Finance Bill - continued        House of Commons
PART III, INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX - continued
Other relieving provisions - continued

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Creative artists: relief for fluctuating profits.     71. - (1) In Chapter V of Part IV of the Taxes Act 1988 (computational provisions relating to the Schedule D charge), before section 96 and after the cross-heading "Special provisions" insert-
 
 
"Creative artists: relief for fluctuating profits.     95A. Schedule 4A (which enables individuals to make an averaging claim in respect of profits derived wholly or mainly from creative works) shall have effect.
 
  The provisions of that Schedule apply for the year 2000-01 and subsequent years of assessment (so that the first years which may be the subject of an averaging claim are 2000-01 and 2001-02).".
 
      (2) After Schedule 4 to that Act insert the Schedule 4A set out in Part I of Schedule 24 to this Act.
 
      (3) The following provisions of the Taxes Act 1988 are repealed-
 
 
    section 534 (relief for copyright payments etc.);
 
    section 535 (relief where copyright sold after ten years or more);
 
    section 537A (relief for payments in respect of designs);
 
    section 538 (relief for painters, sculptors and other artists).
  The repeals have effect in relation to payments actually receivable on or after 6th April 2001.
 
      (4) Part II of Schedule 24 to this Act contains amendments consequential on the preceding provisions of this section.
 
Expenditure on film production etc.     72. In section 48(2)(a) of the Finance (No.2) Act 1997 (favourable tax treatment for certain expenditure on film production, etc. incurred before 2nd July 2002) for "2nd July 2002" substitute "2nd July 2005".
 
Deductions for business gifts: yearly limit.     73. - (1) Section 577 of the Taxes Act 1988 (prohibition on deduction of expenses in providing business entertainment or gifts) is amended as follows.
 
      (2) In subsection (8)(b) (under which gifts not amounting to more than £10 in any year are disregarded)-
 
 
    (a) for "year" substitute "relevant tax period", and
 
    (b) for "£10" substitute "£50".
      (3) After that subsection insert-
 
 
    "(8A) In subsection (8)(b) "relevant tax period" means-
 
 
    (a) for the purposes of corporation tax, an accounting period;
 
    (b) for the purposes of income tax-
 
      (i) for a year of assessment in relation to which sections 60 to 63 apply and give a basis period, that basis period;
 
      (ii) in any other case, a year of assessment.".
      (4) This section applies in relation to the year 2001-02 and subsequent years of assessment or, in the case of companies, in relation to accounting periods beginning on or after 1st April 2001.
 
 
Pension funds
Payments to employers out of pension funds.     74. - (1) Section 601 of the Taxes Act 1988 (charge on payment to employer out of funds held for purposes of exempt approved scheme) is amended as follows.
 
      (2) In subsection (2) (amount recoverable by Board from employer) for "40 per cent. of the payment" substitute "the relevant percentage of the payment".
 
      (3) After that subsection insert-
 
 
    "(2A) The relevant percentage is 35% or such other percentage (whether higher or lower) as may be prescribed.".
 
      (4) This section applies to payments made to employers after the passing of this Act.
 
 
Chargeable gains
Notional transfers within a group.     75. - (1) Section 171A of the Taxation of Chargeable Gains Act 1992 (notional transfers within a group) shall be deemed to have been enacted with the following amendments.
 
      (2) In subsection (2) (corporation tax consequences of election for asset disposed of by member A of a group to be treated as if, immediately before the disposal, it had been transferred to member B of the group) omit the word "and" immediately preceding paragraph (c) and at the end of that paragraph add"; and
 
 
    (d) any incidental costs to A of making the actual disposal to C shall be deemed to be incidental costs to B of making the deemed disposal to C.".
      (3) In subsection (4) (election to be made before second anniversary of end of accounting period of A in which disposal made) for "before" substitute "on or before".
 
Taper relief: assets qualifying as business assets.     76. - (1) Schedule A1 to the Taxation of Chargeable Gains Act 1992 (application of taper relief) shall have effect with the amendments specified in Schedule 25 to this Act.
 
      (2) Those amendments shall have effect, and be deemed always to have had effect, as if they had been included among the amendments made by section 67 of the Finance Act 2000.
 
 
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