Finance (No. 2) Act 1992 (c. 48)

(The document as of February, 2008)

-- Back --

Page 13

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

(4) The enterprise zone element of the deemed expenditure shall be calculated in accordance with the formula--

---

(5) In subsection (4) above--

A is the actual expenditure or the net price paid by the purchaser for the relevant interest, whichever is the less;
B is the expenditure falling within subsection (1)(b) above; and
C is the actual expenditure.

(6) The non-enterprise zone element of the deemed expenditure shall be calculated in accordance with the formula--

A - A × BC

(7) In subsection (6) above--

A is the actual expenditure or the net price paid by the purchaser for the relevant interest, whichever is the less;
B is the expenditure falling within subsection (1)(b) above; and
C is the actual expenditure.

(8) Where the actual expenditure was incurred by a person carrying on a trade which consists, in whole or in part, in the construction of buildings or structures with a view to their sale and he sells the relevant interest in the building or structure in the course of that trade or, as the case may be, of that part of that trade, then--

(a) if that sale is the sale falling within subsection (1)(c) above--

(i) section 10(4) and (5) shall not apply; and

(ii) subsection (5) above shall have effect as if for the definition of A there were substituted--

" (i) A is the net price paid by the purchaser for the relevant interest; " ;

(b) if that sale is a sale which occurs before the sale falling within subsection (1)(c) above, subsections (5) and (7) above shall have effect as if the reference in the definition of A in each of those subsections to the actual expenditure were a reference to the price paid on that sale.

(9) Notwithstanding the provisions of subsection (2)(c) above--

(a) the enterprise zone element of the deemed expenditure shall be treated for the purpose only of determining entitlement to allowances as incurred at a time when the site of the building or structure is in an enterprise zone, being a time not more than 10 years after the site was first included in the zone; and

(b) the non-enterprise zone element of the deemed expenditure shall be treated for that purpose as not incurred, and not incurred under a contract entered into, at such a time.

(10) This section shall have effect subject to section 17A. "

9 At the beginning of section 10(4) there shall be inserted "Subject to section 10B".

Exclusion of expenditure

10 After section 17 there shall be inserted the following section--

" 17A Enterprise zones: exclusion of expenditure

References in sections 1(1)(b), 6(1), 10A(1)(b) and 10B(1)(b) to expenditure incurred under a contract entered into at a time when the site of a building or structure is in an enterprise zone do not include any expenditure incurred under the contract if the expenditure is incurred more than 20 years after the site in question was first included in the enterprise zone. "

11 After section 1(10) there shall be inserted the following subsection--

" (11) This section shall have effect subject to section 17A. "

12 After section 6(4) there shall be inserted the following subsection--

" (4A) This section shall have effect subject to section 17A. "

Miscellaneous

13 In section 4(9) (balancing allowances and charges) in paragraph (a) of the definition of "the capital expenditure" after the words "section 10(1)" there shall be inserted "10A or 10B".

Commencement

14 Paragraphs 2 to 7 above shall have effect in any case where the purchase price payable on the sale of the relevant interest in a building or structure before it is used (or if there is more than one such sale before the building or structure is used, the purchase price payable on the last of those sales) becomes payable on or after 16th December 1991.

15 Paragraphs 8 and 9 above shall have effect in relation to buildings or structures first used on or after 16th December 1991.

16 Paragraph 10 above shall apply in relation to contracts whenever made.

17 Paragraph 13 above shall have effect in accordance with paragraphs 14 and 15 above.

Section 73.

SCHEDULE 14 Inheritance tax

Business property

1 In section 104 of the [1984 c. 51.] Inheritance Tax Act 1984 (relief for relevant business property)--

(a) in subsection (1)(a), for "50 per cent" there shall be substituted "100 per cent";

(b) in subsection (1)(b), for "30 per cent" there shall be substituted "50 per cent".

2 (1) Section 105 of that Act (relevant business property) shall be amended as follows.

(2) In subsection (1)(b), after "which" there shall be inserted "are unquoted and which".

(3) In subsection (1), the following paragraph shall be inserted after paragraph (c)--

" (cc) shares in or securities of a company which are quoted and which (either by themselves or together with other such shares or securities owned by the transferor) gave the transferor control of the company immediately before the transfer; " .

(4) The following subsection shall be inserted after subsection (1)--

" (1ZA) In subsection (1) above "quoted", in relation to any shares or securities, means quoted on a recognised stock exchange and "unquoted", in relation to any shares or securities, means not so quoted. "

(5) In subsection (2) after "subsection (1)(b)" there shall be inserted "or (cc)".

3 In section 113A of that Act (transfers of relevant business property within seven years before death of transferor) the following subsection shall be inserted after subsection (3A)--

" (3B) In subsection (3A) above "quoted", in relation to any shares or securities, means quoted on a recognised stock exchange and "unquoted", in relation to any shares or securities, means not so quoted. "

Agricultural property

4 In section 116 of that Act (relief for agricultural property) in subsections (2) and (4)--

(a) for "50 per cent" (in each place) there shall be substituted "100 per cent";

(b) for "30 per cent" (in each place) there shall be substituted "50 per cent".

Payment by instalments

5 In section 227 of that Act (payment by instalments - land, shares and businesses) the following subsection shall be inserted after subsection (1A)--

" (1AA) In subsection (1A) above "unquoted", in relation to any shares or securities, means not quoted on a recognised stock exchange. "

6 In section 228 of that Act (shares or securities within section 227) the following subsection shall be added at the end--

" (5) In this section "unquoted", in relation to any shares or securities, means not quoted on a recognised stock exchange. "

Gifts with reservation

7 In Schedule 20 to the [1986 c. 41.] Finance Act 1986 (gifts with reservation) in paragraph 8(1A)(a) (which refers to shares and securities qualifying for 50 per cent. business property relief) for the words from "within paragraph (b)" to "relief)" there shall be substituted "within paragraph (b), (bb) or (cc) of section 105(1) of the 1984 Act (certain shares or securities qualifying for relief)".

Commencement

8 Subject to paragraph 9 below, the amendments made by this Schedule shall have effect in relation to transfers of value made, and other events occurring, on or after 10th March 1992.

9 (1) This paragraph applies where by reason of a death occurring on or after 10th March 1992--

(a) a potentially exempt transfer made before that date proves to be a chargeable transfer, or

(b) additional tax falls to be calculated in respect of a chargeable transfer (other than a potentially exempt transfer) made before that date and within seven years of the death.

(2) Subject to sub-paragraph (3) below, for the purposes of sections 113A and 113B of the [1984 c. 51.] Inheritance Tax Act 1984, it shall be assumed--

(a) that the amendments made by this Schedule came into effect at the time the transfer was made, and

(b) (in a case within sub-paragraph (1)(b) above) that so much of the value transferred as would have been reduced in accordance with Chapter I of Part V of that Act as amended by this Schedule was so reduced.

(3) Where, disregarding the amendments made by this Schedule, any shares or securities transferred fell within section 105(1)(b) of that Act in relation to the transfer, those amendments shall be disregarded in determining whether section 113A(3A) applies to the shares or securities.

(4) This paragraph shall be construed as if it were contained in Chapter I of Part V of that Act.

Section 74.

SCHEDULE 15 Amendments relating to oil exported directly from off-shore fields

[1975 c. 22.] The Oil Taxation Act 1975

1 In section 2 (assessable profits and allowable losses), in subsection (5A) (gas exported from a place on land in the United Kingdom) for the words from "required", in the second place where it occurs, to the end of the subsection there shall be substituted " did not require the seller to meet any such costs as are mentioned above but did require the gas to be delivered--

(i) in the case of gas extracted in the United Kingdom, at the place of extraction; or

(ii) in the case of gas extracted from strata in the sea bed and subsoil of the territorial sea of the United Kingdom or of a designated area, at the place in the United Kingdom at which the seller could reasonably be expected to deliver it or, if there is more than one such place, the one nearest to the place of extraction. "

2 (1) In section 3 (allowance of expenditure), in subsection (1), in paragraph (f) (transportation costs)--

(a) after the words "transporting it" there shall be inserted "(i)"; and

(b) for the words "or to the place in the United Kingdom" there shall be substituted " or

(ii) to the place in the United Kingdom or, in the case of oil first landed in another country, to the place in that or any other country (other than the United Kingdom) " .

(2) In subsection (4) of that section, in paragraph (c) (allowable expenditure does not include cost of acquiring buildings or structures, subject to exceptions)--

(a) in sub-paragraph (i) the words "of either the territorial sea of the United Kingdom or a designated area" shall be omitted; and

(b) in sub-paragraph (iv) for the words "in the United Kingdom to the place in the United Kingdom" there shall be substituted "to the place in the United Kingdom or, in the case of oil first landed in another country, to the place in that or any other country (other than the United Kingdom)".

(3) In subsection (5) of that section (expenditure qualifying for supplement), in each of paragraphs (a) and (c) after the words "United Kingdom" there shall be inserted the words "or another country".

(4) At the end of subsection (6) of that section (apportionment of expenditure) there shall be added the words " and where, in the case of oil won as mentioned in paragraph (f) of subsection (1) above, expenditure is incurred in transporting--

(a) oil first landed in the United Kingdom to a place in the United Kingdom which is not the nearest place referred to in sub-paragraph (ii) of that paragraph, or

(b) oil first landed in another country to a place in that or any other country (other than the United Kingdom) which is not the nearest place so referred to,

so much of that expenditure as does not exceed what would have been the expenditure incurred in transporting it to that nearest place shall be regarded as falling within the said paragraph (f). "

3 In section 12(1) (definitions),--

(a) in the definitions of "initial storage" and "initial treatment" the words "in the United Kingdom, the territorial sea thereof or a designated area" shall be omitted;

(b) in the definition of "initial storage" after the words "United Kingdom", in the second place where they occur, there shall be inserted "or another country";

(d) in the definition of "production purposes" after the words "United Kingdom", in the last place where they occur, there shall be inserted "or another country".

4 (1) In Schedule 3, in paragraph 2 (market value of oil), in sub-paragraph (2)(e)(ii) after the words "United Kingdom", in the second place where they occur, there shall be inserted the words "or another country".

(2) In paragraph 7 of that Schedule (exclusion of off-shore oil in transit to place of first landing in United Kingdom)--

(a) in the heading the words "in United Kingdom" shall be omitted; and

(b) in sub-paragraph (a) after the words "United Kingdom" there shall be inserted "or to the place referred to in section 3(1)(f)(ii) of this Act".

[1982 c. 39.] The Finance Act 1982

5 In Schedule 18 (alternative valuation of light gases), in paragraph 3, in sub-paragraph (2) (the terms of the relevant contract), in paragraph (a) after the words "United Kingdom" there shall be inserted the words "or another country".

[1983 c. 56.] The Oil Taxation Act 1983

6 In Schedule 1 (extension of allowable expenditure for assets generating receipts), in paragraph 1 (associated assets), in sub-paragraph (4) paragraph (c) and the word "and" immediately preceding it shall be omitted.

7 In Schedule 2 to that Act (supplemental provisions as to receipts from qualifying assets), in paragraph 12 (purchase at place of extraction), in sub-paragraph (3) for paragraphs (a) and (b) there shall be substituted " before it has been transported--

(a) to the place at which it is first landed in the United Kingdom; or

(b) to the place referred to in section 3(1)(f)(ii) of the principal Act " .

8 In Schedule 4 to that Act (receipts attributable to United Kingdom use of foreign field assets), in paragraph 11 there shall be omitted--

(a) in sub-paragraph (3) the words "and on the further assumption set out in sub-paragraph (4) below"; and

(b) sub-paragraph (4).

The [1986 c. 41.] Finance Act 1986

9 In Schedule 21 (alternative valuation of light gases), in paragraph 5(1) after the words "(definition of "the relevant contract")" there shall be inserted "in sub-paragraph (1)".

Section 76.

SCHEDULE 16 General and Special Commissioners

1 The [1970 c. 9.] Taxes Management Act 1970 shall be amended in accordance with paragraphs 2 to 5 below.

Remuneration of General Commissioners etc.

2 (1) In section 2 (General Commissioners), the following subsection shall be substituted for subsection (5)--

" (5) The Lord Chancellor or, in Scotland, the Secretary of State shall pay General Commissioners by way of travelling allowance or subsistence allowance sums of such amounts and in such circumstances as he may, with the approval of the Treasury, determine. "

(2) Section 3 (clerk to General Commissioners) shall be amended as mentioned in sub-paragraphs (3) and (4) below.

(3) The following subsection shall be substituted for subsection (2)--

" (2) The Lord Chancellor or, in Scotland, the Secretary of State shall pay a clerk such remuneration in respect of his services as the Lord Chancellor or Secretary of State may, with the approval of the Treasury, determine. "

(4) In subsection (3)--

(a) for "The Board may, in such cases as they may in their discretion determine" there shall be substituted "The Lord Chancellor or, in Scotland, the Secretary of State may, in such cases as he may in his discretion determine",

(b) for "they may with the consent of the Minister for the Civil Service determine" there shall be substituted "he may, with the approval of the Treasury, determine", and

(5) This paragraph shall come into force on 1st April 1994.

Jurisdiction

3 The following section shall be inserted after section 46--

" 46A Regulations about jurisdiction

(1) The Lord Chancellor may, with the consent of the Lord Advocate, make regulations--

(a) providing for appeals or other proceedings under the Taxes Acts to be determined in certain circumstances by the Special Commissioners instead of the General Commissioners or by the General Commissioners instead of the Special Commissioners;

(b) providing for appeals or other proceedings under the Taxes Acts that would otherwise be determined by the General Commissioners for one division to be determined in certain circumstances by the General Commissioners for another division;

(c) as to the number of General Commissioners or Special Commissioners required or permitted to hear, or perform other functions in relation to, appeals or other proceedings under the Taxes Acts.

(2) The regulations may--

(a) make different provision for different cases or different circumstances, and

(b) contain such supplementary, incidental, consequential and transitional provision as the Lord Chancellor thinks appropriate.

(3) Provision made by virtue of subsection (1) or (2) above may include provision amending this or any other Act or any instrument made under an Act.

(4) Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. "

Practice and procedure

4 The following sections shall be inserted after section 56A--

" 56B Regulations about practice and procedure

(1) The Lord Chancellor may, with the consent of the Lord Advocate, make regulations about the practice and procedure to be followed in connection with appeals.

(2) The regulations may in particular include provision--

(a) enabling the Commissioners to join as a party to an appeal a person who would not otherwise be a party;

(b) for requiring any party to an appeal to provide information and make documents available for inspection by the Commissioners or by officers of the Board;

(d) as to evidence generally in relation to appeals;

(e) enabling the Commissioners to review their decisions;

(f) for the imposition of penalties not exceeding an amount specified in the regulations;

(g) for the determination and recovery of penalties (imposed by virtue of paragraph (f) above or any other enactment) and for appeals against penalties.

(3) The regulations may also include provision--

(a) authorising or requiring the Commissioners, in circumstances prescribed in the regulations, to state a case for the opinion of a court;

(b) for an appeal to lie to a court on a question of law arising from a decision of the Commissioners;

(4) The regulations may--

(a) make different provision for different cases or different circumstances, and

(b) contain such supplementary, incidental, consequential and transitional provision as the Lord Chancellor thinks appropriate.

(5) Provision made by virtue of any of subsections (1) to (4) above may include provision amending this or any other Act or any instrument made under an Act.

(6) Regulations under this section shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

56C Power of Special Commissioners to order costs

(1) Regulations made under section 56B above may include provision for--

(a) the award by the Special Commissioners of the costs of, or incidental to, appeal hearings before them,

(b) the recovery of costs so awarded, and

(2) Any provision made by virtue of subsection (1)(a) above shall provide that the Special Commissioners shall not award costs against a party to an appeal unless they consider that he has acted wholly unreasonably in connection with the hearing in question.

56D Power of Special Commissioners to publish reports of decisions

(1) Regulations made under section 56B above may include provision for the Special Commissioners to publish reports of such of their decisions as they consider appropriate.

(2) Any provision made by virtue of subsection (1) above shall provide that any report published, other than a report of an appeal that was heard in public, shall be in a form that so far as possible prevents the identification of any person whose affairs are dealt with in the report.

(3) No obligation of secrecy to which the Special Commissioners are subject (by virtue of this Act or otherwise) shall prevent their publishing reports of their decisions in accordance with any provision made by virtue of subsection (1) above. "

5 Section 57B (which is superseded by the sections inserted by paragraph 4 above) shall be omitted.

Oil taxation appeals

6 (1) In Schedule 2 to the [1975 c. 22.] Oil Taxation Act 1975 (management and collection of petroleum revenue tax) the Table in paragraph 1(1) shall be amended as follows.

(2) After the entry relating to section 36 of the [1970 c. 9.] Taxes Management Act 1970 there shall be inserted--

" Section 46A

In subsection (1), omit paragraphs (a) and (b) and the words "General Commissioners or" in paragraph (c). "

(3) After the entry relating to section 56 of the [1970 c. 9.] Taxes Management Act 1970 there shall be inserted--

" Section 56A	--
56B	--
56C	--
56D	-- " .

7 The [S.I. 1987/1422.] Revenue Appeals Order 1987 shall have effect (subject to its revocation or amendment) as if any reference to section 56 of the [1970 c. 9.] Taxes Management Act 1970 included a reference to that section as applied by paragraph 1 of Schedule 2 to the Oil Taxation Act 1975.

Inheritance tax appeals

8 The following section shall be inserted in the [1984 c. 51.] Inheritance Tax Act 1984 after section 225--

" 225A Extension of regulation-making powers

(1) Section 46A of the [1970 c. 9.] Taxes Management Act 1970 (regulations about jurisdiction of General and Special Commissioners) shall apply in relation to appeals or other proceedings under this Part of this Act as it applies in relation to appeals or other proceedings under the Taxes Acts, but with the omission from subsection (1) of--

(a) paragraphs (a) and (b), and

(b) the words "General Commissioners or" in paragraph (c).

(2) Sections 56B, 56C and 56D of the [1970 c. 9.] Taxes Management Act 1970 (regulations about practice and procedure of General and Special Commissioners) shall apply in relation to appeals or other proceedings under this Part of this Act as they apply in relation to appeals or other proceedings under the Taxes Acts.

(3) In this section, "the Taxes Acts" has the meaning given in section 118(1) of the [1970 c. 9.] Taxes Management Act 1970. "

Section 77.

SCHEDULE 17 Northern Ireland Electricity

Interpretation

1 (1) In this Schedule--

"the final accounting period" means the last complete accounting period of NIE ending before the transfer date;
"NIE" means Northern Ireland Electricity;
"the Order" means the [S.I. 1992/231 (N.I. 1)] Electricity (Northern Ireland) Order 1992;
"successor company" means a company nominated under Article 69(2) of the Order for the purposes of Article 69(1) of the Order;
"transfer date" means the day appointed under Article 69(3) of the Order for the purposes of Article 69(4) of the Order;
"transfer scheme" means a scheme under Article 69(1) of the Order.

(2) This Schedule, so far as it relates to corporation tax on chargeable gains, shall be construed as one with the [1979 c. 14.] Capital Gains Tax Act 1979 or, where appropriate, the [1992 c. 12.] Taxation of Chargeable Gains Act 1992.

(3) For the purposes of this Schedule a transfer or agreement shall be regarded as made in pursuance of Schedule 10 to the Order if the making of that transfer or agreement is required or authorised by or under paragraph 3 or 5 of that Schedule (allocation of assets and liabilities and variation of transfers by agreement).

Transfer to successor companies: general

2 (1) Subject to sub-paragraph (2) below, the following provisions shall apply for the purposes of the Corporation Tax Acts, namely-

(a) any part of the trade carried on by NIE which is transferred by the Order to a successor company shall be treated as having been, at the time when it began to be carried on by NIE or any predecessor and at all times since that time, a separate trade carried on by the successor company;

(b) the trade carried on by a successor company after the transfer date shall be treated as the same trade as that which, by virtue of paragraph (a) above, it is treated as having carried on before that date;

(c) all property, rights and liabilities of NIE which are transferred by the Order to a successor company shall be treated as having been, at the time when they became vested in NIE or any predecessor and at all times since that time, property, rights and liabilities of the successor company; and

(d) anything done by NIE or any predecessor in relation to any property, rights and liabilities which are transferred by the Order to a successor company shall be deemed to have been done by the successor company.

(2) There shall be made such apportionments of unallowed tax losses, and of expenditure by reference to which capital allowances may be made, as may be specified in the transfer scheme.

(3) In sub-paragraph (2) above "unallowed tax losses" means any losses, allowances or amounts which, as at the end of the final accounting period, are tax losses within the meaning given by section 400(2)(a), (c) or (d) of the Taxes Act 1988.

(4) This paragraph shall have effect in relation to accounting periods beginning after the final accounting period.

Roll-over relief

3 Where NIE has before the transfer date disposed of (or of its interest in) any assets used, throughout the period of ownership, wholly or partly for the purposes of the part of its trade transferred by the Order to a successor company, sections 115 to 119 of the [1979 c. 14.] Capital Gains Tax Act 1979 or, where appropriate, sections 152 to 156 of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (roll-over relief on replacement of business assets) shall have effect in relation to that disposal as if NIE and the successor company were the same person.

Unallowed capital losses

4 (1) Any unallowed capital losses of NIE shall be apportioned between the successor companies in accordance with the transfer scheme; and any such losses which are so apportioned to a successor company shall be treated as allowable capital losses accruing to the successor company on the disposal of an asset on the transfer date.

(2) In sub-paragraph (1) above--

"allowable capital losses" means losses which are allowable losses for the purposes of corporation tax on chargeable gains;
"unallowed capital losses" means any allowable capital losses which have accrued to NIE before the transfer date, in so far as they have not been allowed as deductions from chargeable gains.

Arrangements in favour of other successor companies

5 (1) Sub-paragraph (3) below applies to any disposal of an asset which is effected, and sub-paragraphs (4) to (6) below apply to any lease which is granted, in pursuance of a provision included in the transfer scheme by virtue of Article 70(1)(c) of the Order (scheme may require successor company to enter into arrangements in favour of any other successor company).

(2) Sub-paragraph (3) below also applies to any disposal of an asset which is effected in pursuance of an agreement under paragraph 3(2) of Schedule 10 to the Order and which is either the grant of a lease of land or the creation of other liabilities and rights over land.

(3) A disposal to which this sub-paragraph applies shall be taken for the purposes of corporation tax on chargeable gains to be effected for a consideration of such amount as would secure that on the disposal neither a gain nor a loss would accrue to the successor company making the disposal.

(4) Section 38(1)(a) and (4) of the Taxes Act 1988 (rules for ascertaining duration of leases) shall be disregarded in determining for the purposes of section 11 of the [1990 c. 1.] Capital Allowances Act 1990 (long leases) whether a lease to which this sub-paragraph applies is a long lease within the meaning of that section; in relation to any such lease which is, on that basis, such a long lease--

(a) the lessee shall be deemed for the purposes of that section to have paid in consideration for the grant of the lease a capital sum of an amount equal to the residue of expenditure immediately before the lease takes effect, computed in accordance with section 8 of that Act, and

(b) section 11(6)(a) of that Act shall be disregarded;

and sections 157 and 158 of that Act shall not apply in relation to the grant of a lease in respect of which, by virtue of this sub-paragraph, an election is made under section 11 of that Act.

(5) Where the conditions in paragraphs (a) and (b) of subsection (1) of section 55 of the [1990 c. 1.] Capital Allowances Act 1990 (expenditure incurred by incoming lessee: transfer of allowances) are fulfilled in relation to a lease to which this sub-paragraph applies--

(a) the lessee shall be deemed to have given as consideration for the lease a capital sum which falls to be treated for the purposes of Part II of that Act as expenditure on the provision of the fixture concerned;

(b) the amount of that capital sum shall be equal to the amount of expenditure which is attributed to the fixture concerned for the purposes of apportioning, in accordance with the transfer scheme, expenditure by reference to which capital allowances may be made; and

(6) Section 38(1)(a) and (4) of the Taxes Act 1988 shall be disregarded in ascertaining for the purposes of section 35 of that Act (Schedule D charge on assignment of lease granted at an undervalue) the duration of a lease to which this sub-paragraph applies.

(7) Subject to the repeals made by the [1992 c. 12.] Taxation of Chargeable Gains Act 1992, in section 68(7A) of the [1985 c. 54.] Finance Act 1985 (modification of indexation allowance: list of no gain/no loss provisions) there shall be added after paragraph (i) the words " and

(j) paragraph 5(3) of Schedule 17 to the Finance (No. 2) Act 1992. "

(8) Subject to the repeals made by the [1992 c. 12.] Taxation of Chargeable Gains Act 1992, in paragraph 1(3) of Schedule 8 to the Finance Act 1988 (rebasing to 1982: list of no gain/no loss provisions) there shall be added after paragraph (i) the words " and

(j) paragraph 5(3) of Schedule 17 to the Finance (No. 2) Act 1992. "

(9) Section 35(3)(d) of the Taxation of Chargeable Gains Act 1992 (assets held on 31st March 1982: list of no gain/no loss provisions) shall have effect, and be deemed always to have had effect, with the omission of the word "and" at the end of sub-paragraph (vi) and the addition after sub-paragraph (vii) of the words " and

(viii) paragraph 5(3) of Schedule 17 to the Finance (No. 2) Act 1992. "

Restriction of losses by reference to capital allowances

6 (1) Where by virtue of sub-paragraph (4) of paragraph 5 above an election is made under section 11 of the [1990 c. 1.] Capital Allowances Act 1990 in respect of a lease to which that sub-paragraph applies, sub-paragraph (2) and, if the relevant condition is met, sub-paragraph (3) below shall apply; and for the purposes of this sub-paragraph the relevant condition is that, as a result of a disposal by the lessee in relevant circumstances, section 275(1) of the [1970 c. 10.] Income and Corporation Taxes Act 1970 or section 174(1) of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 applies in relation to a subsequent disposal.

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

-- Back --

Stat