Finance Act 2002

Finance Act 2002 An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance. Most Gracious Sovereign, We, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and to grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute— Table This section shall be deemed to have come into force at 6 o’clock in the evening of 17th April 2002. In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rates of duty on cider)— in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent that is not sparkling cider), for “£39.21” substitute “ £38.43 ”; in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.13” substitute “ £25.61 ”. This section shall be deemed to have come into force on 28th April 2002. Omit section 1(9) of the Alcoholic Liquor Duties Act 1979 (under which alcoholic beverages of a strength between 1.2 and 5.5 per cent made with spirits are treated as not being spirits, unless of a description specified by Treasury order). Schedule 1 to this Act (which makes provision for the excise duty on beer to be charged at reduced rates on beer produced in small breweries) has effect. Subject to subsection (3), subsection (1) shall be deemed to have come into force on 1st June 2002. So far as relating to— the insertion by paragraph 2 of that Schedule of the new section 36H of the Alcoholic Liquor Duties Act 1979, and paragraph 3 of that Schedule, subsection (1) comes into force on the day on which this Act is passed. The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows. After section 2 insert— In this Act “biodiesel” means diesel quality liquid fuel— that is produced from biomass or waste cooking oil, the ester content of which is not less than 96.5% by weight, and the sulphur content of which does not exceed 0.005% by weight or is nil. In subsection (1)— “diesel quality” means capable of being used for the same purposes as heavy oil; “liquid” does not include any substance that is gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars; “biomass” means vegetable and animal substances constituting the biodegradable fraction of— products, wastes and residues from agriculture, forestry and related activities, or industrial and municipal waste. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . After section 6 (excise duty on hydrocarbon oil) insert— A duty of excise shall be charged on the setting aside for a chargeable use by any person, or (where it has not already been charged under this section) on the chargeable use by any person, of biodiesel. In subsection (1) “chargeable use” means use— as fuel for any engine, motor or other machinery, or as an additive or extender in any substance so used. The rate of duty under this section shall be £0.2582 a litre. A duty of excise shall be charged on bioblend— imported into the United Kingdom, or produced in the United Kingdom and delivered for home use from a refinery or from other premises used for the production of hydrocarbon oil or from any bonded storage for hydrocarbon oil, not being bioblend chargeable with duty under paragraph (a) above. This is subject to subsection (6) below. In this Act “bioblend” means any mixture that is produced by mixing— biodiesel, and heavy oil not charged with the excise duty on hydrocarbon oil. The rate at which the duty shall be charged on any bioblend shall be a composite rate representing— in respect of the proportion of the bioblend that is hydrocarbon oil, the rate that would be applicable to the bioblend if it consisted entirely of heavy oil of the description that went into producing the bioblend, and in respect of the proportion of the bioblend that is biodiesel, the rate that would be applicable to the bioblend if it consisted entirely of biodiesel. The references in subsection (3) above to the proportions of— hydrocarbon oil, and biodiesel, are to the proportions by volume to the nearest 0.001%. If the Commissioners are not satisfied as to the proportion of biodiesel in any bioblend, the rate of duty chargeable shall be the rate that would be applicable to the bioblend if it consisted entirely of heavy oil of the description that went into producing the bioblend. Where imported bioblend is removed to a refinery, the duty chargeable under subsection (1) above shall, instead of being charged at the time of the importation of the bioblend, be charged on the delivery of any goods from the refinery for home use and shall be the same as that which would be payable on the importation of like goods. The Commissioners may by regulations provide for— references in this Act, or specified references in this Act, to hydrocarbon oil to be construed as including references to— biodiesel; bioblend; references in this Act, or specified references in this Act, to duty on hydrocarbon oil to be construed as including references to duty under— section 6AA above; section 6AB above; biodiesel, or bioblend, to be treated for the purposes of such of the following provisions of this Act as may be specified as if it fell within a specified description of hydrocarbon oil. Where the effect of provision made under subsection (1) above is to extend any power to make regulations, provision made in exercise of the power as extended may be contained in the same statutory instrument as the provision extending the power. In this section “specified” means specified by regulations under this section. Regulations under this section may make different provision for different cases. Paragraph (b) of subsection (1) above shall not be taken as prejudicing the generality of paragraph (a) of that subsection. Schedule 2 to this Act contains minor and consquential amendments of the Hydrocarbon Oil Duties Act 1979 (c. 5). Subsection (4), and subsection (5) so far as relating to paragraphs 2 and 4(1) of that Schedule, have effect in relation to biodiesel that— is set aside for chargeable use (as defined in the section 6AA inserted by subsection (4)) after such date as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, or not having been so set aside, is the subject of such chargeable use after that date, and has not been set aside for chargeable use under section 6A of that Act (fuel substitutes) on or before that date. Subsection (4), and subsection (5) so far as relating to paragraph 2 of that Schedule, have effect in relation to bioblend that— is imported into the United Kingdom after the date appointed under subsection (6)(a), or not having been so imported— is produced in the United Kingdom and delivered for home use after that date, and has not been set aside for chargeable use under section 6A of that Act (fuel substitutes) on or before that date. Subsection (5)— so far as relating to paragraph 3 of that Schedule, comes into force on the day after the date appointed under subsection (6)(a), so far as relating to paragraph 5 of that Schedule, applies to mixtures produced after the date appointed under subsection (6)(a), and so far as relating to paragraph 7 of that Schedule, comes into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint. Schedule 3 to this Act has effect. In that Schedule— Part 1 makes provision for regulating trade in certain heavy oil on which rebate of excise duty has been allowed, and Part 2 amends provisions of the Hydrocarbon Oil Duties Act 1979 relating to rebates. Subject to subsection (4), subsection (1) so far as relating to paragraph 1 of that Schedule shall not come into force until such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument. For the purpose of the exercise of any power to make regulations, subsection (1) so far as relating to that paragraph comes into force on the day on which this Act is passed. In section 6A of the Hydrocarbon Oil Duties Act 1979 (c. 5) (fuel substitutes)— in subsection (5) (power to provide that fuel substitute to be treated as if it were a description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ”; in subsection (6)(a) (power to be exercised so that fuel substitute charged with duty and otherwise treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (5) above” substitute “ hydrocarbon oil of the description ”. In section 10 of the Finance Act 1993 (c. 34) (mineral oil fuel substitutes)— in subsection (2) (power to provide that mineral oil fuel substitute to be treated as if it were a particular description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ”; in subsection (3) (power to be exercised so that mineral oil fuel substitute treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (2) above” substitute “ hydrocarbon oil of the description ”. Section 21 of the Betting and Gaming Duties Act 1981 (c. 63) (amusement machine licences) is amended as follows. In subsection (3A) (excepted machines), for paragraphs (c) and (d) (certain thirty-five penny machines and video machines) substitute— a fifty-penny machine that is not a gaming machine. For subsection (3B) substitute— For the purposes of this section an amusement machine is a fifty-penny machine if, and only if— where it is a machine on which a game can be played solo, the price for a solo game does not exceed 50p; and where it is a machine on which a game can be played by more than one person at a time, the price to participate in such a game does not exceed 50p. In subsection (3C) (definition of the price for a solo game), for “35p”, in both places where it occurs, substitute “ 50p ”. In section 25 of that Act (definition of different types of machine), in subsections (4) and (6) (treatment of machines capable of being played by more than one person at a time), for “an excepted video machine falling within section 21(3A)(d) above” substitute “ a fifty-penny machine within section 21(3B) above ”. This section has effect in relation to the provision of an amusement machine at any time on or after 1st May 2002. In the Table in section 23(2) of the Betting and Gaming Duties Act 1981 (c. 63) (rates of amusement machine licence duty), for column (4) (medium-prize machines other than five-penny machines) and column 6 (machines not in any other category) substitute— This section applies in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 30th April 2002. For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute— This section has effect in relation to accounting periods beginning on or after 1st April 2002. Schedule 4 to this Act has effect. In that Schedule, Part 1— makes provision about pool betting duty, and provides for coupon betting to cease to be subject to pool betting duty but to be subject to general betting duty instead, and Part 2 contains minor amendments and transitional provisions. The amendments made by paragraph 2 of that Schedule have effect for the purposes of accounting periods beginning on or after 31st March 2002; but this does not apply to the substitution of the new regulation-making provisions. The amendments made by paragraphs 3 and 4 of that Schedule apply to bets made on or after 31st March 2002. Subsections (1) to (4) shall (subject to subsections (6) and (7)) be deemed to have come into force on 31st March 2002. Subsection (1), so far as relating to paragraphs 5, 6(a) and (c), 7 to 9, 10(1), (2), (5) to (11), (13) and (14), 11, 12(1) and (3), 13 and 14 of Schedule 4 to this Act, shall be deemed to have come into force on 24th April 2002. Subsection (1), so far as relating to— the substitution of the new regulation-making provisions by paragraph 2 of that Schedule, and paragraphs 10(3), (4) and (12) and 12(2) of that Schedule, comes into force on the day on which this Act is passed; but the powers conferred by the new regulation-making provisions are exercisable only as respects accounting periods beginning after that day. In this section “the new regulation-making provisions” means the following new provisions of the Betting and Gaming Duties Act 1981 (c. 63)— section 7D(6) to (8), section 7E(4) and (5), section 7F(6) and (7), section 8(3) and (4), and section 8B(1)(b) and (2). In Part 1 of the Betting and Gaming Duties Act 1981 (betting duties), after section 9 (prohibitions for protection of revenue) insert— A person shall be guilty of an offence if— he knowingly issues, circulates or distributes in the United Kingdom, or has in his possession for that purpose, any advertisement or other document inviting the use of or otherwise relating to bet-broking services, and any person providing any of the bet-broking services concerned— is outside the United Kingdom, and provides them in the course of a business. In this section “bet-broking services” means— facilities provided by a person that may be used by other persons in making bets with third persons, or a person’s services of acting as agent for other persons in making bets on their behalf with third parties (whether the persons on whose behalf the bets are made are disclosed principals or undisclosed principals). In subsection (2) “bet” means a bet other than one made by way of pool betting. A person who gets or tries to get any advertisement or other document given or sent to him shall not be guilty of an offence by reason of his thereby procuring or inciting some other person to commit, or aiding or abetting the commission of, an offence under this section. After section 9A of that Act (inserted by subsection (1) above) insert— This section applies where a person is guilty of an offence under section 9 or 9A (a “relevant offence”). In the case of the person’s first conviction for a relevant offence, he is liable— on summary conviction to a penalty of the prescribed sum, or on conviction on indictment to a penalty of any amount. In the case of a second or subsequent conviction of the person for a relevant offence, he is liable— on summary conviction to a penalty of the prescribed sum or to imprisonment for a term not exceeding three months or to both, or on conviction on indictment to a penalty of any amount or to imprisonment for a term not exceeding one year or to both. Omit section 9(4) of that Act (penalties for offences under section 9). In paragraph 5 of Schedule 6 to that Act (convictions under predecessors of section 9 to be treated as convictions under section 9), for “For the purposes of section 9(4)” substitute “ For the purposes of section 9B ”. Subsection (1) comes into force on the day after that on which this Act is passed. The amendments made by subsections (2) to (4) apply for the purposes of punishing offences committed after the day on which this Act is passed. For the Table in paragraph 1B of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rates of duty applicable to light passenger vehicles registered on or after 1st March 2001 on basis of certificate specifying CO2 emissions figure) substitute— This section applies to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002. For paragraph 1J of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rate of duty applicable to light goods vehicles first registered on or after 1st March 2001) substitute— The annual rate of vehicle excise duty applicable to a vehicle to which this Part of this Schedule applies is— if the vehicle is not a lower-emission van, £160; if the vehicle is a lower-emission van, £105. the vehicle is first registered on or after 1st March 2003, and the limit values given for the vehicle by the Table (which is extracted from the new table inserted in section 5.3.1.4 of Annex I of Council Directive 70/220/EEC by Directive 98/69/EC of the European Parliament and of the Council) are not exceeded during a Type I test. In paragraph 1K— “Type I test” means a test as described in section 5.3 of Annex I to Council Directive 70/220/EEC as amended (test for simulating/verifying the average tailpipe emissions after a cold start and carried out using the procedure described in Annex III of that Directive as amended); “the reference mass” of a vehicle means the mass of the vehicle with bodywork and, in the case of a towing vehicle, with coupling device, if fitted by the manufacturer, in running order, or mass of the chassis or chassis with cab, without bodywork and/or coupling device if the manufacturer does not fit the bodywork and/or coupling device (including liquids and tools, and spare wheel if fitted, and with the fuel tank filled to 90% and the other liquid containing systems, except those for used water, to 100% of the capacity specified by the manufacturer), increased by a uniform mass of 100 kilograms; “CO” means mass of carbon monoxide; “HC” means mass of hydrocarbons; “NOx” means mass of oxides of nitrogen; “PM” means mass of particulates (for compression ignition engines). Subsection (1) applies to any licence taken out for a period beginning on or after 1st March 2003. In the Vehicle Excise and Registration Act 1994 (c. 22), after section 22 insert— This section applies to information that— is held for the purposes of functions relating to social security or war pensions— by the Secretary of State, or by a person providing services to the Secretary of State, in connection with the provision of those services, and is of a description prescribed by regulations made by the Secretary of State. Information to which this section applies may, if the consent condition is satisfied, be supplied— to the Secretary of State, or to a person providing services to the Secretary of State, for use for the purposes of relevant nil licence functions. The “consent condition”, in relation to any information, is that— if the information was provided by a person other than the person to whom the information relates, the person who provided the information, or in any other case, the person to whom the information relates, has consented to the supply of the information and has not withdrawn that consent. Information supplied under subsection (2) shall not— be supplied by the recipient to any other person unless— it could be supplied to that person under subsection (2), or it is supplied for the purposes of any civil or criminal proceedings relating to this Act; be used otherwise than for the purposes of relevant nil licence functions or any such proceedings. In this section “relevant nil licence functions” means functions relating to applications for, and the issue of, nil licences in respect of vehicles that are exempt vehicles under— paragraph 19 of Schedule 2, or paragraph 7 of Schedule 4. For paragraph 2(1) to (1B) of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rates of duty applicable to motorcycles not exceeding 450 kilograms in weight unladen) substitute— The annual rate of vehicle excise duty applicable to a motorcycle that does not exceed 450 kilograms in weight unladen is— if the cylinder capacity of the engine does not exceed 150 cubic centimetres, £15; if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 400 cubic centimetres, £30; if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 400 cubic centimetres but does not exceed 600 cubic centimetres, £45; in any other case, £60. In sections 13(3)(a), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(a) of that Act as substituted under paragraph 8 of Schedule 4 to that Act (references to paragraph 2(1)(c) of Schedule 1 in connection with motorcycle trade licences), for “(1)(c)” substitute “ (1)(d) ”. Subsection (1), and the amendments in section 13 of that Act, apply to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002. The amendments in sections 35A and 36 of that Act apply where the relevant period begins on or after 1st May 2002. Schedule 5 to this Act, which provides— for vehicle excise duty to be charged in respect of vehicles registered under the Vehicle Excise and Registration Act 1994 that are neither used nor kept on a public road, for vehicle excise duty to be charged in respect of things that have been but have ceased to be mechanically propelled vehicles, for supplements to be payable where vehicle licences are renewed late, and for it to be an offence to be the person in whose name an unlicensed vehicle is registered under that Act, has effect. Subject to subsection (3), subsection (1) shall not come into force until such day as the Secretary of State may appoint by order made by statutory instrument; and an order under this subsection may appoint different days for different purposes. For the purpose of the exercise of any power to make regulations, subsection (1) comes into force on the day on which this Act is passed. The Secretary of State may by order made by statutory instrument make— such transitional provision as he considers necessary or expedient in connection with the coming into force of subsection (1); such provision consequential upon, or incidental or supplementary to, the amendments made by Schedule 5 to this Act (including provision further amending the Vehicle Excise and Registration Act 1994) as he considers necessary or expedient. A statutory instrument containing an order under subsection (4)(b) is subject to annulment in pursuance of a resolution of either House of Parliament. In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of duty: general), after sub-paragraph (2A) insert— For the purposes of this Schedule the cylinder capacity of an engine shall be calculated in accordance with regulations made by the Secretary of State. Omit— paragraph 2(4) of that Schedule (power to make regulations as to calculation of cylinder capacity of motorcycle engines), and section 57(8) of that Act (regulations under paragraph 2(4) of Schedule 1 not subject to annulment). Any regulations— made under paragraph 2(4) of that Schedule or having effect as if so made, and in force or effective immediately before the passing of this Act, shall have effect after the passing of this Act as if made under the paragraph 1(2B) inserted in that Schedule by this section. Subsection (3) has effect in place of section 17(2)(b) of the Interpretation Act 1978 (c. 30) (but is without prejudice to any other provision of that Act) and, in particular, the fact that the instrument containing any such regulations was not subject to annulment in pursuance of a resolution of either House of Parliament shall not prevent them being revoked, amended or re-enacted by regulations under that paragraph 1(2B). In section 133 of the Customs and Excise Management Act 1979 (c. 2) (claims for drawback of excise duty)— in subsection (2), for “subsections (3) to (6)” substitute “ subsections (4) to (6) ”; omit subsection (3) (Commissioners to be satisfied that the duty in question has been duly paid, and not already drawn back, before drawback is payable). In section 14(1) of the Finance Act 1994 (c. 9) (reviewable decisions) after paragraph (bb) insert— any decision by the Commissioners as to whether or not any person is entitled to any drawback of excise duty by virtue of regulations under section 2 of the Finance (No. 2) Act 1992, or the amount of the drawback to which any person is so entitled; The amendment made by subsection (2) does not apply in relation to decisions made before the day on which this Act comes into force. In Part 1 of the Value Added Tax Act 1994 (c. 23) (the charge to tax), after section 26 insert— Where— a person has become entitled to credit for any input tax, and the consideration for the supply to which that input tax relates, or any part of it, is unpaid at the end of the period of 6 months following the relevant date, he shall be taken, as from the end of that period, not to have been entitled to credit for input tax in respect of the VAT that is referable to the unpaid consideration or part. For the purposes of subsection (1) above “the relevant date”, in relation to any sum representing consideration for a supply, is— the date of the supply, or if later, the date on which the sum became payable. Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section. Regulations under this section may in particular— make provision for restoring the whole or any part of an entitlement to credit for input tax where there is a payment after the end of the period mentioned in subsection (1) above; make rules for ascertaining whether anything paid is to be taken as paid by way of consideration for a particular supply; make rules dealing with particular cases, such as those involving payment of part of the consideration or mutual debts. Regulations under this section may make different provision for different circumstances. Section 6 shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section. In section 36 of that Act (bad debts), omit subsections (4A) and (5)(ea). This section has effect in relation to supplies made on or after such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument. In Part 1 of the Value Added Tax Act 1994 (c. 23) (the charge to tax), after section 26A (inserted by section 22 above) insert— The Commissioners may by regulations make provision under which, where a taxable person so elects, the amount of his liability to VAT in respect of his relevant supplies in any prescribed accounting period shall be the appropriate percentage of his relevant turnover for that period. A person whose liability to VAT is to any extent determined as mentioned above is referred to in this section as participating in the flat-rate scheme. For the purposes of this section— a person’s “relevant supplies” are all supplies made by him except supplies made at such times or of such descriptions as may be specified in the regulations; the “appropriate percentage” is the percentage so specified for the category of business carried on by the person in question; a person’s “relevant turnover” is the total of— the value of those of his relevant supplies that are taxable supplies, together with the VAT chargeable on them, and the value of those of his relevant supplies that are exempt supplies. The regulations may designate certain categories of business as categories in relation to which the references in subsection (1) above to liability to VAT are to be read as references to entitlement to credit for VAT. The regulations may provide for persons to be eligible to participate in the flat-rate scheme only in such cases and subject to such conditions and exceptions as may be specified in, or determined by or under, the regulations. Subject to such exceptions as the regulations may provide for, a participant in the flat-rate scheme shall not be entitled to credit for input tax. This is without prejudice to subsection (3) above. The regulations may— provide for the appropriate percentage to be determined by reference to the category of business that a person is expected, on reasonable grounds, to carry on in a particular period; provide, in such circumstances as may be prescribed, for different percentages to apply in relation to different parts of the same prescribed accounting period; make provision for determining the category of business to be regarded as carried on by a person carrying on businesses in more than one category. The regulations may provide for the following matters to be determined in accordance with notices published by the Commissioners— when supplies are to be treated as taking place for the purposes of ascertaining a person’s relevant turnover for a particular period; the method of calculating any adjustments that fall to be made in accordance with the regulations in a case where a person begins or ceases to participate in the flat-rate scheme. The regulations may make provision enabling the Commissioners— to authorise a person to participate in the flat-rate scheme with effect from— a day before the date of his election to participate, or a day that is not earlier than that date but is before the date of the authorisation; to direct that a person shall cease to be a participant in the scheme with effect from a day before the date of the direction. The day mentioned in paragraph (a)(i) above may be a day before the date on which the regulations come into force. Regulations under this section— may make different provision for different circumstances; may make such incidental, supplemental, consequential or transitional provision as the Commissioners think fit, including provision disapplying or applying with modifications any provision contained in or made under this Act. In section 83 of that Act (appeals), after paragraph (f) insert— a decision of the Commissioners— refusing or withdrawing authorisation for a person’s liability to pay VAT (or entitlement to credit for VAT) to be determined as mentioned in subsection (1) of section 26B; as to the appropriate percentage or percentages (within the meaning of that section) applicable in a person’s case. In section 84 of that Act (further provisions relating to appeals), after subsection (4) insert— Where an appeal is brought— against such a decision as is mentioned in section 83(fza), or to the extent that it is based on such a decision, against an assessment, the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for the decision. This section shall be deemed to have come into force on 24th April 2002. In the Value Added Tax Act 1994 (c. 23) omit the following (which are superseded by the provision inserted by subsection (2))— subsection (9) of section 6 (time of supply); in paragraph 2 (VAT invoices etc) of Schedule 11 (administration, collection and enforcement)— in the heading, the words “, VAT invoices”; in sub-paragraph (1), the words from “and may require” to the end; sub-paragraphs (2) and (2A). After paragraph 2 of Schedule 11 to that Act insert— Regulations may require a taxable person supplying goods or services to provide an invoice (a “VAT invoice”) to the person supplied. A VAT invoice must give— such particulars as may be prescribed of the supply, the supplier and the person supplied; such an indication as may be prescribed of whether VAT is chargeable on the supply under this Act or the law of another member State; such particulars of any VAT that is so chargeable as may be prescribed. Regulations may confer power on the Commissioners to allow the requirements of any regulations as to the information to be given in a VAT invoice to be relaxed or dispensed with. Regulations may— provide that the VAT invoice that is required to be provided in connection with a particular description of supply must be provided within a prescribed time after the supply is treated as taking place, or at such time before the supply is treated as taking place as may be prescribed; allow for the invoice to be issued later than required by the regulations where it is issued in accordance with general or special directions given by the Commissioners. make provision about the manner in which a VAT invoice may be provided, including provision prescribing conditions that must be complied with in the case of an invoice issued by a third party on behalf of the supplier; prescribe conditions that must be complied with in the case of a VAT invoice that relates to more than one supply; make, in relation to a document that refers to a VAT invoice and is intended to amend it, such provision corresponding to that which may be made in relation to a VAT invoice as appears to the Commissioners to be appropriate. Regulations may confer power on the Commissioners to require a person who has received in the United Kingdom a VAT invoice that is (or part of which is) in a language other than English to provide them with an English translation of the invoice (or part). Regulations under this paragraph— may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions; may make different provision for different circumstances. This paragraph applies where a taxable person provides to himself a document (a “self-billed invoice”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person. Subject to compliance with such conditions as may be— prescribed, specified in a notice published by the Commissioners, or imposed in a particular case in accordance with regulations, a self-billed invoice shall be treated as the VAT invoice required by regulations under paragraph 2A above to be provided by the supplier. For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier. For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier. In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier. For paragraph 3 of that Schedule substitute— Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to— the provision by electronic means of any item to which this paragraph applies; the preservation by electronic means of any such item or of information contained in any such item. The items to which this paragraph applies are— any VAT invoice; any document that refers to a VAT invoice and is intended to amend it; any invoice described in regulations made for the purposes of section 6(8)(b) or 12(1)(b). Regulations under this paragraph may make different provision for different circumstances. The following amendments to the Value Added Tax Act 1994 (c. 23) are consequential on other amendments made by this section— in section 6(15), for “paragraph 2(1)” substitute “ paragraph 2A ”; in section 83 (appeals), for paragraph (z) substitute— any conditions imposed by the Commissioners in a particular case by virtue of paragraph 2B(2)(c) or 3(1) of Schedule 11 in section 88 (supplies spanning change of rate etc)— in subsection (5), for “paragraph 2” substitute “ paragraph 2A ”; in subsection (6), for “section 6(9) or paragraph 7 of Schedule 4” substitute “ paragraph 7 of Schedule 4 or paragraph 2B(4) of Schedule 11 ”. This section comes into force on such day as the Treasury may by order made by statutory instrument appoint, and different days may be appointed for different provisions or different purposes. An order under subsection (5) may contain such transitional provisions and savings as appear to the Treasury necessary or expedient in connection with the provisions brought into force. Corporation tax shall be charged for the financial year 2003 at the rate of 30%. For the financial year 2002— the corporation tax starting rate shall be 0%, and the fraction mentioned in section 13AA(3) of the Taxes Act 1988 (marginal relief for small companies) shall be 19/400ths. In section 829 of the Taxes Act 1988 (application of Income Tax Acts to public departments), after subsection (2) insert— Subsections (1) and (2) above have effect in relation to Chapter 4 of Part 13 of this Act (sub-contractors in the construction industry) as if the whole of any deduction required to be made under section 559 were in all cases a deduction of income tax. This section has effect in relation to deductions made under section 559 of the Taxes Act 1988 on or after 6th April 2002. In Schedule 7B to that Act (modification of Act in relation to overseas life insurance companies), immediately before paragraph 8 insert— In section 179A(12), the words “section 11(2)(b), (c) or (d) of the Taxes Act” shall be treated as substituted for “section 10(3)". In section 97(1) of the Inheritance Tax Act 1984 (c. 51) (transfers within group, etc)— in paragraph (aa) for “the deemed transfer” substitute “ the election ”. This section applies— in relation to a case where a company is treated by virtue of section 179(3) of the Taxation of Chargeable Gains Act 1992 (c. 12) as having sold and immediately reacquired an asset, where the company’s ceasing to be a member of the group in question happens on or after 1st April 2002; in relation to a case where a company is so treated by virtue of section 179(6) of that Act, where the relevant time (within the meaning of that subsection) is on or after that date. After section 179A of the Taxation of Chargeable Gains Act 1992 (c. 12) (inserted by section 42 above) insert— Where a company is treated by virtue of section 179(3) or (6) as having sold and immediately reacquired an asset at market value, relief under section 152 or 153 (roll-over relief on replacement of business assets) is available in accordance with this section in relation to any gain accruing to the company on the deemed sale. For this purpose, sections 152 and 153 and the other enactments specified in Schedule 7AB apply with the modifications set out in that Schedule. Where there has been an election under section 179A, any claim for relief available in accordance with this section must be made by company C rather than company A. For this purpose, the enactments modified by Schedule 7AB have effect as if— references to company A, except those in sections 152(1)(a) and (1B), 153(1B), 153A(5), 159(1), 175 and 198(1), were to company C; the references to “that company” in section 159(1) and “the company” in section 185(3)(b) were to company C; the reference to “that trade” in section 198(1) were to a ring fence trade carried on by company C. Where there has been an election under section 179A in respect of part only of the chargeable gain accruing on the deemed sale of an asset, the enactments modified by Schedule 7AB and subsections (3) and (4) above apply as if the deemed sale had been of a separate asset representing a corresponding part of the asset; and any necessary apportionments shall be made accordingly. A reference in this section to company A or to company C is to the company referred to as such in section 179A. After Schedule 7AA to the 1992 Act insert the Schedule 7AB set out in Schedule 7 to this Act. in relation to a case where a company is treated by virtue of section 179(3) of the 1992 Act as having sold and immediately reacquired an asset, where the company’s ceasing to be a member of the group in question happens on or after 1st April 2002; In Chapter 1 of Part 6 of the Taxation of Chargeable Gains Act 1992 (c. 12) (provisions relating to chargeable gains of companies), after section 192 insert— Disposals by companies with substantial shareholding Schedule 7AC (exemptions for disposal of shares etc by companies with substantial shareholding) has effect. Schedule 8 to this Act (exemptions for disposals by companies with substantial shareholding) has effect. Part 1 contains Schedule 7AC to be inserted after Schedule 7AB to the Taxation of Chargeable Gains Act 1992 (c. 12) (inserted by Schedule 7 to this Act); and Part 2 contains consequential amendments. This section and Schedule 8 to this Act apply in relation to disposals on or after 1st April 2002. Paragraph 38 of the Schedule 7AC inserted by that Schedule (degrouping: time when deemed sale and reacquisition treated as taking place) has effect where the time of degrouping or relevant time (as defined for the purposes of that paragraph) is on or after that date. The amendment made by paragraph 2 of Schedule 8 to this Act has effect where the company in question ceases to be a member of the group in question on or after that date. Schedule 9 to this Act (chargeable gains: share exchanges and company reconstructions) has effect. Part 1 provides for the replacement of sections 135 and 136 of the Taxation of Chargeable Gains Act 1992; Part 2 makes consequential amendments; and Part 3 provides for commencement. After section 162 of the Taxation of Chargeable Gains Act 1992 (c. 12) (roll-over relief on transfer of business) insert— Section 162 shall not apply where the transferor makes an election under this section. An election under this section must be made by a notice given to an officer of the Board no later than the relevant date. Except where subsection (4) below applies, the relevant date is the second anniversary of the 31st January next following the year of assessment in which the transfer of the business took place. Where, by the end of the year of assessment following the one in which the transfer of the business took place, the transferor has disposed of all the new assets, the relevant date is the first anniversary of the 31st January next following the year of assessment in which the transfer of the business took place. For the purposes of subsection (4) above— a disposal of any of the new assets by the transferor shall be disregarded if it falls within section 58(1) (transfers between husband and wife); but where a disposal of any assets to a person is disregarded by virtue of paragraph (a) above, a subsequent disposal by that person of any of those assets (other than a disposal to the transferor) shall be regarded as a disposal by the transferor. All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this section. Where, immediately before it was transferred, the business was owned by two or more persons— each of them has a separate entitlement to make an election under this section; an election made by a person by virtue of paragraph (a) above shall apply only to— the share of the amount of the gain on the old assets, and the share of the new assets, that is attributable to that person for the purposes of this Act. The reference in subsection (7) above to ownership by two or more persons includes, in Scotland as well as elsewhere in the United Kingdom, a reference to ownership by a partnership consisting of two or more persons. Expressions used in this section and in section 162 have the same meaning in this section as in that one. But references in this section to new assets also include any shares or debentures that are treated by virtue of one or more applications of section 127 (including that section as applied by virtue of any enactment relating to chargeable gains) as the same asset as the new assets. This section applies in relation to a transfer of a business on or after 6th April 2002. After section 105 of the Taxation of Chargeable Gains Act 1992 (c. 12) (disposal on or before day of acquisition of shares and other unidentified assets) insert— Subsection (2) below applies where an individual— acquires shares (“the relevant shares”) of the same class, on the same day and in the same capacity, and some of the relevant shares (“the approved-scheme shares”) are shares acquired by him as a result of— the exercise of a qualifying option within the meaning of paragraph 1(1) of Schedule 14 to the Finance Act 2000 (enterprise management incentives) in circumstances where paragraph 44, 45 or 46 of that Schedule (exercise of option to acquire shares) applies, or the exercise of an option to which subsection (1) of section 185 of the Taxes Act (approved share option schemes) applies in circumstances where paragraphs (a) and (b) of subsection (3) of that section apply. Where the individual first makes a disposal of any of the relevant shares, he may elect for subsections (3) to (5) below to have effect in relation to that disposal and all subsequent disposals of any of those shares. In circumstances where section 105 applies, that section shall have effect as if— paragraph (a) of subsection (1) of that section required the approved-scheme shares to be treated as acquired by the individual by a single transaction separate from the remainder of the relevant shares (which shall also be treated by virtue of that paragraph as acquired by the individual by a single transaction), and subsection (1) of that section required the approved-scheme shares to be treated as disposed of after the remainder of the relevant shares. If the relevant shares include shares to which relief under Chapter 3 of Part 7 of the Taxes Act or deferral relief (within the meaning of Schedule 5B to this Act) is attributable— paragraph 4(4) of that Schedule has effect as if it required the approved-scheme shares falling within paragraph (a), (b), (c) or (d) of that provision to be treated as disposed of after the remainder of the relevant shares falling within the paragraph in question, and section 299 of the Taxes Act has effect for the purposes of section 150A(4) below as if it required— the approved-scheme shares falling within paragraph (a), (b), (c) or (d) of subsection (6A) of section 299 of that Act to be treated as disposed of after the remainder of the relevant shares falling within the paragraph in question, and the approved-scheme shares to which subsection (6B) of that section applies to be treated as disposed of after the remainder of the relevant shares to which that subsection applies. Where section 127 applies in relation to any of the relevant shares (“the reorganisation shares”), that section shall apply separately to such of those shares as are approved-scheme shares and to the remainder of the reorganisation shares (so that those approved-scheme shares and the remainder of the reorganisation shares are treated as comprised in separate holdings of original shares and identified with separate new holdings). In subsection (5)— the reference to section 127 includes a reference to that section as it is applied by virtue of any enactment relating to chargeable gains, and “original shares” and “new holding” have the same meaning as in section 127 or (as the case may be) that section as applied by virtue of the enactment in question.

For the purposes of subsection (1) above— any shares to which relief under Chapter 3 of Part 7 of the Taxes Act is attributable and which were transferred to an individual as mentioned in section 304 of that Act, and any shares to which deferral relief (within the meaning of Schedule 5B to this Act), but not relief under that Chapter, is attributable and which were acquired by an individual on a disposal to which section 58 above applies, shall be treated as acquired by the individual on the day on which they were issued. In this section the references to Chapter 3 of Part 7, section 299 and section 304 of the Taxes Act shall be read as references to those provisions as they apply to shares issued after 31st December 1993 (enterprise investment scheme). The provisions of section 105A have effect in the case of any disposal notwithstanding that some or all of the securities disposed of are otherwise identified— by the disposal, or by a transfer or delivery giving effect to it. An election must be made, by a notice given to an officer of the Board, on or before the first anniversary of the 31st January next following the year of assessment in which the individual first makes a disposal of any of the relevant shares. an election is made in respect of the relevant shares, and any shares (“the other shares”) acquired by the individual on the same day and in the same capacity as the relevant shares cease to be treated under section 104(4) as shares of a different class from the relevant shares, the election shall have effect in respect of the other shares from the time they cease to be so treated. In determining for the purposes of section 105A(2) and subsection (2) above whether the individual has made a disposal of any of the relevant shares, sections 122(1) and 128(3) shall be disregarded. No election may be made in respect of ordinary shares in a venture capital trust. For this purpose “ordinary shares” has the meaning given in section 151A(7). For the purposes of section 105A, shares in a company shall not be treated as being of the same class unless they are so treated by the practice of a recognised stock exchange, or would be so treated if dealt with on that recognised stock exchange. In section 105A(2) to (5) and subsections (2) to (4) above, any reference to the relevant shares or to the approved-scheme shares includes a reference to the securities (if any) directly or indirectly derived from the shares in question by virtue of one or more applications of section 127 (including that section as applied by virtue of any enactment relating to chargeable gains). In this section— “the approved-scheme shares” has the same meaning as in section 105A; “election” means an election under that section; “the relevant shares” has the same meaning as in that section; and “securities” has the meaning given in section 104(3); and in subsection (4) the reference to section 128(3) includes a reference to that provision as it is applied by virtue of any enactment relating to chargeable gains. The amendment made by subsection (1) has effect in relation to shares acquired by an individual on or after 6th April 2002. For this purpose— any shares to which relief under Chapter 3 of Part 7 of the Taxes Act 1988 is attributable and which were transferred to an individual as mentioned in section 304 of that Act, and any shares to which deferral relief (within the meaning of Schedule 5B to the Taxation of Chargeable Gains Act 1992 (c. 12)), but not relief under that Chapter, is attributable and which were acquired by an individual on a disposal to which section 58 of that Act applies, In subsection (3)(a), the references to Chapter 3 of Part 7 and section 304 of the Taxes Act 1988 shall be read as references to those provisions as they apply to shares issued after 31st December 1993 (enterprise investment scheme). Schedule 11 to this Act (deduction of personal losses from gains treated as accruing to settlors) has effect. In section 62(7) of the Taxation of Chargeable Gains Act 1992 (c. 12) (election to treat subsequent variation of dispositions taking effect on death as if effected by deceased) for the words from “unless” to the end of the subsection substitute “ unless the instrument contains a statement by the persons making the instrument to the effect that they intend the subsection to apply to the variation. ”. This section applies in relation to instruments made on or after 1st August 2002. Schedule 15 to this Act (which makes minor amendments to Schedule 20 to the Finance Act 2000 (tax relief for R&D expenditure of small and medium-sized enterprises), including amendments consequential on Schedules 12 and 13 to this Act) has effect for accounting periods ending on or after 1st April 2002. Schedule 17 to this Act (which makes provision consequential on the introduction of community investment tax relief) has effect. Schedules 16 and 17 shall come into force on such day as the Treasury may by order appoint. On and after that day— Schedule 16 shall have effect in relation to— investments made on or after such day as the Treasury may so appoint, being a day not earlier than 17th April 2002, and claims made on or after such day as the Treasury may so appoint, paragraphs 2 to 4 of Schedule 17 shall have effect for years of assessment ending on or after the day appointed under paragraph (a)(i), and paragraph 5 of that Schedule shall have effect for accounting periods ending on or after that day. Schedule 19 to this Act (first-year allowances in respect of expenditure on cars with low CO2 emissions and exemption from single asset pool rules) has effect in relation to expenditure incurred on or after 17th April 2002. Schedule 20 to this Act (first-year allowances in respect of expenditure on plant or machinery for gas refuelling station) has effect in relation to expenditure incurred on or after 17th April 2002. Schedule 21 to this Act shall have effect. Part 1 makes provision for and in connection with first-year allowances under Part 2 of the Capital Allowances Act 2001 in respect of expenditure incurred by a company on the provision of plant or machinery for use wholly for the purposes of a ring fence trade chargeable to tax under section 330(1) of the Corporation Tax Act 2010; and Part 2 makes provision for and in connection with first-year allowances under Part 5 of that Act (mineral extraction allowances) in respect of expenditure incurred by a company wholly for the purposes of such a trade. The amendments made by that Schedule have effect in relation to expenditure incurred on or after 17th April 2002. This section applies in relation to the computation in accordance with the provisions applicable for the purposes of section 35 of the Corporation Tax Act 2009 (charge on trade profits) of the profits of the insurance business, other than life assurance business, of— an insurance company, a corporate member of Lloyd’s, or a controlled foreign company. For periods of account to which this section applies nothing in— section 46 of the Corporation Tax Act 2009 (computation of profits to be on basis giving true and fair view), prevents the company from computing the profits of that business on a realisation basis rather than a mark to market basis. A “realisation basis” means not recognising a profit or loss on an asset until it is realised, and a “mark to market basis” means bringing assets into account in each period of account at a fair value. Subject to subsection (4), this section applies in relation to any period of account that— began before 1st August 2001, and ends before 31st July 2002. This section does not apply if— an earlier period of account beginning on or after 1st January 2001 ended with an accounting date different from that with which the previous period of account ended, the change of accounting date was notified— to the registrar of companies, or in the case of a company established under the law of a country or territory outside the United Kingdom, to the corresponding authority of that country or territory, on or after 17th April 2002, and the purpose, or one of the purposes, for which the change was made was so that a subsequent period of account would be one to which section 64 above applies (computation of profits: adjustment on change of basis). “controlled foreign company” has the same meaning as in Chapter 4 of Part 17 of the Taxes Act 1988; and “corporate member of Lloyd’s” means a corporate member as defined in section 230(1) of the Finance Act 1994 (c. 9). Where section 65 (postponement of change to mark to market in certain cases) applies in relation to a period of account, the company may elect that it shall continue to apply in relation to subsequent periods of account as regards assets held by it on 1st January 2002. Any such election must be made within twelve months after the end of the accounting period of the company current on that date. An insurance company that carries on both long-term business and business other than long-term business may make an election under this section limited to assets held by the company otherwise than in the company’s long-term insurance fund. For the purpose of determining whether an election under this section applies to an asset in a case where— assets are realised by the company in an accounting period beginning on or after 1st January 2002, the assets are of such a kind that the particular assets realised are not readily identifiable, the realisation does not exhaust the company’s holding, and some but not all of the company’s holding was acquired after 1st January 2002, assets realised shall be identified with assets acquired on the same basis as that used by the company for accounting purposes, unless the basis used by the company is “last in, first out” in which case assets realised shall be identified with assets acquired on or before 1st January 2002 in priority to assets acquired after that day. Where a company has made an election under this section and— an asset in relation to which the election has effect is transferred to another company (“the transferee company”) in pursuance of an insurance business transfer scheme, and immediately after the transfer either— the transferee company is resident in the United Kingdom, or the asset is held for the purposes of a business carried on by the transferee company in the United Kingdom through a branch or agency, this section applies as if the transferee company had made an election under this section in relation to that asset. ... In section 81 of the Finance Act 1999 (c. 16) (acquisitions disregarded under insurance companies concession), at the end add— If the relevant company changes from— not recognising a profit or loss on an asset until it is realised, to bringing assets into account in each period of account at a fair value, then, in calculating the amount of any adjustment required under Schedule 22 to the Finance Act 2002 (calculation of adjustment on change of basis), the amount to be taken into account as the cost of the asset in relation to a period of account before the change is the cost of the previous acquisition. The provisions of this section come into force as follows— the amendments in subsections (1) and (2) apply in relation to periods of account ending on or after 1st August 2001; the amendment in subsection (3) applies wherever an adjustment falls to be made under Schedule 22 to the Finance Act 2002 (see Part 5 of that Schedule). The following provisions shall cease to have effect— paragraph 4 of Schedule 9 to the Finance Act 1996 (c. 8) (which excludes foreign exchange gains and losses from the computation of credits and debits under the loan relationships legislation); and in consequence, sections 125 to 169 of the Finance Act 1993 (c. 34) (taxation of foreign exchange gains and losses). Schedule 23 to this Act (which makes provision in relation to exchange gains and losses from loan relationships etc) shall have effect. The amendments made by subsection (1) and by Parts 1 and 2 of Schedule 23 have effect in relation to accounting periods beginning on or after 1st October 2002. Schedule 24 to this Act (which makes provision in relation to corporation tax and currency) shall have effect. This section has effect in relation to accounting periods beginning on or after 1st October 2002. The Treasury may by regulations make such transitional or consequential provision, or such savings (with or without modifications), as they may from time to time consider appropriate in consequence of, or otherwise in connection with, any provision of section 79 or 80 or Schedule 23 or 24 (or any repeal consequential on any such provision). The power conferred by subsection (1) includes power— to make different provision for different cases or different purposes; to amend any statutory instrument; and to make incidental or supplementary provision. The provision that may be made by virtue of subsection (1) or (2) includes provision for or in connection with bringing amounts into account— for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12), as if they were chargeable gains or allowable losses; or for the purposes of Part 5 of the Corporation Tax Act 2009, as if they were credits or debits in respect of a loan relationship or a related transaction of the company concerned. Nothing in any provision of Schedule 23 or 24 shall prejudice the operation of this section. Nothing in this section or in Schedule 23 or 24 limits the operation of section 16 or 17 of the Interpretation Act 1978 (c. 30) (effect of repeals). Schedule 25 to this Act (which makes provision in relation to loan relationships) shall have effect. The amendments made by Parts 1 and 2 of that Schedule have effect in relation to accounting periods beginning on or after 1st October 2002. The following shall have effect— Schedule 27 to this Act (which makes minor and consequential amendments relating to the taxation of derivative contracts); and Schedule 28 to this Act (which contains transitional provisions etc in connection with the coming into force of this section and Schedules 26 and 27). Subsection (3) is subject to any specific provision of Schedule 28. Schedule 30 to this Act contains consequential amendments. In Chapter 3 of Part 6 of the Taxation of Chargeable Gains Act 1992 (c. 12) (insurance), after section 211 insert— Schedule 7AD to this Act has effect with respect to the gains of an insurance company from a venture capital investment partnership. After Schedule 7AC to that Act (inserted by Part 1 of Schedule 8 to this Act) insert the Schedule 7AD set out in Schedule 31 to this Act. Schedule 32 to this Act (which makes provision about the taxation of Lloyd’s underwriters) has effect. The amendments in that Schedule have effect in relation to quota share contracts (within the meaning of section 178 of the Finance Act 1993 (c. 34) or section 225 of the Finance Act 1994) entered into on or after 17th April 2002. The following amendments are consequential on that above— This section applies on and after the date on which this Act is passed in relation to arrangements made before that date (as well as in relation to arrangements made on or after that date). In section 748 of the Taxes Act 1988 (controlled foreign companies: cases where no apportionment falls to be made under section 747(3)) after subsection (5) insert— This section is subject to section 748A. After section 748 of the Taxes Act 1988 insert— Territorial exclusions from exemption under section 748 Nothing in section 748 prevents an apportionment under section 747(3) falling to be made as regards an accounting period of a controlled foreign company if the company— is a company incorporated in a territory to which this section applies as respects that accounting period; or is at any time in that accounting period liable to tax in such a territory by reason of domicile, residence or place of management; or at any time in that accounting period carries on business through a branch or agency in such a territory. The condition in subsection (1)(c) above is not satisfied as regards an accounting period of a controlled foreign company if the business carried on by the company in that period through branches or agencies in territories to which this section applies, taken as a whole, is only a minimal part of the whole of the business carried on by the company in that period. The territories to which this section applies as respects an accounting period of a controlled foreign company are those specified as such in regulations made by the Treasury. Regulations under subsection (3) above— may make different provision for different cases or with respect to different territories; and may contain such incidental, supplemental, consequential or transitional provision as the Treasury may think fit. A statutory instrument containing regulations under subsection (3) above shall not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons. This section has effect in relation to accounting periods of controlled foreign companies beginning on or after the day on which this Act is passed. In this section “accounting period” and “controlled foreign company” have the same meaning as in Chapter 4 of Part 17 of the Taxes Act 1988. In section 59E of the Taxes Management Act 1970 (c. 9) (further provision as to when corporation tax is due and payable) in subsection (11) (extension of references in the section to corporation tax) after paragraph (b) add— to any sum chargeable on a company under section 501A(1) of the principal Act (supplementary charge in respect of ring fence trades) as if it were an amount of corporation tax chargeable on the company In Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns: assessments and related matters) in paragraph 1 (meaning of “tax”) in the second sentence (amounts assessable or chargeable as if they were corporation tax) for the word “and” immediately preceding the paragraph beginning “section 747(4)(a)” substitute the following paragraph— section 501A(1) of that Act (supplementary charge in respect of ring fence trades), and In paragraph 8 of that Schedule (calculation of tax payable) after paragraph number 1 of the third step insert— Any sum chargeable under section 501A(1) of that Act (supplementary charge in respect of ring fence trades). Regulation 3 of the Instalment Payment Regulations (large companies) is amended as follows. In paragraph (1) (which, subject to paragraphs (2) and (3), defines a large company) for “paragraphs (2) and (3),” substitute “ paragraphs (2) to (3A), ”. After paragraph (3) insert— Any question whether a company is, or is not, a large company as respects an accounting period beginning on or after 17th April 2002 shall, so far as not falling to be determined by reference to the company’s total liability, be determined as it would have been determined apart from section 501A of the Taxes Act (supplementary charge in respect of ring fence trades). The amendment by this section of any provision contained in regulations shall not be taken to have prejudiced any power to make further regulations revoking or amending that provision, whether in relation to the same or any other chargeable periods. In this section “the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175). In the case of a straddling period, that is to say, an accounting period which begins before 17th April 2002 and ends on or after that date— sections 501A and 501B of the Taxes Act 1988 (which are inserted by sections 91 and 92) shall apply as if so much of the straddling period as falls before 17th April 2002, and so much of that period as falls on or after that date, were separate accounting periods; and all necessary apportionments between the two separate accounting periods shall be made in proportion to the number of days in those periods. In the case of a straddling period, the Instalment Payment Regulations shall apply separately— in relation to any tax chargeable on the company under section 501A(1) of the Taxes Act 1988; and in relation to any other tax chargeable on the company. In their application by virtue of paragraph (a) of subsection (2), the Instalment Payment Regulations shall have effect in relation to the tax mentioned in that paragraph as if— the deemed accounting period treated under subsection (1)(a) as beginning on 17th April 2002 were an accounting period for the purposes of those Regulations; and that tax were chargeable for that period. Any reference in the Instalment Payment Regulations to the total liability of a company shall accordingly be construed— in their application by virtue of paragraph (a) of subsection (2), as a reference to the tax mentioned in that paragraph; and in their application by virtue of paragraph (b) of that subsection, as a reference to the amount that would be the company’s total liability for the straddling period if the tax mentioned in paragraph (a) of that subsection were left out of account. For the purposes of the Instalment Payment Regulations— a company shall be regarded as a large company as respects the deemed accounting period under subsection (3)(a) if, and only if, it is a large company for those purposes as respects the straddling period; and any question whether a company is a large company as respects the straddling period shall be determined as it would have been determined apart from section 501A of the Taxes Act 1988. In this section “the Instalment Payment Regulations” has the same meaning as in section 92. In section 98 of the Taxes Management Act 1970 (c. 9) (special returns, etc), in subsection (4B)— in paragraph (a), after “a company” insert “ or local authority ”, in paragraph (b)— after “the company” insert “ or authority ”, and for “either”, in each place, substitute “ one ”, in paragraph (c), after “the company” insert “ or authority ”, and in paragraph (d), for “neither” substitute “ none ”. In that section, for subsection (4C) substitute— In subsection (4B) above— “company” includes a partnership of which any member is a company; and “local authority” includes a partnership of which any member is a local authority. The amendments made by this section apply for the purposes of payments made on or after 1st October 2002. In section 98 of the Taxes Management Act 1970 (c. 9) (special returns etc)— after subsection (4C) insert— A payment is within this subsection if— it is a payment to which section 349(1) of the principal Act (requirement to deduct tax) applies, it is made by a company which, purporting to rely on section 349E(1) of that Act (power for companies to take account of double taxation treaty relief when paying royalties), deducts less tax from the payment than required by section 349(1) of that Act , and at the time the payment is made the payee (within the meaning of section 349E of that Act) is not entitled to relief in respect of the payment under any arrangements under section 788 of that Act (double taxation relief) and the company— does not believe that it is entitled to such relief, or if it does so believe, cannot reasonably do so. This section applies in relation to payments made on or after 1st October 2002. In section 288(1) of the Taxation of Chargeable Gains Act 1992 (interpretation), at the appropriate place insert— “period of account” has the meaning given by section 832(1) of the Taxes Act; In the following provisions for “normal accounting practice” or “normal accountancy practice”, wherever occurring, substitute “ generally accepted accounting practice ” in the Taxes Act 1988, sections ......, ..., 798B(1) ..., ...; in the Finance Act 1993 (c. 34), sections ... 150(6)(c) and (11)(c), 154(11)(c), (12)(d), (13)(b), (13A)(d) and (13B)(d), 155(7), (11)(d) and (12)(b), 156(2)(e) and (4)(b) and 159(1)(b); in the Finance Act 1994 (c. 9), section 156(3)(a) and (4)(a); in the Finance Act 2000 (c. 17), ... in Schedule 15, paragraph 29(4), ...; in the Capital Allowances Act 2001 (c. 2), sections 179(1)(f), 219(1) ...; The amendments made by subsections (1) to (3) above have effect for the purposes of provisions of this Act using the expressions mentioned (including provisions inserted by amendment in other enactments) whenever those provisions are expressed to have effect or to come, or to have come, into force. This is without prejudice to the general effect of those amendments. In Schedule 12 to the Finance Act 1988 (c. 39) (building societies: change of status)— in paragraph 1 (which provides that paragraphs 2 to 7 apply where there is a transfer of the whole of a building society’s business to a successor company in accordance with section 97 etc of the Building Societies Act 1986 (c. 53)) for “2” substitute “ 3 ”; and omit paragraph 2 (which relates to gilt-edged securities and other financial trading stock and is superseded by Chapter 2 of Part 4 of the Finance Act 1996). This section applies where— an instrument (“the relevant instrument”) transferring land in the United Kingdom from one company (“the transferor company”) to another (“the transferee company”) has been stamped on the basis that group relief applies, before the end of the period of three years beginning with the date on which the instrument was executed the transferee company ceases to be a member of the same group as the transferor company, and at the time when the transferee company ceases to be a member of the same group as the transferor company it or a relevant associated company holds an estate or interest in land— that was transferred to the transferee company by the relevant instrument, or that is derived from an estate or interest that was so transferred, and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed. In those circumstances— group relief in relation to the relevant instrument, or an appropriate proportion of it, is withdrawn, and the stamp duty that would have been payable on stamping the relevant instrument but for group relief if the estate or interest in land transferred by that instrument had been transferred at market value, or an appropriate proportion of the duty that would have been so paid, is payable by the transferee company within 30 days after that company ceases to be a member of the same group as the transferor company. In subsection (2)(a) and (b) “an appropriate proportion” means an appropriate proportion having regard to what was transferred to the transferee company by the relevant instrument and what is held by that company or, as the case may be, that company and any relevant associated companies, at the time it or they cease to be members of the same group as the transferor company. In this section “group relief” means relief under any of the following provisions— section 42 of the Finance Act 1930 (c. 28) or section 11 of the Finance Act (Northern Ireland) 1954 (c. 23 (N.I.)) (transfer of property between associated bodies corporate); section 151 of the Finance Act 1995 (c. 4) (leases etc between associated bodies corporate). In this section “relevant associated company”, in relation to the transferee company, means a company that— is a member of the same group as the transferee company immediately before that company ceases to be a member of the same group as the transferor company, and ceases to be a member of the same group as the transferor company in consequence of the transferee company so ceasing. references to the transfer of land include the grant or surrender of an estate or interest in or over land; “company” includes any body corporate; and references to a company being in the same group as another company are to the companies being associated bodies corporate within the meaning of the relevant group relief provision. Schedule 34 to this Act contains provisions supplementing this section. Where the relevant instrument transfers land in the United Kingdom together with other property, the provisions of this section and of Schedule 34 apply as if there were two separate instruments, one relating to land in the United Kingdom and the other relating to other property. This section applies where the relevant instrument is executed after 23rd April 2002. But this section does not apply to an instrument giving effect to a contract made on or before 17th April 2002, unless— the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract because of an assignment (or, in Scotland, assignation) or further contract made after that date. Section 15B of the Stamp Act 1891 (c. 39) (late stamping: penaties) is amended as follows. in paragraph (a) (penalty where instrument not stamped within 30 days of execution), after “is executed in the United Kingdom” insert “ or relates to land in the United Kingdom ”; in paragraph (b) (penalty where instrument not stamped within 30 days of instrument being first received in the United Kingdom), after “is executed outside the United Kingdom” insert “ and does not relate to land in the United Kingdom ”. After that subsection insert— For the purposes of subsection (1) every instrument that (whether or not it also relates to any other transaction) relates to a transaction which to any extent involves land in the United Kingdom is an instrument relating to land in the United Kingdom. This section applies in relation to instruments executed on or after the day on which this Act is passed. This section applies to a contract or agreement for the sale of an estate or interest in land in the United Kingdom where— the amount or value of the consideration exceeds £10 million, or the instrument forms part of a larger transaction or series of transactions in respect of which the amount or value, or aggregate amount or value, of the consideration exceeds £10 million. If, in the case of such a contract or agreement that is not otherwise chargeable to stamp duty, a conveyance or transfer made in conformity with the contract or agreement is not presented to the Commissioners for stamping with the ad valorem duty chargeable on it— within the period of 90 days after the execution of the contract or agreement, or within such longer period as the Commissioners may think reasonable in the circumstances of the case, the contract or agreement shall be chargeable with the same ad valorem duty, to be paid by the purchaser, as if it were an actual conveyance on sale of the estate or interest contracted or agreed to be sold. The Commissioners— may refuse to allow a longer period unless they are provided with a copy of the contract or agreement and such other evidence as they may reasonably require as to the facts and circumstances relevant to their decision, may allow a longer period subject to compliance with such conditions as they think fit, and shall not allow any longer period if it appears to them that the whole, or substantially the whole, of the intended consideration has been paid or transferred. Where an instrument to which this section applies is presented for stamping before the end of the period mentioned in subsection (2)— any adjudication to the effect that stamp duty is not chargeable does not affect the operation of this section, and the fact that duty may be chargeable under this section may be denoted on the instrument in such manner as the Commissioners think fit. Where an instrument is chargeable with duty under this section— section 14(4) of the Stamp Act 1891 (c. 39) (inadmissibility of unstamped instruments) does not apply in relation to it until after the end of the period mentioned in subsection (2) above, and sections 15A and 15B of that Act (late stamping: interest and penalties), apply in relation to it as if it had been executed at the end of that period. The ad valorem duty paid upon a contract or agreement under this section shall be repaid by the Commissioners if the contract or agreement is afterwards rescinded or annulled or is for any other reason not substantially performed or carried into effect. Schedule 36 contains provisions supplementing this section. This section and that Schedule apply to contracts or agreements executed after the day on which this Act is passed. No stamp duty is chargeable on an instrument for the sale, transfer or other disposition of goodwill. Schedule 37 to this Act contains provisions supplementing this section. This section and that Schedule shall be construed as one with the Stamp Act 1891 (c. 39). This section applies to instruments executed on or after 23rd April 2002. This section shall be deemed to have come into force on that date. For the Table in Schedule 1 to the Inheritance Tax Act 1984 (c. 51) substitute— Table of Rates of Tax Subsection (1) shall apply to any chargeable transfer made on or after 6th April 2002; and section 8(1) of that Act (indexation of rate bands) shall not have effect as respects any difference between the retail prices index for the month of September 2000 and that for the month of September 2001. The Inheritance Tax Act 1984 is amended in accordance with the following provisions of this section. After section 47 (meaning of “reversionary interest”) insert— In this Act “settlement power” means any power over, or exercisable (whether directly or indirectly) in relation to, settled property or a settlement. After section 55 (reversionary interest acquired by beneficiary) insert— Where a person makes a disposition by which he acquires a settlement power for consideration in money or money’s worth— section 10(1) above shall not apply to the disposition; the person shall be taken for the purposes of this Act to make a transfer of value; the value transferred shall be determined without bringing into account the value of anything which the person acquires by the disposition; and sections 18 and 23 to 27 above shall not apply in relation to that transfer of value. For the purposes of this section, a person acquires a settlement power if he becomes entitled— to a settlement power, to exercise, or to secure or prevent the exercise of, a settlement power (whether directly or indirectly), or to restrict, or secure a restriction on, the exercise of a settlement power (whether directly or indirectly), as a result of transactions which include a disposition (whether to him or another) of a settlement power or of any power of a kind described in paragraph (b) or (c) above which is exercisable in relation to a settlement power. In section 272 (general interpretation)— insert the following definition at the appropriate place— “settlement power” has the meaning given by section 47A above; and in the definition of “property”, at the end insert “ but does not include a settlement power ”. In consequence of the amendments made by this section, the title of Chapter 2 of Part 3 of the Inheritance Tax Act 1984 (c. 51) becomes “Interests in possession, reversionary interests and settlement powers”. The amendments made by this section have effect in relation to transfers of value on or after 17th April 2002. The amendments made by subsections (2) and (4) shall also be deemed always to have had effect (subject to and in accordance with the other provisions of the Inheritance Tax Act 1984) for the purpose of determining the value, immediately before his death, of the estate of any person who died before 17th April 2002, for the purposes of the transfer of value which that person is treated by section 4(1) of that Act as having made immediately before his death. In section 142 of the Inheritance Tax Act 1984 (alteration of dispositions taking effect on death), for subsection (2) (election to treat subsequent variation of dispositions taking effect on death as if effected by deceased) substitute— Subsection (1) above shall not apply to a variation unless the instrument contains a statement, made by all the relevant persons, to the effect that they intend the subsection to apply to the variation. For the purposes of subsection (2) above the relevant persons are— the person or persons making the instrument, and where the variation results in additional tax being payable, the personal representatives. Personal representatives may decline to make a statement under subsection (2) above only if no, or no sufficient, assets are held by them in that capacity for discharging the additional tax. After section 218 of that Act insert— an instrument is made varying any of the dispositions of the property comprised in the estate of a deceased person immediately before his death, the instrument contains a statement under subsection (2) of section 142 above, and the variation results in additional tax being payable, the relevant persons (within the meaning of that subsection) shall, within six months after the day on which the instrument is made, deliver a copy of it to the Board and notify them of the amount of the additional tax. To the extent that any of the relevant persons comply with the requirements of this section, the others are discharged from the duty to comply with them. In section 245A of that Act (failure to provide information etc)— after subsection (1) insert— A person who fails to comply with the requirements of section 218A above shall be liable— to a penalty not exceeding £100; and to a further penalty not exceeding £60 for every day after the day on which the failure has been declared by a court or the Special Commissioners and before the day on which the requirements are complied with. in subsection (4), insert “ (1A)(b), ” after “subsection (1)(b),” and after paragraph (a) insert— he complies with the requirements of section 218A above, In section 42 of the Finance Act 1996 (c. 8) (amount of landfill tax), in subsections (1)(a) and (2) for “£12” substitute “ £13 ”. This section has effect in relation to taxable disposals made, or treated as made, on or after 1st April 2002. In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 20 insert— A supply of electricity is exempt from the levy chargeable under paragraph 5(1) if— the supply is not one that is deemed to be made under paragraph 23(3), the supply is made under a contract that contains a CHP declaration given by the supplier, prescribed conditions are fulfilled, and the supplier, and each other person (if any) who is a generator of any CHP electricity allocated by the supplier to supplies under the contract, has in a written notice given to the Commissioners agreed that he will fulfil those conditions so far as they may apply to him. Sub-paragraph (1) does not apply in relation to a supply to a person of electricity produced in a wholly or partly exempt combined heat and power station where the supply is made to that person from the station. In this paragraph “CHP declaration” means a declaration that, in each averaging period, the amount of electricity supplied by exempt CHP supplies made by the supplier in the period will not exceed the difference between— the total amount of CHP electricity that during that period is either acquired or generated by the supplier, and so much of that total amount as is allocated by the supplier otherwise than to exempt CHP supplies made by him in the period. In this sub-paragraph “averaging period” has the same meaning as in paragraph 20B; and “exempt CHP supplies” means supplies made on the basis that they are exempt under this paragraph. For the purposes of this paragraph and paragraph 20B, electricity is “CHP electricity” if— the electricity was— produced in a fully exempt combined heat and power station, or produced in a partly exempt combined heat and power station and originally supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded, the electricity is not renewable source electricity (within the meaning of paragraph 19), and prescribed conditions are fulfilled. The conditions that may be prescribed under sub-paragraph (1)(c) include, in particular, conditions in connection with— the giving of effect to CHP declarations; the supply of information; the inspection of records and, for that purpose, the production of records in legible form and entry into premises; monitoring by the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, of the application of provisions of, or made under, this paragraph; the doing of things to or by a person authorised by the Authority or the Director General (as well as the doing of things to or by the Authority or the Director General); things being done at times or in ways specified by the Authority, the Director General or such an authorised person. A condition prescribed under sub-paragraph (1)(c) may be one that is required to be fulfilled throughout a period, including a period ending after the time when a supply whose exemption turns on the fulfilment of the condition is treated as being made. The conditions that may be prescribed under sub-paragraph (4)(c) include in particular conditions in connection with any of the matters mentioned in paragraphs (b) to (f) of sub-paragraph (5). Each of— the Gas and Electricity Markets Authority, and the Director General of Electricity Supply for Northern Ireland, shall supply the Commissioners with such information (whether or not obtained under this paragraph), and otherwise give the Commissioners such co-operation, as the Commissioners may require in connection with the application of this paragraph (whether generally or in relation to any particular case). Paragraph 19(10) (disclosure of information) applies in relation to sub-paragraph (8) above as it applies in relation to paragraph 19(8). This paragraph applies where a person (“the supplier”) makes supplies of electricity on the basis that they are exempt under paragraph 20A (“exempt CHP supplies”). The rules about balancing and averaging periods are— a balancing period is a period of three months; when a balancing period ends, a new one begins; the first balancing period and the first averaging period begin at the same time; unless the supplier specifies an earlier time, that time is the time when he is treated as making the first of the exempt CHP supplies; when an averaging period ends, a new one begins; an averaging period ends once it has run for two years (but may end sooner under paragraph (g) or sub-paragraph (4)(a) or (5)(a)); if the supplier stops making exempt CHP supplies, the end of the balancing period in which he makes the last exempt CHP supply is also the end of the averaging period in which the balancing period falls. At the end of each balancing period calculate— the total of— the quantity of CHP electricity that the supplier acquired or generated in that period, and any balancing credit carried forward to that balancing period; and the quantity of electricity supplied by exempt CHP supplies made by him in that period, and any balancing debit carried forward to that balancing period. If the total mentioned in sub-paragraph (3)(a) exceeds that mentioned in sub-paragraph (3)(b)— the averaging period within which the balancing period fell ends at the end of the balancing period, and a balancing credit equal to the difference between the two totals is carried forward to the next balancing period. If the totals mentioned in paragraphs (a) and (b) of sub-paragraph (3) are the same— no balancing credit or debit is carried forward to the next balancing period. Sub-paragraphs (7) and (8) apply if the total mentioned in sub-paragraph (3)(b) exceeds that mentioned in sub-paragraph (3)(a). Where the end of the balancing period is by virtue of sub-paragraph (2)(g) the end of an averaging period, the supplier is liable to account to the Commissioners for an amount equal to the amount that would be payable by way of levy on a taxable supply that— is made at the end of the balancing period, and is a supply of a quantity of electricity equal to the difference between the two totals. For the purposes of this Schedule, the amount for which the supplier is liable to account shall be treated as an amount of levy for which he is liable to account for an accounting period ending at the end of the balancing period. Where sub-paragraph (7) does not apply, a balancing debit equal to the difference between the two totals is carried forward to the next balancing period. Subsection (1) has effect in relation to supplies of electricity made on or after such day as the Treasury may by order made by statutory instrument appoint. In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), after paragraph 149 insert— The Commissioners may by regulations make provision for the Gas and Electricity Markets Authority, or the Director General of Electricity Supply for Northern Ireland, to certify as respects any quantity of electricity that— the electricity has been produced in a fully exempt combined heat and power station; the electricity has been produced in a partly exempt combined heat and power station and supplied from the station without causing the limit referred to in paragraph 16(2) to be exceeded. Regulations under this paragraph may provide that for any purposes of this Schedule (or any regulations made under it)— electricity is not to be regarded as having been produced as specified in sub-paragraph (1)(a) unless it has been certified under that provision; electricity is not to be regarded as having been produced and supplied as specified in sub-paragraph (1)(b) unless it has been certified under that provision. Regulations under this paragraph may in particular provide that the supply of any electricity does not qualify for the exemption under paragraph 16(2) unless the electricity is certified as specified in sub-paragraph (1)(b). Regulations under this paragraph may also make provision for determining whether electricity is produced and supplied as specified in sub-paragraph (1)(b). In Schedule 6 to the Finance Act 2000 (c. 17) (climate change levy), in paragraph 20(7), (exemption under paragraph 19: liability to account)— for the words from “(2)(c)” to “2 years)” substitute “ (2)(g) ”, after paragraph (a) insert “and”, and omit paragraph (c) and the preceding “and”. This section has effect in relation to averaging periods under paragraph 20 of that Schedule which end on or after the day on which this Act is passed. In Schedule 6 to the Finance Act 2000 (climate change levy), in sub-paragraph (2)(a) of paragraph 101 (civil penalties: incorrect notifications etc)— in sub-paragraph (ii) for “18 and 21, or” substitute “ 15, 18 and 21, ”; before the word “and” at the end of sub-paragraph (iii) insert— , or a reduced-rate supply (or reduced-rate supplies), This section applies in relation to certificates given in respect of any supplies made on or after 24th April 2002. In Schedule 6 to the Finance Act 2000 (climate change levy), immediately before paragraph 142 insert— This paragraph applies where— a person issues an invoice showing an amount as levy chargeable on a supply, and no levy is chargeable on the supply, or the amount chargeable is less than the amount shown. The person shall be liable to a penalty unless he satisfies the Commissioners or, on appeal, a tribunal that there is a reasonable excuse for the inclusion in the invoice of the false information. The amount of the penalty is £50 or, if more, the following amount— where no levy is chargeable, the amount shown as chargeable; where an amount of levy is chargeable, the difference between that amount and the amount shown as chargeable.

It is irrelevant for the purposes of sub-paragraph (1) whether or not the supply shown on the invoice actually takes place or has taken place. A reference in this paragraph to an invoice is a reference to any kind of invoice (and not just a climate change levy accounting document). This section applies only in relation to invoices issued on or after the day on which this Act is passed. After section 30 of the Finance Act 2001 (c. 9) (credit for aggregates levy) insert— The Commissioners may by regulations make provision of the kind described in section 30(2) above (entitlement to tax credit) in relation to cases where aggregate is used in Northern Ireland for a prescribed purpose— on or after the commencement date, and before 1st April 2007. In relation to the use of aggregate in the year ending with a date shown in the first column of the following table, the amount of any tax credit to which a person would otherwise by entitled by virtue of the regulations shall be reduced by the percentage of that amount shown opposite that date in the second column. Subsections (3) to (5) of section 30 above apply to regulations under this section as they apply to regulations under that section. In section 17(6) of that Act (certain tax credits to be disregarded in determining whether aggregate has already been charged to levy), in paragraph (a) after “section 30(1)(c)” insert “ or 30A ”. In section 17(3) of the Finance Act 2001 (c. 9) (aggregate that is exempt)— in paragraph (e) (by-products of extracting china clay or ball clay), after “or other by-products” insert “ , not including the overburden, ”; after that paragraph insert— it consists wholly of the spoil from any process by which— coal, lignite, slate or shale, or a substance listed in section 18(3) below, has been separated from other rock after being extracted or won with that other rock; Omit section 17(4)(b) of that Act (aggregate exempt if it consists, or is part of anything consisting, wholly or mainly of spoil from the separation of coal from other rock after extraction). This section shall be deemed to have come into force on 1st April 2002. In section 17(3) of the Finance Act 2001 (exempt aggregate), omit paragraph (a) (exemption for rock that has not been subjected to an industrial crushing process). In section 18(2)(a) of that Act (exemption for production of dimension stone), for “dimension stone” substitute “ stone with one or more flat surfaces ”. The following amendments to that Act are consequential on that made by subsection (1)— in section 20(1) (originating sites), omit— the words “and is not rock” in paragraphs (a) and (b), and paragraph (c); in section 21 (operators of sites), omit subsection (2)(b); in section 24 (the register), omit subsections (6)(b) and (8)(a). Schedule 38 to this Act, which makes amendments to provisions in Part 2 of the Finance Act 2001 (aggregates levy), has effect. In section 197(2) of the Finance Act 1996 (c. 8) (enactments for which interest rates are set under section 197), in paragraph (h) (aggregates levy provisions) in sub-paragraph (ii) for “paragraph 8(3)(a)” substitute “ paragraphs 6 and 8(3)(a) ”. Part 2 of Schedule 6 to the Finance Act 2001 (c. 9) (aggregates levy: civil penalties) is amended as follows. After paragraph 9 insert— a claim is made for a tax credit in such a case as is mentioned in— section 30(1)(c) of this Act (aggregate used in a prescribed industrial or agricultural process), or section 30A of this Act (transitional tax credit in Northern Ireland); a record or other document is provided to the Commissioners as evidence for the claim; and the record or document is incorrect. The person who provided the document to the Commissioners, and any person who provided it to anyone else with a view to its being used as evidence for a claim for a tax credit, shall be liable to a penalty. The amount of the penalty shall be equal to 105 per cent of the difference between— the amount of tax credit that would have been due on the claim if the record or document had been correct, and the amount (if any) of tax credit actually due on the claim. The providing of a record or other document shall not give rise to a penalty under this paragraph if the person who provided it satisfies the Commissioners or, on appeal, an appeal tribunal that there is a reasonable excuse for his having provided it. Where by reason of providing a record or other document— a person is convicted of an offence (whether under this Act or otherwise), or a person is assessed to a penalty under paragraph 7 or 9 above, that person shall not by reason of the providing of the record or document be liable also to a penalty under this paragraph. This section shall be deemed to have come into force on 1st May 2002. The Commissioners for Her Majesty’s Revenue and Customs (“the Commissioners”) may make regulations requiring the use of electronic communications for the delivery by specified persons of specified information required or authorised to be delivered by or under legislation relating to a taxation matter. Regulations under this section may make provision— as to the electronic form to be taken by information delivered to the Revenue and Customs using electronic communications; requiring persons to prepare and keep records of information delivered to Revenue and Customs by means of electronic communications; for the production of the contents of records kept in accordance with the regulations; as to conditions that must be complied with in connection with the use of electronic communications for the delivery of information; for treating information as not having been delivered unless conditions imposed by any of the regulations are satisfied; for determining the time at which and person by whom information is to be taken to have been delivered; for authenticating whatever is delivered. Regulations under this section may also make provision (which may include provision for the application of conclusive or other presumptions) as to the manner of proving for any purpose— whether any use of electronic communications is to be taken as having resulted in the delivery of information; the time of delivery of any information for the delivery of which electronic communications have been used; the person by whom information delivered by means of electronic communications was delivered; the contents of anything so delivered; the contents of any records; any other matter for which provision may be made by regulations under this section. Regulations under this section may— allow any authorisation , requirement or other provision (other than provision under subsection (7)(a) to (ba)) for which the regulations may provide to be given , imposed or made by means of a specific or general direction given by the Commissioners; provide that the conditions of any such authorisation or requirement are to be taken to be satisfied only where the Revenue and Customs are satisfied as to specified matters; allow a person to refuse to accept delivery of information in an electronic form or by means of electronic communications except in such circumstances as may be specified in or determined under the regulations; allow or require use to be made of intermediaries in connection with— the delivery of information by means of electronic communications; or the authentication or security of anything transmitted by any such means. Regulations under this section may contain provision— requiring the Revenue and Customs to notify persons appearing to them to be, or to have become, a person of a specified description and accordingly required to use electronic communications for any purpose in accordance with the regulations, enabling a person so notified to have the question whether he is a person of such a description determined in the same way as an appeal. Regulations under this section may provide— that information delivered by means of electronic communications must meet standards of accuracy and completeness set by specific or general directions given by the Commissioners, and that failure to meet those standards may be treated— as a failure to deliver the information, or as a failure to comply with the requirements of the regulations. The power to make provision by regulations under this section includes power— to provide for a contravention of, or any failure to comply with, the regulations to attract a penalty of a specified amount not exceeding £3,000; to provide that specified enactments relating to penalties imposed for the purposes of any taxation matter (including enactments relating to assessments, review and appeal) apply, with or without modifications, in relation to penalties under the regulations; to specify other consequences of contravention of, or failure to comply with, the regulations (which may include disregarding a return delivered otherwise than by the use of electronic communications); to make different provision for different cases; to make such incidental, supplemental, consequential and transitional provision in connection with any provision contained in any of the regulations as the Commissioners think fit. References in this section to the delivery of information include references to any of the following (however referred to)— the production or furnishing to a person of any information, account, record or document; the giving, making, issue or surrender to, or service on, any person of any notice, notification, statement, declaration, certificate or direction; the imposition on any person of any requirement or the issue to any person of any request; the making of any return, claim, election or application; the amendment or withdrawal of anything mentioned in paragraphs (a) to (d) above. Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons. “ the Revenue and Customs ” means— the Commissioners, any officer of Revenue and Customs, and any other person who for the purposes of electronic communications is acting under the authority of the Commissioners; “legislation” means any enactment, EU legislation or subordinate legislation; “specified” means specified by or under regulations under this section; “subordinate legislation” has the same meaning as in the Interpretation Act 1978 (c. 30); “taxation matter” means any matter relating to a tax (or duty) for which the Commissioners are responsible. Any power to make subordinate legislation for or in connection with the delivery of information conferred in relation to a taxation matter on— the Commissioners of Inland Revenue, or the Treasury, includes power to make any such provision in relation to the delivery of that information as could be made in exercise of the power conferred by section 135. Provision made in exercise of the powers conferred by section 135 or subsection (1) above has effect notwithstanding so much of any enactment or subordinate legislation as would otherwise— allow information to be delivered otherwise than by means of electronic communications, or preclude the use of an intermediary in connection with its delivery. Expressions used in this section and section 135 have the same meaning in this section as in that section. Nothing in this section shall be read as restricting the generality of the power conferred by section 135. A tax, to be known as lorry road-user charge, shall be charged in respect of use of roads by lorries. The persons by whom lorry road-user charge shall be payable, the rates at which it shall be charged, and the lorries, roads and use in respect of which it shall be charged, shall be such as Parliament may determine. The amount of lorry road-user charge charged in respect of use of any roads by a lorry shall be calculated, in such manner as Parliament may determine, by reference to the distance travelled on those roads by the lorry. Lorry road-user charge— shall be under the care and management of the Commissioners of Customs and Excise, and shall be administered and enforced in accordance with such provisions as Parliament may determine. All money and securities for money collected or received for or on account of lorry road-user charge shall— if collected or received in Great Britain, be placed to the general account of the Commissioners of Customs and Excise kept at the Bank of England under section 17 of the Customs and Excise Management Act 1979; if collected or received in Northern Ireland, be paid into the Consolidated Fund of the United Kingdom in such manner as the Treasury may direct. A Minister of the Crown or government department may— incur expenditure in connection with preparations for lorry road-user charge (including any fuel credit to be paid in respect of fuelling of lorries chargeable in respect of lorry road-user charge); enter into contracts in respect of the development or provision of equipment, systems or services to be used in connection with lorry road-user charge (including any fuel credit). The Bank of England has authority, in the event of the Bank of Ireland ceasing to perform any of its functions in relation to United Kingdom government stock, to discharge any of the Bank of Ireland’s functions in relation to such stock in place of the Bank of Ireland. The enactments relating to United Kingdom government stock have effect in relation to anything done in the circumstances mentioned in subsection (1) for the purposes of discharging any such functions— as if any reference to the Bank of Ireland were a reference to the Bank of England, and as if any reference to an officer of the Bank of Ireland were a reference to the corresponding officer of the Bank of England. In particular, sections 59 and 66 of the National Debt Act 1870 (c. 71) (provisions protecting the Bank and its officers from liability) apply to the Bank of England and to officers of that Bank in relation to anything done in the circumstances mentioned in subsection (1) above for the purposes of discharging any functions of the Bank of Ireland in relation to United Kingdom government stock. “enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978 (c. 30); “United Kingdom government stock” means stock or bonds of any of the descriptions included in Part 1 of Schedule 11 to the Finance Act 1942 (c. 21) (whether on or after the passing of this Act). This section shall be deemed always to have had effect. The Treasury may by order made by statutory instrument provide— that no further stock or bonds may be registered in either of the Irish gilts registers on or after such day as the order may appoint (“the appointed day”), and for the transfer to the English gilts register of the entries subsisting in each of those registers at the beginning of the appointed day. The power conferred by subsection (1)(b) includes power to make provision in relation to stock and bonds which were not registered in either of the Irish gilts registers on the appointed day, but which should have been. An order under this section may contain such consequential, incidental, supplementary and transitional provision as appears to the Treasury to be necessary or expedient, including provision amending, repealing or revoking any enactment. In subsection (3) “enactment” means any enactment contained in— an Act, whenever passed, or an instrument, whenever made, under an Act, whenever passed. “the English gilts register” is the register required to be kept at the office of the Chief Registrar of the Bank of England under section 47 of the Finance Act 1942 (c. 21) (registration of government stock); and “the Irish gilts registers” are— the register required to be kept in Belfast under that section, and the register required to be kept in Dublin under that section. A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons. In section 47 of the Finance Act 1942 (transfer and registration of government stock)— for subsection (1)(b) (power to provide for the keeping of stock and bond registers by the Banks of England and Ireland) substitute— for the administration of such stock and bonds (including the registration of holders) by such one or more persons as the Treasury may appoint in accordance with the regulations and the closure of any register; after subsection (1E) insert— Persons appointed in accordance with regulations under subsection (1)(b) shall be appointed on such terms (including terms as to the making of payments by the Treasury) as the Treasury consider appropriate, and the persons who may be so appointed include the Bank of England. The Treasury may by order made by statutory instrument make such consequential, incidental, supplementary and transitional provision as appears to the Treasury to be necessary or expedient in consequence of the amendments made by subsection (1), including provision amending, repealing or revoking any enactment. In subsection (2) “enactment” means any enactment contained in— A statutory instrument containing an order under subsection (2) is subject to annulment in pursuance of a resolution of the House of Commons. Sums payable by the Treasury by virtue of section 47(1EA) of the Finance Act 1942 (c. 21) (as inserted by subsection (1) above) shall be met out of the National Loans Fund with recourse to the Consolidated Fund. This section shall come into force on such day as the Treasury may by order made by statutory instrument appoint. The enactments mentioned in Schedule 40 to this Act (which include provisions that are spent or of no practical utility) are repealed to the extent specified. The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule. In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 (c. 1), and “ITA 2007” means the Income Tax Act 2007”. This Act may be cited as the Finance Act 2002. Section 36 of the Alcoholic Liquor Duties Act 1979 (c. 4) (beer: charge of excise duty) is amended as follows. In subsection (1), for “at the rate of £11.89 per hectolitre per cent of alcohol in the beer" substitute “ at the rates specified in subsection (1AA) below ”. After subsection (1), insert— The rates at which the duty shall be charged are— in the case of beer that is not small brewery beer, £11.89 per hectolitre per cent of alcohol in the beer; in the case of small brewery beer produced in a singleton brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36D below; in the case of small brewery beer produced in a co-operated brewery, the rate per hectolitre per cent of alcohol in the beer that is given by section 36F below. In that Act, after that section (and before the heading “Reliefs from excise duty") insert— Reduced rates of excise duty For the purposes of section 36(1AA) above (but subject to subsection (2) below)— whether beer produced in a singleton brewery is “small brewery beer” is determined in accordance with section 36C below, and whether beer produced in a co-operated brewery is “small brewery beer” is determined in accordance with section 36E below. Beer is not small brewery beer if it is produced by a person on any premises in circumstances in which he is required to be, but is not, registered under section 47 below in respect of those premises. The following provisions of this section have effect for the purposes of section 36(1AA) above, section 36A above, this section and sections 36C to 36F below. A brewery is a “singleton brewery” at any particular time in a calendar year if it is not a co-operated brewery at that time. A brewery is a “co-operated brewery” at any particular time in a calendar year if— a person who produces beer in the brewery at that time or any earlier time in that year, or a person connected with such a person, also produces beer in any other brewery at that time or any earlier time in that year. “Brewery” means premises (whether or not in the United Kingdom) on which beer is produced and that are situated physically apart from any other premises on which beer is produced. “The standard beer duty rate” means the rate of duty specified by section 36(1AA)(a) above. References to “the grossed-up amount” of an estimate of the amount of a brewery’s production in a calendar year are to the amount given by— where— E is the amount of the estimate, and N is the number of days (if any) in the calendar year before the brewery begins to be used as beer-production premises. References to a brewery being used as beer-production premises are, in the case of a brewery in the United Kingdom, to there being at least one person who is required to be registered under section 47 below in respect of the brewery. Any question whether a person is connected with another shall be determined in accordance with section 839 of the Income and Corporation Taxes Act 1988. This section applies to beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a singleton brewery. The beer is “small brewery beer” if the following conditions are satisfied; but this is subject to subsections (9) and (10) below. The first condition is that either— no beer was produced in the brewery in the previous calendar year (“the previous year”), or the amount of beer produced in the brewery in the previous year was not more than 30,000 hectolitres. For the purposes of subsection (3)(b) above, where the brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in the brewery shall be taken to have been— A is the amount of beer actually produced in the previous year in the brewery, and D is the number of days in that part of the previous year. The second condition is that the amount of the estimate under subsection (9) below of the brewery’s production in the current year is not more than 30,000 hectolitres. The third condition is that if the brewery begins to be used as beer-production premises part-way through the current year, the grossed-up amount of that estimate is not more than 30,000 hectolitres. The fourth condition is that less than half of the beer produced in the brewery in the previous year was produced under licence. The fifth condition is that the beer is not produced under licence. Beer produced in the brewery in the current year before the person who first produces beer in the brewery in that year has made a reasonable estimate of the amount of beer that will be produced in the brewery in that year is not small brewery beer. Beer produced in the brewery in the current year after the amount of beer produced in the brewery in the current year has reached 30,000 hectolitres is not small brewery beer. Subsection (10) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement). This section applies to small brewery beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a singleton brewery. The rate of duty in the case of that beer (“the brewery rate”) is determined in accordance with this section. Subsection (4) below applies if— beer was produced in the brewery in the previous calendar year (“the previous year”) and the amount produced in the brewery in that year was not more than 5,000 hectolitres, or no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is not more than 5,000 hectolitres. If this subsection applies, “the brewery rate” is 50% of the standard beer duty rate at the time concerned; but this is subject to rounding under subsection (7) below. Subsection (6) below applies if— beer was produced in the brewery in the previous year and the amount produced in the brewery in that year was more than 5,000 hectolitres but not more than 30,000 hectolitres, or no beer was produced in the brewery in the previous year and the grossed-up amount of the estimate under section 36C(9) above of the brewery’s production in the current year is more than 5,000 hectolitres but not more than 30,000 hectolitres. If this subsection applies, “the brewery rate” is, subject to rounding under subsection (7) below, given by— if this subsection applies by reason of subsection (5)(a) above, P is the amount, in hectolitres, of beer produced in the brewery in the previous year, and if this subsection applies by reason of subsection (5)(b) above, P is the grossed-up amount (expressed in hectolitres) mentioned in subsection (5)(b). Where a rate given by subsection (4) or (6) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny. Where the brewery was in use as beer-production premises during part only of the previous year, for the purposes of subsections (3)(a), (5)(a) and (6) above the amount of beer produced in the brewery in the previous year shall be taken to have been— This section applies to beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a co-operated brewery. The beer is “small brewery beer” if the following conditions are satisfied; but this is subject to subsections (10) and (11) below. “the group” means the group of breweries consisting of— the co-operated brewery, and every brewery (other than the co-operated brewery) in which beer is produced at the time mentioned in subsection (1) above, or at any earlier time in the current year, by— a person who produces beer in the co-operated brewery at the time so mentioned or at any earlier time in the current year, or a person connected with such a person; “group brewery” means a brewery that is in the group; “the previous year” means the calendar year immediately preceding the current year. no beer was produced in the previous year in the group, or the amount given by PY + GE is not more than 30,000 hectolitres, where— PY is the amount of beer produced in the previous year in the group, and GE is the aggregate of the grossed-up amount of each estimate that— (i) is an estimate for the purposes of subsection (10) below of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and (ii) is made no later than the time mentioned in subsection (1) above. For the purposes of subsection (4)(b) above, where a group brewery was in use as beer-production premises during part only of the previous year, the amount of beer produced in the previous year in that brewery shall be taken to have been— A is the amount of beer actually produced in the previous year in that brewery, and The second condition is that the aggregate of each estimate that— is an estimate for the purposes of subsection (10) below of the amount of a group brewery’s production in the current year, and is made no later than the time mentioned in subsection (1) above, is not more than 30,000 hectolitres. The third condition is that if any group brewery begins to be used as beer-production premises part-way through the current year, the aggregate of the grossed-up amount of each estimate that— The fourth condition is that less than half of the beer produced in the previous year in each group brewery was produced under licence. Beer produced in the co-operated brewery at an unestimated time is not small brewery beer; and here “unestimated time” means a time in the current year when there is a group brewery for which there does not exist a reasonable estimate, made by the person who first produces beer in that brewery in that year, of the amount of beer that will be produced in that brewery in that year. Beer produced in the co-operated brewery in the current year after the amount of beer produced in the group in the current year has reached 30,000 hectolitres is not small brewery beer. Subsection (11) above is without prejudice to section 167(4) of the Customs and Excise Management Act 1979 (recovery of duty unpaid by reason of untrue document or statement). This section applies to small brewery beer produced in a brewery at a time in a calendar year (“the current year”) when the brewery is a co-operated brewery. “the previous year” means the calendar year immediately preceding the current year; “the notional previous year’s production” has the meaning given by subsection (4) below. In this section “the notional previous year’s production” means the amount, in hectolitres, given by PY + GE where— PY is the amount of beer produced in the group in the previous year, and (a) is an estimate for the purposes of section 36E(10) above of the amount of the production in the current year in a group brewery in which no beer was produced in the previous year, and (b) is made no later than the time mentioned in subsection (1) above. Where a group brewery was in use as beer-production premises during part only of the previous year, in calculating PY for the purposes of subsection (4) above the amount of beer produced in that brewery in the previous year shall be taken to have been— Subsection (7) below applies if— beer was produced in at least one group brewery in the previous year and the notional previous year’s production is not more than 5,000 hectolitres, or no beer was produced in the group in the previous year and the aggregate of each estimate that— is an estimate for the purposes of section 36E(10) above of the amount of a group brewery’s production in the current year, and is not more than 5,000 hectolitres. If this subsection applies, “the brewery rate” is 50% of the standard rate at the time mentioned in subsection (1) above; but this is subject to rounding under subsection (10) below. Subsection (9) below applies if— beer was produced in at least one group brewery in the previous year and the notional previous year’s production is more than 5,000 hectolitres but not more than 30,000 hectolitres, or no beer was produced in the group in the previous year and the aggregate mentioned in subsection (6)(b) above is more than 5,000 hectolitres but not more than 30,000 hectolitres. If this subsection applies, “the brewery rate” is, subject to rounding under subsection (10) below, given by— if this subsection applies by reason of subsection (8)(a) above, P is the previous year’s notional production, if this subsection applies by reason of subsection (8)(b) above, P is the amount, in hectolitres, of the aggregate mentioned in subsection (6)(b) above, and “the standard rate” means the standard beer duty rate at the time mentioned in subsection (1) above. Where a rate given by subsection (7) or (9) above would (apart from this subsection) not be a whole number of pennies, the rate given by that subsection shall be taken to be the rate actually given by that subsection rounded up to the nearest penny. Subsection (3) below applies if— duty is charged by section 36 above on any beer, and it appears at the excise duty point that the beer is small brewery beer for the purposes of section 36(1AA) above, but it turns out that the beer was not small brewery beer for those purposes (because, for example, circumstances were not as they appeared at that point or they subsequently changed). Subsection (3) below also applies if— duty is charged by section 36 above on any beer that is small brewery beer for the purposes of section 36(1AA) above, and the rate of duty that at the excise duty point appeared to be the correct rate turns out to have been lower than the correct rate (because, for example, circumstances were not as they appeared at that point or they subsequently changed). In any such case the Commissioners— may assess the amount that is the difference between— the actual amount of the duty charged on the beer by section 36 above, and the lower amount that, at the excise duty point, appeared to be the amount charged, as being excise duty due from the person liable to pay the duty charged on the beer by section 36 above, and may notify him or his representative accordingly. Where two or more persons are liable to pay the duty charged on the beer— the reference in subsection (3)(a) above to the person liable to pay the duty is to any one or more of those persons, and the reference in subsection (3)(b) above to notifying the person liable or his representative is to notifying each person assessed or his representative. The Treasury may by order made by statutory instrument make provision amending this Act for the purpose of causing excise duty to be charged on a description of beer— at a reduced rate instead of at the standard rate; at the standard rate instead of at a reduced rate; at a different reduced rate. “reduced rate” means a rate lower than the standard rate, and “the standard rate” means the rate specified by section 36(1AA)(a) above. An order under subsection (1) above may— make different provision for different cases; make such consequential amendments in this Act and other enactments as appear to the Treasury to be necessary or expedient; make such other consequential provision, and such incidental and transitional provision, as appears to the Treasury to be necessary or expedient. A statutory instrument by which there is made an order under subsection (1) above shall be laid before the House of Commons after being made. Unless the instrument is approved by the House of Commons before the expiration of 28 days beginning with the date on which the instrument was made, the order shall cease to have effect on the expiration of that period. Where the order so ceases to have effect, that does not prejudice— anything previously done under the order, or the making of a new order. In reckoning any such period of 28 days, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days. In section 49(1) of the Alcoholic Liquor Duties Act 1979 (c. 4) (beer regulations), after paragraph (j) insert— requiring the production of certificates as to matters relating to beer imported into the United Kingdom and the beer’s production and producer, whether as alternative conditions for charging the duty on the beer at a rate lower than that specified by section 36(1AA)(a) above or as evidence that conditions for charging the duty at such a rate are satisfied. The Finance Act 1994 (c. 9) is amended as follows. In section 12A(3)(bb) (recovery of amounts assessed under the Alcoholic Liquor Duties Act 1979), for “or 11" substitute “ , 11 or 36G ”. In section 12B(2) (meaning of “relevant time" in section 12A), after paragraph (eb) insert— in the case of an assessment under section 36G of that Act, the the time at which the requirement to pay the duty took effect (which time, in a case where there was an excise duty point for the beer fixed under section 1 of the Finance (No. 2) Act 1992, is that excise duty point); In section 14(1)(ba) (review of assessments), for “or 11" substitute “ , 11 or 36G ”. In section 6A(1) (fuel substitutes: charge of duty) after “which is not hydrocarbon oil" insert “ , biodiesel or bioblend ”. In section 11 (rebate on heavy oil), after subsection (5) insert— No rebate shall be allowed under this section in respect of bioblend. In section 20AAA (mixing of rebated oil), after subsection (2A) insert— Where a mixture is produced in contravention of Part 2B of Schedule 2A to this Act, a duty of excise shall be charged on the mixture. In section 20AAA(3) (producer of mixture liable to pay duty), for “or (2A)" substitute “ , (2A) or (2B) ”. After Part 2A of Schedule 2A (mixing of rebated oil) insert— A mixture is produced in contravention of this paragraph if it is produced by mixing— biodiesel or a substance containing biodiesel, and rebated heavy oil. In sub-paragraph (1)(b) above “rebated heavy oil” means heavy oil in respect of which a rebate has been allowed under section 11 of this Act. In paragraph 9(1A) of that Schedule (rates of duty for mixtures of heavy oil), after “subsection (2A)" insert “ or (2B) ”. In paragraph 10(1) of that Schedule (credit for duty paid on ingredients of mixture), after “section 6" insert “ , 6AA, 6AB or 6A ”. In section 20AAB (mixing of rebated oil: supplementary), in subsection (1)(a) for “or (2A)" substitute “ , (2A) or (2B) ”. In section 22 (prohibition on use of petrol substitutes on which duty has not been paid), after subsection (1) insert— Where any person— puts any biodiesel to a chargeable use (within the meaning of section 6AA above), and knows or has reasonable cause to believe that there is duty charged under section 6AA above on that biodiesel which has not been paid and is not lawfully deferred, his putting the biodiesel to that use shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties), and any goods in respect of which any person contravenes this subsection shall be liable to forfeiture. In section 22(1A) (section 10 of the Finance Act 1994 does not apply), after “subsection (1)" insert “ or (1AA) ”. In section 27(1) (interpretation) at the appropriate places insert— “bioblend” has the meaning given by section 6AB(2) above; “biodiesel” has the meaning given by section 2AA above; In section 6AB (which charges excise duty on bioblend and is inserted by section 5 of this Act), in subsection (1), omit the words from “and delivered" to the end. For subsection (6) of that section substitute— imported bioblend is removed to relevant premises, the bioblend undergoes a production process at those premises or any other relevant premises, and any duty charged on the importation of the bioblend has not become payable at any time before the production time, the duty charged on importation shall not become payable at any time after the production time. In subsection (6) above— “the production time” means the time at which the bioblend undergoes the production process; and “relevant premises” means— a refinery, other premises used for the production of hydrocarbon oil, or premises of such description as may be specified in regulations made by the Commissioners. For the purposes of subsection (6) above, bioblend undergoes a production process if— hydrocarbon oil, or bioblend, of any description, or biodiesel, is obtained from it, or it is subjected to any process of purification or blending. In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 23 insert— If a revenue trader who is not a registered excise dealer and shipper— buys or sells controlled oil in the course of a trade or business, or in the course of a trade or business deals in controlled oil, his buying or selling, or dealing in, the oil shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties). Subsection (1) above does not apply to the buying of oil by a revenue trader if— the oil is for use by the trader, and that use does not involve selling or dealing in hydrocarbon oil. Subsection (1) above does not apply to the selling of oil by a revenue trader if— that oil was for use by the trader, that use did not involve selling or dealing in hydrocarbon oil, that use came to an end before the oil was used, and the oil is sold after the use ends. Where a revenue trader who is not a registered excise dealer and shipper is entitled to the possession of any controlled oil, the oil is liable to forfeiture. Subsection (4) above does not apply to oil if— that oil is for use by the revenue trader, and the oil was for use by the revenue trader, that use has come to an end, the oil is being held pending sale or other disposal. Where oil is liable to forfeiture by virtue of subsection (4) above— anything mixed with the oil, any container in which the oil (and anything mixed with it) is kept, and any equipment kept for dispensing the contents of any such container, is liable to forfeiture. The Commissioners may by regulations make provision for— exceptions to section 23A(1) above in addition to those allowed by section 23A(2) and (3) above; exceptions to section 23A(4) above in addition to those allowed by section 23A(5) and (6) above; exceptions to section 23A(7) above. Regulations under subsection (1) above may provide for exceptions allowed by such regulations to have effect subject to conditions— specified by such regulations; specified by the Commissioners under such regulations. In section 100H(1) of the Customs and Excise Management Act 1979 (c. 2) (particular provision that may be made by registered excise dealers and shippers regulations), after paragraph (n) insert— authorised by section 24AA of the Hydrocarbon Oil Duties Act 1979 (regulation of traders in controlled oil). In the Hydrocarbon Oil Duties Act 1979 (c. 5), after section 24 insert— For the purposes of section 100H(1)(p) of the Management Act (registered excise dealers and shippers regulations may, in particular, make provision authorised by this section), this section authorises provision— requiring traders in controlled oil to notify prescribed information; requiring traders in controlled oil to make prescribed returns; authorising a trader in controlled oil to carry out or arrange for the carrying out of any prescribed activity falling within section 100H(1)(b) of the Management Act in relation to controlled oil, but subject to prescribed conditions or restrictions; requiring a trader in controlled oil to give security by prescribed means for amounts that may become due from him by way of repayment of rebate; for taking into account, in determining whether a trader in controlled oil has— contravened any provision of registered excise dealers and shippers regulations, or failed to comply with any prescribed condition, restriction or requirement, the extent to which the trader has followed guidance issued by the Commissioners (including guidance issued after the making of provision under this paragraph referring to it). “prescribed” has the meaning given by section 100H(3) of the Management Act; “trader in controlled oil” means a registered excise dealer and shipper carrying on a trade or business that consists of or includes the dealing in, buying or selling of controlled oil. Section 27 of the Hydrocarbon Oil Duties Act 1979 (c. 5) (interpretation) is amended as follows. In subsection (1) insert (at the appropriate place)— “controlled oil” means hydrocarbon oil in respect of which a rebate has been allowed under section 11(1)(b), (ba) or (c) or 13AA; In the Table set out in subsection (3) (expressions used in the Act that have a meaning given by another Act included in the Customs and Excise Acts 1979), under the heading “Management Act" insert (at the appropriate places)— “registered excise dealer and shipper" “revenue trader" The Hydrocarbon Oil Duties Act 1979 is amended as follows. In section 12(1) (no rebate allowed on heavy oil intended for use in a road vehicle), after “no rebate" insert “ under section 11 above ”. In section 12(2) (oil not to be used in road vehicles if rebate has been allowed under section 11(1) or 13AA(1)), for “section 11(1)" substitute “ section 11 ”. In section 24(2) (regulations made for the purposes of section 12 or 13AA), for “under subsection (2) of that section" substitute “ under subsection (2) of section 12, or subsection (3) of section 13AA, ”. In section 27(1) (interpretation), in the definition of “rebate", after “section 11," insert “ 13AA, ”. The Betting and Gaming Duties Act 1981 (c. 63) is amended as follows. For sections 6 to 8 (pool betting duty: charge, rate and payment) substitute— Pool betting duty A duty of excise to be known as pool betting duty shall be charged in accordance with sections 7 to 8C. If the amount of a person’s net pool betting receipts for an accounting period is greater than zero, pool betting duty is charged on those receipts. The amount of that duty is 15 per cent of the amount of the receipts. For the purposes of section 7, the amount of a person’s net pool betting receipts for an accounting period is— S is the aggregate of amounts falling due to the person in the accounting period in respect of dutiable pool bets, E is the aggregate of expenses and profits falling within section 7E(2) that are attributable to the accounting period, and W is the aggregate of amounts paid by the person in the accounting period by way of winnings on dutiable pool bets (irrespective of when the bets were made or determined). For the purposes of a calculation under section 7A of the amount of a person’s net pool betting receipts for any accounting period, a bet (wherever made) is a “dutiable pool bet” if— the bet is made by way of pool betting, and the following conditions are satisfied. The first condition is that— the bet is made by means of a totalisator situated in the United Kingdom and that person is the operator, or the bet is made otherwise than by means of a totalisator and that person is the promoter and is in the United Kingdom. The second condition is that the bet is not— made by way of sponsored pool betting, made as mentioned in section 4(3), or made for community benefit. The third condition is that if the bet was made before 31st March 2002, at least one event to which it relates takes place on or after that date. This section applies for the purpose of calculating S in a calculation under section 7A. Any payment that entitles a person to make a bet shall, if he makes the bet, be treated as stake money on the bet. All payments made— for or on account of or in connection with bets that are dutiable pool bets for the purposes of the calculation, in addition to the stake money, and by the persons making the bets, shall be treated as amounts due in respect of the bets except in so far as the contrary is proved by the person whose net pool betting receipts are being calculated. Subsections (2) to (5) apply for the purpose of calculating S in a calculation under section 7A but have effect subject to any regulations under subsection (6). a person makes a bet, and the bet relates to a single event, or to two or more events all taking place on the same day, any sum due to a person in respect of the bet shall be treated as falling due on the day on which the event or events take place. subsection (2) does not apply, any sum due to a person in respect of the bet shall (subject to subsection (5)) be treated as falling due when the bet is made. Subsections (2) and (3) have effect in relation to a sum irrespective of when it is actually paid or required to be paid (even where a sum that those subsections require to be treated as falling due on or after 31st March 2002 was actually paid, or required to be paid, before that date). As respects a bet made before 31st March 2002 that relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, any sum paid on or after that date in respect of the bet shall be treated as falling due when it is paid. The Commissioners may by regulations make provision as to when any sum due to a person in respect of a bet is to be treated as falling due for the purpose of calculating S in a calculation under section 7A. Provision made by regulations under subsection (6) may not provide for a sum due to a person in respect of a bet to be treated as falling due— earlier than when the bet is made, or later than when the bet is determined. Regulations made under subsection (6) may— make provision that applies generally or only in relation to a specified description of bet; make different provision for different purposes; make provision relating to bets made before the regulations are made (including bets made before the passing of the Finance Act 2002);

make transitional provision. Subsections (2) and (3) apply for the purpose of calculating E in a calculation under section 7A. The expenses and profits falling within this subsection are (subject to subsection (3))— those of the person whose net pool betting receipts are being calculated, and those of any other person concerned with or benefiting from the promotion of the betting concerned. Expenses and profits do not fall within subsection (2) so far as they are— provided out of amounts due, in respect of bets that are dutiable pool bets for the purposes of the calculation, to the person whose net pool betting receipts are being calculated, or referable to matters other than— the promotion or management of the betting concerned, or activities ancillary to, or connected with, such promotion or management. The Commissioners may by regulations make provision as to the accounting period to which expenses and profits falling within subsection (2) are to be treated as attributable for the purpose of calculating E in a calculation under section 7A. Regulations made under subsection (4) may— make provision applying in respect of expenses incurred, and profits accruing, before the regulations are made (including any incurred or accruing before the passing of the Finance Act 2002); Subsections (2) to (5) apply for the purpose of calculating W in a calculation under section 7A. The reference to paying an amount to a person includes a reference to holding it in an account if the person is notified that the amount is being held for him in the account and that he is entitled to withdraw it on demand. The return of a stake shall be treated as a payment by way of winnings. Only payments of money shall be taken into account. Where a bet made before 31st March 2002 relates to events at least one of which takes place before that date and at least one of which takes place on or after that date, no account shall be taken of any payment by way of winnings on the bet. The Commissioners may by regulations make provision as to when amounts paid by way of winnings are to be treated as being paid for the purposes of calculating W in a calculation under section 7A. make provision applying in respect of amounts paid before the regulations are made (including amounts paid before the passing of the Finance Act 2002); Pool betting duty charged on a person’s net pool betting receipts for an accounting period— becomes due at the end of the period, shall be paid by the person, and shall, subject to any regulations under subsection (3) and any directions under paragraph 3 of Schedule 1 to this Act, be paid when it becomes due. Pool betting duty that is due to be paid may be recovered from the following persons as if they were jointly and severally liable to pay the duty— the person on whose net pool betting receipts the duty is charged (“the primary payer”); a person responsible for the management of any business in the course of which any bets have been made that are dutiable pool bets for the purposes of calculations under section 7A of the amount of the primary payer’s net pool betting receipts for any accounting period; a person responsible for the management of any totalisator used for the purposes of any such business; where a person within any of paragraphs (a) to (c) is a company, a director. The Commissioners may by regulations— make provision as to when pool betting duty is to be paid (including provision repealing paragraph 3 of Schedule 1 to this Act and the reference to that paragraph in subsection (1)(c)); make provision as to how pool betting duty is to be paid. Regulations made under subsection (3) may— make provision that applies generally or only in relation to a specified person or class of person; For the purposes of sections 6 to 8 (but subject to any direction under subsection (3)), a bet is made “for community benefit” if— the promoter of the betting concerned is a community society or is bound to pay all benefits accruing from the betting to such a society, and the person making the bet knows, when making it, that the purpose of the betting is to benefit such a society. In the case of a bet made by means of a totalisator, the reference in subsection (1) to the promoter of the betting concerned is a reference to the operator. The Commissioners may direct that any bet specified by the direction, or of a description so specified, is not a bet made for community benefit. The power conferred by subsection (3) may not be exercised unless the Commissioners consider that an unreasonably large part of the amounts paid in respect of the bets concerned will, or may, be applied otherwise than— in the payment of winnings, or for the benefit of a community society. In this section “community society” means— a society established and conducted for charitable purposes only, or a society established and conducted wholly or mainly for the support of athletic sports or athletic games and not established or conducted for purposes of private gain. In this section “society” includes any club, institution, organisation or association of persons, by whatever name called. For the purposes of sections 6 to 8— each period that ends with the last Saturday in a calendar month, and begins with the Sunday immediately following the previous such Saturday, is an accounting period, but the Commissioners may by regulations make provision for some other specified period to be an accounting period. Regulations made under subsection (1)(b) may— For the purposes of sections 6 to 8A, “bet” does not include the taking of a ticket or chance in a lottery. Where payments are made for the chance of winning any money or money’s worth on terms under which the persons making the payments have a power of selection that may (directly or indirectly) determine the winner, those payments shall be treated as bets for the purposes of sections 6 to 8A notwithstanding that the power is not exercised. Subsection (2) has effect subject to section 12(3). Where any payment entitles a person to take part in a transaction that is, on his part only, not a bet made by way of pool betting by reason of his not in fact making any stake as if the transaction were such a bet, the transaction shall be treated as such a bet for the purposes of pool betting duty (and section 7C(3) shall apply to any such payment). In section 2(2) (bets to which section 2(1) does not apply)— in paragraph (b), after “bet," insert “ or ”, and omit paragraph (d) and the word “or" preceding it. In section 4(6) (bets to which subsections (1) to (3) do not apply), for the words from “do not apply" to the end substitute “ do not apply to on-course bets. ”. In section 9(2) (bets to which section applies), omit “or coupon betting" (in both places). In section 9(3) (bets to which section does not apply)— in paragraph (a), omit “or coupon betting", for sub-paragraphs (i) to (iv) of paragraph (a) substitute— the bet is not made by means of a totalisator, and the promoter is in the Isle of Man; or in paragraph (aa)(i), omit “or coupon betting". For section 9(6) substitute— Section 8C(1) to (3) above shall have effect for the purposes of subsections (2)(a) and (5) above as it has effect for the purposes of sections 6 to 8A above. Omit section 11 (definition of coupon betting). In section 12(3) (interpretation of sections 1 to 10 etc), omit “(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)". Schedule 1 (administration etc of betting duties) is amended as follows. In paragraph 1, in the definition of “pool betting business", at the end insert “ or would or might involve such sums becoming so payable if receipts from bets made for community benefit (as defined by section 8A of this Act) were not excluded from that duty. ”. After paragraph 2 insert— Pool betting duty shall be under the care and management of the Commissioners. Without prejudice to any other provision of this Schedule, the Commissioners may make regulations providing for any matter for which provision appears to them to be necessary for the administration or enforcement of pool betting duty or for the protection of the revenue from pool betting duty. Regulations under sub-paragraph (2) above may in particular— provide for payments on account of pool betting duty which may become chargeable to be made in advance; provide for the giving of security by means of a deposit or otherwise for duty due or to become due. In paragraph 3, omit “shall be under the care and management of the Commissioners, and". In paragraph 4(2), for “sub-paragraphs (3) and (4)" substitute “ sub-paragraph (3) ”. Omit paragraph 4(4) to (6). In paragraph 5(1), for “made entry or given notice in accordance with paragraph 4(2) or (4)" substitute “ made entry in accordance with paragraph 4(2) ”. Renumber paragraph (b) of paragraph 5(2) as paragraph 5(3). In what remains of paragraph 5(2) after that renumbering, for the words from “paragraph 12(3) below, except that" to the end substitute “ sub-paragraph (3) below. ”. In paragraph 6(2), omit paragraph (b). Omit paragraphs 8 and 12. In paragraph 13(1)(b), after “any of paragraphs 2," insert “ 2A, ”. In paragraph 14(1), omit the words after paragraph (b). In section 1(3) of the Excise Duties (Surcharges or Rebates) Act 1979 (c. 8) (liability to duty other than pool betting duty adjusted if order under section in force when duty becomes due), omit the words from “, except that if the duty is pool betting duty" to the end. Paragraph 6 of Schedule 5 to the Finance Act 1994 (c. 9) (decisions under the Betting and Gaming Duties Act 1981 that are subject to review and appeal) is amended as follows. In sub-paragraph (2)(a) (decisions in connection with requiring security for duty)— after “regulations under paragraph 2" insert “ or 2A ”, and after “in relation to general betting duty" insert “ or pool betting duty ”. After sub-paragraph (2) insert— Any decision consisting in the giving of a direction under section 8A(3) of the Betting and Gaming Duties Act 1981 (pool betting duty: direction that bet is not made for community benefit). If— stake money is paid before 31st March 2002 in respect of a bet to which this paragraph applies, and pool betting duty charged on that money before that date is not paid before 24th April 2002, that duty ceases on 24th April 2002 to be charged on that money. stake money is paid before 31st March 2002 in respect of such a bet, and pool betting duty charged on that money before that date is paid before 24th April 2002, the person who paid that duty becomes entitled on 24th April 2002 to a credit equal to the amount of the duty. Effect is given to such a credit by setting it (until fully utilised) against pool betting duty that the person is liable to pay in respect of accounting periods for the purposes of pool betting duty that begin on or after 31st March 2002 (taking earlier such periods before later ones). Such a credit does not— carry interest, affect the payability of the duty mentioned in sub-paragraph (2), or entitle any person to any payment in respect of the credit. This paragraph applies to a bet if— it is a dutiable pool bet for the purposes of a calculation, under the section 7A of the Betting and Gaming Duties Act 1981 inserted by this Schedule, of the amount of a person’s net pool betting receipts for any accounting period, and it is made before 31st March 2002 but all the events to which it relates take place on or after that date. Any notification under paragraph 4(4) of Schedule 1 to the Betting and Gaming Duties Act 1981 (c. 63) (duty to notify premises used for purposes of pool betting business in connection only with coupon betting) that is effective immediately before 24th April 2002 shall on and after that date have effect (until withdrawn) as a notification made on 31st March 2002 under paragraph 4(3) of that Schedule (duty to notify premises used for purposes of betting business in connection only with general betting). The Vehicle Excise and Registration Act 1994 (c. 22) is amended as follows. For section 1(1) substitute— A duty of excise (“vehicle excise duty”) shall be charged in respect of every mechanically propelled vehicle that— is registered under this Act (see section 21), or is not so registered but is used, or kept, on a public road in the United Kingdom. Vehicle excise duty shall also be charged in respect of every thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle and— is registered under this Act, or In the following provisions of this Act “vehicle” means— a mechanically propelled vehicle, or any thing (whether or not it is a vehicle) that has been, but has ceased to be, a mechanically propelled vehicle. Vehicle excise duty charged in respect of a vehicle by subsection (1)(a) or (1A)(a) shall be paid on a licence to be taken out— by the person in whose name the vehicle is registered under this Act, or if that person is not the person keeping the vehicle, by either of those persons. Vehicle excise duty charged in respect of a vehicle by subsection (1)(b) or (1A)(b) shall be paid on a licence to be taken out by the person keeping the vehicle. For section 2(2) to (4) (rates where duty charged in respect of keeping but not use) substitute— Subsection (1) applies subject to the following provisions of this section. Where vehicle excise duty is charged by section 1(1)(b) or (1A)(b) in respect of the keeping of a vehicle on a road (and not in respect of its use), duty in respect of such keeping is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1. Subsections (5) and (6) apply where— vehicle excise duty is charged by section 1(1)(a) or (1A)(a) in respect of a vehicle, and were the vehicle not registered under this Act, duty would not be charged by section 1(1)(b) or (1A)(b) in respect of the use of the vehicle on a road. Where one or more use licences have previously been issued for the vehicle, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the annual rate currently applicable to a vehicle of the same description as that of the vehicle on the occasion of the issue of that licence (or the last of those licences). In any other case, the duty charged by section 1(1)(a) or (1A)(a) is chargeable by reference to the general rate currently specified in paragraph 1(2) of Schedule 1. In subsection (5) “use licence” means— a vehicle licence issued for the use of a vehicle, or a vehicle licence that is issued by reason of a vehicle being registered under this Act but which would have been issued for the use of the vehicle if the vehicle had not been registered under this Act. For section 7(4) (vehicle licence valid only for vehicle for which it is issued) substitute— A vehicle licence is issued for the vehicle specified in the application for the licence (and for no other). After section 7 insert— Regulations may make provision for a supplement of a prescribed amount to be payable in prescribed cases where— a vehicle licence taken out for a vehicle expires, and no vehicle licence is issued for the vehicle— before the end of such period beginning with the expiry of the expired licence as may be prescribed, and for a period beginning with that expiry. A supplement under this section— shall be payable by such person, or jointly and severally by such persons, as may be prescribed; shall become payable at such time as may be prescribed; may be of an amount that varies according to the length of the period between— the expiry of the licence by reason of whose non-renewal the supplement becomes payable, and the time at which the supplement is paid or that licence is renewed. A supplement under this section that has become payable— is in addition to any vehicle excise duty charged in respect of the vehicle concerned; does not cease to be payable by reason of a vehicle licence being taken out for the vehicle after the supplement has become payable; may, without prejudice to section 6 or 7B(2) and (3) or any other provision of this Act, be recovered as a debt due to the Crown. references to the expiry of a vehicle licence include a reference to— its surrender, and its being treated as no longer in force for the purposes of subsection (2) of section 31A by subsection (4) of that section; “prescribed” means prescribed by, or determined in accordance with, regulations; “regulations” means regulations made by the Secretary of State with the consent of the Treasury. No regulations to which subsection (6) applies shall be made under this section unless a draft of the regulations has been laid before, and approved by a resolution of, each House of Parliament. This subsection applies to regulations under this section that— provide for a supplement to be payable in a case where one would not otherwise be payable, increase the amount of a supplement, provide for a supplement to become payable earlier than it would otherwise be payable, or provide for a supplement to be payable by a person by whom the supplement would not otherwise be payable. The Secretary of State may by regulations make provision for notifying the person in whose name a vehicle is registered under this Act about— any supplement under section 7A that may or has become payable on non-renewal of a vehicle licence for the vehicle; when failure to renew a vehicle licence may result in the person being guilty of an offence under section 31A. The Secretary of State may by regulations make provision— for assessing an amount of supplement due under section 7A from any person and for notifying that amount to that person or any person acting in a representative capacity in relation to that person; for an amount assessed and notified under such regulations to be deemed to be an amount of vehicle excise duty due from the person assessed and recoverable accordingly; for review of decisions under such regulations and for appeals with respect to such decisions or decisions on such reviews. Regulations under subsection (2) may, in particular, make provision that, subject to any modifications that the Secretary of State considers appropriate, corresponds or is similar to— any provision made by sections 12A and 12B of the Finance Act 1994 (assessments related to excise duty matters), or any provision made by sections 14 to 16 of that Act (customs and excise reviews and appeals). Sums received by way of supplements under section 7A shall be paid into the Consolidated Fund. In section 22 (registration regulations), in subsection (1D) (power to require details about unlicensed vehicles), after paragraph (a) insert— who does not renew a vehicle licence for a vehicle registered under this Act in his name, For the purposes of subsection (1D)(aa) a person shall be regarded as not renewing a vehicle licence for a vehicle registered in his name if— a vehicle for which a vehicle licence is in force is registered in his name, and he does not, at such time as may be prescribed by the regulations or within such period as may be so prescribed, take out a vehicle licence to have effect from the expiry of the vehicle licence mentioned in paragraph (a). In section 29(7) (rate of duty by reference to which penalty is calculated), for “section 2(2) to (4)" substitute “ section 2(3) to (6) ”. After section 31 insert— Offence of being registered keeper of unlicensed vehicle If a vehicle registered under this Act is unlicensed, the person in whose name the vehicle is registered is guilty of an offence. For the purposes of this section a vehicle is unlicensed if no vehicle licence or trade licence is in force for or in respect of the vehicle. Subsection (1) does not apply to a vehicle if— it is an exempt vehicle in respect of which regulations under this Act require a nil licence to be in force and a nil licence is in force in respect of the vehicle, or it is an exempt vehicle that is not one in respect of which regulations under this Act require a nil licence to be in force. Where a vehicle for which a vehicle licence is in force is transferred by the holder of the licence to another person, the licence is to be treated for the purposes of subsection (2) as no longer in force unless it is delivered to the other person with the vehicle. an application is made for a vehicle licence for any period, and a temporary licence is issued pursuant to the application, subsection (4) does not apply to the licence applied for if, on a transfer of the vehicle during the currency of the temporary licence, the temporary licence is delivered with the vehicle to the transferee. A person (“the registered keeper”) in whose name an unlicensed vehicle is registered at any particular time (“the relevant time”) does not commit an offence under section 31A at that time if any of the following conditions are satisfied. The first condition is that the registered keeper— is not at the relevant time the person keeping the vehicle, and if previously he was the person keeping the vehicle, he has by the relevant time complied with any requirements under section 22(1)(d)— that are prescribed for the purposes of this condition, and that he is required to have complied with by the relevant or any earlier time. The second condition is that— the registered keeper is at the relevant time the person keeping the vehicle, at the relevant time the vehicle is neither kept nor used on a public road, and the registered keeper has by the relevant time complied with any requirements under section 22(1D)— The third condition is that— the vehicle has been stolen before the relevant time, the vehicle has not been recovered by the relevant time, and any requirements under subsection (6) that, in connection with the theft, are required to have been complied with by the relevant or any earlier time have been complied with by the relevant time. The fourth condition is that the relevant time falls within a period (“the grace days”)— beginning with the expiry of the last vehicle licence to be in force for the vehicle, and of a prescribed length, and a vehicle licence for the vehicle is taken out within the grace days for a period beginning with the grace days. The Secretary of State may by regulations make provision for the purposes of subsection (4)(c) as to the persons to whom, the times at which and the manner in which the theft of a vehicle is to be notified. The Secretary of State may by regulations make provision amending this section for the purpose of providing for further exceptions to section 31A(1) (or varying or revoking any such further exceptions). A person accused of an offence under section 31A(1) is not entitled to the benefit of an exception conferred by or under this section unless evidence is adduced that is sufficient to raise an issue with respect to that exception, but where evidence is so adduced it is for the prosecution to prove beyond reasonable doubt that the exception does not apply. “prescribed” means prescribed by regulations made by the Secretary of State. A person guilty of an offence under section 31A(1) is liable on summary conviction to— an excise penalty of— level 3 on the standard scale, or five times the amount of vehicle excise duty chargeable in respect of the vehicle concerned, whichever is the greater; and if subsection (3) applies to him, an excise penalty (in addition to any under paragraph (a)) of an amount that complies with subsection (2). An amount complies with this subsection if it— is not less than the greater of— the maximum of the penalty to which the person is liable under subsection (1)(a), and the amount of the supplement (if any) that became payable by him by reason of non-renewal of the vehicle licence for the vehicle that last expired before the commission of the offence; and is not more than the greatest of— the maximum of the penalty to which the person is liable under subsection (1)(a), the amount mentioned in paragraph (a)(ii), and ten times the amount of vehicle excise duty chargeable in respect of the vehicle. This subsection applies to the person if— he was, at the time proceedings for the offence were commenced, the person in whose name the vehicle concerned was registered under this Act, and that vehicle was unlicensed throughout the period beginning with the commission of the offence and ending with the commencement of those proceedings. The amount of vehicle excise duty chargeable in respect of a vehicle is to be taken for the purposes of subsections (1) and (2) to be an amount equal to the annual rate of duty applicable to the vehicle at the date on which the offence was committed. Where in the case of a vehicle kept (but not used) on a public road that annual rate differs from the annual rate by reference to which the vehicle was at that date chargeable under section 2(3) to (6), the amount of the vehicle excise duty chargeable in respect of the vehicle is to be taken for those purposes to be an amount equal to the latter rate. In the case of a conviction for a continuing offence, the offence is to be taken for the purposes of subsections (4) and (5) to have been committed on the date or latest date to which the conviction relates. In this section, references to the expiry of a vehicle licence include a reference to— its being treated as no longer in force for the purposes of subsection (2) of section 31A by subsection (4) of that section. Offences under sections 29 and 31A: supplementary In section 32 (sections 29 to 31: supplementary), in subsection (1) (discharges to be treated as convictions)— in the words before paragraph (a), after “section 29" insert “ or 31A ”, and in the words after paragraph (c), after “sections 29 to 31" insert “ or (as the case may be) sections 31A to 31C ”. In the heading of that section, for “31" substitute “ 31C ”. In section 33(3)(b) (offences of not exhibiting licence are without prejudice to offences of not having a licence), after “sections 29" insert “ , 31A ”. In section 34(4) (rate of duty by reference to which penalty is calculated), for “section 2(2) to (4)" substitute “ section 2(3) to (6) ”. In section 47 (proceedings in England and Wales or Northern Ireland), in each of subsections (1) and (2)(a) (who may prosecute and time limit), after “section 29," insert “ 31A, ”. In section 48(3)(a) (proceedings in Scotland: time limit), after “section 29," insert “ 31A, ”. In section 53 (burden of proof of certain matters in proceedings for certain offences), after “section 29," insert “ 31A, ”. In section 54 (single witness sufficient in Scottish proceedings), after “section 29" insert “ , 31A ”. In section 57 (regulations), after subsection (7) insert— Subsection (7) does not apply to a statutory instrument containing regulations under section 7A to which subsection (6) of that section applies. In section 62(1) (definitions), for the definition of “vehicle" substitute— “vehicle” shall be construed in accordance with section 1(1B); The following Schedule is inserted after Schedule 7AA to the Taxation of Chargeable Gains Act 1992 (c. 12)— This Schedule sets out how sections 152 and 153 and other related enactments are modified for the purposes of section 179B (roll-over of degrouping charge on business assets). In the enactments as so modified— “company A” and “company B” have the same meanings as in section 179; “relevant asset” means the asset mentioned in section 179B(1); “deemed sale” means the sale of the relevant asset that is treated as taking place by virtue of section 179(3) or (6); “deemed sale consideration” means the amount for which company A is treated as having sold the relevant asset; “time of accrual” means— in a case where section 179(3) applies, the time at which, by virtue of section 179(4), the gain or loss accruing on the deemed sale is treated as accruing to company A; in a case where section 179(6) applies, the latest time at which the company satisfies the conditions in section 179(7). For subsection (1) of section 152 (roll-over relief) substitute— company B was carrying on a trade at the time when it disposed of the relevant asset to company A, the relevant asset was used, and used only, for the purposes of that trade throughout the period when it was owned by company B, an amount that is not less than the deemed sale consideration is applied by company A in acquiring other assets, or an interest in other assets (“the new assets”), on acquisition the new assets are taken into use, and used only, for the purposes of a trade carried on by company A, both the relevant asset and the new assets are within the classes of assets listed in section 155, and company A makes a claim as respects the amount applied as mentioned in paragraph (c), company A shall be treated for the purposes of this Act as if the deemed sale consideration were (if otherwise of a greater amount) reduced to such amount as would secure that neither a gain nor a loss accrues to the company in respect of the deemed sale. Where subsection (1) applies, company A shall be treated for the purposes of this Act as if the amount or value of the consideration for the acquisition of, or of the interest in, the new assets were reduced by the same amount as the amount of the reduction under that subsection. Subsection (1) does not affect the value at which company A is treated by virtue of section 179 as having reacquired the relevant asset. Subsection (1A) does not affect the treatment for the purposes of this Act of the other party to the transaction involving the new assets. ". In subsection (2) of that section (application of subsection (1) where old assets held on 6th April 1965)— for “subsection (1)(a)" substitute “subsection (1)"; for “subsection (1)(b)" substitute “subsection (1A)". In subsection (3) of that section (reinvestment period), for “after the disposal of, or of the interest in, the old assets" substitute “after the time of accrual". In subsection (5) of that section (new assets must be acquired for purposes of trade), for “the trade" substitute “the trade carried on by company A". In subsection (6) of that section (apportionment where part of building etc not used for purposes of trade), omit “or disposal" and insert at the end “or of the deemed sale consideration". In subsection (6) “period of ownership”, in relation to the relevant asset, means the period during which the asset was owned by company B. ". In subsection (7) of that section (apportionment where old assets not used for purposes of trade throughout period of ownership)— for the words from the beginning to “period of ownership" substitute “If the relevant asset was not used for the purposes of the trade carried on by company B throughout the period during which it was owned by that company"; for the words from “or disposal" to the end substitute “of the asset or of the deemed sale consideration". In subsection (9) of that section (“period of ownership” does not include period before 31st March 1982), for “ “period of ownership" does not" substitute “the references to the period during which the relevant asset was owned by company B do not". In subsection (11) of that section (apportionment of consideration for assets not all of which are subject of claim), omit “or disposal" and insert at the end “; and similarly in relation to the deemed sale consideration". For subsection (1) of section 153 (assets only partly replaced) substitute— an amount that is less than the deemed sale consideration is applied by company A in acquiring other assets, or an interest in other assets (“the new assets”), the difference between the deemed sale consideration and the amount so applied (“the shortfall”) is less than the amount of the gain (whether all chargeable gain or not) accruing on the deemed sale, the conditions in paragraphs (a), (b), (d) and (e) of section 152(1) are satisfied, and company A makes a claim as respects the amount applied as mentioned in paragraph (a) above, company A shall be treated for the purposes of this Act as if the amount of the gain accruing as mentioned in paragraph (b) above were reduced to the same amount as the shortfall (with a proportionate reduction, if not all of that gain is chargeable gain, in the amount of the chargeable gain). Where subsection (1) applies, company A shall be treated for the purposes of this Act as if the amount or value of the consideration for the acquisition of, or of the interest in, the new assets were reduced by the amount by which the gain is reduced (or as the case may be the amount by which the chargeable gain is proportionately reduced) under that subsection. In subsection (1) of section 153A (provisional application of sections 152 and 153)— for the words from “a person" to “takes place" substitute “company A declares, in its return for the chargeable period in which the time of accrual falls"; for “the trade" substitute “a trade carried on by company A"; for “the whole or any specified part of the consideration" substitute “an amount equal to the deemed sale consideration or any specified part of that amount". In subsection (5) of that section (meaning of “relevant day"), for paragraphs (a) and (b) substitute “the fourth anniversary of the last day of the accounting period of company A in which the time of accrual falls". In section 155 (relevant classes of assets), in Head A of Class 1, after paragraph 2 insert— “In Head A “the trade” means— for the purposes of determining whether the relevant asset is within this head, the trade carried on by company B; for the purposes of determining whether the new assets are within this head, the trade carried on by company A. ". In subsection (1) of section 159 (new assets must be chargeable assets), for the words from “in the case of a person" to the second “in relation to him" substitute “if the relevant asset (or, as the case may be, the property mentioned in section 179(3)(b)) is a chargeable asset in relation to company A at the time of accrual, unless the new assets are chargeable assets in relation to that company". In subsection (2) of that section (subsection (1) not to apply where new assets acquired by UK resident after disposal of old ones)— for paragraph (a) substitute— company A acquires the new assets after the time of accrual, and "; in paragraph (b) for “the person" substitute “that company". In subsection (3) of that section (subsection (2) not to apply in certain cases where new assets acquired by dual resident), for “the person" substitute “company A". In subsection (6) of that section (definitions)— in paragraph (a) for “ “the old assets" and “the new assets" have the same meanings" substitute “ “the new assets" has the same meaning"; omit paragraph (b). Omit subsection (7) of that section (acquisitions before 14th March 1989). In subsection (2) of section 175 (single-trade rule for group members not to apply in case of dual resident investing company)— for “the consideration for the disposal of the old assets" substitute “the amount of the deemed sale consideration"; for “ “the old assets" and “the new assets" have the same meanings" substitute “ “the new assets" has the same meaning". In subsection (2A) of that section (claim by two group members to be treated as same person for roll-over purposes), for paragraph (a) substitute— company A is a member of a group of companies at the time of accrual, ". In subsection (2AA) of that section (conditions for claim under subsection (2A))— in paragraph (a) for the words from the beginning to “chargeable assets" substitute “that company A is resident in the United Kingdom at the time of accrual, or the relevant asset (or, as the case may be, the property mentioned in section 179(3)(b)) is a chargeable asset" in paragraph (b) for “the assets" substitute “the new assets (within the meaning of section 152)". Immediately before subsection (2B) of that section (roll-over relief for group member not itself carrying on trade) insert— Section 152 or 153 shall apply where— company B was not carrying on a trade at the time when it disposed of the relevant asset to company A, but was a member of a group of companies at that time, and immediately before that time the relevant asset was used, and used only, for the purposes of the trade which (in accordance with subsection (1) above) is treated as carried on by the members of the group which carried on a trade, as if company B had been carrying on that trade. ". In subsection (2B) of that section— omit paragraph (a); in paragraph (b), for “those purposes" substitute “the purposes of the trade which (in accordance with subsection (1) above) is treated as carried on by the members of the group which carry on a trade". Omit subsection (4) of that section (acquisitions before 20th March 1990). In subsection (3) of section 185 (no roll-over relief in certain cases where company acquires new assets after becoming non-resident)— omit “the company"; the time of accrual falls before the relevant time; and "; insert “the company" at the beginning of paragraph (b). In subsection (5) of that section (definitions), in paragraph (c) for “ “the old assets" and “the new assets" have the same meanings" substitute “ “the new assets" has the same meaning". For subsection (1) of section 198 (replacement of business assets used in connection with oil fields) substitute— If at the time of accrual the relevant asset (or, as the case may be, the property mentioned in section 179(3)(b)) was used by company A for the purposes of a ring fence trade carried on by it, section 152 or 153 shall not apply unless the new assets are on acquisition taken into use, and used only, for the purposes of that trade. ". In subsection (3) of that section (new asset conclusively presumed to be depreciating asset), for “in relation to any of the consideration on a material disposal" substitute “in a case falling within subsection (1) above". In subsection (5) of that section (definitions), omit paragraph (a). In sub-paragraph (2) of paragraph 67 of Schedule 22 to the Finance Act 2000 (c. 17) (no roll-over relief for tonnage tax assets)— after “the disposal", in the first and third places, insert “or deemed sale"; in paragraph (a) after “Asset No.1" insert “or, as the case may be, the deemed sale consideration". The following Schedule is inserted after Schedule 7AB to the Taxation of Chargeable Gains Act 1992 (c. 12)— A gain accruing to a company (“the investing company”) on a disposal of shares or an interest in shares in another company (“the company invested in”) is not a chargeable gain if the requirements of this Schedule are met. The requirements are set out in— Part 2 (the substantial shareholding requirement), and Part 3 (requirements to be met in relation to the investing company and the company invested in). The exemption conferred by this paragraph does not apply in the circumstances specified in paragraph 5 or the cases specified in paragraph 6. A gain accruing to a company (“company A”) on a disposal of an asset related to shares in another company (“company B”) is not a chargeable gain if either of the following conditions is met. immediately before the disposal company A holds shares or an interest in shares in company B, and any gain accruing to company A on a disposal at that time of the shares or interest would, by virtue of paragraph 1, not be a chargeable gain. immediately before the disposal company A does not hold shares or an interest in shares in company B but is a member of a group and another member of that group does hold shares or an interest in shares in company B, and if company A, rather than that other company, held the shares or interest, any gain accruing to company A on a disposal at that time of the shares or interest would, by virtue of paragraph 1, not be a chargeable gain. Where assets of a company are vested in a liquidator under section 145 of the Insolvency Act 1986 or Article 123 of the Insolvency (Northern Ireland) Order 1989 or otherwise, this paragraph applies as if the assets were vested in, and the acts of the liquidator in relation to the assets were the acts of, the company (acquisitions from or disposals to him by the company being disregarded accordingly). A gain accruing to a company (“company A”) on a disposal of shares, or an interest in shares or an asset related to shares, in another company (“company B”) is not a chargeable gain if the following conditions are met. The conditions are— that at the time of the disposal company A meets the requirement in paragraph 7 (the substantial shareholding requirement) in relation to company B; that a chargeable gain or allowable loss would, apart from this paragraph, accrue to company A on the disposal (but see sub-paragraph (3) below); that at the time of the disposal— company A is resident in the United Kingdom, or any chargeable gain accruing to company A on the disposal would, by virtue of section 10(3), form part of that company’s chargeable profits for corporation tax purposes; that there was a time within the period of two years ending with the disposal (“the relevant period”) when, if— company A, or a company that at any time in the relevant period was a member of the same group as company A, had disposed of shares or an interest in shares in company B that it then held, a gain accruing would, by virtue of paragraph 1, not have been a chargeable gain; and that, if at the time of the disposal the requirements of paragraph 19 (requirements relating to company invested in) are not met in relation to company B, there was a time within the relevant period when company B was controlled by— company A together with any persons connected with it, or a company that at any time in the relevant period was a member of the same group as company A, or any such company together with any persons connected with it. Sub-paragraph (1) does not apply if— the condition in sub-paragraph (2)(b) is met but would not be met but for a failure to meet the requirement in paragraph 18(1)(b) (requirement as to investing company to be met immediately after the disposal), and the failure to meet that requirement is not due to— the fact that company A has been wound up or dissolved, or where the winding up or dissolution takes place as soon as is reasonably practicable in the circumstances, the fact that company A is about to be wound up or dissolved. In determining for the purpose of sub-paragraph (2)(d) whether a gain accruing on the hypothetical disposal referred to would have been a chargeable gain, the requirements of paragraph 18(1)(b) and of paragraph 19(1)(b) (requirement as to company invested in to be met immediately after the disposal) shall be assumed to be met. immediately before the disposal company B holds an asset, the expenditure allowable in computing any gain or loss on that asset, were it to be disposed of by company B immediately before that disposal, would fall to be reduced because of a claim to relief under section 165 (gifts relief) in relation to an earlier disposal, and that earlier disposal took place within the relevant period, sub-paragraph (1) does not prevent a gain accruing to company A on the disposal from being a chargeable gain but any loss so accruing is not an allowable loss. Where assets of company B are vested in a liquidator under section 145 of the Insolvency Act 1986 or Article 123 of the Insolvency (Northern Ireland) Order 1989 or otherwise, sub-paragraph (5)(a) applies as if the assets were vested in the company. In determining “the relevant period” for the purposes of sub-paragraph (2)(d) or (e) or sub-paragraph (5)(c), section 28 (time of disposal under contract) applies with the omission of subsection (2) (postponement of time of disposal in case of conditional contract). For the purposes of determining whether an exemption conferred by this Schedule applies, the question whether there is a disposal shall be determined without regard to— section 116(10) (reorganisation, conversion of securities, etc treated as not involving disposal), section 127 (share reorganisations etc treated as not involving disposal), or section 192(2)(a) (distribution not treated as capital distribution). Sub-paragraph (1) does not apply to a disposal of shares if the effect of its applying would be that relief attributable to the shares under Schedule 15 to the Finance Act 2000 (corporate venturing scheme) would be withdrawn or reduced under paragraph 46 of that Schedule (withdrawal or reduction of investment relief on disposal of shares). Where or to the extent that an exemption conferred by this Schedule does apply— the provisions mentioned in sub-paragraph (1)(a) and (b) do not apply in relation to the disposal, and the provision mentioned in sub-paragraph (1)(c) does not apply in relation to the subject matter of the disposal. Where section 127 is disapplied by sub-paragraph (3)(a) in a case in which that section would otherwise have applied in relation to the disposal by virtue of paragraph 84 of Schedule 15 to the Finance Act 2000 (corporate venturing scheme: share exchanges), paragraph 85 of that Schedule (attribution of relief to new shares) does not apply. In this paragraph any reference to section 127 includes a reference to that provision as applied by any enactment relating to corporation tax. Where in pursuance of arrangements to which this paragraph applies— an untaxed gain accrues to a company (“company A”) on a disposal of shares, or an interest in shares or an asset related to shares, in another company (“company B”), and before the accrual of that gain— company A acquired control of company B, or the same person or persons acquired control of both companies, or there was a significant change of trading activities affecting company B at a time when it was controlled by company A, or when both companies were controlled by the same person or persons, none of the exemptions in this Schedule applies to the disposal. This paragraph applies to arrangements from which the sole or main benefit that (but for this paragraph) could be expected to arise is that the gain on the disposal would, by virtue of this Schedule, not be a chargeable gain. For the purposes of sub-paragraph (1)(a) a gain is “untaxed” if the gain, or all of it but a part that is not substantial, represents profits that have not been brought into account (in the United Kingdom or elsewhere) for the purposes of tax on profits for a period ending on or before the date of the disposal. The reference in sub-paragraph (3) to profits being brought into account for the purposes of tax on profits includes a reference to the case where— an amount in respect of those profits is apportioned to a company resident in the United Kingdom by virtue of subsection (3) of section 747 of the Taxes Act 1988 (imputation of chargeable profits etc of controlled foreign companies), and a sum is chargeable on that company in respect of that amount by virtue of subsection (4) of that section for an accounting period of that company ending on or before the date of the disposal. For the purposes of sub-paragraph (1)(b)(ii) there is a “significant change of trading activities affecting company B” if— there is a major change in the nature or conduct of a trade carried on by company B or a 51% subsidiary of company B, or there is a major change in the scale of the activities of a trade carried on by company B or a 51% subsidiary of company B, or company B or a 51% subsidiary of company B begins to carry on a trade. In this paragraph— “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable; “major change in the nature or conduct of a trade” has the same meaning as in section 768 of the Taxes Act (change of ownership of company: disallowance of trading losses); “profits” means income or gains (including unrealised income or gains).

The exemptions conferred by this Schedule do not apply— to a disposal that by virtue of any enactment relating to chargeable gains is deemed to be for a consideration such that no gain or loss accrues to the person making the disposal, to a disposal a gain on which would, by virtue of any enactment not contained in this Schedule, not be a chargeable gain, or to a deemed disposal under section 440(1) or (2) of the Taxes Act (deemed disposal on transfer of asset of insurance company from one category to another). The hypothetical disposal referred to in paragraph 2(2)(b) or (3)(b) or paragraph 3(2)(d) shall be assumed not to be a disposal within sub-paragraph (1)(a), (b) or (c) above. Part 2The substantial shareholding requirement The investing company must have held a substantial shareholding in the company invested in throughout a twelve-month period beginning not more than two years before the day on which the disposal takes place. For the purposes of this Schedule a company holds a “substantial shareholding” in another company if it holds shares or interests in shares in that company by virtue of which— it holds not less than 10% of the company’s ordinary share capital, it is beneficially entitled to not less than 10% of the profits available for distribution to equity holders of the company, and it would be beneficially entitled on a winding up to not less than 10% of the assets of the company available for distribution to equity holders. This is without prejudice to what is meant by “substantial” where the word appears in other contexts. Schedule 18 to the Taxes Act 1988 (meaning of equity holder and determination of profits or assets available for distribution) applies for the purposes of sub-paragraph (1). In that Schedule as it applies for those purposes— for any reference to sections 403C and 413(7) of that Act, or either of those provisions, substitute a reference to sub-paragraph (1) above; omit the words in paragraph 1(4) from “but" to the end; omit paragraph 5(3) and paragraphs 5B to 5F; and omit paragraph 7(1)(b). For the purposes of paragraph 7 (the substantial shareholding requirement) a company that is a member of a group is treated— as holding any shares or interest in shares held by any other company in the group, and as having the same entitlement as any such company to any rights enjoyed by virtue of holding shares or an interest in shares. Sub-paragraph (1) is subject to paragraph 17(4) (exclusion of aggregation in case of assets of long-term insurance fund of insurance company). For the purposes of this Part the period for which a company has held shares is treated as extended by any earlier period during which the shares concerned, or shares from which they are derived, were held— by a company from which the shares concerned were transferred to the first-mentioned company on a no-gain/ no-loss transfer, or by a company from which the shares concerned, or shares from which they are derived, were transferred on a previous no-gain/no-loss transfer— to a company within paragraph (a), or to another company within this paragraph. For the purposes of sub-paragraph (1)— a “no-gain/no-loss transfer” means a disposal and corresponding acquisition that by virtue of any enactment relating to chargeable gains are deemed to be for a consideration such that no gain or loss accrues to the person making the disposal; a transfer shall be treated as if it had been a no-gain/no- loss transfer if it is a transfer to which subsection (1) of section 171 (transfers within a group) would apply but for subsection (3) of that section. Where sub-paragraph (1) applies to extend the period for which a company (“company A”) is treated as having held any shares, that company shall be treated for the purposes of this Part as having had at any time the same entitlement— to shares, and to any rights enjoyed by virtue of holding shares, as the company (“company B”) that at that time held the shares concerned or, as the case may be, the shares from which they are derived. The shares and rights to be so attributed to company A include any holding or entitlement attributed at that time to company B under paragraph 9 (aggregation of holdings of group companies). In this paragraph, except in paragraphs (a) to (c) of sub-paragraph (6), “shares” includes an interest in shares. For the purposes of this paragraph shares are “derived” from other shares only where— a company becomes a co-owner of shares previously owned by it alone, or vice versa, a company’s interest in shares as co-owner changes (without the company ceasing to be a co-owner), one holding of shares is treated by virtue of section 127 as the same asset as another, or there is a sequence of two or more of the occurrences mentioned in paragraphs (a) to (c). The reference in paragraph (c) to section 127 includes a reference to that provision as applied by any enactment relating to corporation tax. For the purposes of this Part a company is not regarded as having held shares throughout a period if, at any time during that period, there is a deemed disposal and reacquisition of— the shares concerned, or shares, or an interest in shares, from which those shares are derived. For the purposes of this Part a company is not regarded as having held an interest in shares throughout a period if, at any time during that period, there is a deemed disposal and reacquisition of— the interest concerned, or shares, or an interest in shares, from which that interest is derived. “deemed disposal and reacquisition” means a disposal and immediate reacquisition treated as taking place under any enactment relating to corporation tax; “derived” has the same meaning as in paragraph 10. a company that holds shares in another company transfers the shares under a repurchase agreement, and by virtue of section 263A(1) (agreements for sale and repurchase of securities) the disposal is disregarded for the purposes of the enactments relating to chargeable gains. During the period of the repurchase agreement— the original owner shall be treated for the purposes of this Part as continuing to hold the shares transferred and accordingly as retaining his entitlement to any rights attached to them, and the interim holder shall be treated for those purposes as not holding the shares transferred and as not becoming entitled to any such rights. This is subject to the following qualification. If at any time before the end of the period of the repurchase agreement the original owner, or another member of the same group as the original owner, becomes the holder— of any of the shares transferred, or of any shares directly or indirectly representing any of the shares transferred, sub-paragraph (2) does not apply after that time in relation to those shares or, as the case may be, in relation to the shares represented by those shares. In this paragraph a “repurchase agreement” means an agreement under which— a person (“the original owner”) transfers shares to another person (“the interim holder”) under an agreement to sell them, and the original owner or a person connected with him is required to buy them back either— in pursuance of an obligation to do so imposed by that agreement or by any related agreement, or in consequence of the exercise of an option acquired under that agreement or any related agreement. For the purposes of paragraph (b) agreements are related if they are entered into in pursuance of the same arrangements (regardless of the date on which either agreement is entered into). Any reference in this paragraph to the period of a repurchase agreement is to the period beginning with the transfer of the shares by the original owner to the interim holder and ending with the repurchase of the shares in pursuance of the agreement. a company that holds shares in another company transfers the shares under a stock lending arrangement, and by virtue of section 263B(2) (stock lending arrangements) the disposal is disregarded for the purposes of the enactments relating to chargeable gains. During the period of the stock lending arrangement— the lender shall be treated for the purposes of this Part as continuing to hold the shares transferred and accordingly as retaining his entitlement to any rights attached to them, and the borrower shall be treated for those purposes as not holding the shares transferred and as not becoming entitled to any such rights. If at any time before the end of the period of the stock lending arrangement the lender, or another member of the same group as the lender, becomes the holder— In this paragraph a “stock lending arrangement” means arrangements between two persons (“the borrower” and “the lender”) under which— the lender transfers shares to the borrower otherwise than by way of sale, and a requirement is imposed on the borrower to transfer those shares back to the lender otherwise than by way of sale. Any reference in this paragraph to the period of a stock lending arrangement is to the period beginning with the transfer of the shares by the lender to the borrower and ending— with the transfer of the shares back to the lender in pursuance of the arrangement, or when it becomes apparent that the requirement for the borrower to make a transfer back to the lender will not be complied with. The following provisions apply for the purposes of this paragraph as they apply for the purposes of section 263B— subsections (5) and (6) of that section (references to transfer back of securities to include transfer of other securities of the same description); section 263C (references to transfer back of securities to include payment in respect of redemption). This paragraph applies where shares in one company (“company X”)— are exchanged (or deemed to be exchanged) for shares in another company (“company Y”), or are deemed to be exchanged by virtue of section 136 for shares in company X and shares in another company (“company Y”), in circumstances such that, under section 127 as that section applies by virtue of section 135 or 136, the original shares and the new holding are treated as the same asset. Where company Y— is the company invested in, and is accordingly the company by reference to which the requirement of paragraph 7 (the substantial shareholding requirement) falls to be met, or is a company by reference to which, by virtue of this paragraph, that requirement may be met, or is a company by reference to which, by virtue of paragraph 15 (effect of earlier demerger) that requirement may be met, that requirement may instead be met, in relation to times before the exchange (or deemed exchange), by reference to company X. If in any case that requirement can be met by virtue of this paragraph (or by virtue of this paragraph together with paragraph 15), it shall be treated as met. In sub-paragraph (1) “original shares” and “new holding” shall be construed in accordance with sections 126, 127, 135 and 136. This paragraph applies where shares in one company (“the subsidiary”) are transferred by another company (“the parent company”) on a demerger. Where the subsidiary— is a company by reference to which, by virtue of paragraph 14 (effect of earlier company reconstruction etc), that requirement may be met, that requirement may instead be met, in relation to times before the transfer, by reference to the parent company. If in any case that requirement can be met by virtue of this paragraph (or by virtue of this paragraph together with paragraph 14), it shall be treated as met. In this paragraph a “transfer of shares on a demerger” means a transfer such that, by virtue of section 192(2)(b), sections 126 to 130 apply as if the parent company and the subsidiary were the same company and the transfer were a reorganisation of that company’s share capital not involving a disposal or acquisition. Where assets of the investing company, or of a company that is a member of the same group as the investing company, are vested in a liquidator under section 145 of the Insolvency Act 1986 or Article 123 of the Insolvency (Northern Ireland) Order 1989 or otherwise, this Part applies as if the assets were vested in, and the acts of the liquidator in relation to the assets were the acts of, the company (acquisitions from or disposals to him by the company being disregarded accordingly). In the following two cases paragraph 8(1) (meaning of substantial shareholding) has effect as if, in paragraphs (a), (b) and (c), “30%" were substituted for “10%". The first case is where the investing company is an insurance company and the disposal is of an asset of its long-term insurance fund. The second case is where— the investing company is a 51% subsidiary of an insurance company, and the insurance company holds as an asset of its long-term insurance fund shares or an interest in shares— in the investing company, or in another company through which it owns shares in the investing company. The reference in paragraph (b)(ii) to owning shares through another company has the same meaning as in section 838 of the Taxes Act (subsidiaries). Where the investing company is a member of a group that includes an insurance company, paragraph 9 (aggregation of holdings of group companies) does not apply in relation to shares or an interest in shares held by the insurance company as assets of its long-term insurance fund. In this paragraph “insurance company” and “long-term insurance fund” have the meanings given by section 431(2) of the Taxes Act. Part 3Requirements to be met in relation to investing company and company invested in The investing company must— have been a sole trading company or a member of a qualifying group throughout the period (“the qualifying period”)— beginning with the start of the latest twelve-month period by reference to which the requirement of paragraph 7 (the substantial shareholding requirement) is met, and ending with the time of the disposal, and be a sole trading company or a member of a qualifying group immediately after the time of the disposal. For this purpose a “qualifying group” means— a trading group, or a group that would be a trading group if the activities of any group member that is not established for profit were disregarded to the extent that they are carried on otherwise than for profit. In determining whether a company is established for profit, no account shall be taken of any object or power of the company that is only incidental to its main objects. The requirement in sub-paragraph (1)(a) is met if the investing company was a sole trading company for some of the qualifying period and a member of a qualifying group for the remainder of that period. The requirement in sub-paragraph (1)(a) is treated as met if at the time of the disposal— the investing company is a member of a group, and there is another member of the group in relation to which that requirement would have been met if— the subject matter of the disposal had been transferred to it immediately before the disposal in circumstances in which section 171(1) (transfers within a group) applied, and it had made the disposal. If the disposal is by virtue of section 28(1) or (2) (asset disposed of under contract) treated as made at a time before the asset is conveyed or transferred, the requirements in sub-paragraph (1)(a) and (b) must also be complied with as they would have effect if the references in those provisions and sub-paragraph (4) to the time of the disposal were to the time of the conveyance or transfer. In this paragraph a “sole trading company” means a trading company that is not a member of a group. The company invested in must— have been a qualifying company throughout the period— be a qualifying company immediately after the time of the disposal. For this purpose a “qualifying company” means a trading company or the holding company of a trading group or a trading subgroup. If the disposal is by virtue of section 28(1) or (2) (asset disposed of under contract) treated as made at a time before the asset is conveyed or transferred, the requirements in sub-paragraph (1)(a) and (b) must also be complied with as they would have effect if the references there to the time of the disposal were to the time of the conveyance or transfer. In this Schedule “trading company” means a company carrying on trading activities whose activities do not include to a substantial extent activities other than trading activities. For the purposes of sub-paragraph (1) “trading activities” means activities carried on by the company— in the course of, or for the purposes of, a trade being carried on by it, for the purposes of a trade that it is preparing to carry on, with a view to its acquiring or starting to carry on a trade, or with a view to its acquiring a significant interest in the share capital of another company that— is a trading company or the holding company of a trading group or trading subgroup, and if the acquiring company is a member of a group, is not a member of that group. Activities do not qualify as trading activities under sub-paragraph (2)(c) or (d) unless the acquisition is made, or (as the case may be) the company starts to carry on the trade, as soon as is reasonably practicable in the circumstances. The reference in sub-paragraph (2)(d) to the acquisition of a significant interest in the share capital of another company is to an acquisition of ordinary share capital in the other company— such as would make that company a 51% subsidiary of the acquiring company, or such as would give the acquiring company a qualifying shareholding in a joint venture company without making the two companies members of the same group. In this Schedule “trading group” means a group— one or more of whose members carry on trading activities, and the activities of whose members, taken together, do not include to a substantial extent activities other than trading activities. For the purposes of sub-paragraph (1) “trading activities” means activities carried on by a member of the group— in the course of, or for the purposes of, a trade being carried on by any member of the group, for the purposes of a trade that any member of the group is preparing to carry on, with a view to any member of the group acquiring or starting to carry on a trade, or with a view to any member of the group acquiring a significant interest in the share capital of another company that— is not a member of the same group as the acquiring company. Activities do not qualify as trading activities under sub-paragraph (2)(c) or (d) unless the acquisition is made, or (as the case may be) the group member in question starts to carry on the trade, as soon as is reasonably practicable in the circumstances. such as would make that company a member of the same group as the acquiring company, or such as would give the acquiring company a qualifying shareholding in a joint venture company without making the joint venture company a member of the same group as the acquiring company. For the purposes of this paragraph the activities of the members of the group shall be treated as one business (with the result that activities are disregarded to the extent that they are intra-group activities). In this Schedule “trading subgroup” means a subgroup— For the purposes of sub-paragraph (1) “trading activities” means activities carried on by a member of the subgroup— in the course of, or for the purposes of, a trade being carried on by any member of the subgroup, for the purposes of a trade that any member of the subgroup is preparing to carry on, with a view to any member of the subgroup acquiring or starting to carry on a trade, or with a view to any member of the subgroup acquiring a significant interest in the share capital of another company that— Activities do not qualify as trading activities under sub-paragraph (2)(c) or (d) unless the acquisition is made, or (as the case may be) the subgroup member in question starts to carry on the trade, as soon as is reasonably practicable in the circumstances. such as would make that company a member of the same subgroup as the acquiring company, or For the purposes of this paragraph the activities of the members of the subgroup shall be treated as one business (with the result that activities are disregarded to the extent that they are intra-subgroup activities). This paragraph applies where a company (“the company”) has a qualifying shareholding in a joint venture company. In determining whether the company is a trading company— its holding of shares in the joint venture company shall be disregarded, and it shall be treated as carrying on an appropriate proportion— of the activities of the joint venture company, or where the joint venture company is a holding company, of the activities of that company and its 51% subsidiaries. This sub-paragraph does not apply if the company is a member of a group and the joint venture company is a member of the same group. In determining whether the company is a member of a trading group or the holding company of a trading group— every holding of shares in the joint venture company by a member of the group having a qualifying shareholding in that company shall be disregarded, and each member of the group having a qualifying shareholding in the joint venture company shall be treated as carrying on an appropriate proportion— This sub-paragraph does not apply if the joint venture company is a member of the group. In determining whether the company is the holding company of a trading subgroup— every holding of shares in the joint venture company by the company and any of its 51% subsidiaries having a qualifying shareholding in the joint venture company shall be disregarded, and the company and each of its 51% subsidiaries having a qualifying shareholding in the joint venture company shall be treated as carrying on an appropriate proportion— This sub-paragraph does not apply if the joint venture company is a member of the same group as the company. In sub-paragraphs (2)(b), (3)(b) and (4)(b) “an appropriate proportion” means a proportion corresponding to the percentage of the ordinary share capital of the joint venture company held by the company concerned. In this paragraph “shares”, in relation to a joint venture company, includes securities of that company or an interest in shares in or securities of that company. For the purposes of this paragraph the activities of a joint venture company that is a holding company and its 51% subsidiaries shall be treated as a single business (so that activities are disregarded to the extent that they are intra-group activities or, as the case may be, intra-subgroup activities). For the purposes of this Schedule a company is a “joint venture company” if, and only if— it is a trading company or the holding company of a trading group or trading subgroup, and there are five or fewer persons who between them hold 75% or more of its ordinary share capital. In determining whether there are five or fewer such persons as are mentioned in paragraph (b), the members of a group are treated as if they were a single company. For the purposes of this Schedule— a company that is not a member of a group has a “qualifying shareholding” in a joint venture company if, and only if, it holds shares or an interest in shares in the joint venture company by virtue of which it holds 10% or more of that company’s ordinary share capital; a company that is a member of a group has a “qualifying shareholding” in a joint venture company if, and only if— it holds ordinary share capital of the joint venture company, and the members of the group between them hold 10% or more of the ordinary share capital of that company. The provisions of— paragraph 14 (effect of earlier company reconstruction etc), and paragraph 15 (effect of earlier demerger), have effect in relation to the requirements of paragraph 19 (requirements in relation to company invested in) as they have effect in relation to the requirement of paragraph 7 (the substantial shareholding requirement). Part 4Interpretation In this Schedule— “company” has the meaning given by section 170(9); and references to a group, or to membership of a group, shall be construed in accordance with the provisions of section 170 read as if “51 per cent" were substituted for “75 per cent". References in this Schedule to a “subgroup” are to companies that would form a group but for the fact that one of them is a 51% subsidiary of another company. In this Schedule “holding company”— in relation to a group, means the company described in section 170 as the principal company of the group; in relation to a subgroup, means a company that would be the holding company of a group but for being a 51% subsidiary of another company. In this Schedule “51% subsidiary” has the meaning given by section 838 of the Taxes Act. In applying that section for the purposes of this Schedule, any share capital of a registered industrial and provident society shall be treated as ordinary share capital. References in this Schedule to a “group” or “subsidiary” shall be construed with any necessary modifications where applied to a company incorporated under the law of a country or territory outside the United Kingdom. In this Schedule “trade” means anything that— is a trade, profession or vocation, within the meaning of the Income Tax Acts, and is conducted on a commercial basis with a view to the realisation of profits. For the purposes of this Schedule a “twelve-month period” means a period ending with the day before the first anniversary of the day with which, or in the course of which, the period began. References in this Schedule to an interest in shares are to an interest as a co-owner of shares. It does not matter whether the shares are owned jointly or in common, or whether the interests of the co-owners are equal. This paragraph explains what is meant by an asset related to shares in a company. An asset is related to shares in a company if it is— an option to acquire or dispose of shares or an interest in shares in that company, or a security to which are attached rights by virtue of which the holder is or may become entitled to acquire or dispose of (whether by conversion or exchange or otherwise)— shares or an interest in shares in that company, or another security falling within this paragraph, or an option to acquire or dispose of any security within paragraph (b) or an interest in any such security, or an interest in, or option over, any such option or security as is mentioned in paragraph (a), (b) or (c), or any interest in, or option over, any such interest or option as is mentioned in paragraph (d) or this paragraph. In determining whether a security is within sub-paragraph (2)(b), no account shall be taken— of any rights attached to the security other than rights relating, directly or indirectly, to shares of the company in question, or of rights as regards which, at the time the security came into existence, there was no more than a negligible likelihood that they would in due course be exercised to a significant extent. The references in this paragraph to an interest in a security or option have a meaning corresponding to that given by paragraph 29 in relation to an interest in shares. In this Schedule the expressions listed below are defined or otherwise explained by the provisions indicated: Part 5Consequential provisions Any exemption conferred by this Schedule shall be disregarded in determining whether shares are “chargeable shares”, or an asset is a “chargeable asset”, for the purposes of any enactment relating to corporation tax or capital gains tax. a company makes a claim under section 24(2) (assets of negligible value) in relation to shares held by it, and by virtue of this Schedule any loss accruing to the company on a disposal of the shares at the time of the claim would not be an allowable loss. Where this paragraph applies the company may not exercise the option under section 24(2) to specify a time earlier than the time of the claim as the time when the shares are treated as sold and reacquired by virtue of that subsection. This paragraph applies to— an interest in shares in a company, or an asset related to shares in a company, as it applies to shares in that company. The exemptions conferred by this Schedule do not apply to or affect a chargeable gain or allowable loss deemed to accrue on a disposal by virtue of section 116(10)(b) (reorganisations, conversions and reconstructions: deemed accrual of gain or loss held over on earlier transaction). Sub-paragraph (1) does not apply where the relevant earlier transaction was a deemed disposal and reacquisition under section 92(7) of the Finance Act 1996 (convertible securities etc). a company disposes of an asset in circumstances falling within section 140(4) (recovery of charge postponed on transfer of assets to non-resident company), and by virtue of this Schedule any gain accruing to the company on the disposal would not be a chargeable gain. Where this paragraph applies the amount by which the consideration received on the disposal would be treated as increased by virtue of section 140(4) shall instead be treated as accruing to the company, at the time of the disposal, as a chargeable gain to which this Schedule does not apply. Any reference in section 140 to an amount being brought or taken into account under or in accordance with subsection (4) of that section includes a reference to an amount being treated, by virtue of sub-paragraph (2) above, as accruing as a chargeable gain. an asset acquired by a company otherwise than as trading stock of a trade carried on by it is appropriated by the company for the purposes of the trade as trading stock (whether on the commencement of the trade or otherwise), and if the company had then sold the asset for its market value, a chargeable gain or allowable loss would have accrued to the company but for an exemption conferred by this Schedule, the company is treated for the purposes of the enactments relating to chargeable gains as if it had thereby disposed of the asset for its market value. Section 173 (transfers within a group: trading stock) applies in relation to this paragraph as it applies in relation to section 161 (appropriations to and from stock). a company disposes of an asset, the expenditure allowable in computing a gain or loss on that disposal falls to be reduced because of a claim for relief under section 165 (gifts relief) in relation to an earlier disposal, and by virtue of this Schedule any gain accruing to the company on the disposal mentioned in paragraph (a) would not be a chargeable gain. Where this paragraph applies the amount of the held-over gain, or an appropriate proportion of it, shall be treated as accruing to the company, at the time of the disposal mentioned in sub-paragraph (1)(a), as a chargeable gain to which this Schedule does not apply. An “appropriate proportion” means a proportion determined on a just and reasonable basis having regard to the subject matter of the disposal mentioned in sub-paragraph (1)(a) and the subject matter of the earlier disposal that was the subject of the claim for relief under section 165. In this paragraph “held-over gain” has the same meaning as in section 165. a company, as a result of ceasing at any time (“the time of degrouping”) to be a member of a group, is treated by section 179(3) as having sold and immediately reacquired an asset, and if the company owning the asset at the time of degrouping had disposed of it immediately before that time, any gain accruing on the disposal would by virtue of this Schedule not have been a chargeable gain, section 179(3) shall have effect as if it provided for the deemed sale and reacquisition to be treated as taking place immediately before the time of degrouping. a company, as a result of ceasing at any time (“the relevant time”) to satisfy the conditions in section 179(7), is treated by section 179(6) as having sold and immediately reacquired an asset, and if the company owning the asset at the relevant time had disposed of it immediately before that time, any gain accruing on the disposal would by virtue of this Schedule not have been a chargeable gain, section 179(6) shall have effect as if it provided for the deemed sale and reacquisition to be treated as taking place immediately before the relevant time. Any reference in this paragraph to a disposal or other event taking place immediately before the time of degrouping or the relevant time is to its taking place immediately before that time but on the same day. No gain or loss shall be treated as arising under the FOREX matching regulations on a disposal on which by virtue of this Schedule any gain would not be a chargeable gain. The “FOREX matching regulations” means any regulations made under Schedule 15 to the Finance Act 1993 (exchange gains and losses: alternative method of calculation). In section 179(4) of the Taxation of Chargeable Gains Act 1992 (c. 12) (deemed sale and reacquisition on company ceasing to be member of group: time when chargeable gain or allowable loss treated as accruing), for “which, apart from this subsection, would accrue" substitute “ accruing ”. In Schedule 7B of the Taxation of Chargeable Gains Act 1992 (c. 12) (modification of Act in relation to overseas life insurance companies), after paragraph 15 add— In Schedule 7AC, in paragraph 3(2)(c)(ii), the words “section 11(2)(b), (c) or (d) of the Taxes Act" shall be treated as substituted for the words “section 10(3)". In Schedule 15 to the Finance Act 2000 (c. 17) (the corporate venturing scheme), in paragraphs 84(1) and 85(1) after “(see paragraph 83" insert “ and paragraph 4 of Schedule 7AC to the Taxation of Chargeable Gains Act 1992 ”. For section 135 of the Taxation of Chargeable Gains Act 1992 (exchange of securities for those in another company) substitute— This section applies in the following circumstances where a company (“company B”) issues shares or debentures to a person in exchange for shares in or debentures of another company (“company A”). The circumstances are: Case 1 Where company B holds, or in consequence of the exchange will hold, more than 25% of the ordinary share capital of company A. Case 2 Where company B issues the shares or debentures in exchange for shares as the result of a general offer— (a) made to members of company A or any class of them (with or without exceptions for persons connected with company B), and (b) made in the first instance on a condition such that if it were satisfied company B would have control of company A. Case 3 Where company B holds, or in consequence of the exchange will hold, the greater part of the voting power in company A. Where this section applies, sections 127 to 131 (share reorganisations etc) apply with the necessary adaptations as if company A and company B were the same company and the exchange were a reorganisation of its share capital. In this section “ordinary share capital” has the meaning given by section 832(1) of the Taxes Act and also includes— in relation to a unit trust scheme, any rights that are treated by section 99(1)(b) of this Act (application of Act to unit trust schemes) as shares in a company, and in relation to a company that has no share capital, any interests in the company possessed by members of the company. This section applies in relation to a company that has no share capital as if references to shares in or debentures of the company included any interests in the company possessed by members of the company. This section has effect subject to section 137(1) (exchange must be for bona fide commercial reasons and not part of tax avoidance scheme). For section 136 of the Taxation of Chargeable Gains Act 1992 (c. 12) (reconstruction or amalgamation involving issue of securities) substitute— an arrangement between a company (“company A”) and— the persons holding shares in or debentures of the company, or where there are different classes of shares in or debentures of the company, the persons holding any class of those shares or debentures, is entered into for the purposes of, or in connection with, a scheme of reconstruction, and under the arrangement— another company (“company B”) issues shares or debentures to those persons in respect of and in proportion to (or as nearly as may be in proportion to) their relevant holdings in company A, and the shares in or debentures of company A comprised in relevant holdings are retained by those persons or are cancelled or otherwise extinguished. Where this section applies— those persons are treated as exchanging their relevant holdings in company A for the shares or debentures held by them in consequence of the arrangement, and sections 127 to 131 (share reorganisations etc) apply with the necessary adaptations as if company A and company B were the same company and the exchange were a reorganisation of its share capital. For this purpose shares in or debentures of company A comprised in relevant holdings that are retained are treated as if they had been cancelled and replaced by a new issue. Where a reorganisation of the share capital of company A is carried out for the purposes of the scheme of reconstruction, the provisions of subsections (1) and (2) apply in relation to the position after the reorganisation. “scheme of reconstruction” has the meaning given by Schedule 5AA to this Act; references to “relevant holdings” of shares in or debentures of company A are— where there is only one class of shares in or debentures of the company, to holdings of shares in or debentures of the company, and where there are different classes of shares in or debentures of the company, to holdings of a class of shares or debentures that is involved in the scheme of reconstruction (within the meaning of paragraph 2 of Schedule 5AA); references to shares or debentures being retained include their being retained with altered rights or in an altered form, whether as the result of reduction, consolidation, division or otherwise; and any reference to a reorganisation of a company’s share capital is to a reorganisation within the meaning of section 126. This section has effect subject to section 137(1) (scheme of reconstruction must be for bona fide commercial reasons and not part of tax avoidance scheme). After Schedule 5A to the Taxation of Chargeable Gains Act 1992 insert— Meaning of “scheme of reconstruction" In section 136 “scheme of reconstruction” means a scheme of merger, division or other restructuring that meets the first and second, and either the third or the fourth, of the following conditions. The first condition is that the scheme involves the issue of ordinary share capital of a company (“the successor company”) or of more than one company (“the successor companies”)— to holders of ordinary share capital of another company (“the original company”) or, where there are different classes of ordinary share capital of that company, to holders of one or more classes of ordinary share capital of that company (the classes “involved in the scheme of reconstruction”), or to holders of ordinary share capital of more than one other company (“the original companies”) or, where there are different classes of ordinary share capital of one or more of the original company or companies, to holders of ordinary share capital of any of those companies or of one or more classes of ordinary share capital of any of those companies (the classes “involved in the scheme of reconstruction”), and does not involve the issue of ordinary share capital of the successor company, or (as the case may be) any of the successor companies, to anyone else. The second condition is that under the scheme the entitlement of any person to acquire ordinary share capital of the successor company or companies by virtue of holding relevant shares, or relevant shares of any class, is the same as that of any other person holding such shares or shares of that class. For this purpose “relevant shares” means shares comprised— where there is one original company, in the ordinary share capital of that company or, as the case may be, in the ordinary share capital of that company of a class involved in the scheme of reconstruction; where there is more than one original company, in the ordinary share capital of any of those companies or, as the case may be, in the ordinary share capital of any of those companies of a class involved in the scheme of reconstruction. The third condition is that the effect of the restructuring is— where there is one original company, that the business or substantially the whole of the business carried on by the company is carried on— by a successor company which is not the original company, or by two or more successor companies (which may include the original company); where there is more than one original company, that all or part of the business or businesses carried on by one or more of the original companies is carried on by a different company, and the whole or substantially the whole of the businesses carried on by the original companies are carried on— where there is one successor company, by that company (which may be one of the original companies), or where there are two or more successor companies, by those companies (which may be the same as the original companies or include any of those companies). The reference in sub-paragraph (1)(a)(ii) or (b)(ii) to the whole or substantially the whole of a business, or businesses, being carried on by two or more companies includes the case where the activities of those companies taken together embrace the whole or substantially the whole of the business, or businesses, in question. For the purposes of this paragraph a business carried on by a company that is under the control of another company is treated as carried on by the controlling company as well as by the controlled company. Section 840 of the Taxes Act (meaning of “control") applies for the purposes of this sub-paragraph. For the purposes of this paragraph the holding and management of assets that are retained by the original company, or any of the original companies, for the purpose of making a capital distribution in respect of shares in the company shall be disregarded. In this sub-paragraph “capital distribution” has the same meaning as in section 122. The fourth condition is that— the scheme is carried out in pursuance of a compromise or arrangement— under section 425 of the Companies Act 1985 or Article 418 of the Companies (Northern Ireland) Order 1986, or under any corresponding provision of the law of a country or territory outside the United Kingdom, and no part of the business of the original company, or of any of the original companies, is transferred under the scheme to any other person. Where a reorganisation of the share capital of the original company, or of any of the original companies, is carried out for the purposes of the scheme of reconstruction, the provisions of the first and second conditions apply in relation to the position after the reorganisation. An issue of shares in or debentures of the successor company, or any of the successor companies, after the latest date on which any ordinary share capital of the successor company, or any of them, is issued— in consideration of the transfer of any business, or part of a business, under the scheme, or in pursuance of the compromise or arrangement mentioned in paragraph 5(a), shall be disregarded for the purposes of the first and second conditions. In this Schedule “ordinary share capital” has the meaning given by section 832(1) of the Taxes Act and also includes— Any reference in this Schedule to a reorganisation of a company’s share capital is to a reorganisation within the meaning of section 126. The Taxes Act 1988 is amended as follows. In section 299 (disposal of shares)— in subsection (4C), as that section applies to shares issued before 1st January 1994 (business expansion scheme), for “(whether or not by virtue of section 135(3) of that Act)" substitute “ (including a case where that section applies by virtue of any enactment relating to chargeable gains) ”, and for the words from “shall be construed" to the end substitute “ have the same meaning as in section 127 of the 1992 Act (or, as the case may be, that section as applied by virtue of the enactment concerned) ”. The Taxation of Chargeable Gains Act 1992 (c. 12) is amended as follows. In section 102 (collective investment schemes with property divided into separate parts), in subsection (3)(b) after “135" insert “ or 136 ”. In section 137 (restriction on application of sections 135 and 136)— in subsection (1), for “, reconstruction or amalgamation" substitute “ or scheme of reconstruction ”; and in subsection (6), for “section 136(3)" substitute “ section 135(5), 136(5) ”. In section 138(1) (procedure for clearance in advance), for “, reconstruction or amalgamation" substitute “ or scheme of reconstruction ”. In section 139 (reconstruction involving transfer of business), for subsection (9) substitute— In this section “scheme of reconstruction” has the same meaning as in section 136. In section 147 (quoted options treated as part of new holdings)— in subsection (1) for “or amalgamation" substitute “ , exchange or scheme of reconstruction ”; and in subsection (2) at the end insert “ and “scheme of reconstruction" has the same meaning as in section 136 ”. In section 151B (venture capital trusts: supplementary), in subsection (8) for paragraph (c) substitute— a reference to the exchanged holding is, in relation to section 135 or 136, to the shares in the company referred to in that section as company A. In section 171(3) (transfers within a group) for “by virtue of sections 127 and 135" substitute “ by section 127 as it applies by virtue of section 135 ”. In section 251 (debts: general provisions)— in subsection (2) for “132 and 135" substitute “ 132, 135 and 136 ”; in subsection (3)— for “132 and 135" substitute “ 132, 135 and 136 ”, and for “either section 132 or 135" substitute “ section 132, 135 or 136 ”; in subsection (6)(b) for the words from “unaffected" to the end substitute “ to which section 135 applies and which is unaffected by section 137(1) ”. In Schedule 6 (retirement relief: supplementary provisions), in paragraph 2(2) for “section 135(3)" substitute “ section 135 or 136 ”. Schedule 15 to the Finance Act 2000 (c. 17) (corporate venturing scheme) is amended as follows. In paragraph 71 (tax avoidance), in sub-paragraph (1)(b)(ii) for “reconstructions and amalgamations" substitute “ schemes of reconstruction ”. In paragraph 82(1) (company reconstructions and amalgamations), in the closing words for “company reconstructions and amalgamations" substitute “ share exchanges and company reconstructions ”. In paragraph 93(7) (identification of shares on a disposal: cases to which section 127 applies)— for “(whether or not by virtue of section 135(3) of that Act)" substitute “ (including a case where that section applies by virtue of any enactment relating to chargeable gains) ”; and for the words from “shall be construed" to the end substitute “ have the same meaning as in section 127 of the 1992 Act (or, as the case may be, that section as applied by virtue of the enactment concerned) ”. In paragraph 96 (meaning of “disposal")— in sub-paragraph (2)(a) for “section 136(1)" substitute “ section 136 ”; in sub-paragraph (2)(b) for “sections 135 and 136 of that Act to bona fide reconstructions and amalgamations" substitute “ section 136 of that Act to bona fide schemes of reconstruction ”. Subject to paragraph 8, the provisions of this Schedule have effect in relation to shares or debentures issued on or after 17th April 2002 (“the commencement date”).

The reference in sub-paragraph (1) to shares or debentures includes any interests falling to be treated as shares or debentures for the purposes of section 135 or 136 of the Taxation of Chargeable Gains Act 1992 (c. 12) as substituted by this Schedule. Paragraph 4(2), (3) and (5) and paragraph 6(2), (4) and (5) have effect in relation to disposals on or after the commencement date. Paragraph 4(6) has effect in relation to events occurring on or after the commencement date. The Taxation of Chargeable Gains Act 1992 (c. 12) is amended in accordance with paragraphs 2 to 6. Section 2 (persons and gains chargeable to capital gains tax, and allowable losses) is amended as follows. In paragraph (b) of that subsection, omit “77, 86,". Allowable losses must (notwithstanding section 2A(6)) be deducted under paragraph (a)(i) of subsection (5) above before any may be deducted under paragraph (aa)(i) of that subsection. Where in any year of assessment— there are amounts treated as accruing to a person by virtue of section 77 or 86, two or more of those amounts, or elements of them— relate to different settlements, and attract taper relief (by virtue of subsection (5)(aa)(ii) above) at the same rate, or are not eligible for taper relief, and losses are deductible from the amounts or elements mentioned in paragraph (b) above (“the equal-tapered amounts”) but are not enough to exhaust them all, the deduction applicable to each of the equal-tapered amounts shall be the appropriate proportion of the aggregate of those losses. The “appropriate proportion” is that given by dividing the equal-tapered amount in question by the total of the equal-tapered amounts. The references to section 86 in subsection (5)(aa) above (in the opening words) and subsection (7)(a) above include references to that section read with section 10A. This Schedule applies in relation to chargeable gains treated as accruing to a person by virtue of section 77 or 86 (read, where appropriate, with section 10A) of the Taxation of Chargeable Gains Act 1992 (c. 12) in the year 2003-04 and subsequent years of assessment. This Schedule also applies, if the person so elects, in relation to chargeable gains so accruing to a person in any of the years of assessment 2000-01, 2001-02 and 2002-03. An election under this paragraph— must be made by a notice given to an officer of the Board no later than 31st January 2005; where chargeable gains are treated as accruing in respect of two or more settlements, may be restricted to those treated as accruing in respect of the settlement or settlements specified in the election. All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this paragraph. a person makes an election under this paragraph for any one or more of the years of assessment 2000-01, 2001-02 and 2002-03, and the effect of the election, or (as the case may be) both or all of them taken together, is to increase the total amount of tax that the person is entitled to recover from the trustees of a particular settlement for those three years under section 78(1)(a) of the Taxation of Chargeable Gains Act 1992 or paragraph 6 of Schedule 5 to that Act, the trustees of that settlement must join in the election, or (as the case may be) each of them that has that effect or contributes to it. In Schedule 18 to the Finance Act 1998 (c. 36) (company tax returns, assessments and related matters), in paragraph 8 (calculation of tax payable), after paragraph 1A of the second step of the calculation in sub-paragraph (1) insert— Any relief under Part 5 of Schedule 16 to the Finance Act 2002 (community investment tax relief). The Capital Allowances Act 2001 (c. 2) is amended as follows. In section 39, after the entry relating to section 45A add, After section 45C insert— Expenditure is first-year qualifying expenditure if— it is incurred in the period beginning with 17th April 2002 and ending with 31st March 2008, it is expenditure on a car which is first registered on or after 17th April 2002 and which is unused and not second-hand, the car— is an electrically-propelled car, or is a car with low CO2 emissions, and the expenditure is not excluded by section 46 (general exclusions). For the purposes of this section a car with low CO2 emissions is a car which satisfies the conditions in subsections (3) and (4). The first condition is that, when the car is first registered, it is so registered on the basis of an EC certificate of conformity, or a UK approval certificate, that specifies— in the case of a car other than a bi-fuel car, a CO2 emissions figure in terms of grams per kilometre driven, or in the case of a bi-fuel car, separate CO2 emissions figures in terms of grams per kilometre driven for different fuels. The second condition is that the applicable CO2 emissions figure in the case of the car does not exceed 120 grams per kilometre driven. For the purposes of subsection (4) the applicable CO2 emissions figure in the case of a car other than a bi-fuel car is— where the EC certificate of conformity or UK approval certificate specifies only one CO2 emissions figure, that figure, and where the certificate specifies more than one CO2 emissions figure, the figure specified as the CO2 emissions (combined) figure. For the purposes of subsection (4) the applicable CO2 emissions figure in the case of a bi-fuel car is— where the EC certificate of conformity or UK approval certificate specifies more than one CO2 emissions figure in relation to each fuel, the lowest CO2 emissions (combined) figure specified, and in any other case, the lowest CO2 figure specified by the certificate. The Treasury may by order amend the amount from time to time specified in subsection (4). In this section any reference to a car— includes a reference to a mechanically propelled road vehicle of a type commonly used as a hackney carriage, but does not include a reference to a motorcycle. For the purposes of this section, a car is an electrically-propelled car only if— it is propelled solely by electrical power, and that power is derived from— a source external to the vehicle, or an electrical storage battery which is not connected to any source of power when the vehicle is in motion. “bi-fuel car” means a car which is capable of being propelled by— petrol and road fuel gas, or diesel and road fuel gas; “car” has the meaning given by section 81 (extended meaning of “car"); “diesel” means any diesel fuel within the definition in Article 2 of Directive 98/70/EC of the European Parliament and of the Council; “EC certificate of conformity” means a certificate of conformity issued by a manufacturer under any provision of the law of a member State implementing Article 6 of Council Directive 70/156/EEC, as amended; “petrol” has the meaning given by Article 2 of Directive 98/70/ EC of the European Parliament and of the Council; “road fuel gas” has the same meaning as in section 168AB of ICTA; “UK approval certificate” means a certificate issued under— section 58(1) or (4) of the Road Traffic Act 1988, or Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981. Section 46 is amended as follows. In subsection (1) (expenditure which is subject to the general exclusions) after the entry relating to section 45A add , After subsection (2) (general exclusions listed for the purposes of subsection (1)) insert— Subsection (1) is subject to the following provisions of this section. General exclusion 2 does not prevent expenditure being first-year qualifying expenditure under section 45D. In section 52(3), in the Table, after the entry relating to expenditure qualifying under section 45A add— In section 39, after the entry relating to section 45D (which is inserted by Schedule 19 to this Act) add— After section 45D (which is added by Schedule 19 to this Act) insert— it is expenditure on plant or machinery for a gas refuelling station where the plant or machinery is unused and not second-hand, and it is not excluded by section 46 (general exclusions). For the purposes of this section expenditure on plant or machinery for a gas refuelling station is expenditure on plant or machinery installed at a gas refuelling station for use solely for or in connection with refuelling vehicles with natural gas or hydrogen fuel. For the purposes of subsection (2) the plant or machinery which is for use for or in connection with refuelling vehicles with natural gas or hydrogen fuel includes— any storage tank for natural gas or hydrogen fuel, any compressor, pump, control or meter used for or in connection with refuelling vehicles with natural gas or hydrogen fuel, and any equipment for dispensing natural gas or hydrogen fuel to the fuel tank of a vehicle. “gas refuelling station” means any premises, or that part of any premises, where vehicles are refuelled with natural gas or hydrogen fuel; “hydrogen fuel” means a fuel consisting of gaseous or cryogenic liquid hydrogen which is used for propelling vehicles; “vehicle” means a mechanically propelled road vehicle. In section 46, in subsection (1) (expenditure which is subject to the general exclusions) after the entry relating to section 45D (which is added by Schedule 19 to this Act) add— In section 52(3), in the Table, after the entry relating to expenditure qualifying under section 45D (which is added by Schedule 19 to this Act) add— Part 2 of the Capital Allowances Act 2001 (c. 2) (plant and machinery allowances) is amended as follows. In section 39, after the entry relating to section 45E (which is added by Schedule 20 to this Act) add After section 45E (which is inserted by Schedule 20 to this Act) insert— it is incurred on or after 17th April 2002, it is incurred by a company, it is incurred on the provision of plant or machinery for use wholly for the purposes of a ring fence trade, and This section is subject to section 45G (plant or machinery used for less than five years in a ring fence trade). In this section “ring fence trade” means a ring fence trade in respect of which tax is chargeable under section 501A of the Taxes Act 1988 (supplementary charge in respect of ring fence trades). After section 45F insert— Expenditure incurred by a company on the provision of plant or machinery is to be treated as never having been first-year qualifying expenditure under section 45F if the plant or machinery— is at no time in the relevant period used in a ring fence trade carried on by the company or a company connected with it, or is at any time in the relevant period used for a purpose other than that of a ring fence trade carried on by the company or a company connected with it. For the purposes of this section “the relevant period” means whichever of the following periods, beginning with the incurring of the expenditure, first ends, namely— the period ending with the fifth anniversary of the incurring of the expenditure, or the period ending with the day preceding the first occasion on which the plant or machinery, after becoming owned by the company which incurred the expenditure, is not owned by a company which is either that company or a company connected with it. All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (1). If a person who has made a return becomes aware that, after making it, anything in it has become incorrect because of the operation of this section, he must give notice to the Inland Revenue specifying how the return needs to be amended. The notice must be given within 3 months beginning with the day on which the person first became aware that anything in the return had become incorrect because of the operation of this section. In this section “ring fence trade” has the same meaning as in section 45F. In section 46, in subsection (1) (expenditure which is subject to the general exclusions) after the entry relating to section 45E (which is added by Schedule 20 to this Act) add In section 52(3), in the Table, after the entry relating to expenditure qualifying under section 45E (which is added by Schedule 20 to this Act) add— The Taxes Management Act 1970 (c. 9) is amended as follows. In the second column of the Table in section 98, in the entry relating to requirements imposed by provisions of the Capital Allowances Act, after “45B(5) and (6)," insert “ 45G(4) and (5), ”. Part 5 of the Capital Allowances Act 2001 (c. 2) (mineral extraction allowances) is amended as follows. After section 416, insert the following Chapter— First-year qualifying expenditure General A first-year allowance is not available unless the qualifying expenditure is first-year qualifying expenditure under section 416B (expenditure incurred wholly for purposes of a ring fence trade). Types of expenditure which may qualify for first year allowances it is incurred wholly for the purposes of a ring fence trade, and it is not excluded by— subsection (2) (acquisition of mineral asset), or subsection (3) (acquisition of asset representing expenditure of connected company). Expenditure is not first-year qualifying expenditure under this section if it is expenditure on acquiring a mineral asset. Expenditure is not first-year qualifying expenditure under this section if it is expenditure incurred by a company on the acquisition of an asset representing expenditure incurred by a company connected with that company. To the extent that references in this section to an asset representing expenditure incurred by a company include a reference to an asset representing expenditure on mineral exploration and access, they also include a reference to any results obtained from any search, exploration or inquiry on which any such expenditure was incurred. Supplementary In determining whether expenditure is first-year qualifying expenditure under this Chapter, any effect of the provisions specified in subsection (2) on the time at which the expenditure is to be treated as incurred is to be disregarded. The provisions are— section 400(4) (which treats certain pre-trading expenditure as incurred on the first day of trading), and section 434 (which treats certain other expenditure incurred for the purposes of a trade about to be carried on as incurred on that day). At the beginning of Chapter 6 (allowances and charges) insert— First-year allowances A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if the expenditure is incurred in a chargeable period to which this Act applies. Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred. The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table— Amount of first-year allowances A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure. This section is subject to section 416E (artificially inflated claims for first-year allowances). After section 416D insert— To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for a chargeable period the amount of any first-year allowance to which a person is entitled. For the purposes of this section, arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a person to obtain— a first-year allowance to which he would not otherwise be entitled, or a first-year allowance of a greater amount than that to which he would otherwise be entitled. In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable. Section 418 is amended as follows. In subsection (4) (amount of balancing charge) after paragraph (b) insert the following as a second sentence— Where a person is liable to a balancing charge in respect of first-year qualifying expenditure for the chargeable period in which he incurred the expenditure, any first-year allowance made in respect of the expenditure shall be treated for the purposes of paragraph (b) as if it were an allowance for an earlier chargeable period. Section 419 is amended as follows. In subsection (1) (amount of qualifying expenditure which is unrelieved qualifying expenditure for the chargeable period in which the expenditure is incurred) for “the whole of it" substitute— the whole of it, unless the expenditure is first-year qualifying expenditure, or if the expenditure is first-year qualifying expenditure, none of it, but paragraph (b) is subject to subsections (3) to (5). After subsection (2) insert— If, in the case of expenditure which is first-year qualifying expenditure, a disposal receipt falls to be brought into account for the chargeable period in which the expenditure is incurred (“the initial period”), subsection (4) below applies. Where this subsection applies, the unrelieved balance of the expenditure shall be taken to be unrelieved qualifying expenditure for the initial period, but only for the purpose specified in subsection (5). The purpose is that of determining in accordance with sections 417 and 418— any question whether the person who incurred the expenditure— is entitled to a balancing allowance for the initial period, or is liable to a balancing charge for that period, and if so, the amount of that balancing allowance or balancing charge. In this section “the unrelieved balance of the expenditure” means so much of the first-year qualifying expenditure in question as remains after deducting the amount of any first-year allowance given in respect of the whole or any part of that expenditure. Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) (loan relationships) is amended in accordance with the following provisions of this Part. In Schedule 15 (savings and transitional provisions) omit paragraphs 22 to 24. Section 798B of the Taxes Act 1988 (adjustments of interest and dividends for spared tax etc) is amended as follows. In subsection (5) (meaning of “qualifying losses”) for paragraph (a) (exchange losses under Finance Act 1993) substitute— exchange losses falling to be brought into account as debits for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships); and The Finance Act 1995 (c. 4) is amended as follows. Omit section 131(which made transitional provision in relation to exchange gains and losses and which is spent). In Part 2 of Schedule 24 (amendments of certain enactments) in paragraph 7 (commencement on day appointed under section 165(7)(b) of Finance Act 1993) for the words following “come into force on” substitute “ 23rd March 1995 ”. Schedule 22 to the Finance Act 2000 (c. 17) is amended as follows. In paragraph 50 (relevant shipping income: certain interests etc) in sub-paragraph (2) (income to which paragraph 50 applies) at the end of paragraph (a) insert “ and ”. In paragraph 63 (meaning of “finance costs”) in sub-paragraph (2)(c) (exchange gain or loss) for “within the meaning of Chapter II of Part II of the Finance Act 1993” substitute “ within the meaning given by section 103(1A) of the Finance Act 1996 ”. Schedule 29 to the Finance Act 2002 (gains and losses of a company from intangible fixed assets) is amended as follows. In paragraph 75 (assets entirely excluded: financial assets) in sub-paragraph (3) for paragraph (a) (money debts) substitute— loan relationships; The repeal of sections 139 to 143 of the Finance Act 1993 (c. 34) (foreign exchange gains and losses) does not prevent the making of a claim under section 139 of that Act (deferral of unrealised gains) by a company in respect of a gain accruing in an accrual period which begins with, or at any time in, the last accounting period of the company which begins before 1st October 2002; but any such claim shall have effect subject to the following provisions of this paragraph and (subject to regulations under section 81) regulations under Chapter 2 of Part 2 of that Act. Amounts which, but for the repeal of subsections (4) to (10) of section 140 of the Finance Act 1993, would fall to be treated by virtue of those subsections as exchange gains for an accrual period which consists of, or falls in, an accounting period beginning on or after 1st October 2002— shall be brought into account for that accounting period as if they were credits falling for the purposes of Part 5 of the Corporation Tax Act 2009 to be brought into account in respect of the company’s loan relationships; shall be treated for the purposes of that Part as non-trading credits, to the extent that they would, but for the repeal of subsections (5), (8) and (9) of section 140 of the Finance Act 1993, have fallen to be treated by virtue of those subsections as non-trading exchange gains; and except as provided by paragraph (b), shall be brought into account under section 297(2) of the Corporation Tax Act 2009 (trading credits). Before the expiration of the period of 2 years following the end of its first accounting period beginning on or after 1st October 2002, a company may elect for any amounts that would otherwise fall to be brought into account for that accounting period in accordance with paragraph (a) of sub-paragraph (2) instead to be brought into account in accordance with that sub-paragraph, but— over the first 6 accounting periods of the company which begin on or after 1st October 2002; and in instalments of an equal amount for each such accounting period. If a company— makes an election under sub-paragraph (3), but ceases to be within the charge to corporation tax before six accounting periods of the company which begin on or after 1st October 2002 have elapsed, any instalment under that sub-paragraph which does not fall to be brought into account for an earlier accounting period shall be brought into account for the accounting period in which the company ceases to be within the charge to corporation tax. Section 226 of the Finance Act 1994 (c. 9) (provisions which are not to apply to corporate members of Lloyd’s) is amended as follows. Subsection (1) (which prevents sections 92 to 95 of the Finance Act 1993 (c. 34) from applying) shall cease to have effect (and sections 92 to 94AB of that Act shall accordingly apply for the purposes of computing for the purposes of corporation tax the profits or losses of a corporate member’s underwriting business). Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) (loan relationships) is amended in accordance with the following provisions of this Part of this Schedule. Schedule 10 (collective investment schemes) is amended as follows. For paragraph 1 substitute— Where any profits, gains or losses arising to an investment trust from a creditor relationship for an accounting period are carried to or sustained by a capital reserve in accordance with the Statement of Recommended Practice used for that accounting period, those profits, gains or losses must not be brought into account as credits or debits for the purposes of this Chapter, notwithstanding section 84(2)(b) of this Act. Where any profits, gains or losses arising to a venture capital trust from a creditor relationship for an accounting period— are carried to or sustained by a capital reserve in accordance with the Statement of Recommended Practice used for the accounting period as if the venture capital trust were an investment trust, or would be carried to or sustained by a capital reserve if the venture capital trust were an investment trust and were using that Statement of Recommended Practice, those profits, gains or losses must not be brought into account as credits or debits for the purposes of this Chapter, notwithstanding section 84(2)(b) of this Act. For the purposes of this paragraph, the “Statement of Recommended Practice” used for an accounting period is— in relation to an accounting period for which it is permitted to be used, the Statement of Recommended Practice relating to Investment Trust Companies, issued by the Association of Investment Trust Companies in December 1995, as from time to time modified, amended or revised, or in relation to any accounting period for which it is permitted to be used, any subsequent Statement of Recommended Practice relating to investment trusts, as from time to time modified, amended or revised. For paragraph 2 (which makes special provision in relation to authorised unit trusts and is applied to open-ended investment companies by regulations under section 152 of the Finance Act 1995 (c. 4)) and the heading immediately preceding it substitute— Where any profits, gains or losses arising to an authorised unit trust from a creditor relationship in an accounting period are capital profits, gains or losses, those profits, gains or losses must not be brought into account as credits or debits for the purposes of this Chapter, notwithstanding section 84(2)(b) of this Act. For the purposes of this paragraph, capital profits, gains or losses arising from a creditor relationship in an accounting period are such profits, gains or losses arising from a creditor relationship as fall to be dealt with under— the heading “net gains/losses on investments during the period”, or the heading “other gains/losses”, in the statement of total return for the accounting period. For the purposes of sub-paragraph (2) above, the statement of total return for an accounting period is the statement of total return which, in accordance with the Statement of Recommended Practice used for the accounting period, must be included in the accounts contained in the annual report of the authorised unit trust which deals with the accounting period. For the purposes of sub-paragraph (3) above, “Statement of Recommended Practice” means— in relation to any accounting period for which it is required or permitted to be used, the Statement of Recommended Practice relating to Authorised Unit Trust Schemes issued by the Investment Management Regulatory Organisation Limited in January 1997, as from time to time modified, amended or revised; or in relation to any accounting period for which it is required or permitted to be used, any subsequent Statement of Recommended Practice relating to authorised unit trust schemes, as from time to time modified, amended or revised. The Treasury may by order amend this paragraph so as to alter the definition of capital profits, gains or losses in consequence of the modification, amendment, revision or replacement of a Statement of Recommended Practice. The power to make an order under this paragraph includes power— to make different provision for different cases; and to make such consequential, supplementary, incidental or transitional provision, or savings, as appear to the Treasury to be necessary or expedient (including provision amending any enactment or any instrument made under any enactment). Where any profits, gains or losses arising to an open-ended investment company from a creditor relationship in an accounting period are capital profits, gains or losses, those profits, gains or losses must not be brought into account as credits or debits for the purposes of this Chapter, notwithstanding section 84(2)(b) of this Act. For the purposes of sub-paragraph (2) above, the statement of total return for an accounting period is the statement of total return which, in accordance with the Statement of Recommended Practice used for the accounting period, must be included in the accounts contained in the annual report of the open-ended investment company which deals with the accounting period. in relation to any accounting period for which it is required or permitted to be used, the Statement of Recommended Practice relating to Open-Ended Investment Companies issued by the Financial Services Authority in November 2000, as from time to time modified, amended or revised; or in relation to any accounting period for which it is required or permitted to be used, any subsequent Statement of Recommended Practice relating to open-ended investment companies, as from time to time modified, amended or revised. For the purposes of paragraph 5(1) of Schedule 27 to the Taxes Act 1988 (computation of UK equivalent profit), the assumptions to be made in determining what, for any period, would be the total profits of an offshore fund are to include the assumptions in sub-paragraphs (2) and (3) below. The first assumption is that the provisions of this Chapter so far as they relate to the creditor relationships of a company do not apply for the purposes of corporation tax in computing the profits or loss of an offshore fund. The second assumption is that for the purposes of corporation tax the profits and gains, and losses, that are to be taken to arise from the creditor relationships of an offshore fund are to be computed— in accordance with the provisions applicable, in the case of unauthorised unit trusts, for the purposes of income tax; and as if the provisions so applicable had effect in relation to an accounting period of an offshore fund as they have effect, in the case of unauthorised unit trusts, in relation to a year of assessment. In this paragraph “unauthorised unit trust” means the trustees of any unit trust scheme which is not an authorised unit trust but is a unit trust scheme for the purposes of section 469 of the Taxes Act 1988. In Schedule 15 (loan relationships: savings and transitional provisions) paragraph 11 is amended as follows. If, in a case where the continuing loan relationship is a creditor relationship,— the company acquired its rights under the relationship on or before 31st March 1996 by virtue of an arm’s length transaction, for the accounting period in which it acquired those rights— there was no connection (as defined in sub-paragraph (2C) below) between the company and the person from whom the company acquired the asset, but there was such a connection between the company and a company standing in the position of a debtor as respects the money debt, and there had been no such connection between the companies mentioned in paragraph (b)(ii) above at any time in the period which— begins 4 years before the date on which the company acquired those rights, and ends twelve months before that date, this paragraph shall have effect as if the amount mentioned in sub-paragraph (2)(b) above were an amount equal to the greater of the amounts mentioned in sub-paragraph (2B) below. Those amounts are— the fair value of the rights at the time when the company ceases to be a party to the loan relationship; and the fair value of the rights on 1st April 1996. For the purposes of sub-paragraph (2A) above there is a connection between a company and another person at any time if at that time— the other person is a company and one of the companies has control of the other, the other person is a company and both companies are under the control of the same person, or the company is a close company and the other person is a participator in that company or the associate of a person who is such a participator, and there is a connection between a company and another person for an accounting period if there is a connection (within paragraphs (a) to (c) above) between the company and the person at any time in that accounting period. For the purposes of sub-paragraph (2C) above— subsections (2) to (6) of section 416 of the Taxes Act 1988 (meaning of control) shall apply as they apply for the purposes of Part 11 of that Act; subject to paragraph (c) below, “participator” and “associate” have the meaning given for the purposes of that Part by section 417 of that Act; a person shall not be regarded as a participator in relation to a company by reason only that he is a loan creditor of the company. In Schedule 15, after paragraph 11 (other adjustments in the case of chargeable assets etc) insert— This paragraph applies where, in the case of any asset representing in whole or in part a loan relationship of a company, an amount representing a deemed allowable loss would (apart from this paragraph) fall or have fallen to be brought into account in accordance with paragraph 8(3) above for an accounting period (whenever beginning or ending), but for section 251(4) of the 1992 Act (no allowable loss on disposal of debt acquired from connected person). Where this paragraph applies, the amount of any credit falling within sub-paragraph (3) below shall be treated for the purposes of this Chapter as reduced (but not below nil) by the amount described in sub-paragraph (1) above. A credit falls within this sub-paragraph if (apart from this paragraph)— the credit falls to be given by virtue of paragraph 11(3)(a) above for an accounting period beginning on or after 1st October 2002; and the loan relationship mentioned in paragraph 11(1)(a) above in the case of the credit is the same loan relationship as the one mentioned in sub-paragraph (1) above. In section 77(2)(a) (meaning of “qualifying loan” etc) omit sub-paragraph (ii) (interest deductible under section 338 against total profits). Schedule 6 to the Finance Act 1988 (c. 39) is amended as follows. In consequence of Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships) in paragraph 3 (abolition of Schedule D election etc) omit— sub-paragraphs (3)(a), (4)(a) and (5)(a) and (b); in sub-paragraph (5), in the words following paragraph (c), the word “group”; and sub-paragraph (6). Section 40 of the Taxation of Chargeable Gains Act 1992 (c. 12) is amended as follows. After subsection (3) add— In consequence of Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) (loan relationships) this section does not have effect in relation to interest referable to an accounting period ending on or after 1st April 1996. In section 15(1) (Schedule A) in paragraph 2(3) of Schedule A (profits of Schedule A business computed without regard to certain items) for the third indent (which relates to qualifying payments within Chapter 2 of Part 4 of the Finance Act 1994 (c. 9)) substitute— —credits or debits within Schedule 26 to the Finance Act 2002 (derivative contracts). After subsection (1A) of that section insert— If, apart from section 143(1) of the 1992 Act or section 128(2) above, gains arising in the course of dealing in financial futures or in qualifying options would constitute, for the purposes of the Corporation Tax Acts, profits and gains chargeable to tax under Case V or VI of Schedule D, then any loss arising in the course of that dealing shall not be allowable against profits and gains which are chargeable to tax under Case V or VI of Schedule D. Omit section 468AA (authorised unit trusts: futures and options). Section 468L (interest distributions) is amended as follows. In subsection (9) (meaning of “qualifying investments”) after paragraph (e) insert— derivative contracts whose underlying subject matter consists wholly of any one or more of the matters referred to in paragraphs (a) to (e) above; contracts for differences whose underlying subject matter consists wholly of interest rates or creditworthiness or both of those matters. In subsection (11) (assumption as to investments of other authorised unit trust which are to be regarded as qualifying investments) after “within paragraphs (a) to (c)” insert “ , (f) and (g) ”. After subsection (12G) insert— “contract for differences” has the same meaning as in paragraph 12 of Schedule 26 to the Finance Act 2002; “derivative contract” means— a contract which is a derivative contract within the meaning of that Schedule, or a contract which is, in the accounting period in question, treated as if it were a derivative contract by virtue of paragraph 36 of that Schedule (contracts relating to holdings in unit trust schemes, open-ended investment companies and offshore funds); “underlying subject matter” has the same meaning as in paragraph 11 of that Schedule. In section 798B (restriction of relief on certain interest and dividends: meaning of “financial expenditure”) in subsection (5) (meaning of “qualifying losses”) for paragraph (b) (losses brought into account for purposes of Chapter 2 of Part 4 of the Finance Act 1994) substitute— the amount (if any) by which debits brought into account in respect of a derivative contract for the purposes of Schedule 26 to the Finance Act 2002 (derivative contracts) exceed credits so brought into account; Section 807A (disposals and acquisitions of company loan relationships with or without interest) is amended as follows. In that subsection, omit the definition of “relevant qualifying payment”. In section 226 (provisions of the Finance Act 1993 (c. 34) and Finance Act 1994 which are not to apply in the case of Lloyd’s underwriters) for subsection (3) (contracts and options in premium trust fund of corporate member not to be qualifying contracts for purposes of Chapter 2 of Part 4 of the Finance Act 1994) substitute— No relevant contract (within the meaning of Schedule 26 to the Finance Act 2002) forming part of a premium trust fund of a corporate member shall be a derivative contract. The Finance Act 1996 (c. 8) is amended as follows. Omit Schedule 12(meaning of debt contract or option). The Finance Act 2000 (c. 17) is amended as follows. Schedule 22 (tonnage tax) is amended as follows. In paragraph 50 (income which, otherwise than under Schedule 22 to the Finance Act 2000, falls to be taken into account as trading income from trade consisting of tonnage tax activities) in sub-paragraph (2), for paragraph (c) substitute— any credit falling to be brought into account under Schedule 26 to the Finance Act 2002 (derivative contracts). In paragraph 63 (ring-fencing of accounting periods where company is tonnage tax company: meaning of “finance costs”) in sub-paragraph (2), for paragraph (b) substitute— any credit or debit falling to be brought into account under Schedule 26 to the Finance Act 2002 (derivative contracts) in relation to debt finance; The Finance Act 2002 is amended as follows. Section 78 (which amends the provision made by Schedule 5AA to the Taxes Act 1988 as regards corporation tax in relation to guaranteed returns on transactions involving futures and options, provision as regards which is made in Schedule 26 in relation to accounting periods beginning on or after 1st October 2002) shall cease to have effect. In Schedule 29 (taxation of intangible fixed assets) in paragraph 75 (which provides for the Schedule not to apply to financial assets) for sub-paragraph (3)(b) (financial assets to include qualifying contracts within Chapter 2 of Part 4 of the Finance Act 1994) substitute— derivative contracts (see Part 2 of Schedule 26 to this Act), This paragraph applies if the conditions in sub-paragraphs (2) and (3) are satisfied in relation to any contract of a company. The first condition is that the company was a party to a qualifying contract (within the meaning of Chapter 2 of Part 4 of the Finance Act 1994) before its commencement day, but is not a party to it on that commencement day. The second condition is that, if the company had been a party to the contract on its commencement day, the contract would have been a derivative contract. To the extent that amounts have been brought into account in computing, in accordance with Chapter 2 of Part 4 of the Finance Act 1994, the profits or losses accruing to the company from the contract in an old period of the company, they shall not be brought into account again by the company as credits or debits given in respect of that contract for the first new period or any subsequent accounting period of the company by Schedule 26. In relation to a subsequent accounting period ending on or after 1 April 2009, the reference in sub-paragraph (4) to Schedule 26 is to be read as a reference to Part 7 of the Corporation Tax Act 2009. This paragraph applies if the conditions in sub-paragraphs (2) to (4) are satisfied in relation to any contract of a company. The first condition is that the company is a party to the contract immediately before and on its commencement day. The second condition is that the contract— was not a qualifying contract (within the meaning of Chapter 2 of Part 4 of the Finance Act 1994) immediately before the company’s commencement day, but as from that day is a derivative contract. The third condition is that the contract was, immediately before the company’s commencement day, a chargeable asset. Where this paragraph applies, the company shall, when it ceases to be a party to the contract, bring into account, for the accounting period in which it ceases to be a party to the contract, the amount of any chargeable gain or allowable loss which would have been treated as accruing to the company on the assumption— that it had made a disposal of the asset immediately before its commencement day, and that the disposal had been for a consideration equal to the value (if any) given to the contract in the accounts of the company at the end of the company’s accounting period immediately before its first new period. Sub-paragraph (5) has effect subject to sub-paragraph (7). The company may elect that a debit representing the amount of any allowable loss, which under sub-paragraph (5) is to be brought into account for the accounting period in which it ceases to be a party to the contract, shall be brought into account for that accounting period as if it were a non-trading debit falling to be brought into account for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) in respect of a loan relationship of the company. In relation to an accounting period ending on or after 1 April 2009, the reference in sub-paragraph (7) to Chapter 2 of Part 4 of the Finance Act 1996 is to be read as a reference to Part 5 of the Corporation Tax Act 2009. An election under sub-paragraph (7) may only be made within the period of two years following the end of the accounting period in which the company ceases to be a party to the contract. For the purposes of this paragraph an asset is a chargeable asset if any gain accruing on the disposal of the asset by the company would be a chargeable gain for the purposes of the Taxation of Chargeable Gains Act 1992 (c. 12) (and includes any obligations under futures contracts which, by virtue of section 143 of that Act, are regarded as assets to the disposal of which that Act applies). This paragraph has effect subject to paragraph 5. was not a qualifying contract (within the meaning of Chapter 2 of Part 4 of the Finance Act 1994 (c. 9)) immediately before the company’s commencement day, but as from that day would, but for an election under sub-paragraph (5) of this paragraph, be a derivative contract to which paragraph 7 of Schedule 26 (contracts designed to secure guaranteed amount) applies. Where this paragraph applies the company may elect that its contract shall be treated for the purposes of the Corporation Tax Acts as if it were— a creditor relationship of the company which is a zero coupon bond (within the meaning of paragraph 48 of Schedule 26), and an option of the company whose underlying subject matter is the same as the underlying subject matter of the contract to which this paragraph applies; and sub-paragraphs (4) to (6) of that paragraph shall apply to a creditor relationship and an option arising under this sub-paragraph as they apply to a creditor relationship and an option arising under paragraph 48(2) of Schedule 26. An election under sub-paragraph (5) in relation to a contract— may only be made within the period of two years following the end of the company’s first new period; has effect for the company’s first new period and all subsequent accounting periods of the company; and is irrevocable. Where an election under sub-paragraph (5) has been made by a company in relation to a contract, the company shall, when it ceases to be a party to the contract, bring into account, for the accounting period in which it ceases to be a party to the contract, the amount of any chargeable gain or allowable loss which would have been treated as accruing to the company on the assumption— Sub-paragraph (7) has effect subject to sub-paragraph (9). The company may elect that a debit representing the amount of any allowable loss, which under sub-paragraph (7) is to be brought into account for the accounting period in which it ceases to be a party to the contract, shall be brought into account for that accounting period as if it were a non-trading debit falling to be brought into account for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 (c. 8) in respect of a loan relationship of the company. In relation to an accounting period ending on or after 1 April 2009, the reference in sub-paragraph (9) to Chapter 2 of Part 4 of the Finance Act 1996 is to be read as a reference to Part 5 of the Corporation Tax Act 2009. An election under sub-paragraph (9) may only be made within the period of two years following the end of the accounting period in which the company ceases to be a party to the contract. For the purposes of this paragraph references to an asset being a chargeable asset shall be construed in accordance with paragraph 4(9). In this paragraph “option” and “underlying subject matter” have the same meaning as in Schedule 26. This paragraph applies if the conditions in sub-paragraphs (2) to (5) are satisfied in relation to any contract of a company. The third condition is that the contract was, immediately before the company’s commencement day, a transaction to which Schedule 5AA to the Taxes Act 1988 applied. The fourth condition is that, on or after the company’s commencement day, a relevant event occurs. For the purposes of this paragraph a relevant event is an event which would, if Schedule 5AA to the Taxes Act 1988 had continued to apply to the contract for the purposes of corporation tax, have given rise to an amount of profits falling to be charged under that Schedule. A credit representing that amount of profits (“a relevant credit”) shall be brought into account by virtue of paragraph 14(3) of Schedule 26 for the accounting period in which the relevant event occurs as if it were a non-trading credit falling to be brought into account for the purposes of Chapter 2 of Part 4 of the Finance Act 1996 in respect of a loan relationship of the company. The amount of the relevant credit is the sum of— the amount of profits which would have been chargeable under Schedule 5AA to the Taxes Act 1988 if it had continued to apply to the contract, and the amount of any debits given by Schedule 26 in respect of the contract for the first new period and any subsequent accounting period ending with the accounting period in which the relevant event occurred, less the amount of any credits given by Schedule 26 in respect of the contract for those accounting periods. In relation to an accounting period ending on or after 1 April 2009— the reference in sub-paragraph (7) to paragraph 14(3) of Schedule 26 is to be read as a reference to section 574 of the Corporation Tax Act 2009, the reference in that sub-paragraph to Chapter 2 of Part 4 of the Finance Act 1996 is to be read as a reference to Part 5 of the Corporation Tax Act 2009, and the references in sub-paragraph (8) to Schedule 26 are to be read as references to Part 7 of the Corporation Tax Act 2009. a company’s commencement day is the first day of its first accounting period to begin on or after 1st October 2002, a company’s first new period is its first accounting period to begin on or after that date, and an old period of the company is any accounting period of the company ending before the first day of its first new period. For sections 337 and 337A of the Taxes Act 1988 (corporation tax:

general provisions about taxation of income) substitute— Where a company begins or ceases— to carry on a trade, or to be within the charge to corporation tax in respect of a trade, the company’s income shall be computed as if that were the commencement or, as the case may be, the discontinuance of the trade, whether or not the trade is in fact commenced or discontinued. Subsection (1) applies to a Schedule A business or overseas property business as it applies to a trade. For the purposes of corporation tax, subject to any provision of the Corporation Tax Acts expressly authorising a deduction— a company’s profits shall be computed without any deduction in respect of dividends or other distributions, and a company’s income from any source shall be computed without any deduction in respect of charges on income. In computing a company’s income from any source for the purposes of corporation tax— no deduction shall be made in respect of interest except in accordance with Chapter 2 of Part 4 of the Finance Act 1996 (loan relationships); and no deduction shall be made in respect of losses from intangible fixed assets within Schedule 29 to the Finance Act 2002 except in accordance with that Schedule. In section 214(1) of the Taxes Act 1988 (chargeable payments connected with exempt distributions), in paragraph (c) (payments not to be treated as distributions for purposes of certain provisions) for “sections 337(2) and 338(2)(a)" substitute “ section 337A(1) ”. The following Schedule is inserted after Schedule 7AC to the Taxation of Chargeable Gains Act 1992 (c. 12)— This Schedule applies where the assets of the long-term insurance fund of an insurance company (“the company”) include assets held by the company as a limited partner in a venture capital investment partnership (“the partnership”). A “venture capital investment partnership” means a partnership in relation to which the following conditions are met. The first condition is that the sole or main purpose of the partnership is to invest in unquoted shares or securities. This condition shall not be regarded as met unless it appears from— the agreement constituting the partnership, or any prospectus issued to prospective partners, that that is the sole or main purpose of the partnership. The second condition is that the partnership does not carry on a trade. The third condition is that not less than 90% of the book value of the partnership’s investments is attributable to investments that are either— shares or securities that were unquoted at the time of their acquisition by the partnership, or shares that were quoted at the time of their acquisition by the partnership but which it was reasonable to believe would cease to be quoted within the next twelve months. For the purposes of the third condition— the following shall be disregarded— any holding of cash, including cash deposited in a bank account or similar account but not cash acquired wholly or partly for the purpose of realising a gain on its disposal; any holding of quoted shares or securities acquired by the partnership in exchange for unquoted shares or securities; whether the 90% test is met shall be determined by reference to the values shown in the partnership’s accounts at the end of a period of account of the partnership. Where a partnership ceases to meet the above conditions, the company shall be treated as if the partnership had continued to be a venture capital investment partnership until the end of the period of account of the partnership during which it ceased to meet the conditions. A partnership that ceases to meet those conditions cannot qualify again as a venture capital investment partnership. For this purpose a partnership is treated as the same partnership notwithstanding a change in membership if any person who was a member before the change remains a member. Where this Schedule applies section 59 (partnerships) does not have effect to make the company chargeable on its share of gains accruing on each disposal of relevant assets of the partnership. Instead— the company’s interest in relevant assets of the partnership is treated as a single asset (“the single asset”) acquired by the company when it became a member of the partnership, and the following provisions of this Schedule have effect. For the purposes of this Schedule the “relevant assets” of the partnership are the shares and securities held by the partnership, other than qualifying corporate bonds. Nothing in this Schedule shall be read— as affecting the operation of section 59 in relation to partners who are not insurance companies carrying on long-term business or are not limited partners, or as imposing any liability on the partnership as such. The company is treated as having given, wholly and exclusively for the acquisition of the single asset, consideration equal to the amount of capital contributed by it on becoming a member of the partnership. Any further amounts of capital contributed by it to the partnership are treated on a disposal of the single asset as expenditure incurred wholly and exclusively on the asset for the purpose of enhancing its value and reflected in its state or nature at the time of the disposal. Where the investments of the partnership include qualifying corporate bonds, the amount to be taken into account under sub-paragraph (1) or (2) is proportionately reduced. The reduction is made by applying to that amount the fraction: A is the book value of all shares and securities held by the partnership at the end of the period of account of the partnership in which the amount of capital in question is fully invested by the partnership, and B is the book value of all qualifying corporate bonds held by the partnership at the end of that period of account. For the purposes of sub-paragraph (4) the “book value” means the value shown in the partnership’s accounts at the end of the period of account. There is a disposal of the single asset on each occasion on which the company receives a distribution from the partnership that does not consist entirely of income or the proceeds of sale or redemption of assets that are not relevant assets. The disposal is taken to be for a consideration equal to the amount of the distribution or of so much of it as does not consist of income or the proceeds of sale or redemption of assets that are not relevant assets. the partnership disposes of relevant assets on which a chargeable gain or allowable loss would accrue if they were held by the company alone, and no distribution of the proceeds of the disposal is made within twelve months of the disposal, the company is treated as having received its share of the proceeds as a distribution at the end of the period of account of the partnership following that in which the disposal took place, or at the end of the period of six months after the date of the disposal, whichever is the later. The operation of sub-paragraph (3) is not affected by the partnership having ceased to be a venture capital investment partnership before the time at which the distribution is treated as received by the company. Where sub-paragraph (3) applies, any subsequent actual distribution of the proceeds is disregarded. For the purposes of section 42 (apportionment of cost etc in case of part disposal) the market value of the property remaining undisposed of on a part disposal of the single asset shall be determined as follows. If there is no further disposal of that asset in the period of account in which the part disposal in question takes place, the market value of the property remaining undisposed of shall be taken to be equal to the company’s share of the book value of the relevant assets of the partnership as shown in the partnership’s accounts at the end of that period of account. If there is a further disposal of that asset in the period of account in which the part disposal in question takes place, or more than one, the market value of the property remaining undisposed of shall be taken to be equal to the sum of— the amount or value of the consideration on the further disposal or, as the case may be, the total amount or value of the consideration on the further disposals, and the amount (if any) of the company’s share of the book value of the relevant assets of the partnership as shown in the partnership’s accounts at the end of that period of account. Nothing in this Schedule shall be read as affecting the operation of Chapter 5 of Part 17 of the Taxes Act (offshore funds). Where an offshore income gain accrues to the company under that Chapter from the disposal of any relevant asset of the partnership, the amount of any distribution received or treated as received by the company from the partnership that represents the whole or part of the proceeds of disposal of that asset is treated for the purposes of this Schedule as reduced by the amount of the whole or a corresponding part of the offshore income gain. No claim may be made in respect of the single asset under section 24(2) (assets that have become of negligible value). For the purposes of paragraph 2 (meaning of “venture capital investment partnership") an investment by way of capital contribution to another venture capital investment partnership shall be treated as an investment in unquoted shares or securities. The Treasury may by regulations make provision, in place of but corresponding to that made by paragraphs 3 to 8, in relation to gains accruing on a disposal of relevant assets by such a partnership. The regulations may make provision for any period of account to which, in accordance with paragraphs 11 to 13, this Schedule applies. “insurance company”, “long-term business” and “long-term insurance fund” have the same meaning as in Chapter 1 of Part 12 of the Taxes Act (see section 431(2) of that Act); “limited partner” means— a person carrying on a business as a limited partner in a partnership registered under the Limited Partnership Act 1907, or a person carrying on a business jointly with others who, under the law of a country or territory outside the United Kingdom, is not entitled to take part in the management of the business and is not liable beyond a certain limit for debts or obligations incurred for the purposes of the business; “relevant assets” has the meaning given by paragraph 3(3); “securities” has the same meaning as in section 132 and also includes any debentures; “unquoted” and “quoted”, in relation to shares or securities, refer to listing on a recognised stock exchange. References in this Schedule to the partnership’s accounts are to accounts drawn up in accordance with generally accepted accounting practice. If no such accounts are drawn up, the references to the treatment of any matter, or the amounts shown, in the accounts of the partnership are to what would have appeared if accounts had been drawn up in accordance with generally accepted accounting practice. References in this Schedule to capital contributed to a limited partnership include amounts purporting to be provided by way of loan if— the loan carries no interest, all the limited partners are required to make such loans, and the loans are accounted for as partners’ capital, or partners’ equity, in the accounts of the partnership. For the purposes of this Schedule the assets of— a Scottish partnership, or a partnership under the law of any other country or territory under which assets of a partnership are regarded as held by or on behalf of the partnership as such, shall be treated as held by the members of the partnership in the proportions in which they are entitled to share in the profits of the partnership. References in this Schedule to the company’s interest in, or share of, the partnership’s assets shall be construed accordingly. Subject to paragraph 12 (election to remain outside Schedule), this Schedule applies— to periods of account of the partnership beginning on or after 1st January 2002, and to a period of account of the partnership beginning before that date and ending on or after it, unless the company elects that it shall not do so. Where the company became a member of the partnership before the beginning of the first period of account of the partnership to which this Schedule applies, the cost of the single asset at the beginning of that period of account shall be taken to be equal to the total of the relevant indexed base costs. For the purposes of sub-paragraph (2)— the “indexed base cost” means— in relation to a holding that by virtue of section 104 is to be treated as a single asset, what would be the indexed pool of expenditure within the meaning of section 110 if the holding were disposed of, and in relation to any other asset, the amount of expenditure together with the indexation allowance that would be fall to be deducted if the asset were disposed of; and the “relevant indexed base costs” means the indexed base costs that would be taken into account in computing in accordance with section 59 the gain or loss of the company if all the shares and securities (other than qualifying corporate bonds) held by the partnership were disposed of on the last day of the company’s accounting period immediately preceding its first accounting period beginning on or after 1st January 2002. No account shall be taken under this Schedule of a distribution by the partnership in a period of account to which this Schedule applies to the extent that it represents a chargeable gain accruing in an earlier period to which this Schedule does not apply. If the company— became a member of the partnership before the beginning of the first period of account of the partnership to which this Schedule would otherwise apply, or made its first contribution of capital to the partnership before 17th April 2002, it may elect that the provisions of this Schedule shall not apply to it in relation to that partnership. Any election under paragraph 11 or 12 must be made— by notice to an officer of the Board, not later than the end of the period of two years after the end of the company’s first accounting period beginning on or after 1st January 2002. Chapter 3 of Part 2 of the Finance Act 1993 (c. 34) (Lloyd’s underwriters, etc) is amended as follows. In section 178(stop loss and quota share insurance), in subsection (1) (deductions), for paragraph (c) substitute— where an amount is payable by him under a quota share contract— so much of that amount as exceeds the amount of transferred losses that are declared on or before the date the contract takes effect (“the declared amount”), or if the contract does not take effect, the amount so payable under the contract. After subsection (3) of that section insert— Where the amount payable by a member under a quota share contract is less than the declared amount, the difference between the two amounts shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business in the year of assessment which corresponds to the underwriting year in which the contract takes effect. Where a member has entered a quota share contract, any amount paid by him to cover a cash call in respect of transferred losses that are not declared at the time the contract takes effect shall be treated— for the purposes of subsection (1)(c)(i) and (3A) above, as an amount payable under the contract, and for the purposes of section 172, as a payment made at the time the contract takes effect. For subsection (4) of that section substitute— “cash call” has the same meaning as in Part 1 of Schedule 20 to this Act; “quota share contract” means any contract between a member and another person which— is made in accordance with the rules or practice of Lloyd’s, and provides for that other person to take over any rights and liabilities of the member under any of the syndicates of which he is a member; and where the taking over of a member’s rights and liabilities is conditional upon the occurrence of any event, the contract does not take effect until that event occurs; and “transferred loss”, in relation to such a contract, means a loss for which that other person takes over liability under the contract (disregarding, in the case of a loss that has been declared at the time it is taken over, any part of it in respect of which the member has paid a cash call before that time). In section 184(1) (interpretation), in the definition of “stop-loss insurance", after “business" insert “ , except insurance taken out by entering a quota share contract (within the meaning of section 178 above) ”. Chapter 5 of Part 4 of the Finance Act 1994 (c. 9) (Lloyd’s underwriters: corporations etc) is amended as follows. In section 225 (stop loss and quota share insurance), in subsection (1) (deductions), for paragraph (b) substitute— where an amount is payable by it under a quota share contract— Where the amount payable by a corporate member under a quota share contract is less than the declared amount— if the underwriting year in which the contract takes effect falls within a single accounting period, the difference between the two amounts (“the surplus”) shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business for that period, and if that underwriting year falls within two or more accounting periods, the apportioned part of the surplus shall be treated as a trading receipt in computing the profits arising from the member’s underwriting business for each of those periods. Where a corporate member has entered a quota share contract, any amount paid by it to cover a cash call in respect of transferred losses that are not declared at the time the contract takes effect shall be treated, for the purposes of subsections (1)(b)(i) and (3A) above, as an amount payable under the contract at that time. “apportioned part”, in relation to any insurance money or other amount, means a part apportioned under section 72 of the Taxes Act 1988; “cash call” means a request for funds which, in pursuance of a contract made in accordance with the rules and practices of Lloyd’s, is made to a corporate member by the agent of a syndicate of which it is a member; “quota share contract” means any contract between a corporate member and another person which— is made in accordance with the rules or practice of Lloyd’s; and provides for that other person to take over any rights and liabilities of the member under any of the syndicates of which it is a member; In section 230(1) (interpretation), in the definition of “stop-loss insurance", after “business" insert “ , except insurance taken out by entering a quota share contract (within the meaning of section 225 above) ”. The provisions of this Schedule supplement section 111 (withdrawal of group relief). Expressions used in this Schedule that are defined for the purposes of that section have the same meaning in this Schedule. Section 111 does not apply if the transferee company ceases to be a member of the same group as the transferor company by reason of the latter company leaving the group. The transferor company is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in— the transferor company, or another company that as a result of the transaction ceases to be a member of the same group as the transferee company. Section 111 does not apply if the transferee company ceases to be a member of the same group as the transferor company by reason of anything done for the purposes of, or in the course of, winding up the transferor company or another company that is above the transferor company in the group structure. For the purposes of this paragraph a company is “above” the transferor company in the group structure if it is the parent (within the meaning of the relevant group relief provision)— of the transferor company, or of another company that is above the transferor company in the group structure. Section 111 does not apply if— the transferee company ceases to be a member of the same group as the transferor company as a result of an acquisition of shares by another company (“the parent company”) in relation to which acquisition relief applies, and the transferee company is immediately after that acquisition a member of the same group as the parent company (“the new group”). “acquisition relief” means relief under section 75 of the Finance Act 1986 (c. 41); and references to an acquisition in relation to which such relief applies are to an acquisition such that an instrument effecting the transfer of the shares is exempt from stamp duty by virtue of that provision. But if before the end of the period of two years beginning with the date on which the relevant instrument was executed— the transferee company ceases to be a member of the new group, and at the time when the transferee company ceases to be a member of the new group it or a relevant associated company (as defined in sub-paragraph (4) below) holds an estate or interest in land that— was transferred to the transferee company by the relevant instrument, or is derived from an estate or interest that was so transferred, and that has not subsequently been transferred at market value by a duly stamped instrument on which ad valorem duty was paid and in respect of which group relief was not claimed, section 111 and the provisions of this Schedule apply as if the transferee had then ceased to be a member of the same group as the transferor company and had then held the estate or interest referred to in paragraph (b). In sub-paragraph (3)(b) “relevant associated company”, in relation to the transferee company, means a company that is in the same group as the transferee company immediately before the transferee company ceases to be a member of the new group and which ceases to be a member of the new group in consequence of the transferee company so ceasing. If any duty payable under section 111 is not paid within the period of 30 days within which payment is to be made, interest is payable on the amount remaining unpaid. The provisions of section 15A(3) to (5) of the Stamp Act 1891 (c. 39) (rate of interest on unpaid duty, etc) apply in relation to interest under sub-paragraph (1). The transferee company shall, within the period of 30 days mentioned in section 111(2)(b) within which payment is to be made, notify the Commissioners of— the date on which it ceased to be a member of the same group as the transferor company, the relevant land held by it at that time, the nature of the relevant instrument, the date on which it was executed, the parties to the instrument and the date on which the instrument was stamped, the market value of the land transferred to it by the relevant instrument at the date on which that instrument was executed, and the amount of duty and interest payable by it under section 111 or this Schedule. In sub-paragraph (1)(b) the “relevant land” held by the transferee company means every estate or interest to in relation to which section 111(1)(c) applies. In section 98(5) of the Taxes Management Act 1970 (c. 9) (penalty for failure to provide information), in the second column of the Table, at the appropriate place insert “paragraph 6 of Schedule 34 to the Finance Act 2002". The provisions of regulations under section 98 of the Finance Act 1986 (c. 41) (stamp duty reserve tax: administration etc), and the provisions of the Taxes Management Act 1970 (c. 9) applied by those regulations, have effect with the necessary modifications in relation to— the determination by the Commissioners of the duty payable under section 111 or the interest payable thereon, appeals against any such determination, and the collection and recovery of any such duty or interest, as if it were an amount of stamp duty reserve tax. an amount is payable under section 111 or this Schedule by the transferee company, a notice of determination of the amount payable has been issued by the Commissioners, and the whole or part of that amount is unpaid six months after the date on which it became payable. The following persons may, by notice under paragraph 9, be required to pay the unpaid amount— the transferor company; any company that, at any relevant time, was a member of the same group as the transferee company and was above it in the group structure; any person who at any relevant time was a controlling director of the transferee company or of a company having control of the transferee company. For the purposes of this paragraph— a “relevant time” means any time between the execution of the relevant instrument and the transferee company ceasing to be a member of the same group as the transferor company; a company is “above” another company in a group structure if it is the parent (within the meaning of the relevant group relief provision)— of that company, or of another company that is above that company in the group structure. “director”, in relation to a company, has the meaning given by section 67(1) and (2) of the Income Tax (Earnings and Pensions) Act 2003 and includes any person falling within section 452(1) of the Corporation Tax Act 2010; “controlling director”, in relation to a company, means a director of the company who has control of it (construing control in accordance with sections 450 and 451 of the Corporation Tax Act 2010). The Commissioners may serve a notice on a person within paragraph 8(2) requiring him, within 30 days of the service of the notice, to pay the amount that remains unpaid. Any notice under this paragraph must be served before the end of the period of three years beginning with the date on which the notice of determination mentioned in paragraph 8(1)(b) is issued. The notice must state the amount required to be paid by the person on whom the notice is served. The notice has effect— for the purposes of the recovery from that person of the amount required to be paid and of interest on that amount, and for the purposes of appeals, as if it were a notice of determination and that amount were an amount of stamp duty reserve tax due from that person. A person who has paid an amount in pursuance of a notice under this paragraph may recover that amount from the transferee company. A payment in pursuance of a notice under this paragraph is not allowed as a deduction in computing any income, profits or losses for any tax purposes. The Commissioners may by notice require any person to furnish them within such time, not being less than 30 days, as may be specified in the notice with such information (including documents or records) as the Commissioners may reasonably require for the purposes of section 111 or this Schedule. A relevant lawyer shall not be obliged in pursuance of a notice under this paragraph to disclose, without his client’s consent, any information with respect to which a claim to professional privilege could be maintained. “Relevant lawyer” means a barrister, advocate, solicitor or other legal representative communications with whom may be the subject of a claim to professional privilege. In section 98(5) of the Taxes Management Act 1970 (c. 9) (penalty for failure to comply with notice to provide information), in the first column of the Table, at the appropriate place insert “paragraph 10 of Schedule 34 to the Finance Act 2002". Section 111 and this Schedule shall be construed as one with the Stamp Act 1891 (c. 39). This Part of this Schedule has effect for affording relief from duty under section 115 (contracts chargeable as conveyances) on a subsale. For the purposes of this Schedule there is a subsale— where the purchaser under a contract or agreement for the sale of an estate or interest in land in the United Kingdom (“the original sale”), without having obtained a conveyance of the property contracted to be sold, contracts to sell the whole or part of the property to another person, or where the sub-purchaser under a subsale of an estate or interest in land in the United Kingdom, without having obtained a conveyance of the property contracted to be sold, contracts to sell to another person the whole or part of the property contracted to be sold by the original sale, so as to entitle that person to call for a conveyance from the original seller. Where duty under section 115 has been paid— on the original sale, or on an intervening subsale, duty under that section on a subsale, or subsequent subsale, is chargeable only in respect of the amount (if any) by which the chargeable consideration on that transaction exceeds the chargeable consideration on the earlier transaction. If there is more than one such earlier transaction on which duty has been paid, the reference in sub-paragraph (1) to the chargeable consideration on the earlier transaction shall be read as a reference to the higher or highest amount of chargeable consideration on which duty has been paid. If the subsale does not relate to the whole of the property to which the earlier transaction related, the references in sub-paragraphs (1) and (2) to the chargeable consideration on an earlier transaction shall be read as references to an appropriate proportion of that consideration. What is an appropriate proportion shall be determined on a just and reasonable basis having regard to the subject matter of the subsale and of the earlier transaction. For the purposes of this paragraph the chargeable consideration on a transaction is the consideration that falls to be brought into account in determining the duty chargeable on it. Where under this paragraph duty on a subsale is chargeable in respect of part only of the consideration for the subsale, it is chargeable at the rate that would be applicable if the whole of the chargeable consideration on the subsale were taken into account. This Part of this Schedule has effect for affording relief where ad valorem duty is chargeable both— under section 115 on a contract or agreement (“the original sale”), and on a subsequent conveyance or transfer by the original seller to the purchaser, or a sub-purchaser, in conformity with that contract or agreement. References in this Part to the purchaser under the original sale, or a sub-purchaser under a subsale, include a person by whom the rights of the purchaser, or a sub-purchaser, are exercisable by virtue of any assignment (in Scotland, assignation) or agreement (other than a subsale). Where the original seller conveys the whole of the property contracted to be sold— to the purchaser, or to a sub-purchaser in circumstances in which section 58(4) of the Stamp Act 1891 (c. 39) applies (conveyance chargeable only on consideration moving from sub-purchaser), the conveyance or transfer is chargeable with duty only to the extent (if any) that the ad valorem duty chargeable on it (apart from this sub-paragraph) exceeds the duty paid under section 115 on the original sale together with the amount of any such duty paid on an intervening subsale. the original seller conveys the property contracted to be sold to different sub-purchasers in parts or parcels, and section 58(5) of the Stamp Act 1891 (c. 39) applies (conveyance chargeable only on consideration moving from sub-purchaser), the conveyance or transfer of each part or parcel is chargeable with duty only to the extent (if any) that the ad valorem duty chargeable on it (apart from this sub-paragraph) exceeds an appropriate proportion of the ad valorem duty paid on the original sale together with an appropriate proportion of any such duty paid on an intervening subsale. What is an appropriate proportion shall be determined on a just and reasonable basis having regard to the subject matter of the conveyance or transfer and of the earlier transaction. Where sub-paragraph (1) or (2) applies to reduce or extinguish the duty payable on a conveyance or transfer, the Commissioners shall, upon application and upon production of the earlier instrument or instruments, duly stamped, either— denote the payment of the whole of the ad valorem duty upon the conveyance or transfer, or transfer to the conveyance or transfer the ad valorem duty paid on the earlier instrument or instruments. duty is paid under section 115 on the original sale, one or more conveyances or transfers are executed in conformity with that contract or agreement so that the whole of the property contracted to be sold is duly conveyed to a purchaser or to one or more sub-purchasers, those conveyances or transfers are all duly stamped, and the aggregate amount of the duty that would have been paid on those conveyances or transfers but for duty having been previously paid on the original sale is less than the duty paid on the original sale, the Commissioners shall repay the difference to the person by whom the duty was paid on the original sale. If duty has been paid under section 115 on one or more intervening subsales, sub-paragraph (1) has effect with the following modifications— the reference to duty having been paid on the original sale shall be read as a reference to duty having been paid either on the original sale or on an intervening subsale; the reference to the amount of duty paid on the original sale shall be read as a reference to the aggregate of the amounts paid on the original sale and any intervening subsales, and any repayment shall be apportioned among the persons by whom those amounts were paid. The apportionment mentioned in sub-paragraph (2)(c) shall be made on a just and reasonable basis having regard to the subject matter of the original sale and of the subsale or subsales in question. Any reference in section 115 or this Schedule to duty chargeable or paid on a transaction is to duty chargeable or paid on the stamping of the instrument by which the transaction is effected. Where a transaction relates both to land in the United Kingdom and to other property, section 115 and this Schedule apply as if there were separate transactions. Similarly, the reference in section 115(1)(b) to a series of transactions is to a series of transactions so far as relating to land in the United Kingdom. If, in a case where a transaction or series of transactions relates partly to land in the United Kingdom and partly to other property, the consideration is not apportioned in a manner that is just and reasonable, section 115 and this Schedule shall have effect as if the consideration had been apportioned in such a manner. It is for a person claiming any relief under this Schedule to prove to the satisfaction of the Commissioners that he is entitled to relief and in what amount. Section 115 and this Schedule shall be construed as one with the Stamp Act 1891 (c. 39). This paragraph applies where stamp duty under Part 1 of Schedule 13 to the Finance Act 1999 (c. 16) (conveyance or transfer on sale) is chargeable on an instrument that relates partly to goodwill and partly to property other than goodwill. In such a case— the consideration in respect of which duty would otherwise be charged shall be apportioned, on a just and reasonable basis, as between the goodwill and the other property, and the instrument shall be charged only in respect of the consideration attributed to the other property. This paragraph applies to instruments executed on or after 23rd April 2002. Where part of the property referred to in section 58(1) of the Stamp Act 1891 (c. 39) (consideration to be apportioned between different instruments as parties think fit) consists of goodwill, that provision shall have effect as if “the parties think fit" read “is just and reasonable". part of the property referred to in section 58(2) of the Stamp Act 1891 (property contracted to be purchased by two or more persons etc) consists of goodwill, and both or (as the case may be) all the relevant persons are connected with one another, that provision shall have effect as if the words from “for distinct parts of the consideration" to the end of the subsection read “, the consideration shall be apportioned in such manner as is just and reasonable, so that a distinct consideration for each separate part or parcel is set forth in the conveyance relating thereto, and such conveyance is to be charged with ad valorem duty in respect of such distinct consideration.". In a case where sub-paragraph (1) or (2) applies and the consideration is apportioned in a manner that is not just and reasonable, the enactments relating to stamp duty shall have effect as if— the consideration had been apportioned in a manner that is just and reasonable, and the amount of any distinct consideration set forth in any conveyance relating to a separate part or parcel of property were such amount as is found by a just and reasonable apportionment (and not the amount actually set forth). a person is a relevant person if he is a person by or for whom the property is contracted to be purchased; the question whether persons are connected with one another shall be determined in accordance with section 1122 of the Corporation Tax Act 2010. Goodwill shall be disregarded for the purposes of paragraph 6 of Schedule 13 to the Finance Act 1999 (c. 19) (certification of instrument as not forming part of transaction or series of transactions exceeding specified amount). Any statement as mentioned in paragraph 6(1) of that Schedule shall be construed as leaving out of account any matter which is to be so disregarded. Section 12 of the Finance Act 1895 (c. 16) (property vested by Act or purchased under statutory powers) does not require any person who is authorised to purchase any property as mentioned in that section after 23rd April 2002 to include any goodwill in the instrument of conveyance required by that section to be produced to the Commissioners. If the property consists wholly of goodwill no instrument of conveyance need be produced to the Commissioners under that section. This paragraph applies where the Act mentioned in that section, and by virtue of which property is vested or a person is authorised to purchase property, is passed after 23rd April 2002. In this Schedule “the enactments relating to stamp duty” means the Stamp Act 1891 (c.39) and any enactment amending that Act or that is to be construed as one with that Act. This Schedule makes amendments to provisions of Part 2 of the Finance Act 2001 (c. 9) (aggregates levy). In section 16(1) (charge to aggregates levy), for “A levy" substitute “ A tax ”. Section 17 (meaning of “aggregate" etc) is amended as follows. In subsection (2) (meaning of “taxable" aggregate), for paragraph (d) substitute— it is aggregate that on the commencement date is on a site other than— its originating site, or a site that is required to be registered under the name of a person who is the operator, or one of the operators, of that originating site. In subsection (3)(d) (exemption for aggregate won in the course of road works), in sub-paragraph (ii) for “otherwise than wholly or mainly" substitute “ not ”. In subsection (4), in paragraph (d) (exemption for cuttings from oil drilling)— after “the Petroleum Act 1998" insert “ or the Petroleum (Production) Act (Northern Ireland) 1964 ”; omit the words from “otherwise" to the end (which restrict the exemption to off-shore drilling). Section 18 (exempt processes) is amended as follows. In subsection (2)(c) (exemption for production of lime etc), for “some other substance" substitute “ anything else ”. In subsection (3) (meaning of “relevant substance"), omit paragraphs (d) (calcite) and (h) (flint). Section 19 (commercial exploitation) is amended as follows. In subsection (2) (description of sites removal of aggregate from which counts as exploitation), in paragraph (b) for the words from “who is the operator" to the end substitute “ under whose name that originating site is also registered ”. After subsection (3) (meaning of “commercial" exploitation) insert— For the purposes of subsection (3)(a) above “business” includes any activity of a Government department, local authority or charity. In subsection (4) (exemption in certain cases where aggregate is won from one site and incorporated into a neighbouring site), for the words “adjacent land" in both places substitute “ other land ”. In section 22 (which determines who is taken to be responsible for exploitation of aggregate), at the end of subsection (2) (responsibility for “commercial" exploitation) insert— For the purposes of this subsection “business” includes any activity of a Government department, local authority or charity. In section 24 (the register), in subsection (6) (premises that may be registered) insert after paragraph (c)— for mixing, otherwise than in permitted circumstances (within the meaning given by section 19(7)), any aggregate with any material or substance other than water, In section 37 (regulations about cases of insolvency etc), in subsection (7) (meaning of “insolvency procedure) omit paragraphs (g) to (j) (appointment of receiver and other interim or provisional orders). Paragraph 1 of Schedule 4 (notification of registrability etc) is amended as follows. For sub-paragraph (1) substitute— An unregistered person who— is required to be registered for the purposes of aggregates levy, or has formed the intention of carrying out taxable activities that are registrable, shall notify the Commissioners of that fact. would be required to be registered for the purposes of aggregates levy but for an exemption by virtue of regulations under section 24(4) of this Act, or has formed the intention of carrying out taxable activities that would be registrable but for such an exemption, shall, in such cases or circumstances as may be prescribed in the regulations, notify the Commissioners of that fact. For the purposes of sub-paragraphs (1) and (1A) above, taxable activities are “registrable” if a person carrying them out is, by reason of doing so, required by section 24(2) of this Act to be registered for the purposes of aggregates levy. In sub-paragraphs (2) and (5), after “sub-paragraph (1)" insert “ or (1A) ”. In paragraph 11 of Schedule 8 (restriction on powers to provide for set-off), in sub-paragraph (2) (meaning of “insolvency procedure") omit paragraphs (f), (g) and (h) (appointment of receiver and other interim or provisional orders). This repeal shall be deemed to have come into force on 28th April 2002. 1 The repeal in the Hydrocarbon Oil Duties Act 1979 has effect in accordance with section 5(8)(c) of this Act. 2 The repeals in the Finance Act 1988 have effect in accordance with section 5(8)(b) of this Act. These repeals have effect in accordance with section 8(6) of this Act., In section 2(2), paragraph (d) and the word “or" preceding it. In section 9(2), the words “or coupon betting" (in both places). In section 9(3)(a), the words “or coupon betting". In section 9(3)(aa)(i), the words “or coupon betting". Section 9(4). Section 11. In section 12(3), the words “(except in sections 6, 7, 8, 9(2)(a) and 9(5) in their application to coupon betting)". In Schedule 1— (a) in paragraph 3, the words “shall be under the care and management of the Commissioners, and"; (b) paragraphs 4(4) to (6), 6(2)(b), 8 and 12; (c) in paragraph 14(1), the words after paragraph (b). 1 The repeal of section 9(4) of the Betting and Gaming Duties Act 1981 has effect in accordance with section 14(6) of this Act. 2 The other repeals have effect in accordance with section 12 of this Act. Section 57(8). In Schedule 1, paragraph 2(4). 1 The repeal of paragraph 2(4) of Schedule 1 to the Vehicle Excise and Registration Act 1994 has effect subject to the saving in section 20(3) of this Act. 2 The repeal of paragraph 7 of Schedule 4 to the Finance Act 1995 has effect in accordance with section 18(3) of this Act. Section 6(9). In paragraph 2 of Schedule 11— (a) in the heading, the words “, VAT invoices"; (b) in sub-paragraph (1), the words from “and may require" to the end; (c) sub-paragraphs (2) and (2A). In section 559— (a) in subsection (4), the words from “and the sum so deducted" to the end; (b) subsections (5) and (5A); (c) subsection (8). In Schedule 7, in paragraph 1 the words “559(4)(b) and (5) (twice)". In Schedule 8, paragraph 2(1). In the heading before section 135, the words “and amalgamations". In section 139(1), in the heading, in subsection (1)(a) and in subsection (5) (twice), the words “or amalgamation". In section 211(2)— (a) in paragraph (a), and (b) in the closing words, the words “or amalgamation". In section 214C(2)(a) and (3), the words “or amalgamation". In section 2A(8)(b)(ii), the words “11 or". In Schedule A1— (a) paragraph 11; (b) in paragraph 22(1), in the definition of “51 per cent subsidiary", the words “(except in paragraph 11 above)"; (c) in paragraph 23, the final sentence of sub-paragraph (4), sub-paragraph (5), in sub-paragraph (7) the words “, (5)(b)" and sub-paragraphs (9) and (10); (d) paragraph 24(6). In section 2(5)(b), the words “77, 86,". Section 77(6A). Section 86(4A). In section 86A(8), the words “or aggregate amount". In Schedule 20— (a) in paragraph 5(1)(c), the words “(within the meaning of section 231A(4) of the Taxes Act 1988)"; (b) in paragraph 12, the word “and" at the end of paragraph (a). In section 39, the word “or" preceding the words “section 45A". In section 46(1), the word “or" preceding the words “section 45A". In section 74(2), the word “and" preceding paragraph (b). These repeals have effect in accordance with section 59 of this Act. Section 44. Schedule 6. The repeal in section 473(2) of the Taxes Act 1988 has effect in accordance with section 67(4)(a) of this Act. The other repeals have effect in accordance with section 64(6) of and paragraphs 16 and 17 of Schedule 22 to this Act. In section 92, in subsection (1)(e), the word “and". Section 93(11) and (13). The repeal in section 92 of the Finance Act 1996 (c. 8) has effect in accordance with section 72 of this Act. The repeals in section 93 of that Act have effect in accordance with section 75 of this Act. In section 15(1), the second indent of paragraph 2(3) of Schedule A. Section 56(3A) to (3D). In Schedule 24, paragraphs 13 to 19. In Schedule 27, paragraph 5(2A) so far as relating to sections 125 to 133 of the Finance Act 1993. In section 117(A1), the words “(subject to sections 117A and 117B below)". Sections 117A and 117B. Section 60. Sections 125 to 169. Schedules 15 to 17. In Schedule 18, paragraph 2. Sections 114 to 116. Section 226(2). Section 52(2). Section 131. In Schedule 24, paragraphs 1 to 3. In Schedule 25, paragraphs 6(5) and 7. In section 85(2), the word “and" at the end of paragraph (b). In section 92(6)(b), the words “127 or". In Schedule 9— (a) paragraphs 4 and 11(4); (b) in paragraph 13(6), the definition of “related transaction"; (c) in paragraph 15(1), the words “for the purposes of section 84 of this Act". In Schedule 11, in paragraph 3A(1)(b), the words “debt or". In Schedule 14, paragraphs 67 to 74. In Schedule 15, paragraphs 22 to 24. In Schedule 20, paragraphs 68 to 70. Section 108(3) and (4)(a). In section 109— (a) subsections (1) and (2); (b) subsection (4) so far as relating to those subsections; (c) subsection (5) so far as relating to the enactments specified in paragraph (a) of it. Section 110(4)(b). Schedule 4, paragraph 7. Section 106. In Schedule 22, paragraph 50(2)(b). In Schedule 29, paragraphs 20, 21 and 41 to 43. The repeal in Schedule 27 to the Taxes Act 1988 has effect for account periods beginning on or after 1st October 2002. The other repeals have effect in accordance with section 79(3) of this Act and Schedule 23 to this Act. In section 77(2)(a), sub-paragraph (ii) and the preceding word “or". Section 403ZC(2). In section 432A(9B), the definition of “money debt". In section 797A, the second sentence in subsection (5) and in subsection (7). In Schedule 28A— (a) in paragraph 7, in sub-paragraph (1)(d), the word “and" preceding sub-paragraph (iii), in sub-paragraph (1)(e), the word “and" preceding sub-paragraph (iii), and sub-paragraph (2);

(b) in paragraph 16, in sub-paragraph (1)(d), the word “and" preceding sub-paragraph (iii), in sub-paragraph (1)(e), the word “and" preceding sub-paragraph (iii), and sub-paragraph (2). In Schedule 6, in paragraph 3— (a) sub-paragraphs (3)(a), (4)(a) and (5)(a) and (b); (b) in sub-paragraph (5), in the words following paragraph (c), the word “group"; (c) sub-paragraph (6). In section 83— (a) in subsection (2), paragraphs (b) and (d) and the word “or" at the end of paragraph (c); (b) subsection (4); (c) in subsection (7), in paragraph (a), the word “(b)", and paragraph (b) and the preceding word “and". In section 87— (a) in subsection (3), in paragraph (a) the words “or in the two years before the beginning of that period", in paragraph (b) the words “or in those two years", and paragraph (c) and the preceding word “or"; (b) subsections (6) to (8). Section 89. Section 91. In Schedule 8, paragraph 2. In Schedule 9, in paragraph 17— (a) in sub-paragraph (5), in paragraph (a) the words “or in the period of two years before the beginning of that period" and in paragraph (b) the words “or in those two years"; (b) sub-paragraphs (6) and (7). In Schedule 9, in paragraph 18— (a) in sub-paragraph (1), the word “and" immediately preceding paragraph (b); (b) in sub-paragraph (4), the definition of “control". Section 468AA. In section 807A(7), the definition of “relevant qualifying payment". In Schedule 5AA— (a) in paragraph 1, sub-paragraphs (2)(b) and (c) and (3), in sub-paragraph (5), the words “and 396", in sub-paragraph (6), the words “, corporation tax" and “or 396", and sub-paragraph (7); (b) paragraph 2(3); (c) paragraph 4(4A); (d) in paragraph 4A, in sub-paragraph (5)(b), the words “or 396", and sub-paragraph (10A); (e) paragraph 6(3A); (f) paragraph 9. In Schedule 27, paragraph 5(2A) so far as relating to sections 159 and 160 of, and paragraph 1 of Schedule 18 to, the Finance Act 1994. Sections 147 to 175. Section 177. Schedule 18. Section 52(3). Section 132. Section 93A(3)(a) and (7). Section 101(2) to (6). Schedule 12. In Schedule 14, paragraphs 75 to 79. In Schedule 15, paragraph 25. In Schedule 20, paragraph 71. Section 99(2) and (3). (a) subsection (3); (b) subsection (4) so far as relating to subsection (3); (c) subsection (5) so far as relating to the enactments specified in paragraph (b) of it. Sections 69 and 70. Section 78. The other repeals have effect in accordance with section 83(3) of this Act. Section 43A(2). Section 91A(8). Section 91B(11)(e) and the word “and" preceding it. In section 297(5B), the second sentence. Section 494AA(2)(b) and the word “or" preceding it. In section 560(2), the words from “and in paragraph (f)" to the end. In section 834(1), in the definition of “accounting date", the words from “and “period of account"" to the end. Section 837A(5). In section 842B(2), the second sentence. In Schedule 5, in paragraphs 2(6) and 6(4), the definitions of “period of account". In Schedule 28B, in paragraph 4(6B), the second sentence. In section 161(3A), the words from “and in paragraph (a)" to the end. In section 13(5B), the second sentence. In Schedule 12— (a) in paragraph 1(1)(c), the words “, in the case of companies incorporated in any part of the United Kingdom," and “for the purposes of the accounts of such companies"; (b) in paragraph 4(5), the words “, if the recipient were a company incorporated in the United Kingdom,"; (c) in paragraph 15(1)(c), the words “, in the case of companies incorporated in any part of the United Kingdom," and “for the purposes of the accounts of such companies"; (d) paragraph 28(1) to (4). Section 45. In Schedule 18, in paragraph 14(2), the second sentence. In Schedule 14, in paragraph 22(4), the second sentence. In Schedule 15, in paragraph 29(4), the second sentence. In Schedule 20, in paragraph 25(1), the definition of “normal accounting practice". In Schedule 23, in paragraph 5, the definitions of “normal accounting practice" and “statutory accounts". Section 179(2). Section 219(2). In section 17— (a) subsection (3)(a); (b) in subsection (4), paragraph (b) and the words in paragraph (d) from “otherwise" to the end. Section 18(3)(d) and (h). In section 20(1)— (a) the words “and is not rock" in paragraphs (a) and (b); (b) paragraph (c). Section 21(2)(b). Section 24(6)(b) and (8)(a). Section 37(7)(g) to (j). In Schedule 6, in paragraph 7(1), paragraph (b) and the words from “equal to the amount" to the end. In Schedule 8, in paragraph 11(2), paragraphs (f), (g) and (h). The repeals in Schedule 6 to the Finance Act 2001 shall be deemed to have come into force on 1st May 2002. The other repeals shall be deemed to have come into force on 1st April 2002. (a) subsection (1); (b) in subsection (2A), the words “(1) and"; (c) in subsection (3), the words from the beginning to “passing of this Act;". S. 4 wholly in force; s. 4(1) in force at 1.6.2002 for specified purposes, otherwise s. 4 in force at 24.7.2002, see s. 4(2)(3) S. 5(6)(a) power fully exercised: 25.7.2002 appointed by S.I. 2002/1926, art. 2 S. 6(3) power wholly exercised: 1.4.2003 appointed for specified purposes by S.I. 2002/3056, art. 2 S. 12 wholly in force; s. 12(1) in force at 31.3.2002 or 24th April 2002, otherwise s. 12 in force at 24.7.2002, see. s. 12(5)-(7) S. 14 wholly in force; s. 14(2)-(6) in force at 24.7.2002 and s. 14(1) in force at 25.7.2002 by s. 14(5) S. 22(3) power fully exercised: 1.1.2003 appointed by S.I. 2002/3028, art. 2 s. 69 repealed (with effect in accordance with s. 83(3)) by 2002 c. 23, s. 141, Sch. 40, Pt. 3(13) Note 2 S. 70 repealed (with effect in accordance with s. 83(3)) by 2002 c. 23, s. 141, Sch. 40, Pt. 3(13) Note 2 S. 78 repealed (with effect in accordance with s. 83(3)) by 2002 c. 23, ss. 83, 141, Sch. 27 para. 25, Sch. 40, Pt. 3(13) Note 2 Sch. 1 para. 2 wholly in force; Sch. 1 para. 2 in force for specified purposes at 1.6.2002, otherwise Sch. 1 para. 2 in force at 24.7.2002, see. s. 4 Sch. 4 para. 2 wholly in force; Sch. 4 para. 2 in force at 31.3.2002 for specified purposes, otherwise in force at 24.7.2002, see. s. 12(5)(7)(a)(8) Sch. 4 para. 6 wholly in force; Sch. 4 para. 6(b) in force at 31.3.2002; Sch. 4 para. 6(a)(c) in force at 24.4.2002, see s. 12(5)(6) Sch. 6 para. 10 wholly in force; Sch. 6 para. 10(1)(2)(5)-(11)(13)(14) in force at 24.4.2002; Sch. 6 para. 10(3)(4)(12) in force at 24.7.2002, see s. 12(6)(7)(b) Sch. 4 para. 12 wholly in force; Sch. 4 para. 12(1)(3) in force at 24.4.2002; Sch. 4 para. 12(2) in force at 24.7.2002, see. s. 12(6)(7)(b) S. 22 has effect as specified by The Finance Act 2002, section 22, (Appointed Day) Order 2002 (S.I. 2002/3028), art. 2 S. 66 modified by SI 1997/473 reg. 53E (as inserted (30.1.2003) by The Friendly Societies (Modification of the Corporation Tax Acts) (Amendment) Regulations 2003 (S.I. 2003/23), regs. 1(1), 10 S. 123(1) has effect as specified by The Finance Act 2002, section 123, (Appointed Day) Order 2003 (S.I. 2003/603), art. 2 Sch. 3 para. 1 in force at 24.7.2002 for specified purposes , see s. 6(3)(4); Sch. 3 para. 1 in force at 1.4.2003 in so far as not already in force by S.I. 2002/3056, art. 2 S. 39 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7) Ss. 33-37 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7) Sch. 6 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7) S. 41 repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7) Words in s. 103(4)(f) repealed (with effect in accordance with s. 723(1)(a)(b) of the amending Act) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7) S. 111(4A) inserted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(5)(11) (with s. 126(9)(10)) Words in s. 111(1)(b) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(2)(11) (with s. 126(9)(10)) Words in s. 111(1)(c) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(3)(a)(i)(11) (with s. 126(9)(10)) Words in s. 111(1)(c) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(3)(a)(ii)(11) (with s. 126(9)(10)) Words in s. 111(1)(c) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(3)(c)(11) (with s. 126(9)(10)) Words in s. 111(1)(c)(i) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(3)(b)(11) (with s. 126(9)(10)) Words in s. 111(3) inserted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(4)(a)(11) (with s. 126(9)(10)) Words in s. 111(3) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(4)(b)(11) (with s. 126(9)(10)) Sch. 34 para. 4(4) inserted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(8)(11) (with s. 126(9)(10)) Words in Sch. 34 para. 4(3) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(7)(11) (with s. 126(9)(10)) Words in Sch. 34 para. 4(3)(b) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(6)(a)(i)(11) (with s. 126(9)(10)) Words in Sch. 34 para. 4(3)(b) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(6)(a)(ii)(11) (with s. 126(9)(10)) Words in Sch. 34 para. 4(3)(b) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(6)(c)(11) (with s. 126(9)(10)) Words in Sch. 34 para. 4(3)(b)(i) substituted (retrospective to 15.4.2003) by Finance Act 2003 (c. 14), s. 126(6)(b)(11) (with s. 126(9)(10)) S. 96(3)(a) repealed (with effect in accordance with Sch. 43 Pt. 5(3) Note of the amending Act) by Finance Act 2003 (c. 14), Sch. 43 Pt. 5(3) Sch. 25 para. 46 repealed (with effect in accordance with Sch. 43 Pt. 3(12) Note 1 of the amending Act) by Finance Act 2003 (c. 14), Sch. 43 Pt. 3(12) Sch. 5 para. 1 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 1 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 2 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 2 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 3 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 3 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 4 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 4 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 5 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 5 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 6 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 6 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 7 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 7 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 11 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 11 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 16 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 16 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 17 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 17 in force at 30.11.2003 in so far as not already in force by S.I. 2003/3086, art. 2; Sch. 5 para. 17 in force at 24.7.2002 for specified purposes , see s. 19(2)(3) S. 24 in force at 1.12.2003 by S.I. 2003/3043, art. 2 S. 19(1) in force for specified purposes at 24.7.2002, see s. 19(2)(3); s. 19(2)-(5) in force at 24.7.2002; s. 19(1) in force at 30.11.2003 for specified purposes and 19.12.2003 for remaining purposes by S.I. 2003/3086, art. 2 Sch. 5 para. 8 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 8 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 9 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 9 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 10 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 10 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 12 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 12 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 13 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 13 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 14 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 14 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 Sch. 5 para. 15 in force at 24.7.2002 for specified purposes, see s. 19(2)(3); Sch. 5 para. 15 in force at 19.12.2003 in so far as not already in force by S.I. 2003/3086, art. 2 S. 140 in force at 11.3.2004 by S.I. 2004/689, art. 2 S. 135(8) applied by SI 2001/1004 reg. 90A(2) (as inserted (6.4.2004) by The Social Security (Contributions, Categorisation of Earners and Intermediaries) (Amendment) Regulations 2004 (S.I. 2004/770), regs. 1(1), 23) S. 72 repealed (with effect in accordance with s. 52(3), Sch. 10 para. 9(2)(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Word in s. 103(4)(b) repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Ss. 75-77 repealed (with effect in accordance with s. 52(3), Sch. 10 para. 11(2)(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 24 paras. 1-6 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 25 paras. 4-6 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) S. 40(3) repealed (with effect in accordance with s. 77 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(7) Words in s. 40(4) repealed (with effect in accordance with s. 77 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(7) S. 40(1) repealed (with effect in accordance with s. 77 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(7) S. 73 repealed (with effect in accordance with s. 52(3), Sch. 10 para. 9(2)(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) S. 137(5) substituted for s. 137(5)(6) (22.7.2004) by Finance Act 2004 (c. 12), s. 292(3) S. 137(4) substituted (22.7.2004) by Finance Act 2004 (c. 12), s. 292(2) S. 74 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 23 para. 4 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 23 para. 5 repealed (with effect in accordance with s. 52(3), Sch. 10 para. 9(2)(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 23 para. 8 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 25 para. 10 repealed (with effect in accordance with s. 52(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) Sch. 27 para. 18 repealed (with effect in accordance with s. 52(3), Sch. 10 para. 11(2)(3) of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(6) S. 101 repealed (retrospective to 2.12.2004) by Finance Act 2005 (c. 7), Sch. 3 para. 2(1)(2), Sch. 11 Pt. 2(3) (with Sch. 3 para. 2(3)) S. 104 repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2) Sch. 27 para. 4(1) repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2) Sch. 27 para. 14 repealed (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 3 (with Sch. 2) S. 103(2) repealed (7.4.2005) by Finance Act 2005 (c. 7), Sch. 11 Pt. 2(7) S. 137(7) substituted (7.4.2005) by Finance Act 2005 (c. 7), s. 100 Sch. 23 para. 19 repealed (7.4.2005) by Finance Act 2005 (c. 7), Sch. 11 Pt. 2(6) Sch. 25 para. 26 repealed (7.4.2005) by Finance Act 2005 (c. 7), Sch. 11 Pt. 2(5) Words in s. 135(10) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 95(1)(c); S.I. 2005/1126, art. 2(2)(h) Words in s. 135(1) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 95(1)(a); S.I. 2005/1126, art. 2(2)(h) Words in s. 135(2)-(5) substituted (18.4.2005) by Commissioners for Revenue and Customs Act 2005 (c. 11), s. 53(1), Sch. 4 para. 95(1)(b); S.I. 2005/1126, art. 2(2)(h) Sch. 17 in force at 23.1.2003 by S.I. 2003/88, art. 2 Sch. 23 para. 3 repealed (with effect in accordance with Sch. 11 Pt. 2(6) Note 3 of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 11 Pt. 2(6) Sch. 23 para. 26(5) repealed (with effect in accordance with Sch. 11 Pt. 2(6) Note 3 of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 11 Pt. 2(6) Sch. 25 para. 51 repealed (with effect in accordance with Sch. 11 Pt. 2(8) Note of the amending Act) by Finance (No. 2) Act 2005 (c. 22), Sch. 11 Pt. 2(8) S. 117 repealed (11.8.2005) by Finance (No. 2) Act 2005 (c. 22), s. 50(6), Sch. 11 Pt. 3(2); S.I. 2005/2007, art. 2 Ss. 99-101 repealed (with effect in accordance with Sch. 26 Pt. 3(4) Note 1 of the amending Act) by Finance Act 2006 (c. 25), Sch. 26 Pt. 3(4) S. 62 repealed (with effect in accordance with Sch. 26 Pt. 3(13) Note of the amending Act) by Finance Act 2006 (c. 25), Sch. 26 Pt. 3(13) S. 88(2)(d)(e) repealed (19.7.2006) by Finance Act 2006 (c. 25), Sch. 26 Pt. 8(2) Word in s. 103(4)(a) repealed (with effect in accordance with Sch. 26 Pt. 3(12) Note of the amending Act) by Finance Act 2006 (c. 25), Sch. 26 Pt. 3(12) S. 79(1)(b) extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11) S. 81 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(6)(8)(11) S. 80 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11) S. 83 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11) Sch. 24 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11) Sch. 27 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(4)(8)(11) Sch. 28 extended (retrospective to 30.9.2002) by Finance Act 2003 (c. 14), s. 177(6)-(8)(11) Act applied in part (with modifications) by 2009 c. 4, Sch. 2 para. 131 (as amended) (29.3.2007) by The Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007 (S.I. 2007/1050), regs. 1(1), 3-12 (as amended (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 2 para. 131 (with Sch. 2 Pts. 1, 2)) S. 48 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) S. 96(1)(2) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 9 para. 4(2)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2) Sch. 9 para. 4(3) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2) Words in s. 103(4)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Word in s. 103(4)(a) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2) Words in s. 103(4)(g) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Ss. 26-29 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 33 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 423, Sch. 3 Pt. 1 (with Sch. 2) S. 94(1)-(4) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) S. 98 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 415, Sch. 3 Pt. 1 (with Sch. 2) S. 95 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) S. 108 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) S. 109 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Words in s. 142 inserted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 416 (with Sch. 2) Sch. 17 para. 2 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 2 (with Sch. 2) Sch. 17 para. 3 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 17 para. 4 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 25 para. 57 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 421, Sch. 3 Pt. 1 (with Sch. 2) Sch. 30 para. 1(5) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2) S. 66(6)(7) repealed (with effect in accordance with Sch. 9 para. 17(1) to the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 1(4)(c), Sch. 27 Pt. 2(9) Words in s. 66(4)(a) substituted (with effect in accordance with Sch. 9 para. 17(1) to the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 1(4)(a) Words in s. 66(5) repealed (with effect in accordance with Sch. 9 para. 17(1) to the amending Act) by Finance Act 2007 (c. 11), Sch. 9 para. 1(4)(b), Sch. 27 Pt. 2(9) Words in s. 66(5) repealed (with effect in accordance with Sch. 10 para. 17(2) to the amending Act) by Finance Act 2007 (c. 11), Sch. 10 para. 14(10)(a), Sch. 27 Pt. 2(10) Words in s. 135(10) substituted (19.7.2007) by Finance Act 2007 (c. 11), s. 93(3) S. 135(7)(ba) inserted (19.7.2007) by Finance Act 2007 (c. 11), s. 93(2) S. 13 repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 6(3) Sch. 4 para. 10(14) repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 6(3) Sch. 9 para. 5(11) repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 2(9) Sch. 25 para. 32 repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 2(14) Sch. 25 para. 52 repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 2(14) Sch. 27 para. 5 repealed (19.7.2007) by Finance Act 2007 (c. 11), Sch. 27 Pt. 2(10) Act modified (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2006 (S.I. 2006/3271), regs. 37-41 (as amended (with effect in accordance with reg. 1(2) of the amending S.I.) by The Overseas Life Insurance Companies (Amendment) Regulations 2007 (S.I. 2007/2146), regs. 22-24) S. 5(3) omitted (retrospective to 1.4.2008) by virtue of Finance Act 2008 (c. 9), Sch. 5 paras. 25(d)(i), 26(b) Sch. 2 para. 4 omitted (retrospective to 1.4.2008) by virtue of Finance Act 2008 (c. 9), Sch. 5 paras. 25(d)(ii), 26(b) Sch. 10 omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(iii) Sch. 11 paras. 4-6 omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(iv) S. 46 omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(i) S. 47 omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(i) S. 87 omitted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 17(k) S. 126 omitted (with effect in accordance with s. 149(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 149(2)(a) Sch. 9 para. 5(13) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(ii) Sch. 11 para. 2(2) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(iv) Sch. 11 para. 3 omitted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 21(f) Sch. 25 para. 21 omitted (with effect in accordance with Sch. 14 para. 18 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 14 para. 17(k) Act modified (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 (S.I. 2009/317), arts. 1, 3, Sch. Sch. 12 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 536, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 13 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 537, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 14 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 15 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 22 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 540, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 23 paras. 9-15 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 paras. 61-64 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 542, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 paras. 2-25 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 paras. 27-36 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 26 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 543, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 29 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 545, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 133(2)-(4) omitted (1.4.2009) by virtue of Finance Act 2008 (c. 9), s. 122(2), Sch. 40 para. 21(j) (with savings in S.I. 2009/511, art. 4(f)); S.I. 2009/571, art. 2 (with art. 6) S. 38 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 53 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 527, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 54 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 528, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 55 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 529, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 60 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 64 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 530, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Words in s. 65(2)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 531(3) (with Sch. 2 Pts. 1, 2) S. 65(2)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Words in s. 65(1) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 531(2) (with Sch. 2 Pts. 1, 2) S. 67(1)(2) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 68 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 71 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 532, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Words in s. 81(3)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 533 (with Sch. 2 Pts. 1, 2) S. 83(2) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 534, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 83(1)(a) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 534, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 84(1) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 535, Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 103(4)(h) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 103(4)(d) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Words in s. 103(4)(f) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 103(5) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 105(1) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) S. 106 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 9 para. 4(4) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 9 para. 8(2) repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 23 para. 2 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 23 para. 6 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 23 para. 7 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 23 para. 25 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 541(2), Sch. 3 Pt. 1 (with Pts. 1, 2, Sch. 2 para. 57) Words in Sch. 23 para. 26(2)(a) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 541(3)(a)(i) (with Sch. 2 Pts. 1, 2) Words in Sch. 23 para. 26(2)(b) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 541(3)(a)(ii) (with Sch. 2 Pts. 1, 2) Words in Sch. 23 para. 26(2)(c) substituted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 541(3)(a)(iii) (with Sch. 2 Pts. 1, 2) Sch. 25 para. 40 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 para. 47 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 para. 48 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 para. 50 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 25 para. 53 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 27 para. 3 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 27 para. 19 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 27 para. 20 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 28 para. 1 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 544(2), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 28 para. 2(4A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 544(3) (with Sch. 2 Pts. 1, 2) Sch. 28 para. 3 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 544(4), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2) Sch. 28 para. 4(7A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 544(5) (with Sch. 2 Pts. 1, 2) Sch. 28 para. 5(9A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 544(6) (with Sch. 2 Pts. 1, 2) Sch. 28 para. 6(8A) inserted (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 1 para. 544(7) (with Sch. 2 Pts. 1, 2) S. 11 omitted (retrospective to 27.4.2009) by virtue of Finance Act 2009 (c. 10), s. 114(16)(a)(17) (with s. 114(18)) S. 121 omitted (with effect in accordance with Sch. 5 para. 7 of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 5 para. 6(c) Sch. 19 para. 6 omitted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) of the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 25 (with Sch. 11 paras. 30-32) Sch. 9 para. 4(5)(6) repealed (with effect in accordance with reg. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), reg. 1(1), Sch. 2 Sch. 34 para. 10(2A) inserted (1.1.2010) by Legal Services Act 2007 (c. 29), s. 211(2), Sch. 21 para. 135(b) (with ss. 29, 192, 193); S.I. 2009/3250, art. 2(h) Words in Sch. 34 para. 10(2) substituted (1.1.2010) by Legal Services Act 2007 (c. 29), s. 211(2), Sch. 21 para. 135(a) (with ss. 29, 192, 193); S.I. 2009/3250, art. 2(h) Sch. 16 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 373, Sch. 3 Pt. 1 (with Sch. 2) Sch. 18 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 374, Sch. 3 Pt. 1 (with Sch. 2) Sch. 27 paras. 8-10 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 30 paras. 2-4 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 31 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 57(1) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 369, Sch. 3 Pt. 1 (with Sch. 2) S. 58 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 370, Sch. 3 Pt. 1 (with Sch. 2) Words in s. 63(2)(a) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 371 (with Sch. 2) S. 88(2)(b)(c) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22) S. 88(1) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22) S. 88(2)(f) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22) S. 91 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 92(1) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 97 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 102 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 103(4)(e) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 8 (with Sch. 9 paras. 1-9, 22) S. 103(1) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Words in s. 103(4)(a) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) S. 107 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 12 (with Sch. 9 paras. 1-9, 22) S. 107 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 2 (with Sch. 2) S. 103(4)(e) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 2 (with Sch. 2) Sch. 9 para. 4(7) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 9 para. 8(4) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 17 para. 1 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 23 paras. 17, 18 repealed (1.4.2010) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 23 para. 21 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 2 (with Sch. 9 paras. 1-9, 22) Sch. 25 para. 45 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 25 para. 49 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 25 paras. 54, 55 repealed (1.4.2010) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22) Sch. 25 para. 56 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 27 para. 12(2)(3) repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22) Sch. 27 para. 13 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 27 para. 15 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 2 (with Sch. 9 paras. 1-9, 22) Sch. 30 para. 1(2) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 30 para. 1(4) repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Sch. 30 para. 5 repealed (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 10 Pt. 1 (with Sch. 9 paras. 1-9, 22) Words in Sch. 34 para. 8(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 375(a) (with Sch. 2) Words in Sch. 34 para. 8(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 375(b) (with Sch. 2) Words in Sch. 37 para. 2(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 377 (with Sch. 2) Sch. 25 para. 58 repealed (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 3 Pt. 1 (with Sch. 2) Words in Act substituted (22.4.2011) by The Treaty of Lisbon (Changes in Terminology) Order 2011 (S.I. 2011/1043), arts. 2, 3, 6 (with arts. 3(2)(3), 4(2), 6(4)(5)) Sch. 39 repealed (with effect in accordance with Sch. 25 paras. 17(1), 19 of the amending Act) by Finance Act 2011 (c. 11), Sch. 25 para. 17(1) S. 42(3)(a) repealed (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance Act 2011 (c. 11), Sch. 10 para. 8(b) S. 42(1) repealed (with effect in accordance with Sch. 10 para. 9 of the amending Act) by Finance Act 2011 (c. 11), Sch. 10 para. 8(b) S. 134 repealed (with effect in accordance with Sch. 25 paras. 17(1), 19 of the amending Act) by Finance Act 2011 (c. 11), Sch. 25 para. 17(1) Sch. 9 para. 5(2)(3) repealed (with effect in accordance with Sch. 9 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 9 para. 5(d) Sch. 30 para. 6 repealed (with effect in accordance with Sch. 9 para. 6 of the amending Act) by Finance Act 2011 (c. 11), Sch. 9 para. 5(e) Sch. 35 repealed (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 39 para. 5(1)(b) (with Sch. 39 paras. 11-13) S. 43(3) repealed (17.7.2012) by Finance Act 2012 (c. 14), s. 37(3) S. 90 omitted (17.7.2012) by virtue of Finance Act 2012 (c. 14), Sch. 20 para. 21 (with Sch. 20 para. 50(9)) S. 110 omitted (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 39 para. 7(2)(a) (with Sch. 39 paras. 11-13) S. 112 omitted (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 39 para. 5(2)(d) (with Sch. 39 paras. 11-13) S. 113 repealed (with effect in accordance with Sch. 39 para. 10(1) of the amending Act) by Finance Act 2012 (c. 14), Sch. 39 para. 5(1)(b) (with Sch. 39 paras. 11-13) S. 88(2)(a) repealed (31.1.2013) by Statute Law (Repeals) Act 2013 (c. 2), s. 3(2), Sch. 1 Pt. 10 Group 1 S. 25 repealed (31.12.2020) by Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 132(d) (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7) Sch. 8 para. 3 repealed (with effect in accordance with Sch. 5 para. 13 of the amending Act) by Finance Act 2025 (c. 8), Sch. 5 paras. 11(c), 13 (with Sch. 5 paras. 14, 15, 18(4), 19) Words in s. 135(4)(a) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 260(2)(a) Words in s. 135(4)(a) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 260(2)(b)