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Finance Bill


 

Finance Bill

 
 

EUROPEAN CONVENTION ON HUMAN RIGHTS

The Lord McIntosh of Haringey has made the following statement under section

19(1)(a) of the Human Rights Act 1998:

In my view the provisions of the Finance Bill are compatible with the Convention

rights.

 
HL Bill 8753/2
 
 

 

Finance Bill

 

 
 

Contents

Part 1

Excise duties

Tobacco products duty

      1        Rates of tobacco products duty

Alcoholic liquor duties

      2        Rate of duty on beer

      3        Rates of duty on wine and made-wine

Hydrocarbon oil duties

      4        Rates of hydrocarbon oil duties

      5        Rebates on hydrocarbon oil duties

Betting and gaming duties

      6        General betting duty and pool betting duty: relief for losses

      7        General betting duty: betting exchanges

      8        General betting duty: restriction of exemption for on-course bets

      9        Bingo duty

      10        Amusement machines not operated by coins or tokens

      11        Amusement machines: use of currencies other than sterling

      12        Responsibility for unlicensed amusement machines

      13        Rates of gaming duty

Vehicle excise duty

      14        Vehicle excise duty: rates

      15        Disclosure for exemptions: Northern Ireland

      16        Duty at higher rate: exception for tractive units

 
HL Bill 8753/2
 
 

Finance Bill

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Part 2

Value added tax

      17        Requirement of evidence or security

      18        Joint and several liability for unpaid VAT of another trader

      19        Face-value vouchers

      20        Supplies arising from prior grant of fee simple

      21        Business gifts

      22        Non-business use of business property

      23        Supply of electronic services in member States: special accounting scheme

Part 3

Taxes and duties on importation and exportation: penalties

Preliminary

      24        Introductory

The penalties

      25        Penalty for evasion

      26        Penalty for contravention of relevant rule

      27        Exceptions from section 26

      28        Liability of directors etc where body corporate liable to penalty for evasion

Reduction of amount of penalty

      29        Reduction of penalty under section 25 or 26

Demand notices

      30        Demands for penalties

      31        Time limits for demands for penalties

      32        No prosecution after demand notice for penalty under section 26

Reviews

      33        Right to review of certain decisions

      34        Time limit and right to further review

      35        Powers of Commissioners on a review

Appeals

      36        Appeals to a tribunal

      37        Appeal tribunals

Evidence

      38        Admissibility of certain statements and documents

 
 

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Miscellaneous and supplementary

      39        Service of notices

      40        Penalties not to be deducted for income tax or corporation tax purposes

      41        Regulations and orders

Part 4

Stamp duty land tax

Introduction

      42        The tax

Land transactions

      43        Land transactions

      44        Contract and conveyance

      45        Contract and conveyance: effect of transfer of rights

      46        Options and rights of pre-emption

      47        Exchanges

Chargeable interests, chargeable transactions and chargeable consideration

      48        Chargeable interests

      49        Chargeable transactions

      50        Chargeable consideration

      51        Contingent, uncertain or unascertained consideration

      52        Annuities etc: chargeable consideration limited to twelve years’ payments

      53        Deemed market value where transaction involves connected company

      54        Exceptions from deemed market value rule

Amount of tax chargeable

      55        Amount of tax chargeable: general

      56        Amount of tax chargeable: rent

Reliefs

      57        Disadvantaged areas relief

      58        Relief for certain exchanges of residential property

      59        Relocation relief

      60        Compulsory purchase facilitating development

      61        Compliance with planning obligations

      62        Group relief and reconstruction or acquisition relief

      63        Demutualisation of insurance company

      64        Demutualisation of building society

      65        Incorporation of limited liability partnership

      66        Transfers involving public bodies

      67        Transfer in consequence of reorganisation of parliamentary constituencies

      68        Charities relief

      69        Acquisition by bodies established for national purposes

      70        Right to buy transactions, shared ownership leases etc

      71        Certain acquisitions by registered social landlord

 
 

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      72        Alternative property finance: land sold to financial institution and leased to

individual

      73        Alternative property finance: land sold to financial institution and re-sold to

individual

      74        Collective enfranchisement by leaseholders

      75        Crofting community right to buy

Returns and other administrative matters

      76        Duty to deliver land transaction return

      77        Notifiable transactions

      78        Returns, enquiries, assessments and related matters

      79        Registration of land transactions etc

      80        Adjustment where contingency ceases or consideration is ascertained

      81        Further return where relief withdrawn

      82        Loss or destruction of, or damage to, return etc

      83        Formal requirements as to assessments, penalty determinations etc

      84        Delivery and service of documents

Liability for and payment of tax

      85        Liability for tax

      86        Payment of tax

      87        Interest on unpaid tax

      88        Interest on penalties

      89        Interest on repayment of tax overpaid etc

      90        Application to defer payment in case of contingent or uncertain consideration

      91        Collection and recovery of tax etc

      92        Payment by cheque

Compliance

      93        Information powers

      94        Power to inspect premises

      95        Offence of fraudulent evasion of tax

      96        Penalty for assisting in preparation of incorrect return etc

      97        Power to allow further time and reasonable excuse for failure

      98        Admissibility of evidence not affected by offer of settlement etc

      99        General provisions about penalties

Application of provisions

      100        Companies

      101        Unit trust schemes

      102        Open-ended investment companies

      103        Joint purchasers

      104        Partnerships

      105        Trustees

      106        Persons acting in a representative capacity etc

      107        Crown application

Supplementary provisions

      108        Linked transactions

 
 

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      109        General power to vary this Part by regulations

      110        Approval of regulations under general power

      111        Claim for repayment if regulations under general power not approved

      112        Power to amend certain provisions before implementation

      113        Functions conferred on “the Inland Revenue”

      114        Orders and regulations made by the Treasury or the Inland Revenue

      115        General and Special Commissioners, appeals and other proceedings

Interpretation etc

      116        Meaning of “residential property”

      117        Meaning of “major interest” in land

      118        Meaning of “market value”

      119        Meaning of “effective date” of a transaction

      120        Meaning of “lease” and other supplementary provisions

      121        Minor definitions

      122        Index of defined expressions

Final provisions

      123        Consequential amendments

      124        Commencement and transitional provisions

Part 5

Stamp duty

      125        Abolition of stamp duty except on instruments relating to stock or marketable

securities

      126        Circumstances in which group relief withdrawn

      127        Circumstances in which relief for company acquisitions withdrawn

      128        Exemption of certain leases granted by registered social landlords

      129        Relief for certain leases granted before section 128 has effect

      130        Registered social landlords: treatment of certain leases granted between 1st

January 1990 and 27 March 2000

Part 6

Income tax and corporation tax: charge and rate bands

Income tax

      131        Charge and rates for 2003-04

      132        Indexed rate bands for 2003-04: PAYE deductions etc

Corporation tax

      133        Charge and main rate for financial year 2004

      134        Small companies’ rate and fraction for financial year 2003

      135        Corporation tax starting rate and fraction for financial year 2003

 
 

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Part 7

Income tax, corporation tax and capital gains tax: general

Employment income and related matters

      136        Provision of services through intermediary

      137        Exemption where homeworker’s additional expenses met by employer

      138        Taxable benefits: lower threshold for cars with a CO2 emissions figure

      139        Approved share plans and schemes

      140        Employee securities and options

      141        Corporation tax relief for employee share acquisitions

      142        Ending of relief for contributions to QUESTS

      143        Restriction of deductions for employee benefit contributions

      144        PAYE on notional payments: reimbursement period

      145        PAYE: regulations and notional payments

      146        Payroll giving: extension of 10% supplement to 5th April 2004

      147        Sub-contractor deductions etc: interest on late payment or repayment

Taxation of non-resident companies and related matters

      148        Meaning of “permanent establishment”

      149        Non-resident companies: basis of charge to corporation tax

      150        Non-resident companies: assessment, collection and recovery of corporation

tax

      151        Non-resident companies: extent of charge to income tax

      152        Non-resident companies: transactions carried out through broker, investment

manager or Lloyd’s agent

      153        General replacement of references to branch or agency of company

      154        Double taxation relief: profits attributable to overseas permanent

establishment

      155        Consequential amendments

      156        Overseas life insurance companies

Chargeable gains

      157        Life insurance policies and deferred annuity contracts

      158        Application of market value rule in case of exercise of option

      159        Reporting limits and annual exempt amount

      160        Taper relief: assets qualifying as business assets

      161        Earn-out rights to be treated as securities unless contrary election

      162        Deferred unascertainable consideration: election for treatment of loss

      163        Transfers of value: attribution of gains to beneficiaries

Capital allowances and related matters

      164        Avoidance affecting proceeds of balancing event

      165        Extension of first-year allowances for ICT expenditure by small enterprises

      166        Expenditure on software for sub-licensing

      167        First-year allowances for expenditure on environmentally beneficial plant or

machinery

      168        Relief for research and development

      169        Tonnage tax: extension of capital allowance restrictions on lessors of ships

 
 

 
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Revised 2 July 2003