded except as regards royalties: sound recordings
- Assets excluded except as regards royalties: computer software treated as part of cost of related hardware
- Assets excluded to extent specified: research and development
- Assets excluded to extent specified: election to exclude capital expenditure on computer software
- Part 11 Transfer of business or trade
- Company reconstruction involving transfer of business
- Transfer of UK business between companies resident in different EU member States
- European cross-border merger: transfer of UK business
- Transparent entities
- Postponement of charge on transfer of assets to non-resident company.
- Transfer of non-UK business
- European cross-border merger: transfer of non-UK business
- Procedure on application for clearance
- Transfer of life assurance business
- Transfer of business of building society to company
- Amalgamation of or transfer of engagements by certain societies
- Part 12 Transactions between related parties
- Transfer between company and related party treated as being at market value
- Exclusion of roll-over relief in case of part realisation involving related party
- Delayed payment of royalty payable by company to related party
- Meaning of “related party"
- Persons treated as “related parties”
- Meaning of “control" and “major interest"
- Rights and powers to be taken into account: general
- Rights and powers to be taken into account: rights and powers held jointly
- Rights and powers to be taken into account: partnerships
- Meaning of “participator" and “associate"
- Connected persons
- Part 13 Supplementary provisions
- Treatment of grants and other contributions to expenditure
- Grants to be left out of account for tax purposes
- Finance leasing etc
- Assets acquired or realised together
- Deemed market value acquisition: adjustment of amounts in case of nil accounting value
- Treatment of fungible assets
- Asset ceasing to be chargeable intangible asset: deemed realisation at market value
- Asset ceasing to be chargeable intangible asset: postponement of gain in certain cases
- Asset becoming chargeable intangible asset
- Tax avoidance arrangements to be disregarded
- Debits not allowed in respect of expenditure not generally deductible for tax purposes
- Delayed payment of employees' remuneration
- Delayed payment of pension contributions
- Bad debts etc
- Assumptions for computing chargeable profits of controlled foreign companies
- Part 13A Adjustment on change of accounting policy
- Introduction
- Change of accounting policy involving change of value
- Change of accounting policy involving disaggregation
- Change of accounting policy involving disaggregation: original asset subject to fixed rate writing down
- Change of accounting policy involving disaggregation: election for fixed rate writing down in relation to resulting asset
- Cap on credit to be brought into account on change of accounting policy
- Exclusion of debits or credits brought into account under other provisions
- Subsequent events affecting asset subject to adjustment under this Part
- Part 14 Commencement and transitional provisions
- Commencement date
- Application of Schedule to assets created or acquired after commencement
- Application of Schedule to royalties
- Assets regarded as created or acquired when expenditure incurred
- Internally-generated goodwill: whether created before or after commencement
- Certain other internally-generated assets: whether created before or after commencement
- Expenditure on acquisition treated as incurred when recognised for accounting purposes
- When expenditure treated as incurred: chargeable gains rule to be followed in certain cases
- When expenditure treated as incurred: capital allowances general rule to be followed in certain cases
- Application of Schedule to fungible assets
- Certain assets acquired on transfer of business treated as existing assets
- Assets whose value derives from existing assets treated as existing assets
- Assets acquired in connection with disposals of existing assets treated as existing assets
- Application of Schedule to certain existing telecommunication rights
- Application of Schedule to existing Lloyd’s syndicate capacity
- Roll-over relief: application in relation to disposal of existing asset after commencement
- Roll-over relief: application in relation to degrouping charge on existing asset arising after commencement
- Roll-over relief: transitory interaction with relief on replacement of business asset
- Part 15 Interpretation
- References to expenditure on an asset
- References to amounts recognised in determining profit or loss
- Meaning of “accounting value"
- Meaning of “adjustments required for tax purposes"
- Meaning of “chargeable intangible asset" and “chargeable realisation gain"
- Interpretation provisions relating to insurance companies
- Meaning of “royalty"
- Meaning of “tax-neutral transfer"
- Meaning of “the Inland Revenue"
- Meaning of “the Taxes Acts"
- Index of defined expressions
- SCHEDULE 30 Gains and losses of a company from intangible fixed assets: consequential amendments
- General provisions about deductions
- Surrender of non-trading loss by way of group relief
- Extension of charitable exemption to non-trading gains
- Change in ownership of company with unused non-trading loss
- Double taxation relief
- Value-shifting provisions
- SCHEDULE 31 Gains of insurance company from venture capital investment partnership
- SCHEDULE 32 Lloyd’s underwriters
- Individuals
- Corporate bodies
- SCHEDULE 33 Venture capital trusts
- Part 1 Venture capital trusts: winding up
- Meaning of “VCT-in-liquidation"
- Power to treat VCT-in-liquidation as VCT
- Power to treat conditions for VCT approval as fulfilled with respect to VCT-in-liquidation
- Power to make provision about distributions by VCT-in-liquidation
- Power to facilitate disposals to VCT by VCT-in-liquidation
- Provision in respect of periods before and after winding-up
- Part 1: supplementary provisions and interpretation
- Part 2 Venture capital trusts: mergers
- Power to facilitate mergers of VCTs
- Provision that may be made by regulations under paragraph 8(1)
- Meaning of “merger" and “successor company"
- Part 3 Time allowed for VCT to invest money raised by further share issue
- Power to disapply, or limit operation of, section 842AA(5B) of the Taxes Act 1988
- Withdrawal of VCT approval in cases for which provision made under paragraph 11
- Consequential amendment in section 842AA(5A) of the Taxes Act 1988
- Part 4 Supplementary
- Extension of existing powers to give effect to VCT reliefs
- Penalties for non-compliance with regulations under this Schedule
- Regulations under this Schedule: inclusion of supplementary etc provisions
- Interpretation of Schedule
- SCHEDULE 34 Stamp duty: withdrawal of group relief: supplementary provisions
- Introduction
- Relief not withdrawn if transferor company leaves group
- Relief not withdrawn in case of winding-up
- Relief not withdrawn in case of exempt acquisition
- Interest
- Duty of transferee company to notify particulars
- Determination, collection and recovery of duty and interest
- Recovery of group relief from from another group company or controlling director
- Recovery of group relief from another group company or controlling director: procedure and time limit
- Power to require information
- Supplementary
- SCHEDULE 35 Stamp duty: withdrawal of relief for company acquisitions: supplementary provisions
- Introduction
- Change of control due to exempt transfer
- Change of control due to intra-group transfer
- Change of control due to exempt share acquisition
- Change of control due to interest of loan creditor
- Interest
- Duty of acquiring company to notify particulars
- Determination, collection and recovery of duty and interest
- Recovery of section 76 relief from from another group company or controlling director
- Recovery of section 76 relief from another group company or controlling director: procedure and time limit
- Power to require information
- Supplementary
- SCHEDULE 36 Stamp duty: contracts chargeable as conveyances: supplementary provisions
- Part 1 Subsales
- Introduction
- Meaning of “subsale"
- Relief where duty paid on original sale or earlier subsale
- Part 2 Subsequent conveyance or transfer
- Introduction
- Conveyance or transfer of property contracted to be sold
- Repayment of duty in certain cases
- Part 3 General supplementary provisions
- Construction of references to duty on transactions
- Transactions relating to land in the UK and to other property
- Person claiming relief to establish entitlement
- Construction as one
- SCHEDULE 37 Stamp duty: abolition of duty on instruments relating to goodwill: supplementary provisions
- Reduction of stamp duty where instrument partly relating to goodwill
- Apportionment of consideration for stamp duty purposes
- Certification of instruments for stamp duty purposes
- Acquisition under statute
- Interpretation
- SCHEDULE 38 Aggregates levy amendments
- Introduction
- The charge
- Meaning of “aggregate" etc
- Exempt processes
- Commercial exploitation
- Responsibility for commercial exploitation
- The register
- Insolvency etc
- Notification of registrability etc
- Restriction on powers to provide for set-off
- SCHEDULE 39 Recovery of taxes etc due in other member States
- Introduction
- Enforcement of claims in the United Kingdom
- Power to make supplementary provision by regulations
- Proceedings on contested claims
- Claims determined in taxpayer’s favour
- Other supplementary provisions
- SCHEDULE 40 Repeals
- Part 1 Excise duties
- Part 2 Value added tax
- Part 3 Income tax, corporation tax and capital gains tax
- Part 4 Other taxes
- Part 5 Miscellaneous
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