Finance Bill - continued        House of Lords
PART III, INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX - continued
Chargeable gains - continued

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Concessions that defer a capital gains charge.     76. - (1) In Part VIII of the Taxation of Chargeable Gains Act 1992 (supplemental), after section 284 there shall be inserted the following sections-
 
 
"Concessions that defer a charge.     284A. - (1) This section applies where-
 
    (a) a person ("the original taxpayer") has at any time obtained for any chargeable period ("the first chargeable period") the benefit of any capital gains relief to which he had no statutory entitlement;
 
    (b) the benefit of the relief was obtained in reliance on any concession;
 
    (c) the concession was first published by the Board before 9th March 1999 or (having been published on or after that date) replaced a concession satisfying the requirements of this paragraph with a concession to the same or substantially the same effect; and
 
    (d) the concession involved the application (with or without modifications), to a case to which they would not otherwise have applied, of the provisions of any enactment ("the relevant statutory provisions").
      (2) This section applies only if, at the time when the original taxpayer obtained the benefit of the relief, the concession was one available generally to any person falling within its terms.
 
      (3) If the benefit obtained for the first chargeable period by the original taxpayer is repudiated for any later chargeable period (whether by the original taxpayer or by another person), the enactments relating to the taxation of chargeable gains shall have effect as if a chargeable gain equal to the amount of that benefit accrued in the later chargeable period to the person repudiating the benefit.
 
      (4) For the purposes of this section-
 
 
    (a) a capital gains relief for any chargeable period is a relief (of whatever description) the effect of which is that the amount of the chargeable gains taken to have accrued to that person in that period is less than it otherwise would have been; and
 
    (b) the amount of the benefit of any such relief is the amount by which, as a consequence of that relief, those gains are less than they otherwise would have been.
      (5) Where, without applying a specific enactment, any concession has the effect that-
 
 
    (a) any asset is treated as the same as another asset and as acquired as the other asset was acquired,
 
    (b) any two or more assets are treated as a single asset, or
 
    (c) any disposal is treated as having been a disposal on which neither a gain nor a loss accrued,
  that concession shall be assumed for the purposes of this section to have involved the application, to a case to which it would not otherwise have applied, of the provisions of an enactment to the corresponding effect.
 
      (6) For the purposes of this section the benefit of any relief obtained by the original taxpayer for the first chargeable period is repudiated by a person for a later chargeable period if-
 
 
    (a) circumstances arise such that, had the equivalent circumstances arisen in the case of the corresponding relief under the relevant statutory provisions, the whole or a part of the benefit of that relief would have fallen to be recouped from that person in the later chargeable period;
 
    (b) apart from this section, the recoupment in the actual circumstances of the whole or a part of the benefit obtained by the original taxpayer is prevented by the fact that the original taxpayer relied on a concession (rather than on the relevant statutory provisions) to obtain that benefit; and
 
    (c) the person from whom, in the equivalent circumstances, the amount of the benefit or any part of it would have fallen to be recouped is not precluded by subsection (8) below from relying on that fact in relation to that amount or part.
      (7) For the purposes of this section an amount of the benefit of a capital gains relief is recouped from any person in a chargeable period to the extent that an amount is so brought into account in his case for that period as to secure that-
 
 
    (a) the amount of his chargeable gains for that period is taken to be more than it otherwise would have been by an amount directly or indirectly representing the whole or a part of the amount of the benefit; or
 
    (b) the amount of his allowable losses for that period is taken to be less than it otherwise would have been by an amount directly or indirectly representing the whole or a part of the amount of the benefit.
      (8) Where-
 
 
    (a) any such circumstances as are mentioned in subsection (6)(a) above have arisen in relation to the relief the benefit of which has been obtained by the original taxpayer,
 
    (b) the person from whom, in the equivalent circumstances, the whole or any part of the amount of the benefit would have fallen to be recouped has accepted that, in the actual circumstances, the whole or a part of the benefit obtained by the original taxpayer may be recouped from him, and
 
    (c) that acceptance is indicated in writing to the Board (whether by the making or amendment of a self-assessment or otherwise),
  that person's rights subsequently to amend, appeal against or otherwise challenge any assessment shall not be exercised in any manner inconsistent with his acceptance of that matter (which shall be irrevocable).
 
      (9) In this section "concession" includes any practice, interpretation or other statement in the nature of a concession.
 
Provisions supplementary to section 284A.     284B. - (1) Chargeable gains that are treated as accruing to any person under section 284A(3) shall not be eligible for taper relief.
 
      (2) The total amount of chargeable gains that are treated as accruing to any person under subsection (3) of section 284A in respect of any such benefit as is referred to in that subsection shall not exceed the amount of that benefit.
 
      (3) Where, after any assessment to tax has been made on the basis that any chargeable gain is treated as having accrued to any person under section 284A(3)-
 
 
    (a) the person assessed, within any of the periods allowed by subsection (4) below, gives an indication for the purposes of section 284A(8), or
 
    (b) a final determination of the original taxpayer's liability to tax for the first chargeable period is made on the basis that the original taxpayer did not, or was not entitled to, rely on the concession in question,
  all such adjustments shall be made (whether by way of assessment, amendment of an assessment, repayment of tax or otherwise) as are necessary to secure that no person is subjected to any greater liability by virtue of section 284A(3) than he would have been had the indication been given, or the final determination made, before the making of the assessment.
 
      (4) The periods allowed by this subsection are-
 
 
    (a) the period of twelve months beginning with the making of the assessment;
 
    (b) the period within which the person is entitled to amend his self-assessment or company tax return for the chargeable period in which the chargeable gain under section 284A(3) is treated as having accrued to him;
 
    (c) where the person makes a claim for any further relief against the amount that may be recouped from him by virtue of his indication under section 284A(8), the period allowed for making that claim.
      (5) Subsection (3) above has effect notwithstanding any time limits relating to the making or amendment of an assessment for any chargeable period."
 
      (2) Sections 284A and 284B of the Taxation of Chargeable Gains Act 1992 have effect in relation to any case in which the circumstances arising as mentioned in subsection (6)(a) of section 284A are circumstances arising on or after 9th March 1999, whether the benefit mentioned in subsection (1) of that section was obtained as so mentioned before or after the passing of this Act.
 
 
Capital allowances
Extension of first-year allowances.     77. In section 22(3D) of the Capital Allowances Act 1990 (first year allowances: transitional relief), for "1st July 1999" there shall be substituted "1st July 2000".
 
First-year allowances for investment in Northern Ireland.     78. - (1) In section 22 of the Capital Allowances Act 1990 ("the 1990 Act") (first-year allowances), in subsection (3CC) (which restricts the expenditure on machinery and plant for use in Northern Ireland which is eligible for 100 per cent. allowances), after paragraph (b) there shall be inserted "; or
 
 
    (c) expenditure on the provision of a goods vehicle for the purposes of a trade which consists primarily of the conveyance of goods; or
 
    (d) unauthorised expenditure on the provision of machinery or plant for use primarily in-
 
      (i) agriculture, fishing or fish farming, or
 
      (ii) any relevant activity carried out in relation to agricultural produce, fish or any fish product for the purpose of bringing it to market."
      (2) After subsection (3CC) of that section there shall be inserted-
 
 
    "(3CD) For the purposes of subsection (3CC) above-
 
 
    (a) expenditure is unauthorised expenditure unless it is authorised, for the purposes of subsection (3CA) above, by the Department of Agriculture for Northern Ireland; and
 
    (b) "relevant activity" means transportation, storage, preparation, processing or packaging.
      (3CE) An authorisation given, for the purpose of subsection (3CA) above, by the Department of Agriculture for Northern Ireland-
 
 
    (a) may be given either specially (that is to say, so as to apply only to a specified item of expenditure or a specified person) or generally (that is to say, so as not only so to apply);
 
    (b) may, if given generally, be modified by that Department; and
 
    (c) may in any case be absolute or conditional."
      (3) In subsection (10) of that section, after "section" there shall be inserted-
 
 
    ""agriculture" and "agricultural produce" have the same meanings as in section 6 of the European Communities Act 1972;
 
    "fish" includes shellfish;
 
    "fish farming" means the intensive rearing, on a commercial basis, of fish intended for human consumption;
 
    "fishing" means a trade, or part of a trade, which consists of the catching or taking of fish;
 
    "goods vehicle" has the same meaning as in the Road Traffic (Northern Ireland) Order 1995;".
      (4) In section 22B of the 1990 Act (withdrawal of first-year allowance on change of use)-
 
 
    (a) in subsection (2)(a), for "the period of two years beginning with the date of the incurring of that expenditure" there shall be substituted "the relevant period"; and
 
    (b) after subsection (2) there shall be inserted-
 
    "(2A) In subsection (2) above "the relevant period" means-
 
 
    (a) where the expenditure concerned exceeds £3.5 million, the period of five years beginning with the date of the incurring of that expenditure, and
 
    (b) in any other case, the period of two years beginning with that date."
      (5) After section 22B of the 1990 Act there shall be inserted-
 
 
"Disclosure of information in connection with first-year allowances.     22C. - (1) No obligation as to secrecy or other restriction on the disclosure of information imposed by statute or otherwise shall prevent-
 
    (a) the Board or an authorised officer of the Board from disclosing to the Department of Agriculture for Northern Ireland ("the Department") or an authorised officer of the Department, or
 
    (b) the Department or an authorised officer of the Department from disclosing to the Board or an authorised officer of the Board,
  information for the purpose of assisting the Board in the carrying out of their functions with respect to claims for capital allowances made under section 22 by virtue of subsection (3CA) of that section or, as the case may be, the Department in the carrying out of its functions under that section.
 
      (2) Information obtained by virtue of a disclosure authorised by this section shall not be disclosed except-
 
 
    (a) to the Board or the Department or to an authorised officer of the Board or of the Department; or
 
    (b) for the purposes of any proceedings connected with a matter in relation to which the Board or the Department carry out the functions mentioned in subsection (1) above."
      (6) The preceding provisions of this section have effect in relation to every chargeable period ending on or after 12th May 1998.
 
 
Pensions and insurance, etc.
Sharing of pensions on divorce, etc.     79. Schedule 10 to this Act (which, for purposes connected with the sharing of pensions between ex-spouses, makes provision with respect to pensions and annuities) shall have effect.
 
 
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