Income and Corporation Taxes Act 1988 (c. 1)

(The document as of February, 2008)

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(4) Where a right to acquire shares in a body corporate is released in consideration of the grant of a right to acquire shares in another body corporate in accordance with a provision included in a scheme pursuant to paragraph 15 of Schedule 9 to the Taxes Act 1988, the transaction shall not be treated for the purposes of this Act as involving any disposal of the first-mentioned right but for those purposes the other right shall be treated as the same asset acquired as the first-mentioned right was acquired.

This subsection does not apply in relation to a savings-related share option scheme, within the meaning of section 187 of that Act, unless the first-mentioned right was acquired as mentioned in section 185(1) of that Act. "

26 The following sections shall be inserted after section 149--

" 149A Building societies and life policies

(1) If in the course of or as part of an amalgamation of two or more building societies or a transfer of engagements from one building society to another, there is a disposal of an asset by one society to another, both shall be treated for the purposes of corporation tax on chargeable gains as if the asset were acquired from the one making the disposal for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the one making the disposal.

In this subsection "building society" means a building society within the meaning of the Building Societies Act 1986.

(2) Where any investments or other assets are or have been, in accordance with a policy issued in the course of life assurance business carried on by an insurance company, transferred to the policy holder on or after 6th April 1967, the policy holder's acquisition of the assets and the disposal of them to him shall be deemed to be, for the purposes of this Act, for a consideration equal to the market value of the assets.

In this subsection "life assurance business" and "insurance company" have the same meaning as in Chapter I of Part XII of the Taxes Act 1988.

149B Miscellaneous exemptions

(1) The following gains shall not be chargeable gains--

(a) gains accruing on the disposal of stock--

(i) transferred to accounts in the books of the Bank of England in the name of the Treasury or the National Debt Commissioners in pursuance of any Act of Parliament; or

(ii) belonging to the Crown, in whatever name it may stand in the books of the Bank of England;

(b) any gain accruing to a person from his acquisition and disposal of assets held by him as part of a fund mentioned in section 613(4) of the Taxes Act 1988 (Parliamentary pension funds) or of which income is exempt from income tax under section 614(1) of that Act (social security supplementary schemes);

(c) any gain accruing to a person from his acquisition and disposal of assets held by him as part of a fund mentioned in section 614(4) or paragraph (b), (c), (d), (f) or (g) of section 615(2) of the Taxes Act 1988 (India etc. pension funds) or as part of a fund to which subsection (3) of that section applies (pension funds for overseas employees);

(d) any gain accruing to a person from his acquisition and disposal of assets held by him as part of any fund maintained for the purpose mentioned in subsection (5)(b) of section 620 or subsection (5) of section 621 of the Taxes Act 1988 under a scheme for the time being approved under that subsection;

(e) any gain accruing on the disposal by the trustees of any settled property held on trusts in accordance with directions which are valid and effective under section 9 of the Superannuation and Trust Funds (Validation) Act 1927 (trust funds for the reduction of the National Debt);

(f) any gain accruing to a consular officer or employee, within the meaning of section 322 of the Taxes Act 1988, of any foreign state to which that section applies on the disposal of assets which at the time of the disposal were situated outside the United Kingdom;

(g) any gain accruing to a person from his disposal of investments if, or to such extent as the Board are satisfied that, those investments were held by him or on his behalf for the purposes of a scheme which at the time of the disposal is an exempt approved scheme;

(h) any gain accruing to a person on his disposal of investments held by him for the purposes of an approved personal pension scheme;

(j) any gain accruing to a unit holder on his disposal of units in an authorised unit trust which is also an approved personal pension scheme or is one to which section 592(10) of the Taxes Act 1988 applies.

In this subsection "exempt approved scheme" and "approved personal pension scheme" have the same meanings as in Part XIV of the Taxes Act 1988.

(2) Where a claim is made in that behalf, a gain which accrues to a person on the disposal of investments shall not be a chargeable gain for the purposes of capital gains tax if, or to such extent as the Board are satisfied that, those investments were held by him or on his behalf for the purposes of a fund to which section 608 of the Taxes Act 1988 applies.

A claim under this subsection shall not be allowed unless the Board are satisfied that the terms on which benefits are payable from the fund have not been altered since 5th April 1980.

(3) A local authority, and a local authority association, within the meaning of section 519 of the Taxes Act 1988, shall be exempt from capital gains tax.

(4) Any terminal bonus, or interest or other sum, payable under a certified contractual savings scheme--

(a) in respect of money raised under section 12 of the National Loans Act 1968; or

(b) in respect of shares in a building society,

shall be disregarded for all purposes of the enactments relating to capital gains tax.

This subsection shall be construed as one with section 326 of the Taxes Act 1988.

(5) A signatory to the Operating Agreement made pursuant to the Convention on the International Maritime Satellite Organisation which came into force on 16th July 1979, other than a signatory designated for the purposes of the Agreement by the United Kingdom in accordance with the Convention, shall be exempt from capital gains tax in respect of any payment received by that signatory from the Organisation in accordance with the Agreement.

(6) The following shall, on a claim made in that behalf to the Board, be exempt from tax in respect of all chargeable gains--

(a) the Trustees of the British Museum and the Trustees of the British Museum (Natural History); and

(b) an Association within the meaning of section 508 of the Taxes Act 1988 (scientific research organisations).

(7) The Historic Buildings and Monuments Commission for England, the Trustees of the National Heritage Memorial Fund, the United Kingdom Atomic Energy Authority and the National Radiological Protection Board shall be exempt from tax in respect of chargeable gains; and for the purposes of this subsection gains accruing from investments or deposits held for the purposes of any pension scheme provided and maintained by the United Kingdom Atomic Energy Authority shall be treated as if those gains and investments and deposits belonged to the Authority.

(8) There shall be exempt from tax any chargeable gains accruing to the issue department of the Reserve Bank of India constituted under an Act of the Indian legislature called the Reserve Bank of India Act 1934, or to the issue department of the State Bank of Pakistan constituted under certain orders made under section 9 of the Indian Independence Act 1947.

(9) Any disposal and acquisition made in pursuance of an arrangement mentioned in subsection (1) or (2) of section 129 of the Taxes Act 1988 (stock lending) shall, subject to regulations under subsection (4) of that section, be disregarded for the purposes of capital gains tax.

149C Business expansion schemes

(1) In this section "relief" means relief under Chapter III of Part VII of the Taxes Act 1988, Schedule 5 to the Finance Act 1983 ("the 1983 Act") or Chapter II of Part IV of the Finance Act 1981 ("the 1981 Act") and "eligible shares" has the meaning given by section 289(4) of the Taxes Act 1988.

(2) A gain or loss which accrues to an individual on the disposal of any shares issued after 18th March 1986 in respect of which relief has been given and not withdrawn shall not be a chargeable gain or allowable loss for the purposes of capital gains tax.

(3) The sums allowable as deductions from the consideration in the computation for the purposes of capital gains tax of the gain or loss accruing to an individual on the disposal of shares issued before 19th March 1986 in respect of which any relief has been given and not withdrawn shall be determined without regard to that relief, except that where those sums exceed the consideration they shall be reduced by an amount equal to--

(a) the amount of that relief; or

(b) the excess,

whichever is the less, but the foregoing provisions of this subsection shall not apply to a disposal falling within section 44(1) above.

(4) Sections 88 and 89 of the Finance Act 1982 (identification of securities disposed of) shall not apply to shares in respect of which any relief has been given and not withdrawn; and any question--

(a) as to which of any such shares issued to a person at different times a disposal relates; or

(b) whether a disposal relates to such shares or to other shares;

shall for the purposes of capital gains tax be determined as for the purposes of section 299 of the Taxes Act 1988, or section 57 of the Finance Act 1981 if the relief has only been given under that Act.

(5) Where an individual holds shares which form part of the ordinary share capital of a company and the relief has been given (and not withdrawn) in respect of some but not others, then, if there is within the meaning of section 77 above a reorganisation affecting those shares, section 78 shall apply separately to the shares in respect of which the relief has been given (and not withdrawn) and to the other shares (so that shares of each kind are treated as a separate holding of original shares and identified with a separate new holding).

(6) Where section 44 above has applied to any eligible shares disposed of by an individual to his or her spouse ("the transferee"), subsection (2) above shall apply in relation to the subsequent disposal of the shares by the transferee to a third party.

(7) Where section 85 or 86 above would, but for this subsection, apply in relation to eligible shares in respect of which an individual has been given relief, that section shall apply only if the relief is withdrawn.

(8) Sections 78 to 81 above shall not apply in relation to any shares in respect of which relief (other than relief under the 1981 Act) has been given and which form part of a company's ordinary share capital if--

(a) there is, by virtue of any such allotment for payment as is mentioned in section 77(2)(a) above, a reorganisation occurring after 18th March 1986 affecting those shares; and

(b) immediately following the reorganisation, the relief has not been withdrawn in respect of those shares or relief has been given in respect of the allotted shares and not withdrawn.

(9) Where relief is reduced by virtue of subsection (2) of section 305 of the Taxes Act 1988--

(a) the sums allowable as deductions from the consideration in the computation, for the purposes of capital gains tax, of the gain or loss accruing to an individual on the disposal, after 18th March 1986, of any of the allotted shares or debentures shall be taken to include the amount of the reduction apportioned between the allotted shares or (as the case may be) debentures in such a way as appears to the inspector, or on appeal to the Commissioners concerned, to be just and reasonable; and

(b) the sums so allowable on the disposal (in circumstances in which subsections (2) to (7) above do not apply) of any of the shares referred to in section 305(2)(a) shall be taken to be reduced by the amount mentioned in paragraph (a) above, similarly apportioned between those shares.

(10) There shall be made all such adjustments of capital gains tax, whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the relief being given or withdrawn.

149D Personal equity plans

(1) The Treasury may make regulations providing that an individual who invests under a plan shall be entitled to relief from capital gains tax in respect of the investments.

(2) Subsections (2) to (5) of section 333 of the Taxes Act 1988 (personal equity plans) shall apply in relation to regulations under subsection (1) above as they apply in relation to regulations under subsection (1) of that section but with the substitution for any reference to income tax of a reference to capital gains tax.

(3) Regulations under this section shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons. " .

27 In section 155 (interpretation) after subsection (1) there shall be inserted--

" (1A) In this Act "retail prices index" shall have the same meaning as in the Income Tax Acts and, accordingly, any reference in this Act to the retail prices index shall be construed in accordance with section 833(2) of the Taxes Act 1988. " .

28 In section 157 (savings) after subsection (1) there shall be inserted--

" (1A) No letters patent granted or to be granted by the Crown to any person, city, borough or town corporate of any liberty, privilege, or exemption from subsidies, tolls, taxes, assessments or aids, and no statute which grants any salary, annuity or pension to any person free of any taxes, deductions or assessments, shall be construed or taken to exempt any person, city, borough or town corporate, or any inhabitant of the same, from tax chargeable in pursuance of this Act. "

FINANCE ACT 1982 c. 39

29 In section 134(1) after second "Act" there shall be inserted "or in Chapter V of Part XII of the Taxes Act 1988".

ADMINISTRATION OF JUSTICE ACT 1985 c. 61

30 In paragraph 36(3) of Schedule 2 to the Administration of Justice Act 1985 for all the words preceding "any reference" there shall be substituted the words "(3) In sections 745(3) and 778(3) of, and paragraph 14(5) of Schedule 15 to, the Income and Corporation Taxes Act 1988".

LAW REFORM (MISCELLANEOUS PROVISIONS) (SCOTLAND) ACT 1985 c. 73

31 In Schedule 1 to the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 for the heading preceding paragraph 41 there shall be substituted the following--

" Income and Corporation Taxes Act 1988 " ;

and in paragraph 41 for "30(5)" there shall be substituted the words "745(3) and 778(3) of, and paragraph 14(5) of Schedule 15 to, the Income and Corporation Taxes Act 1988".

TRANSLATION OF REFERENCES TO ENACTMENTS REPEALED AND RE-ENACTED

32 In the enactments specified in Column 1 of the following Table for the words set out or referred to in Column 2 there shall be substituted the words set out in the corresponding entry in Column 3.

(a) section 410(1) or (2) of or paragraph 5(3) of Schedule 18 to the Taxes Act 1988;

(b) section 395(1)(c) of that Act;

(d) paragraph 5(3) of Schedule 18 to or section 240(11) of that Act.

Enactment amended	Words to be omitted	Words to be substituted
In the Finance Act 1952 c. 33
Section 74(4)	52 of the Finance Act 1974	519 of the Income and Corporation Taxes Act 1988
In the Finance Act 1956 c. 54
Section 26(2)	226(13) of the Income and Corporation Taxes Act 1970	620(9) of the Income and Corporation Taxes Act 1988
In the Trustee Investments Act 1961 c. 62
Schedule 1, Part II, Paragraph 10A	from "section 358" to the end	subsection (1) of section 468 of the Income and Corporation Taxes Act 1988, in relation to which that subsection does not, by virtue of subsection (5) of that section, apply.
In the Finance Act (Northern Ireland) 1967 c. 20 (N.I.)
Section 6(3)	52 of the Finance Act 1974	519 of the Income and Corporation Taxes Act 1988
In the Provisional Collection of Taxes Act 1968 c. 2
Section
1(1A)(a)	343 of the Income and Corporation Taxes Act 1970	476 of the Income and Corporation Taxes Act 1988
1(1A)(b)	27 of the Finance Act 1984	479 of that Act
5(1)(c)	from "243(6)" to "1972"	8(5) of the Income and Corporation Taxes Act 1988
5(2)	from "the said" to "1972"	sections 8(5) and 822 of the 1988 Act (over-deductions from preference dividends before passing of annual Act)
In the Capital Allowances Act 1968 c. 3
Section
12(3)	154 or 251(1)	113 or 337(1)
15(3)	178 (three times)	394
26(7)	463	706
33(2)(b)	Part III of the Finance Act 1976	Part V of the principal Act
34(3)	Part III of the Finance Act 1976	Part V of the principal Act
34(4)	Part III of the Finance Act 1976	Part V of the principal Act
47(4)	189(2)	198(2)
48(1)	154 or 251(1)	113 or 337(1)
48(6)(a)	154	113
60(10)	134 (twice)	87
60(10)	(5)	(7)
60(11)	115	60
67(3)	154 or 251(1)	113 or 337(1)
67(3)	252(2)	343(2)
69	111	54
70(5)	169	383
72(2)	115	60
78(1)(a)	533	839
79(1)	154 or 251(1)	113 or 337(1)
79(4)	154	113
80(3)(b)	171 or 177(1)	385 or 393(1)
82(1)	52 or 53	348 or 349(1)
82(2)	411(1)(c)	577(1)(c)
85(1A)	533	839
85(4)	111	54
90	130	74
91(3)	115	60
100(2)	250(5)	9(5)
100(5)	1970	1988
Schedule
2, para. 8(1)(c)	78(1) or 306(1) of the principal Act	32(1) of the principal Act or section 306(1) of the Income and Corpo
12(5)	137(4)	100(2)
15(7)(a)	from "section 196" to "1977"	sections 141, 142, 143, 145 or 154 to 165 of the principal Act
15(11)(b)	Part II of the Finance Act 1976	Part V of the principal Act
19(2)	80 to 82	34 to 36
27(2)	454(3)	681(4)
29(2)	Schedule 16 to the Finance Act 1972	sections 426 to 430 of the principal Act
29(8)	39(3)	284(4)
30	47 or 48 (twice)	824 or 825 of the principal Act or section 47
31	all of subsection (3)	(3) The appeal shall be to the Special Commissioners if the assessment is made-- (a) by the Board; or (b) under section 350, 426, 445, 740, 743(1) or 747(4)(a) of the principal Act; or (c) under section 38 of the Finance Act 1973 or section 830 of the principal Act and is not an assessment to tax under Schedule E; or if the appeal involves any question as to the application of Part XV or XVI of the principal Act.
35(2)(b)	187	148
42(3)(a)	27	278
42(3)(c)	section 218	subsection (5) of section 614
42(3)(c)	that section	section 615(3) of that Act
47B	Schedule 5 to the Finance Act 1983	Chapter III of Part VII of the principal Act
47B	paragraph 5A(5) of that Schedule	section 294(5) of that Act
55(1)(b)	204	203
55(1)(c)	Schedule 20 to the Finance Act 1972	Schedule 16 to the principal Act
55(1)(e)	Schedule 14 to the Finance Act 1972	Schedule 13 to the principal Act
55(1)(g)	88 of the Finance Act 1984	753 of the principal Act
55(1)(g)	82(4)(a)	747(4)(a)
58(3)(b)	from "sections" to "that Act or"	section 102, 113(5), 263(5) and (6), 343(10) or 783(9) of the principal Act, or paragraph 22 of Schedule 7 to the Income and Corporation Taxes Act 1970, or
63(3) (as substituted by Schedule 4 to the Debtors (Scotland) Act 1987 c. 18)	204	203
71(1)	Part XI	sections 6 to 12 and Parts VIII and XI
78(1)	89	43
78(4)	VII of Part II of the Finance Act 1984	V of Part XVII of the principal Act
78(5)	533	839
86(2)(b)	204	203
86(2)(d)	14 to the Finance Act 1972	13 to the principal Act
86(4)	5 (three times)	3
86(4)	4(3)	5(4)
86(4)	14 to the Finance Act 1972	13 to the principal Act
86(4)	243(4)	10(1)
86(4)	344	478
87	14 (four times)	13
87	20 (four times)	16
87	the Finance Act 1972	the principal Act
88(2)	14 or 20 to the Finance Act 1972	13 or 16 to the principal Act
88(5)(b)	4(2)	5(2)
88(5)(c)	4(3)	5(4)
91(3)(c)	204	203
93(1)	39(3)	284(4)
93(3)	204	203
94(2)	240(5) or 246(3)	7(2) or 11(3)
95(1)(a)	39(3)	284(4)
109(4)	286(5)	419(4)
109(1)-(3),(5)	section 286	sections 419 and 420
118(1)	526(5)	832(1)
118(1)	354	468
118(1)	1970	1988
Schedule
2, para.2(2), in column 1 of the Table	II of Part I	I of Part VII
	65(4)	351(5)
	3	2
para.2(2), in column 2 of the Table	158(1)	121(1), (2)
	315(3)	441(3)
	331	459
	332	460
	338	467
	339	484
	384	527
	389	534
	391	536
	392	538
3, para.3,5	204 (three times)	203
para.5B	65 of the Finance Act 1976	159 of the principal Act
para.8	section 286	sections 419 and 420
para.8	15 of Schedule 16 to the Finance Act 1972	13 of Schedule 19 to the principal Act
last para.	from "11&quo (c)	Chapter VI of Part XII of this Act	section 842 of the Taxes Act 1988
273(2)(d)	63 of the Finance (No.2) Act 1987	404 of the Taxes Act 1988
276(1A)(b)	63 of the Finance (No.2) Act 1987	404 of the Taxes Act 1988
278(3A)(a)	262(2) of this Act	409(2) of the Taxes Act 1988
281(6)	533 of this Act	839 of the Taxes Act 1988
306	304(5) above	130 of the Taxes Act 1988
306	304(3) above (twice)	75(4) of the Taxes Act 1988
306	304 above	75 of the Taxes Act 1988
540(2)	1979	1979 and any reference in this Act to the Taxes Act 1988 is a reference to the Income and Corporation Taxes Act 1988.
In the Finance Act 1970 c. 24
Section
29(6)	The words from "and the Board" to the end	and any other payment or part of a payment which is to be treated as mineral royalties by virtue of regulations made under section 122(5) of the Income and Corporation Taxes Act 1988
Schedule
6, para.7(2)	29 of this Act	122 of the Income and Corporation Taxes Act 1988
In the Friendly Societies Act (Northern Ireland) 1970 c. 31 (N.I.)
Section
1(5)	(2) and (3) respectively of section 337 of the Income and Corporation Taxes Act 1970	(1) and (2) respectively of section 466 of the Income and Corporation Taxes Act 1988
82(4)	226(13) of the Income and Corporation Taxes Act 1970	620(9) of the Income and Corporation Taxes Act 1988
In the Finance Act 1971 c. 68
Section
21	the whole of subsection (6)	(6) Part II of Schedule 3 to this Act shall have effect.
40(2)(a), 43(3)	533	839
44(5), (6)	VIII of the Taxes Act or Chapter II of Part III of the Finance Act 1976 (Schedule E) (twice)	Schedule E
44(6)	63 of the Finance (No. 2) Act 1987	404 of the Taxes Act
44(6)	533 of the Taxes Act	839 of that Act
44(7)	533	839
47(1)	the whole of paragraph (ii)	(ii) the provisions of this Chapter as applied by this subsection shall have effect subject to section 198(2) of the Taxes Act (offices and employments with duties abroad).
47(2)	from beginning to "shall each"	Section 306 of the Income and Corporation Taxes Act 1970 (capital allowances for machinery and plant used by investment or life assurance companies) shall
69(2)	1970	1988
Schedule
3, para.8(1), (5)	the Taxes Act	the Income and Corporation Taxes Act 1970
para.8(3)	the words from "sub-paragraphs" to "this Schedule)"	section 598(2) to (4) of the Taxes Act
para.8(4)	1970	1970 or Chapter I of Part XIV of the Taxes Act
8, para.3	533 (three times)	839
para.8(4), 8A(11)	169(4)(d), 174(6) and 259(2)	383(5)(d), 388(7) and 403(3)
para.13	533 of the Taxes Act	839 of that Act
para.13	63 of the Finance (No.2) Act 1987	404 of the Taxes Act
In the Finance Act 1972 c. 41
Section
68(10)	533	839
69(1)(c)(i)	533	839
69(4)	80	34
32(3)	258 of the Income and Corporation Taxes Act 1970	402 of the Taxes Act 1988
38(2)(d)	237(5) of the Taxes Act	254(1) of the Taxes Act 1988
38(3)	from beginning to "such rights"	Any gains accruing on the disposal of exploration or exploitation rights
38(3B)	533 of the Taxes Act	839 of the Taxes Act 1988
38(5)	the Taxes Act	the Taxes Act 1970
59	all of subsection (2)	(2) In this Act-- (a) "the Taxes Act 1970" means the Income and Corporation Taxes Act 1970; and (b) "the Taxes Act 1988" means the Income and Corporation Taxes Act 1988.
Schedule
15, para.2,4	this Act	this Act or section 830 of the Taxes Act 1988
15, para.6	533 of the Taxes Act	839 of the Taxes Act 1988
In the Friendly Societies Act 1974 c. 46
Section
7(5)	(2) and (3) respectively of section 337 of the Income and Corporation Taxes Act 1970	(1) and (2) respectively of section 466 of the Income and Corporation Taxes Act 1988
93(4)	226(13) of the Income and Corporation Taxes Act 1970	620(9) of the Income and Corporation Taxes Act 1988
In the Social Security Act 1975 c. 14 and in the Social Security (Northern Ireland) Act 1975 c. 15
Schedule
2, para.1	1970 (three times)	1988
para.3(1)	1970	1988
para.3(1)(a)	section 168	sections 380 and 381
para.3(1)(b)	169	383
para.3(1)(c)	171	385
para.3(1)(d)	section 174	sections 388 and 389
para.3(2)(a)	II of Part I of the Act of 1970	I of Part VII of the Act of 1988
para.3(2)(b)	226 and 227	619 and 620
para.3(2)(c)	section 75 of the Finance Act 1972	section 353 of the Act of 1988
para.3(2)(d)	173 of the Act of 1970	387 of the Act of 1988
para.3(2)(d)	53	350
para.3(2)(e)	175	390
para.3(2)(f)	the whole paragraph	(f) section 617(5) of the Act of 1988 (relief for Class 4 contributions)
para.3(4)(a)	52 or 53 of the Act of 1970	348 or 349(1) of the Act of 1988
para.3(4)(b)	75 of the Finance Act 1972	353 of that Act
para.4(1)	IV of Part I of the Act of 1970	II of Part VII of the Act of 1988
para.4(1)	38	283
para.4(1)	23 of the Finance Act 1971	287 of that Act
para.4(3)	37 (twice)	279
para.4(3)	1970	1988
para.4(3)	38	283
para.4(3)	23 of the Finance Act 1971	287 of that Act
para.5(2)	Chapter VI of Part VI of the Act of 1970	sections 111 to 115 of the Act of 1988
para.5(2)	152	111
para.6(b)	114 of the Act of 1970	59 of the Act of 1988
In the Oil Taxation Act 1975 c. 22
Section
3(2)	412	579
3(2)	13 of this Act	492 of the Taxes Act
5(7)	533	839
5(8)	532	838
6(4)(b)	532	838
21(2)	1970	1988
Schedule
3, para.1(2)	533	839
para.2A(2)(b)	533	839
para.5(5)	534	840
4, para.2(2)	533	839
para.4(8)	533	839
para.7(2)	533	839
In the Finance (No.2) Act 1975 c. 45
Section
47(11)	110(1) of the Finance Act 1972	231(5) of the Income and Corporation Taxes Act 1988
47(11)	432(4) of the Taxes Act	701(4) of that Act
47(12)	432(8) of the Taxes Act	701(9) of the Income and Corporation Taxes Act 1988
37(4)	section 84(1), (2) and (3) of the Taxes Act	subsections (1) to (4) and (6) of section 38 of the Income and Corporation Taxes Act 1988
37(6)(a)	533 of the Taxes Act	839 of the Income and Corporation Taxes Act 1988
In the Capital Gains Tax Act 1979 c. 14
Section
1(2)	Taxes Act	Taxes Act 1970 and Part VIII of the Taxes Act 1988
10(4)	518	816
14(2)	(4) to (7) of section 122	(6) to (9) of section 65
14(2)	(3) of the said section 122	(5) of that section
15(5)(d)	246(2)(b)	11(2)(b)
31(2)	the Taxes Act which under that Act	the Taxes Act 1970 or the Taxes Act 1988 which under either of those Acts
34(4)(a)	the Taxes Act which under that Act the Taxes Act 1970 or the Taxes Act 1988 which under either of those Acts
34(4)(b)	76	30
34(4)(c)	141	91
45(4)	40	285
45(4)	41	286
60(c)	153(1), (2)	112(1), (2)
63(3)	454 (twice)	681
63(3)	(3)	(4)
74(1)	paragraph 5 of Schedule 16 to the Finance Act 1972	section 426 of the Taxes Act 1988
74(2)	sub-paragraph (6) of the said paragraph 5	section 427(4) of the Taxes Act 1988
74(2)	sub-paragraph (2)(b) of that paragraph	section 426(2)(b) of that Act
74(5)	formed part of the said paragraph 5	were included in sections 426 to 428 of the Taxes Act 1988
85(1)	526(5)	832(1)
89(1)	34 of the Finance (No.2) Act 1975	249 of the Taxes Act 1988
89(1)	the said section 34 (twice)	that section
89(1)(b)	3(1) of Schedule 8	12(1) of Schedule 19
89(1)	paragraph 1 of the said Schedule 8	section 251(2) of the Taxes Act 1988
90(1)	34 of the Finance (No.2) Act 1975	249 of the Taxes Act 1988
90(3)	paragraph 1 of Schedule 8 to the Finance (No.2) Act 1975	section 251(2) to (4) of the Taxes Act 1988
92(b)	358	468(6)
92(c)	359	842
101(8)(a)	paragraph 4A of Schedule 1 to the Finance Act 1974	section 356 of the Taxes Act 1988
119(4)	140(2)	98(2)
124(8)	11 of Schedule 16 to the Finance Act 1972	7 of Schedule 19 to the Taxes Act 1988
126(7)	11 of Schedule 16 to the Finance Act 1972	7 of Schedule 19 to the Taxes Act 1988
136(10)(b)	11 of Schedule 16 to the Finance Act 1972	7 of Schedule 19 to the Taxes Act 1988
137(9)	535	841
145	Subject to	Subject to section 505(3) of the Taxes Act 1988 and
149(7)	303(1)	417(1)
152(2)	535	841
155(1)	282 and 283	414 and 415
155(1)	302	416
155(1)	432(4)	701(4)
155(1)	the definition of "the Taxes Act"	"the Taxes Act 1970" and "the Taxes Act 1988" mean the Income and Corporation Taxes Act 1970 and Income and Corporation Taxes Act 1988 respectively;
155(1)	137(4)	100(2)
155(2)	42(1)(2)	282(1) and (2)
Schedule
1, para.6(7)	454(3)
para.7	80(2)	34(2) and (3)
para.9(2)	492	785
In the European Parliament (Pay and Pensions) Act 1979 c. 50
Section 8(1)	subsections (1A) and (1B) of section 229 of the Income and Corporation Taxes Act 1970	section 629(2) and (3) of the Income and Corporation Taxes Act 1988
In the Finance Act 1980 c. 48
Section
64(9)(b)	154(2) or 155(1) of the Taxes Act	113(2) or 114(1) of the Taxes Act 1988
65(5), 66(5)	154(2), 155(1) or 252(2) of the Taxes Act	113(2), 114(1) or 343(2) of the Taxes Act 1988
70(3)	the said Act of 1971	the Finance Act 1971
73(6)	533 of the Taxes Act	839 of the Taxes Act 1988
107(7)	Part II of the said Act of 1975	Chapter V of Part XII of the Taxes Act 1988
108(9)(b)	Part II of that Act	Chapter V of Part XII of the Taxes Act 1988
118	the whole of subsection (3)	(3) The trustees of the National Heritage Memorial Fund shall be treated for the purposes of section 49(2) of the Finance Act 1974 and section 99 above as a body of persons established for charitable purposes only.
122(2)	1970	1970 and "the Taxes Act 1988" means the Income and Corporation Taxes Act 1988
Schedule
17, para.13(3)	533 of the Taxes Act	839 of the Taxes Act 1988
para.16(3)	532 of the Taxes Act	838 of the Taxes Act 1988
para.19(2)	533 of the Taxes Act	839 of the Taxes Act 1988
18, para.9	paragraph 2(1)(a) above	section 213(3)(a) of the Taxes Act 1988
para.23(1)	paragraph 13 above	section 214(2) of the Taxes Act 1988
para.23(1)	paragraph 1 above	section 213(2) of that Act
In the Finance Act 1981 c. 35
Section
83(7)	454(3)	681(4)
84(2)	(4) of section 481	(5) of section 745
84(2)	481(1)	745(1)
139(2)	1970	1988
In the Housing (Northern Ireland) Order 1981 (S.I. No.156 N.I.3)
Article
146(3)	341 (three times)	488
146(3)	1970 (three times)	1988
In the Iron and Steel Act 1982 c. 25
Section
13(3)	252(3) of the Income and Corporation Taxes Act 1970	343(3) of the Income and Corporation Taxes Act 1988
13(4)	265(1) of the Income and Corporation Taxes Act 1970	345(1) of the Income and Corporation Taxes Act 1988
In the Finance Act 1982 c. 39
Section
27	this Act (three times)	this Act or the Taxes Act 1988
70(1)	38(4) of the Finance Act 1973	830(4) of the Taxes Act 1988
70(12)	533 of the Taxes Act	839 of the Taxes Act 1988
72(5)	137(4) of the Taxes Act	100(2) of the Taxes Act 1988
88(9)(a)	Chapter IV of Part II of the Finance Act 1985	section 710 of the Taxes Act 1988
88(9)(b)	section 36 of the Finance Act 1984	Schedule 4 to that Act
88(9)(c)	VII of Part II of that Act	V of Part XVII of the Taxes Act 1988
147(1)	532(1)(b) of the Taxes Act	838 of the (2) In this Act-- (a) "the Taxes Act 1970" means the Income and Corporation Taxes Act 1970; and (b) "the Taxes Act 1988" means the Income and Corporation Taxes Act 1988".
Schedule
11, para.4(3)	154(2), section 155(1) or section 255(2) of the Taxes Act	113(2), 114(1) or 243(2) of the Taxes Act 1988
para.4(4)	533 of the Taxes Act	839 of the Taxes Act 1988
12, para. 3(3)(b)	341 of the Taxes Act	488 of the Taxes Act 1988
para. 3(3)(e)	Chapter III of Part XI of the Taxes Act	Part XI of the Taxes Act 1988
para. 3(3)	533 of the Taxes Act	839 of the Taxes Act 1988
13, para.3(3)(a)	the Taxes Act	the Taxes Act 1970
21, para.3(2)	463 of the Taxes Act	706 of the Taxes Act 1988
In the Finance Act 1983 c. 28
Section
46(3)	Commission	Historic Buildings and Monuments Commission
Schedule
6, para.1(2)	the whole of paragraph (aa) as inserted by paragraph 11(2) of the Finance Act 1984	nor (ab) deep discount securities (within the meaning of Schedule 4 to the Income and Corporation Taxes Act 1988); nor
para.1(2)(c)	VII of Part II of the Finance Act 1984	V of Part XVII of the Income and Corporation Taxes Act 1988
8, para. 11(2)	533 of the Taxes Act	839 of the Income and Corporation Taxes Act 1988
In the Oil Taxation Act 1983 c. 56
Section
15(4)	533	839
Schedule
2, para.11(2)	and section 17 of the principal Act	of the principal Act and section 500 of the Taxes Act
2, para.11(3)(a)	302	416
2, para.12(1)	and section 17 of the principal Act	of the principal Act and section 500 of the Taxes Act
In the Telecommunications Act 1984 c. 12
Section
62(7)	subsection (10) of section 48 of the Finance Act 1981		section 400(9) of the Income and Corporation Taxes Act 1988
72(3)(b)	paragraph (a) of the proviso to section 21(3) of the Finance Act 1970	section 592(5) of the Income and Corporation Taxes Act 1988
72(3)	II of Part II of the said Act of 1970	I of Part XIV of that Act
72(4)	"416" and "1970"	"581" and "1988"
In the Finance Act 1984 c. 43
Section
50(1)	income tax, corporation tax, or capital gains tax	capital gains tax or corporation tax on chargeable gains
60(1)	252 of the Taxes Act	343 of the Taxes Act 1988
79(10)	Part II of the Oil Taxation Act 1975	Chapter V of Part XII of the Taxes Act 1988
113(8)	532 of the Taxes Act	838 of the Taxes Act 1988
115(2)	534 of the Taxes Act	840 of the Taxes Act 1988
115(7)	532 of the Taxes Act	838 of the Taxes Act 1988
128	1970	1970; and "the Taxes Act 1988" means the Income and Corporation Taxes Act 1988
Schedule
14, para.1(1)	VII of Part II of this Act	V of Part XVII of the Taxes Act 1988
para.7(6)(b)	45 of the Finance Act 1981	740 of the Taxes Act 1988
para.8(6)	45 of the Finance Act 1981	740 of the Taxes Act 1988
para.12(7)	45 of the Finance Act 1981	740 of the Taxes Act 1988
para.15(2)	(5) of section 481 of the Taxes Act	(6) of section 745 of the Taxes Act 1988
In the Inheritance Tax Act 1984 c. 51
Section
6(3)(e)	415 of the Taxes Act	326 of the Taxes Act 1988
12(2)(a)	II of Part II of the Finance Act 1970	I of Part XIV of the Taxes Act 1988
12(2)(c)	II of Part I of the Finance (No. 2) Act 1987	IV of Part XIV of the Taxes Act 1988
13(4)(b)	the Finance Act 1978	Schedule 9 to the Taxes Act 1988
21(3)	230 of the Taxes Act	657 of the Taxes Act 1988
72(4)	Finance Act 1978	Taxes Act 1988
86(3)	Finance Act 1978	Taxes Act 1988
91(2)(c)	Part XV of the Taxes Act	Part XVI of the Taxes Act 1988
94(2)(a)	239 of the Taxes Act	208 of the Taxes Act 1988
94(3)	258 of the Taxes Act or of section 92 of the Finance Act 1972	240 or 402 of the Taxes Act 1988
96	234(3) of the Taxes Act	210(4) of the Taxes Act 1988
the commencement of that Act	6th April 1970
174(1)(a)	VII of Part II of the Finance Act 1984	V of Part VII of the Taxes Act 1988
174(1)(a)	92(3)	757(3)
174(1)(b)	1 of Schedule 9 to the Finance Act 1984	4 of Schedule 4 to that Act
174(1)(b)	2(2)	7(2)
178(1)	358 of the Taxes Act	468 of the Taxes Act 1988
204(5)	from "478" to "1981"	739 or 740 of the Taxes Act 1988
272	52 of the Finance Act 1974	519 of the Taxes Act 1988
272	the definition of the Taxes Act	"the Taxes Act 1970" means the Income and Corporation Taxes Act 1970; "the Taxes Act 1988" means the Income and Corporation Taxes Act 1988;
In the Finance Act 1985 c. 54
Section
56(1)(c)	enactment	enactment (including any contained in the Taxes Act)
56(8)	Chapter I of Part XIV	sections 520 to 533
57(7)	533	839
68(7)	Taxes Act	Income and Corporation Taxes Act 1970
71(6)	the Taxes Act	the Income and Corporation Taxes Act 1970
72(1)	this subsection	section 128 of the Taxes Act
80(5)(b)	13 of the Oil Taxation Act 1975	492 of the Taxes Act
98(2)	1970	1988
Schedule
17, para.3(2), 5(4)(a),6(d)	533	839
19, para.16(3)	from "Part I" to "1983"	Chapter III of Part VIII of the Taxes Act
para.22	Schedule 16 to the Finance Act 1973	section 457 of the Taxes Act
para.23	paragraph 6(2) of the said Schedule 16	section 142A of the Capital Gains Tax Act 1979
20, para.1(2)	302	416
para.8(5)	532(1)	838(1)
In the Companies Act 1985 c. 6
Section
209(3)(b)	444 of the Income and Corporation Taxes Act 1970	670 of the Income and Corporation Taxes Act 1988
266(4)	359 (twice)	842
266(4)	1970	1988
In the Trustee Savings Bank Act 1985 c. 58
Schedule 2
para.4(2)	Taxes Act (twice)	the Income and Corporation Taxes Act 1970
6(1)	137	100
(4)	177	393
(8)	29 of the Finance Act 1973	410(1) to (6) of the Taxes Act
7(2)	26 of the Finance Act 1982	369 of the Taxes Act
9(1)	1970	1988
In the Bankruptcy (Scotland) Act 1985 c. 66
Schedule 3 Part I
para.1(1)	204 of the Income and Corporation Taxes Act 1970	203 of the Income and Corporation Taxes Act 1988
para.1(2)	69 of the Finance (No.2) Act 1975	559 of the Income and Corporation Taxes Act 1988
In the Housing Associations Act 1985 c. 69
Section
62(2)	341	488
62(2)	1970	1988
In the Airports Act 1986 c. 31
Section
77(2)	1970 Act		Income and Corporation Taxes Act 1970
77(4)	48(10) of the Finance Act 1981	400(9) of the 1988 Act
77(5)	261(2) of the 1970 Act	408(2) of the 1988 Act
77(5)	262(1) of the 1970 Act	409(1) of that Act
77(5)	262(2)	409(2)
77(6)	1970 (twice)	1988
77(6)	258 to 264	Chapter IV of Part X
In the Finance Act 1986 c. 41
Section
24(4)	Finance Act 1978	Taxes Act 1988
58(4)	497 of the Taxes Act	788 or 789 of the Taxes Act 1988
69(6)	535 of the Taxes Act	841 of the Taxes Act 1988
78(9)	126 of the Finance Act 1984	324 of the Taxes Act 1988
114(2)	1970	1970 and "the Taxes Act 1988" means the Income and Corporation	839 of the Income and Corporation Taxes Act 1988
In the Insolvency Act 1986 c. 45
Schedule
6, para. 1	204 of the Income and Corporation Taxes Act 1970	203 of the Income and Corporation Taxes Act 1988
para. 2	69 of the Finance (No. 2) Act 1975	559 of the Income and Corporation Taxes Act 1988
In the Social Security Act 1986 c. 50
Section
23(5)	204	203
23(5)	1970	1988
84(1)	365 (twice)	315
84(1)	1970	1988
Schedule
6, para.1(2)	365	315
para.1(2)	1970	1988
In the Building Societies Act 1986 c. 53
Schedule
8, para.7	Schedule 8 to the Finance Act 1986	section 333 of the Income and Corporation Taxes Act 1988
In the Financial Services Act 1986 c. 60
Schedule
15, para.14(5)	332		460(1) or 461(1)
para.14(5)	1970	1988
In the Companies (Northern Ireland) Order 1986 (S.I.No.1032 N.I.6)
Article
217(3)(b)	444 of the Income and Corporation Taxes Act 1970	670 of the Income and Corporation Taxes Act 1988
274(4)	359 (twice)	842
274(4)	1970	1988
In the Social Security (Northern Ireland) Order 1986 (S.I.No.1888 N.I.18)
Article
2(1)	365 (twice)	315
2(1)	1970	1988
24(5)	204	203
24(5)	1970	1988
Schedule
6, para.1(2)	365	315
1(2)	1970	1988
In the Finance Act 1987 c. 16
Section
62(5)	258	413(3)
72	1970	1988
Schedule
10, para.8(4)	533	839
para.8(4)	302	416
13, para.11(2)	533	839
14, para.10(2)	532	838
In the Debtors (Scotland) Act 1987 c. 18
Section
53(6)	65(1A)	351(2)
53(6)	1970	1988
63(9)	65(1A)	351(2)
63(9)	1970	1988
In the Abolition of Domestic Rates Etc. (Scotland) Act 1987 c. 47
Section 3(5)	the whole of paragraph (b)	(b) "retail prices index" has the meaning given by section 833 of the Income and Corporation Taxes Act 1988
In the Finance (No.2) Act 1987 c. 51
Section
84(1)	247 of the Taxes Act	12 of the Income and Corporation Taxes Act 1988

Section 844.

SCHEDULE 30 TRANSITIONAL PROVISIONS AND SAVINGS

Corporation tax payment dates

1 (1) In this paragraph, an "old company" means a company to which section 244 of the 1970 Act applied in respect of the last accounting period ending before 17th March 1987.

(2) In relation to an old company--

(a) "the company's section 244 interval" means the interval after the end of an accounting period of the company which, in accordance with section 244 of the 1970 Act, was the period within which corporation tax assessed for that period was required to be paid; and

(b) "the period of reduction" means the number of whole days which are comprised in a period equal to one-third of the difference between nine months and the company's section 244 interval.

(3) Subject to sub-paragraph (6) below, with respect to the first accounting period of an old company beginning on or after 17th March 1987, section 243(4) of the 1970 Act and section 10(1) of this Act (time for payment of corporation tax) shall have effect as if for the reference to nine months there were substituted a reference to a period which is equal to the company's section 244 interval less the period of reduction.

(4) Subject to sub-paragraph (6) below, with respect to any accounting period of an old company which begins--

(a) after the accounting period referred to in sub-paragraph (3) above, but

(b) before the second anniversary of the beginning of that period,

section 10(1) of this Act shall have effect as if for the reference to nine months there were substituted a reference to a period equal to the previous payment interval less the period of reduction.

(5) In relation to any accounting period of an old company falling within sub-paragraph (4) above, "the previous payment interval" means the interval after the end of the immediately preceding accounting period within which corporation tax for that preceding period is required to be paid by virtue of section 243(4) of the 1970 Act or section 10(1) of this Act, as modified by this paragraph.

(6) If the accounting period referred to in sub-paragraph (3) above or any accounting period falling within sub-paragraph (4) above is less than 12 months, the sub-paragraph in question shall have effect in relation to that accounting period as if for the reference in that sub-paragraph to the period of reduction there were substituted a reference to the number of whole days comprised in a period which bears to the period of reduction the same proportion as that accounting period bears to 12 months.

(7) With respect to any accounting period of an old company which falls within sub-paragraph (3) or (4) above, section 86(4) of the Management Act (interest on overdue tax) shall have effect as if, in paragraph 5(a) of the Table (the reckonable date in relation to corporation tax), the reference to the nine months mentioned in section 243(4) of the 1970 Act or section 10(1) of this Act were a reference to the period which, under sub-paragraphs (3) to (6) above, is substituted for those nine months.

(8) In section 88(5)(e) of the Management Act (the date when corporation tax ought to have been paid) for the words from "where section 244(1)" to "the interval" there shall be substituted "in the case of an accounting period in respect of which section 10(1) of the principal Act applies as modified by sub-paragraph 1(3) or (4) of Schedule 30 to that Act, at the end of the period which, under that sub-paragraph, is substituted for the period of nine months".

(9) With respect to any accounting period of an old company which falls within sub-paragraph (3) or (4) above, section 825 shall have effect as if, in subsection (8) in paragraph (a) of the definition of "the material date", the reference to the nine months mentioned in section 10(1) were a reference to the period which, under sub-paragraphs (1) to (8) above is substituted for those nine months.

Duration of leases

2 (1) Subject to sub-paragraph (2) and paragraph 3 below, section 38 has effect--

(a) as respects a lease granted after 12th June 1969; and

(b) so far as it relates to section 34(5), as respects a variation or waiver the contract for which is entered into after that date.

(2) So far as relates to relief under--

(a) section 385 or 393; or

(b) section 380(1) as applied by subsection (2) of that section; or

given by setting a loss against, or making a deduction from, income of--

(i) the year 1988-89 or any subsequent year of assessment, or

(ii) a company's accounting period ending after 5th April 1988,

section 38 shall be deemed to have had effect as from the passing of the [1963 c. 25.] Finance Act 1963, and as respects leases granted at any time.

(3) Notwithstanding section 31 or any other enactment governing the order in which reliefs are given, in applying sub-paragraph (2) above it shall be assumed that all relief which could not be affected by the operation of that sub-paragraph was given (for all years of assessment and accounting periods before or after the passing of this Act) before relief which could be affected by the operation of that sub-paragraph.

(4) All such adjustments shall be made, whether by way of assessment or discharge of repayment of tax, as are required to give effect to section 38 with this paragraph.

3 (1) Sections 24 and 38 shall have effect subject to the modifications set out in sub-paragraphs (2) to (4) below in relation to any lease granted after 12th June 1969 and before 25th August 1971 and, so far as section 38 relates to section 34(5), in relation to any variation or waiver the contract for which was entered into between those dates, except to the extent that section 38 affects the computation of the profits or gains or losses of a trade, profession or vocation or relates to relief under--

(a) section 25(1);

(b) section 385 or 393;

(d) section 779(5).

(2) In section 24, in subsection (1), in the definition of "premium", the words from "or to" to "landlord", and subsections (3) and (4) shall be omitted.

(3) In subsection (1) of section 38 the following paragraph shall be inserted before paragraph (a)--

" (aa) where the terms of the lease include provision for the determination of the lease by notice given by the landlord, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice so given; " ;

and sub-paragraph (ii) of paragraph (a) and paragraph (c) shall be omitted.

(4) In subsection (2) of that section for the words "Subsection (1)" there shall be substituted the words "Subsection (1)(a)", and subsection (4) of that section shall be omitted.

4 (1) Where section 38 does not have effect, the following provisions of this paragraph shall apply in ascertaining the duration of a lease for the purposes of sections 34 to 36.

(2) Subject to sub-paragraph (4) below, where the terms of the lease include provision for the determination of the lease by notice given either by the landlord or by the tenant, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice.

(3) Subject to sub-paragraph (4) below, where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstances render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date.

(4) Where the duration of a lease falls to be ascertained after the date on which the lease has for any reason come to an end, the duration shall be taken to have extended from its commencement to that date, and where the duration falls to be ascertained at a time when the lease is subsisting the preceding provisions of this paragraph shall be applied in accordance with circumstances prevailing at that time.

(5) In relation to Scotland, "term" in this paragraph, where referring to the duration of a lease, means "period".

(6) This paragraph shall be construed as one with Part II.

Repeal of section 136 of the Income Tax Act 1952: allowance of annual value of land as a business expense

5 (1) This paragraph has effect for allowing deductions by reference to those which would have fallen to be made if section 136 of the [1952 c. 10.] Income Tax Act 1952 had applied for the years 1963-64 and 1964-65.

(2) Subject to the provisions of this paragraph, an allowance under this paragraph shall be made to the person ("the occupier") carrying on a trade where land which was occupied by him at any time before the end of the year 1962-63 for the purposes of the trade permanently ceases to be occupied by him for those purposes.

(3) The amount of the allowance shall be the excess of--

(a) the aggregate of any deductions in respect of the annual value of the land which, by virtue of section 136, would have been made in computing the profits or gains of the trade for the [1963 c. 25.] years 1963-64 and 1964-65 but for section 29(1) of the Finance Act 1963 and the repeal by that Act of section 136;

over

(b) the aggregate of any deductions relating to the land made in computing the profits or gains of the trade for those years, being--

(i) deductions permitted by section 29(2) of the Finance Act 1963, so far as made in respect of the period in respect of which the deductions mentioned in paragraph (a) above would have been made; or

(ii) deductions in respect of rent from which an amount representing tax was deducted under section 173 of the Income Tax Act 1952, so far as made in respect of that period.

(4) The allowance shall be made by--

(a) treating the amount of it as rent paid for the land by the occupier (in addition to any actual rent), becoming due from day to day during the period defined in sub-paragraph (5) below; and

(b) allowing deductions accordingly in computing the profits or gains of the trade chargeable under Case I of Schedule D for any chargeable period the profits or gains for which fall to be computed by reference to a period including the period defined in sub-paragraph (5) below or any part thereof.

(5) The period referred to in sub-paragraph (4) above is that ending when the land permanently ceases to be occupied by the occupier for the purposes of the trade, and of a duration, equal to the aggregate of--

(a) the number of months and fractions of months during which the land was occupied by him for the purposes of the trade in so much of the period by reference to which the profits or gains of the trade for the year 1963-64 fell to be computed as fell before the beginning of that year; and

(b) the number of months and fractions of months during which the land was so occupied in so much of the period by reference to which the profits or gains of the trade for the year 1964-65 fell to be computed as fell before the beginning of the year 1963-64.

(6) No allowance shall be made under this paragraph where the date on which the land permanently ceases to be occupied by the occupier for the purposes of the trade--

(a) falls within a chargeable period in which he permanently ceases to carry on the trade; or

(b) where the occupier is not a company, falls within a year of assessment and also within a period by reference to which the profits or gains of the trade for that year of assessment fall to be computed.

(7) Where, by reason of a change in the persons carrying on the trade, the trade falls to be treated for any of the purposes of the Income Tax Acts as permanently discontinued, a person engaged in carrying on the trade immediately before the change occurred who continues to be so engaged immediately after it occurred shall be treated for the purposes of this paragraph as not having been in occupation of the land at any time before it occurred.

(8) Where there has been a change in the persons carrying on the trade, but by virtue of section 113 of this Act or section 17(1) of the [1954 c. 44.] Finance Act 1954 (company reconstructions before introduction of corporation tax), the trade does not by reason of the change fall to be treated for any of the purposes of the Income Tax Acts as permanently discontinued, this paragraph (including this sub-paragraph) shall apply as if any occupation of the land before the change occurred by the persons carrying on the trade immediately before it occurred were occupation by the persons carrying on the trade immediately after it occurred.

(9) Where section 343(1) applies, then for the purposes of this paragraph any occupation of land for the purposes of the trade by the predecessor shall be treated as having been the occupation of the successor.

Subsection (6) of that section shall apply to this sub-paragraph as it applies to subsections (2) to (5) of that section, and in this paragraph "predecessor" and "successor" have the same meaning as in that section.

(10) Where section 518 has effect, then for the purposes of this paragraph any occupation of land for the purposes of the trade by the transferor shall be treated as having been the occupation of the transferee.

This sub-paragraph shall be construed as one with section 518.

(11) Sub-paragraphs (1) to (10) above shall apply in relation to a profession or vocation as they apply in relation to a trade, but as if the reference in sub-paragraph (4) to Case I of Schedule D were a reference to Case II of that Schedule.

(12) For the purposes of this paragraph, any occupation of land by the London Transport Board which was by virtue of paragraph 6 of Schedule 3 to the [1970 c. 24.] Finance Act 1970 immediately before the commencement of this Act treated as occupation by another body, shall continue to be so treated by virtue of this sub-paragraph.

Loss relief etc.

6 (1) The substitution of this Act for the corresponding enactments repealed by this Act shall not alter the effect of any provision enacted before this Act (whether or not there is a corresponding provision in this Act) so far as it determines whether and to what extent--

(a) losses or expenditure incurred in, or other amounts referable to, a chargeable period earlier than those to which this Act applies may be taken into account for any tax purposes in a chargeable period to which this Act applies; or

(b) losses or expenditure incurred in, or other amounts referable to, a chargeable period to which this Act applies may be taken into account for any tax purposes in a chargeable period earlier than those to which this Act applies.

(2) Without prejudice to sub-paragraph (1) above, the repeals made by this Act shall not affect the following enactments (which are not re-enacted)--

(a) section 27(4) of the [1952 c. 33.] Finance Act 1952 (restrictions on removal of six year time limit on carry forward of trading losses);

(b) section 29(3) of the [1953 c. 34.] Finance Act 1953 (Isles of Scilly);

(c) section 17 of, and Schedule 3 to, the [1954 c. 44.] Finance Act 1954 (company reconstructions before corporation tax) so far as in force by virtue of the saving in Part IV of Schedule 22 to the [1965 c. 25.] Finance Act 1965, and section 80(8) of the Finance Act 1965 (which amends Schedule 3 to the Finance Act 1954);

(d) section 82(4) of the Finance Act 1965 (losses allowable against chargeable gains);

(e) section 85 of the Finance Act 1965 (carry forward of surplus of franked investment income: dividends paid out of pre-1966-67 profits) and the enactments amending that section;

(f) paragraph 25 of Schedule 15 to the Finance Act 1965 (continuity of elections for purposes of corporation tax);

(g) paragraph 7 of Schedule 16 to the Finance Act 1965 (overseas trade corporations);

in so far as those enactments may be relevant to tax for any chargeable period to which this Act applies.

7 (1) This paragraph shall apply with respect to claims for group relief in respect of any amount which is attributable--

(a) to writing-down allowances, within the meaning of Chapter II of Part I of the 1968 Act, or, as the case may require, Chapter I of Part III of the [1971 c. 68.] Finance Act 1971, in respect of expenditure incurred by the surrendering company on the provision of machinery or plant; or

(b) to initial allowances under section 56 of the 1968 Act (expenditure in connection with mines etc.) in respect of expenditure incurred by the surrendering company and falling within section 52(1) of that Act of 1971 (works in a development area or in Northern Ireland); or

(c) to allowances under section 91 of the 1968 Act in respect of expenditure incurred by the surrendering company on scientific research;

where the expenditure is incurred under a contract entered into by the surrendering company before 6th March 1973.

(2) Notwithstanding anything in section 410(1) to (6) or 413(7) to (10) or in Schedule 18 but subject to sub-paragraph (5) below, group relief may be claimed in respect of any such amount as is referred to in sub-paragraph (1) above if--

(a) immediately before 6th March 1973--

(i) the surrendering company and the company claiming relief were members of a group of companies, and

(ii) throughout the period beginning on that date and ending at the end of the accounting period in respect of which the claim is made, there is no reduction in the rights of the parent company with respect to the matters specified in section 413(7)(a) and (b); or

(b) immediately before 6th March 1973 the company claiming relief was a member of a consortium and, throughout the period beginning on that date and ending at the end of the accounting period in respect of which the claim is made, there is--

(i) no variation in the percentage of the ordinary share capital of the company owned by the consortium which is beneficially owned by that member, and

(ii) no reduction in the rights of that member (in respect of the company owned by the consortium) with respect to the matters specified in section 413(7)(a) and (b);

and in either case no such arrangements as are specified in section 410(1) or (2) have come into existence after 5th March 1973 with respect to any of the companies concerned and no variation is made in any such arrangements which are in existence on that date with respect to any of those companies.

(3) For the purposes of sub-paragraph (2)(a) above, "the parent company" means the company of which another member of the group referred to in that sub-paragraph was, immediately before 6th March 1973, a 75 per cent subsidiary, and the rights of the parent company referred to in that paragraph are--

(a) if the parent company is either the surrendering company or the company claiming relief, its rights in the other company; and

(b) in any other case, its rights in both the surrendering company and the company claiming relief.

(4) For the purposes of this paragraph an amount which the claimant company claims by way of group relief shall be treated as attributable to an allowance falling within any of paragraphs (a) to (c) of sub-paragraph (1) above to the extent that that amount would not have been available for surrender by the surrendering company if no such allowance had been available to the surrendering company in respect of the expenditure concerned.

(5) Sub-paragraph (2) above shall not apply if, during the period referred to in that sub-paragraph--

(a) there is a major change in the nature or conduct of a trade or business carried on by the relevant company; or

(b) the relevant company sets up and commences a trade or business which it did not carry on immediately before 6th March 1973.

(6) In sub-paragraph (5) above--

"a major change in the nature or conduct of a trade or business" has the same meaning as in section 245(1); and
"the relevant company" means, if the machinery or plant to which the allowance relates was brought into use on or before 6th March 1978, the company claiming group relief and in any other case either that company or the company which if sub-paragraph (5) did not apply would be the surrendering company.

(7) This paragraph shall be construed as if it were contained in Chapter IV of Part X.

Capital allowances

8 Without prejudice to paragraphs 6 and 7 above, where a person is, immediately before the commencement of this Act, entitled to a capital allowance by virtue of any enactment repealed by this Act, he shall not cease to be so entitled by reason only of that repeal, notwithstanding that the enactment in question is not re-enacted by this Act; and accordingly the provisions of this Act shall apply, with any necessary modifications, so far as may be necessary to give effect to any such entitlement.

Social security benefits

9 (1) In relation to any period before regulations containing the first schemes under section 20 of the [1986 c. 50.] Social Security Act 1986 and Article 21 of the [S.I. 1986/1888 (N.I.18).] Social Security (Northern Ireland) Order 1986 providing for income support come into force--

(a) the repeal by this Act of sections 27 and 28 of the [1981 c. 35.] Finance Act 1981 shall not have effect;

(b) sections 151 and 152 of this Act shall not have effect;

" (b) he has claimed a payment of supplementary allowance under the Supplementary Benefits Act 1976 or the Supplementary Benefits (Northern Ireland) Order 1977 in respect of a period including that time and his right to the allowance is subject to any condition contained in section 5 of the said Act of 1976 or, in Northern Ireland, Article 7 of the said Order (requirements as to registration and availability for employment) "

and with the addition at the end of the following--

" (2) Any reference in this section to section 5 of the Supplementary Benefits Act 1976 or to Article 7 of the Supplementary Benefits (Northern Ireland) Order 1977 includes a reference to that section or Article as amended by any other enactment including an enactment passed or made after the passing of this Act " ; and

(d) section 617(2) of this Act shall have effect with the substitution for paragraph (a) of the following paragraphs--

" (a) payments of benefit under the Supplementary Benefits Act 1976 or the Supplementary Benefits (Northern Ireland) Order 1977 other than payments of supplementary allowance which are taxable by virtue of section 27 of the Finance Act 1981;

(aa) payments by way of an allowance under section 70 of the Social Security Act 1975 or section 70 of the Social Security (Northern Ireland) Act 1975; " .

(2) In relation to any period before regulations containing the first schemes under section 20 of the [1986 c. 50.] Social Security Act 1986 and Article 21 of the [S.I. 1986/1888 (N.I.18).] Social Security (Northern Ireland) Order 1986 providing for family credit come into force, section 617(2) of this Act shall have effect with the addition after paragraph (b) of the following paragraph--

" (bb) payments in respect of family income supplement under the Family Income Supplements Act 1970 or the Family Income Supplements Act (Northern Ireland) 1970; " .

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