Finance Bill - continued        House of Lords

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Various other reliefs etc.
Class 1B National Insurance contributions.     61. - (1) In section 617 of the Taxes Act 1988 (social security benefits and contributions), in subsection (4), for "or Class 1A contribution" there shall be substituted ", a Class 1A contribution or a Class 1B contribution".
      (2) Subsection (1) above has effect in relation to contributions paid on or after 6th April 1999.
Expenditure on film production and acquisition.     62. In subsection (2)(a) of section 48 of the Finance (No. 2) Act 1997 (which provides for favourable tax treatment for certain expenditure on film production and acquisition incurred on or after 2nd July 1997 and before 2nd July 2000), for "2nd July 2000" there shall be substituted "2nd July 2002".
Treatment of transfer fees under existing contracts.     63. - (1) Subject to subsection (2) below, where-
    (a) a contract is or has been entered into by a football or other sports club to secure the services of a player; and
    (b) the contract is or was entered into before the beginning of the first accounting period of the club in relation to which a relevant financial reporting standard has effect (whether by virtue of the adoption of the standard by the club or otherwise),
  nothing in the standard shall be taken to affect the manner in which any fee required to be paid by the club under the contract may be taken into account in computing the club's profits to be charged under Case I of Schedule D.
      (2) Subsection (1) above shall not apply if the club so elects by a notice given to an officer of the Board within the period of two years beginning immediately after the accounting period described in subsection (1)(b) above.
      (3) The relevant financial reporting standards are-
    (a) Financial Reporting Standard 10 issued by the Accounting Standards Board on 4th September 1997; and
    (b) Financial Reporting Standard for Smaller Entities issued by that Board on 10th December 1998.
      (4) All such adjustments shall be made (whether by way of assessment, amendment of an assessment, repayment of tax or otherwise) as may be necessary to give effect to the provisions of this section.
      (5) Subsection (4) above has effect notwithstanding any time limits relating to the making or amendment of an assessment for any accounting period.
Income of unmarried child of settlor.     64. - (1) In section 660B(1) of the Taxes Act 1988 (circumstances in which income arising under settlement treated as that of settlor), before "is paid to or for the benefit of an unmarried minor child of the settlor" insert "(a)" and after those words insert-
    " , or
    (b) would otherwise be treated (apart from this section) as income of an unmarried minor child of the settlor,".
      (2) In subsection (3) of that section (meaning of available retained or accumulated income), for paragraphs (a) and (b) substitute-
    "(a) treated as income of the settlor, or
    (b) paid (whether as income or capital) to or for the benefit of, or otherwise treated as the income of, a beneficiary other than an unmarried minor child of the settlor, or
    (bb) treated as the income of an unmarried minor child of the settlor, and subject to tax, in any of the years 1995-96, 1996-97 or 1997-98, or".
      (3) After that subsection insert-
    "(3A) For the purposes of subsection (3)(bb) above-
    (a) the amount of a child's income that is subject to tax in a year of assessment is the amount ("the taxable amount") by which the child's total income for income tax purposes exceeds the aggregate amount of allowances that may be set against it; and
    (b) income arising under the settlement that is treated as income of the child is subject to tax to the extent that it does not exceed the taxable amount.
  In this subsection "allowance" includes any deduction allowed against total income.".
      (4) For subsection (5) of that section substitute-
    "(5) If in any year of assessment the aggregate amount of a child's relevant settlement income does not exceed £100, subsection (1) does not apply in relation to that income.
  A child's `relevant settlement income' means income paid to or for the benefit of, or otherwise treated as income of, that child which apart from this subsection would be treated as income of the settlor under subsection (1).".
      (5) The amendment in subsection (1) above has effect in relation to-
    (a) income arising under a settlement made or entered into on or after 9th March 1999, and
    (b) income arising under a settlement made or entered into before that date so far as it arises directly or indirectly from funds provided on or after that date;
  and the amendment in subsection (4) above has effect accordingly.
  Any apportionment required for the purposes of paragraph (b) shall be made on a just and reasonable basis.
      (6) The amendments in subsections (2) and (3) above have effect in relation to any payment within subsection (2) of section 660B of the Taxes Act 1988 made on or after 9th March 1999.
  In relation to such a payment those amendments apply whenever the facts mentioned in subsection (3) of that section occurred.
      (7) In section 660E of the Taxes Act 1988 (application of provisions to settlements by two or more settlors), in subsection (3) (which refers to section 660B) for the words from "in relation to" to "child of the settlor" substitute "in relation to a child of the settlor".
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