Finance Act 2002 (c. 23)

(The document as of February, 2008)

-- Back --

Page 40

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15 | P.16 | P.17 | P.18 | P.19 | P.20 | P.21 | P.22 | P.23 | P.24 | P.25 | P.26 | P.27 | P.28 | P.29 | P.30 | P.31 | P.32 | P.33 | P.34 | P.35 | P.36 | P.37 | P.38 | P.39 | P.40 | P.41 | P.42

Part 2 Subsequent conveyance or transfer

Introduction

4 (1) This Part of this Schedule has effect for affording relief where ad valorem duty is chargeable both--

(a) under section 115 on a contract or agreement ("the original sale"), and

(b) on a subsequent conveyance or transfer by the original seller to the purchaser, or a sub-purchaser, in conformity with that contract or agreement.

(2) 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).

Conveyance or transfer of property contracted to be sold

5 (1) Where the original seller conveys the whole of the property contracted to be sold--

(a) to the purchaser, or

(b) 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.

(2) Where--

(a) the original seller conveys the property contracted to be sold to different sub-purchasers in parts or parcels, and

(b) 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.

(3) 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.

(4) 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--

(a) denote the payment of the whole of the ad valorem duty upon the conveyance or transfer, or

(b) transfer to the conveyance or transfer the ad valorem duty paid on the earlier instrument or instruments.

Repayment of duty in certain cases

6 (1) Where--

(a) duty is paid under section 115 on the original sale,

(b) 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,

(d) 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.

(2) If duty has been paid under section 115 on one or more intervening subsales, sub-paragraph (1) has effect with the following modifications--

(a) 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;

(b) 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

(3) 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.

Part 3 General supplementary provisions

Construction of references to duty on transactions

7 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.

Transactions relating to land in the UK and to other property

8 (1) 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.

(2) 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.

(3) 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.

Person claiming relief to establish entitlement

9 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.

Construction as one

10 Section 115 and this Schedule shall be construed as one with the Stamp Act 1891 (c. 39).

Section 116(2)

SCHEDULE 37 Stamp duty: abolition of duty on instruments relating to goodwill: supplementary provisions

Reduction of stamp duty where instrument partly relating to goodwill

1 (1) 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.

(2) In such a case--

(a) 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

(b) the instrument shall be charged only in respect of the consideration attributed to the other property.

(3) This paragraph applies to instruments executed on or after 23rd April 2002.

Apportionment of consideration for stamp duty purposes

2 (1) 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".

(2) Where--

(a) 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

(b) 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.".

(3) 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--

(a) the consideration had been apportioned in a manner that is just and reasonable, and

(b) 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).

(4) For the purposes of sub-paragraph (2)--

(a) a person is a relevant person if he is a person by or for whom the property is contracted to be purchased;

(b) the question whether persons are connected with one another shall be determined in accordance with section 839 of the Taxes Act 1988.

(5) This paragraph applies to instruments executed on or after 23rd April 2002.

Certification of instruments for stamp duty purposes

3 (1) 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).

(2) 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.

(3) This paragraph applies to instruments executed on or after 23rd April 2002.

Acquisition under statute

4 (1) 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.

(2) If the property consists wholly of goodwill no instrument of conveyance need be produced to the Commissioners under that section.

(3) 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.

Interpretation

5 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.

Section 132

SCHEDULE 38 Aggregates levy amendments

Introduction

1 This Schedule makes amendments to provisions of Part 2 of the Finance Act 2001 (c. 9) (aggregates levy).

The charge

2 In section 16(1) (charge to aggregates levy), for "A levy" substitute "A tax".

Meaning of "aggregate" etc

3 (1) Section 17 (meaning of "aggregate" etc) is amended as follows.

(2) In subsection (2) (meaning of "taxable" aggregate), for paragraph (d) substitute--

" (d) it is aggregate that on the commencement date is on a site other than--

(i) its originating site, or

(ii) 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. " .

(3) 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".

(4) In subsection (4), in paragraph (d) (exemption for cuttings from oil drilling)--

(a) after "the Petroleum Act 1998" insert "or the Petroleum (Production) Act (Northern Ireland) 1964";

(b) omit the words from "otherwise" to the end (which restrict the exemption to off-shore drilling).

Exempt processes

4 (1) Section 18 (exempt processes) is amended as follows.

(2) In subsection (2)(c) (exemption for production of lime etc), for "some other substance" substitute "anything else".

(3) In subsection (3) (meaning of "relevant substance"), omit paragraphs (d) (calcite) and (h) (flint).

Commercial exploitation

5 (1) Section 19 (commercial exploitation) is amended as follows.

(2) 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".

(3) After subsection (3) (meaning of "commercial" exploitation) insert--

" (3A) For the purposes of subsection (3)(a) above "business" includes any activity of a Government department, local authority or charity. " .

(4) 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".

Responsibility for commercial exploitation

6 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. " .

The register

7 In section 24 (the register), in subsection (6) (premises that may be registered) insert after paragraph (c)--

" (ca) 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, " .

Insolvency etc

8 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).

Notification of registrability etc

9 (1) Paragraph 1 of Schedule 4 (notification of registrability etc) is amended as follows.

(2) For sub-paragraph (1) substitute--

" (1) An unregistered person who--

(a) is required to be registered for the purposes of aggregates levy, or

(b) has formed the intention of carrying out taxable activities that are registrable,

shall notify the Commissioners of that fact.

(1A) An unregistered person who--

(a) 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

(b) 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.

(1B) 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. " .

(3) In sub-paragraphs (2) and (5), after "sub-paragraph (1)" insert "or (1A)".

Restriction on powers to provide for set-off

10 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).

Section 134(1)

SCHEDULE 39 Recovery of taxes etc due in other member States

Introduction

1 (1) This Schedule applies where in accordance with the Mutual Assistance Recovery Directive an authority in another member State makes a request for the recovery in the United Kingdom of a sum claimed by that authority in that State.

(2) In this Schedule--

(a) the "Mutual Assistance Recovery Directive" has the meaning given by section 134; and

(b) the "foreign claim" means the claim in relation to which a request under that Directive is made as mentioned in sub-paragraph (1).

Enforcement of claims in the United Kingdom

2 (1) Subject to the following provisions of this Schedule--

(a) such proceedings may be taken by or on behalf of the relevant UK authority to enforce the foreign claim, by way of legal proceedings, distress, diligence or otherwise, as might be taken to enforce a corresponding UK claim, and

(b) any enactment or rule of law relating to a corresponding UK claim shall apply, with any necessary adaptations, in relation to the foreign claim.

(2) "The relevant UK authority" means--

(a) in relation to matters corresponding to those within the care and management of the Commissioners of Customs and Excise, those Commissioners;

(b) in relation to matters corresponding to those within the care and management of the Commissioners of Inland Revenue, those Commissioners;

(i) in England, the Secretary of State,

(ii) in Scotland, the Scottish Ministers,

(iii) in Wales, the National Assembly for Wales, and

(iv) in Northern Ireland, the Department of Agriculture and Rural Development.

(3) A "corresponding UK claim" means a claim in the United Kingdom corresponding to the foreign claim.

(4) The enactments referred to in sub-paragraph (1)(b) include, in particular, those relating to the recovery of penalties and of interest on unpaid amounts.

Power to make supplementary provision by regulations

3 (1) The Treasury may make provision by regulations--

(a) as to what is a corresponding UK claim in relation to any description of foreign claim, and

(b) as to such other procedural and other supplementary matters as appear to them appropriate for implementing the Mutual Assistance Recovery Directive.

(2) In relation to a case where there is no claim in the United Kingdom that is directly equivalent to a particular description of foreign claim, regulations under sub-paragraph (1)(a) may prescribe as the corresponding UK claim one that appears to the Treasury to be closest to an equivalent.

(3) The power conferred by sub-paragraph (1)(b) includes power to make any provision appearing to the Treasury to be appropriate to give effect to any Commission Directive laying down detailed rules for implementing the Mutual Assistance Recovery Directive.

(4) The relevant UK authority may make provision by regulations as to the application, non-application or adaptation in relation to foreign claims of any enactment or rule of law applicable to corresponding UK claims.

This is without prejudice to the application of any such enactment or rule in relation to foreign claims in circumstances not dealt with by regulations under this sub-paragraph.

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

Proceedings on contested claims

4 (1) Except where permitted by virtue of regulations under paragraph 3(4) applying an enactment that permits such proceedings in the case of a corresponding UK claim, no proceedings under this Schedule shall be taken against a person if he shows that proceedings relevant to his liability on the foreign claim are pending, or are about to be instituted, before a court, tribunal or other competent body in the member State in question.

(2) For this purpose proceedings are pending so long as an appeal may be brought against any decision in the proceedings.

(3) Proceedings under this Schedule may be taken if the proceedings in the member State are not prosecuted or instituted with reasonable expedition.

Claims determined in taxpayer's favour

5 (1) No proceedings under this Schedule shall be taken against a person if a final decision on the foreign claim has been given in his favour by a court, tribunal or other competent body in the member State in question.

(2) For this purpose a final decision is one against which no appeal lies or against which an appeal lies within a period that has expired without an appeal having been brought.

(3) If he shows that such a decision has been given in respect of part of the claim no proceedings under this Schedule shall be taken in relation to that part.

Other supplementary provisions

6 For the purposes of proceedings under this Schedule--

(a) a request made by an authority in another member State shall be taken to be duly made in accordance with the Mutual Assistance Recovery Directive unless the contrary is proved, and

(b) except as mentioned in paragraph 5, no question may be raised as to a person's liability on the foreign claim.

Section 141

SCHEDULE 40 Repeals

Part 1 Excise duties

(1) Alcoholic liquor duties

Short title and chapter	Extent of repeal
Alcoholic Liquor Duties Act 1979 (c. 4)	Section 1(9).

This repeal shall be deemed to have come into force on 28th April 2002.

(2) Hydrocarbon oil duties

Short title and chapter	Extent of repeal
Hydrocarbon Oil Duties Act 1979 (c. 5)	In section 6AB(1), the words from "and delivered" to the end.
Finance Act 1998 (c. 36)	Section 9(2) and (3).

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.

(3) Amusement Machine Licence duty

Short title and chapter	Extent of repeal
Betting and Gaming Duties Act 1981 (c. 63)	In section 26(2), the definition of "thirty-five-penny machine".
Finance Act 1995 (c. 4)	In Schedule 3, paragraph 8(2)(b).

These repeals have effect in accordance with section 8(6) of this Act.

(4) Betting duties

Short title and chapter	Extent of repeal
Excise Duties (Surcharges or Rebates) Act 1979 (c. 8)	In section 1(3), the words from ", except that if the duty is pool betting duty" to the end.
Betting and Gaming Duties Act 1981 (c. 63)	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).
Finance Act 1986 (c. 41)	In Schedule 4, paragraph 2(1).
Finance Act 1993 (c. 34)	Section 39(a).
Finance Act 2001 (c. 9)	In Schedule 1, the second paragraph (which begins "In section 6(1)").

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.

(5) Vehicle excise duty

Short title and chapter

Extent of repeal

Vehicle Excise and Registration Act 1994 (c. 22)

Section 57(8).

In Schedule 1, paragraph 2(4).

Finance Act 1995 (c. 4)

In Schedule 4, paragraph 7.

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.

(6) Drawback of excise duty

Short title and chapter	Extent of repeal
Customs and Excise Manage-ment Act 1979 (c. 2)	Section 133(3).

Part 2 Value added tax

(1) Disallowance of input tax where consideration not paid

Short title and chapter	Extent of repeal
Value Added Tax Act 1994 (c. 23)	Section 36(4A) and (5)(ea).
Finance Act 1997 (c. 16)	Section 39(2) to (4).

These repeals have effect in accordance with section 22(3) of this Act.

(2) Invoices

Short title and chapter

Extent of repeal

Value Added Tax Act 1994 (c. 23)

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).

Finance Act 1996 (c. 8)

Section 38(2).

These repeals have effect in accordance with section 24(5) and (6) of this Act.

Part 3 Income tax, corporation tax and capital gains tax

(1) Deductions from payments to sub-contractors

Short title and chapter

Extent of repeal

Income and Corporation Taxes Act 1988 (c. 1)

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).

Finance Act 1998 (c. 36)

In Schedule 7, in paragraph 1 the words "559(4)(b) and (5) (twice)".

In Schedule 8, paragraph 2(1).

These repeals have effect in accordance with section 40(4) of this Act.

(2) Company reconstructions

Short title and chapter

Extent of repeal

Income and Corporation Taxes Act 1988 (c. 1)

In section 842(3)(c), the words "or amalgamation".

Taxation of Chargeable Gains Act 1992 (c. 12)

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)

-- Back --

Stat

Other