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House of Lords
Session 1999-2000
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Other Bills before Parliament

Finance Bill

This is the text of the Finance Bill, as passed by the House of Commons and introduced in the House of Lords on 20 July 2000.

 
  
EUROPEAN CONVENTION ON HUMAN RIGHTS
 
 
 
  
Finance Bill
 
 
 
 
ARRANGEMENT OF CLAUSES

PART I
EXCISE DUTIES
Alcoholic liquor duties
Clause 
1.Rate of duty on beer.
2.Rates of duty on cider.
3.Rates of duty on wine and made-wine.

Hydrocarbon oil duties
4.Rates of duty and rebate on hydrocarbon oil.
5.Ultra low sulphur petrol.
6.Mixing of rebated light oils.
7.Power to amend definitions of types of hydrocarbon oil.
8.Penalties for misuse of rebated heavy oil.
9.Use of rebated heavy oil as fuel.
10.Rebates, marking and reliefs.
11.Emulsions of water in gas oil.

Tobacco products duty
12.Rates of tobacco products duty.
13.Basis of calculation of ad valorem element of duty on cigarettes.
14.Fiscal marks on tobacco products.
15.Management of excise duty on tobacco products.

Gaming duty
16.Rates of gaming duty.

Amusement machine licence duty
17.Amusement machine licence duty.

Air passenger duty
18.Rates of duty.
19.Changes in exemption from duty.

Vehicle excise duty
20.Threshold for reduced general rate.
21.Increase in general rate.
22.Rates of duty for new cars and vans.
23.Enforcement provisions for graduated rates.
24.Rates of duty for goods vehicles.

Enforcement of duties
25.Power to search premises.
26.Power to search articles.
27.Security for customs and excise duties.
28.Civil penalties for breach of excise duty requirements.
29.Correction of reference.

PART II
CLIMATE CHANGE LEVY
30.Climate change levy.

PART III
INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX
CHAPTER I
CHARGE AND RATES
Income tax
31.Charge and rates for 2000-01.
32.Extension of starting rate to savings income of individuals.
33.Deduction of income tax from foreign dividends.
34.Children's tax credit.

Corporation tax
35.Charge and main rate for financial year 2001.
36.Small companies' rate for financial year 2000.

Capital gains tax
37.Application of starting rate to capital gains tax.

CHAPTER II
OTHER PROVISIONS
Giving to charity
38.Payroll deduction scheme.
39.Gift aid payments by individuals.
40.Gift aid payments by companies.
41.Covenanted payments to charities.
42.Millennium gift aid.
43.Gifts of shares and securities to charities etc.
44.Gifts to charity from certain trusts.
45.Loans to charities.
46.Exemption for small trades etc.

Employee share ownership
47.Employee share ownership plans.
48.Relief for transfers to employee share ownership plans.
49.Phasing out of approved profit sharing schemes.
50.Phasing out of relief for payments to trustees of profit sharing schemes.
51.Approved profit sharing scheme: other awards of shares.
52.Approved profit sharing schemes: restriction on type of shares.
53.Approved profit sharing schemes: loan arrangements.
54.Employee share ownership trusts.
55.Shares transferred from employee share ownership trust.
56.Further provisions about share options.

Other provisions about employment
57.Benefits in kind: deregulatory amendments.
58.Education and training.
59.Cars available for private use.
60.Provision of services through intermediary.

Pension schemes
61.Occupational and personal pension schemes.

Enterprise incentives
62.Enterprise management incentives.
63.Corporate venturing scheme.
64.Enterprise investment scheme: amendments.
65.Venture capital trusts: amendments.
66.Taper relief: taper for business assets.
67.Taper relief: assets qualifying as business assets.

Research and development
68.Meaning of "research and development".
69.Tax relief for expenditure on research and development.

Capital allowances
70.First year allowances for small or medium-sized enterprises.
71.First year allowances for ICT expenditure by small enterprises.
72.Expenditure of a small enterprise.
73.Repeal of notification requirements.
74.Pool for certain leased assets and inexpensive cars.
75.Machinery and plant allowances for non-residents etc.
76.Production animals.
77.Sale and leaseback.
78.Meaning of "fixture".
79.Leased assets under the Affordable Warmth Programme.
80.Fixtures and machinery and plant on hire-purchase etc.
81.Production sharing contracts.

Tonnage tax
82.Tonnage tax.

Other relieving provisions
83.Relief for interest on loans to buy annuities.
84.Exemption of payments under New Deal 50plus.
85.Exemption of payments under Employment Zones programme.
86.Loan where return bears inverse relationship to results.
87.Tax treatment of acquisition, disposal or revaluation of certain rights.
88.Contributions to local enterprise agencies, etc.
89.Waste disposal: entitlement of successor to allowances.

Capital gains tax: gifts and trusts
90.Restriction of gifts relief.
91.Disposal of interest in settled property: deemed disposal of underlying assets.
92.Transfers of value by trustees linked with trustee borrowing.
93.Restriction on set-off of trust losses.
94.Attribution to trustees of gains of non-resident companies.
95.Disposal of interest in non-resident settlement.
96.Payments by trustees to non-resident companies.

Groups and group relief
97.Group relief for non-resident companies etc.
98.Recovery of tax payable by non-resident company.
99.Joint arrangements for claims.
100.Limit on amount of group relief in case of consortium claim.
101.Notional transfers within groups of companies.
102.Chargeable gains: non-resident companies and groups etc.

International matters
103.Double taxation relief.
104.Controlled foreign companies.
105.Corporation tax: use of currencies other than sterling.
106.Foreign exchange gains and losses: use of local currency.

Insurance
107.General insurance reserves.
108.Overseas life assurance business.
109.Insurance business: apportionment rules.

Miscellaneous
110.Rent factoring.
111.Payments under deduction of tax.
112.UK public revenue dividends: deduction of tax.
113.Tax treatment of expenditure on production or acquisition of films.

PART IV
STAMP DUTY AND STAMP DUTY RESERVE TAX
Stamp duty
114.Rates: conveyance or transfer on sale.
115.Rates: duty on lease chargeable by reference to rent.
116.Rate of duty on seven year leases
117.Power to vary stamp duties.
118.Land transferred etc for other property.
119.Transfer of land to connected company.
120.Exceptions from section 119.
121.Grant of lease to connected company.
122.Marketable securities transferred etc for exempt property.
123.Transfer of property between associated companies: Great Britain.
124.Transfer of property between associated companies: Northern Ireland.
125.Grant of leases etc between associated companies.
126.Future issues of stock.
127.Company acquisition reliefs: redeemable shares.
128.Surrender of leases.
129.Abolition of duty on instruments relating to intellectual property.
130.Transfers to registered social landlords etc.
131.Relief for certain instruments executed before this Act has effect.
132.The Northern Ireland Assembly Commission.

Stamp duty and Stamp duty reserve tax
133.Loan capital where return bears inverse relationship to results.
134.Transfers between depositary receipt systems and clearance systems.

PART V
OTHER TAXES
Value added tax
135.Supplies to which reduced rate applies.
136.Disposals of assets for which a VAT repayment is claimed.
137.Gold: penalty for failure to comply with record-keeping requirements etc.

Inheritance tax
138.Treatment of employee share ownership trusts.

Petroleum revenue tax
139.Operating expenditure incurred while safeguard relief applies.

Landfill tax
140.Rate.
141.Disposals which are not taxable.
142.Secondary liability.

PART VI
MISCELLANEOUS AND SUPPLEMENTARY PROVISIONS
Incentives for electronic communications
143.Power to provide incentives to use electronic communications.

Compliance
144.Offence of fraudulent evasion of income tax
145.Information about interest etc paid, credited or received.
146.International exchange of information: general.
147.International exchange of information: inheritance tax.
148.Use of minimum wage information.
149.Orders for the delivery of documents.
150.Search warrants: miscellaneous amendments.

Provisions relating to government finance
151.Debt Management Account.
152.National Savings Bank.
153.National savings certificates.
154.Exchange Equalisation Account.

Supplementary provisions
155.Interpretation.
156.Repeals.
157.Short title.
 

SCHEDULES:
    SCHEDULE 1-Mixing of rebated light oils.
    SCHEDULE 2-Amusement machine licence duty.
    SCHEDULE 3-Vehicle excise duty on new cars and vans.
    SCHEDULE 4-Vehicle excise duty: enforcement provisions for graduated rates.
    SCHEDULE 5-Rates of vehicle excise duty on goods vehicles.
    SCHEDULE 6-Climate change levy.
    Part I-The levy.
    Part II-Taxable supplies.
    Part III-Time of supply.
    Part IV-Payment and rate of levy.
    Part V-Registration.
    Part VI-Credits and repayments.
    Part VII-Recovery and interest.
    Part VIII-Evasion, misdeclaration and neglect.
    Part IX-Civil penalties.
    Part X-Non-residents, groups and other special cases.
    Part XI-Review and appeal.
    Part XII-Information and evidence.
    Part XIII-Miscellaneous and supplementary.
    Part XIV-Interpretation.
    SCHEDULE 7-Climate change levy: consequential amendments.
    SCHEDULE 8-Employee share ownership plans.
    Part I-Introductory.
    Part II-General requirements.
    Part III-Eligibility of individuals.
    Part IV-Free shares.
    Part V-Partnership shares.
    Part VI-Matching shares.
    Part VII-Reinvestment of cash dividends.
    Part VIII-Types of share that may be used.
    Part IX-The trustees.
    Part X-Income tax.
    Part XI-Capital gains tax.
    Part XII-Corporation tax deductions.
    Part XIII-Supplementary provisions.
    SCHEDULE 9-New Schedule 7C to the Taxation of Chargeable Gains Act 1992.
    SCHEDULE 10-Benefits in kind: deregulatory amendments.
    SCHEDULE 11-Cars available for private use.
    SCHEDULE 12-Provision of services through an intermediary.
    Part I-Application of this Schedule.
    Part II-The deemed Schedule E payment.
    Part III-Supplementary provisions.
    SCHEDULE 13-Occupational and personal pension schemes.
    Part I-Amendments of the Taxes Act 1988.
    Part II-Transitional provisions.
    SCHEDULE 14-Enterprise management incentives.
    Part I-Introductory.
    Part II-General requirements.
    Part III-Qualifying companies.
    Part IV-Eligible employees.
    Part V-Requirements as to terms of option etc..
    Part VI-Income tax.
    Part VII-Capital gains tax.
    Part VIII-Company reorganisations..
    Part IX-Supplementary provisions.
    SCHEDULE 15-The corporate venturing scheme.
    Part I-Investment relief: introduction.
    Part II-The investing company.
    Part III-The issuing company.
    Part IV-General requirements.
    Part V-Investment relief.
    Part VI-Withdrawal of investment relief.
    Part VII-Relief for losses on disposals of shares.
    Part VIII-Deferral relief.
    Part IX-Company restructuring.
    Part X-Advance clearance.
    Part XI-Supplementary and general.
    SCHEDULE 16-Corporate venturing scheme: consequential amendments.
    SCHEDULE 17-Enterprise investment scheme: amendments.
    Part I-Reduction of applicable periods.
    Part II-Qualifying companies.
    Part III-Other amendments.
    SCHEDULE 18 - Venture capital trusts: amendments. -  

PART I

PART II

-

-

REDUCTION OF APPLICABLE PERIODS.

QUALIFYING HOLDINGS.

SCHEDULE 19 -MEANING OF "RESEARCH AND DEVELOPMENT".
PART I -THE NEW DEFINITION.
PART II -CONSEQUENTIAL AMENDMENTS.
SCHEDULE 20-TAX RELIEF FOR EXPENDITURE ON RESEARCH AND DEVELOPMENT.
PART I-ENTITLEMENT TO RELIEF.
PART II-MANNER OF GIVING EFFECT TO RELIEF.
PART III-SUPPLEMENTARY PROVISIONS.
SCHEDULE 21-R&D TAX CREDITS: CONSEQUENTIAL AMENDMENTS.
SCHEDULE 22-TONNAGE TAX.
PART I-INTRODUCTORY.
PART II-TONNAGE TAX ELECTIONS.
PART III -QUALIFYING COMPANIES AND GROUPS.
PART IV-THE TRAINING REQUIREMENT.
PART V-OTHER REQUIREMENTS.
PART VI-RELEVANT SHIPPING PROFITS.
PART VII-THE RING FENCE: GENERAL PROVISIONS.
PART VIII-CHARGEABLE GAINS AND ALLOWABLE LOSSES ON TONNAGE TAX ASSETS.
PART IX-THE RING FENCE: CAPITAL ALLOWANCES: GENERAL.
PART X-THE RING FENCE: CAPITAL ALLOWANCES: SHIP LEASING.
PART XI-SPECIAL RULES FOR OFFSHORE ACTIVITIES.
PART XII-GROUPS, MERGERS AND RELATED MATTERS.
PART XIII-APPLICATION OF PROVISIONS TO PARTNERSHIPS.
PART XIV-WITHDRAWAL OF RELIEF ETC. ON COMPANY LEAVING TONNAGE TAX.
PART XV-SUPPLEMENTARY PROVISIONS.
SCHEDULE 23-TAX TREATMENT OF AMOUNTS RELATING TO ACQUISITION ETC. OF CERTAIN RIGHTS.
SCHEDULE 24-NEW SCHEDULE 4A TO THE TAXATION OF CHARGEABLE GAINS ACT 1992.
SCHEDULE 25-NEW SCHEDULE 4B TO THE TAXATION OF CHARGEABLE GAINS ACT 1992.
SCHEDULE 26-TRANSFERS OF VALUE: ATTRIBUTION OF GAINS TO BENEFICIARIES.
PART I-NEW SCHEDULE 4C TO THE TAXATION OF CHARGEABLE GAINS ACT 1992.
PART II-CONSEQUENTIAL AMENDMENTS.
SCHEDULE 27-GROUP RELIEF IN CASE OF NON-RESIDENT COMPANIES ETC..
PART I-AMENDMENTS OF CHAPTER IV OF PART X OF THE TAXES ACT 1988.
PART II-CONSEQUENTIAL AMENDMENTS.
SCHEDULE 28-RECOVERY OF TAX PAYABLE BY NON-RESIDENT COMPANY.
SCHEDULE 29-CHARGEABLE GAINS: NON-RESIDENT COMPANIES AND GROUPS ETC..
PART I-APPLICATION OF TAXATION OF CHARGEABLE GAINS ACT 1992.
PART II-MINOR AND CONSEQUENTIAL AMENDMENTS.
PART III-TRANSITIONAL PROVISIONS.
SCHEDULE 30-DOUBLE TAXATION RELIEF.
SCHEDULE 31-CONTROLLED FOREIGN COMPANIES.
SCHEDULE 32-STAMP DUTY ON SEVEN YEAR LEASES: TRANSITIONAL PROVISIONS.
SCHEDULE 33-POWER TO VARY STAMP DUTIES.
SCHEDULE 34-ABOLITION OF STAMP DUTY ON INSTRUMENTS RELATING TO INTELLECTUAL PROPERTY: SUPPLEMENTARY PROVISIONS.
SCHEDULE 35-VALUE ADDED TAX: CHARGE AT REDUCED RATE.
SCHEDULE 36-NEW SCHEDULE 3A TO THE VALUE ADDED TAX ACT 1994.
SCHEDULE 37-LANDFILL TAX: NEW PART VIII OF SCHEDULE 5 TO THE FINANCE ACT 1996.
SCHEDULE 38-REGULATIONS FOR PROVIDING INCENTIVES FOR ELECTRONIC COMMUNICATIONS.
SCHEDULE 39-NEW SCHEDULE 1AA TO THE TAXES MANAGEMENT ACT 1970.
SCHEDULE 40-REPEALS .
PART I-EXCISE DUTIES.
PART II-INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX.
PART III-STAMP DUTY AND STAMP DUTY RESERVE TAX.
PART IV-VALUE ADDED TAX.
PART V-INFORMATION POWERS.
 


 
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Prepared 24 July 2000