Finance Act 1993 (c. 34)

(The document as of February, 2008)

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(b) instruments executed on or after 23rd March 1993.

(3) For the purposes of section 14(4) of the [1891 c. 39.] Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of first execution) the law in force at the time of execution of an instrument falling within subsection (2)(a) above shall be deemed to be that as varied in accordance with subsection (1) above.

(4) This section shall be deemed to have come into force on 23rd March 1993.

202 Rent to mortgage: England and Wales

(1) Subsection (2) below applies where--

(a) a person exercises the right to acquire on rent to mortgage terms under Part V of the [1985 c. 68.] Housing Act 1985, and

(b) in pursuance of the exercise of that right a conveyance of the freehold is executed in his favour as regards the dwelling-house concerned.

(2) For the purposes of the enactments relating to stamp duty chargeable under the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891, the consideration for the sale shall be taken to be equal to the price which, by virtue of section 126 of the Housing Act 1985, would be payable for the dwelling-house on a conveyance if the person were exercising the right to buy under Part V of that Act.

(3) Subsection (4) below applies where--

(a) a person exercises the right to acquire on rent to mortgage terms under Part V of the Housing Act 1985, and

(b) in pursuance of the exercise of that right a lease is executed in his favour as regards the dwelling-house concerned.

(4) In such a case--

(a) the lease shall not be chargeable with stamp duty under the heading "Lease or Tack" in Schedule 1 to the [1891 c. 39.] Stamp Act 1891 but shall be chargeable with stamp duty under the heading "Conveyance or Transfer on Sale" in that Schedule as if it were a conveyance on sale;

(b) for the purposes of the enactments relating to stamp duty chargeable under the heading "Conveyance or Transfer on Sale" the consideration for the sale mentioned in paragraph (a) above shall be taken to be equal to the price which, by virtue of section 126 of the [1985 c. 68.] Housing Act 1985, would be payable for the dwelling-house on a grant if the person were exercising the right to buy under Part V of that Act.

(5) This section shall apply where the conveyance or lease is executed after the day on which this Act is passed.

203 Rent to loan: Scotland

(1) Subsection (2) below applies where--

(a) a person exercises the right to purchase a house by way of the rent to loan scheme under Part III of the [1987 c. 26.] Housing (Scotland) Act 1987, and

(b) in pursuance of the exercise of that right a heritable disposition of the house is executed in favour of him.

(2) For the purposes of the enactments relating to stamp duty chargeable under the heading "Conveyance or Transfer on Sale" in Schedule 1 to the Stamp Act 1891, the consideration for the sale shall be taken to be equal to the price which, by virtue of section 62 of the Housing (Scotland) Act 1987, would be payable for the house if the person were exercising the right to purchase under section 61 of that Act.

(3) This section shall apply where the disposition is executed after the day on which this Act is passed.

204 Method of denoting stamp duty

(1) The Treasury may make regulations as to the method by which stamp duty is to be denoted.

(2) In particular, regulations under this section may--

(a) provide for duty to be denoted by impressed stamps or adhesive stamps or by a record printed or made by a machine or implement or by such other method as may be prescribed;

(b) provide for one method only to be used, whether generally or in prescribed cases;

(d) make different provision for different cases;

and cases may be designated by reference to the type of instrument concerned, the geographical area involved, or such other factors as the Treasury think fit.

(3) Regulations under this section may provide that where stamp duty is denoted by a method which (in the case of the instrument concerned) is required or permitted by the law in force at the time it is stamped, for the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc. unless stamped in accordance with the law in force at the time of first execution) the method shall be treated as being in accordance with the law in force at the time when the instrument was first executed.

(4) Regulations under this section may include such supplementary, incidental, consequential or transitional provisions as appear to the Treasury to be necessary or expedient.

(5) Regulations under this section may make provision in such way as the Treasury think fit, and in particular may amend or repeal or modify the effect of any provision of any Act.

(6) In this section "prescribed" means prescribed by regulations under this section.

(7) The power to make regulations under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

Part VI Miscellaneous and General

Statutory effect of resolutions etc.

205 The 1968 Act

(1) The [1968 c. 2.] Provisional Collection of Taxes Act 1968 shall be amended as follows.

(2) In section 1(1) (taxes to which section 1 applies)--

(a) after "income tax," there shall be inserted "corporation tax (including advance corporation tax)";

(b) the words "car tax" shall be omitted.

(3) Section 1(1A) (reference to income tax to include reference to amounts representing income tax) shall be omitted.

(4) In section 1(3)(a) (resolution passed in March or April to have statutory effect for period expiring with 5th August) for "March or April" there shall be substituted "November or December" and for "5th August in the same calendar year" there shall be substituted "5th May in the next calendar year".

(5) In section 1(4) (resolution to cease to have statutory effect unless Bill read a second time within twenty-five sitting days) for "twenty-five" there shall be substituted "thirty".

(6) In section 5 (resolution giving provisional effect to motions)--

(a) in subsection (1), paragraph (c) and the word "or" immediately preceding it shall be omitted;

(b) in subsection (2) for ", sections 8(5) and 822 of the 1988 Act" there shall be substituted "and section 822 of the Income and Corporation Taxes Act 1988".

(7) This section shall apply in relation to resolutions passed after the day on which this Act is passed.

206 Corporation tax

(1) In section 8 of the Taxes Act 1988 (general scheme of corporation tax) subsections (4) to (6) (assessments where tax not charged for year etc.) shall be omitted.

(2) The following section shall be inserted after section 8 of the Taxes Act 1988--

" 8A Resolutions to reduce corporation tax

(1) In a case where--

(a) an Act of Parliament charges corporation tax for the financial year 1993 or a subsequent financial year,

(b) the House of Commons passes a resolution that the rate at which corporation tax for the financial year concerned is charged shall be a rate which is set out in the resolution and is lower than that fixed by the Act of Parliament, and

any assessment to corporation tax made in the prescribed period may be made in accordance with the resolution.

(2) Unless an Act of Parliament--

(a) is passed within the prescribed period, and

(b) contains a provision that the rate at which corporation tax for the financial year concerned is charged shall be the rate set out in the resolution passed under subsection (1) above,

any assessment made under that subsection in accordance with the resolution shall be subject to adjustment, whether by the making of a further assessment or otherwise.

(3) Subsection (4) below applies where an Act of Parliament fixes the small companies' rate, and the fraction mentioned in section 13(2), for the financial year 1993 or a subsequent financial year.

(4) If the House of Commons passes a resolution in the financial year concerned that--

(a) the rate shall be a rate which is set out in the resolution and is lower than that fixed by the Act of Parliament,

(b) the fraction shall be a fraction which is set out in the resolution and is different from that fixed by the Act of Parliament, or

any assessment to corporation tax made in the prescribed period may be made in accordance with the resolution.

(5) Unless an Act of Parliament--

(a) is passed within the prescribed period, and

(b) contains a provision to the same effect as the resolution passed under subsection (4) above,

any assessment made under that subsection in accordance with the resolution shall be subject to adjustment, whether by the making of a further assessment or otherwise.

(6) For the purposes of this section the prescribed period is the period of six months beginning with the day after that on which the resolution concerned is passed. "

(3) In section 246(2)(b) of the Taxes Act 1988 (charge of advance corporation tax at previous rate not to apply to distributions made after 5th August) for "August" there shall be substituted "May".

207 Stamp duty

(1) In section 50(2) of the [1973 c. 51.] Finance Act 1973 (period of temporary statutory effect of resolution affecting stamp duties)--

(a) in paragraph (a) (period by reference to twenty-fifth day of Commons sitting) for "twenty-fifth" there shall be substituted "thirtieth";

(b) in paragraph (d) (period by reference to five months beginning with day resolution takes effect) for "five" there shall be substituted "six".

(2) This section shall apply in relation to resolutions passed after the day on which this Act is passed.

Miscellaneous

208 Residence: available accommodation

(1) In section 336 of the Taxes Act 1988 (temporary residents in the United Kingdom) the following subsection shall be inserted after subsection (2)--

" (3) The question whether--

(a) a person falls within subsection (1)(a) above, or

(b) for the purposes of subsection (2) above a person is in the United Kingdom for some temporary purpose only and not with the intention of establishing his residence there,

shall be decided without regard to any living accommodation available in the United Kingdom for his use. "

(2) In section 9 of the [1992 c. 12.] Taxation of Chargeable Gains Act 1992 (residence, including temporary residence) the following subsection shall be inserted after subsection (3)--

" (4) The question whether for the purposes of subsection (3) above an individual is in the United Kingdom for some temporary purpose only and not with any view or intent to establish his residence there shall be decided without regard to any living accommodation available in the United Kingdom for his use. "

(3) In consequence of subsection (1) above, in section 267(4) of the [1984 c. 51.] Inheritance Tax Act 1984 (residence in United Kingdom determined as for purposes of income tax) the words "but without regard to any dwelling-house available in the United Kingdom for his use" shall be omitted.

(4) Subsections (1) and (2) above shall have effect for the year 1993-94 and subsequent years of assessment.

(5) Subsection (3) above shall have effect where the year of assessment concerned is 1993-94 or a subsequent year of assessment.

209 Gas levy

(1) In section 123 of the [1990 c. 29.] Finance Act 1990 (gas levy) in subsection (3) (future variation or termination of rights and liabilities under tax-exempt contracts etc. to be disregarded, except in certain cases) at the end of paragraph (b) there shall be added the words "or pursuant to a term in a contract or document which is certified for the purposes of this paragraph by the Secretary of State with the approval of the Treasury".

(2) After subsection (3) of that section there shall be inserted the following subsections--

" (3A) The Secretary of State shall not certify a term for the purposes of paragraph (b) of subsection (3) above except on the application of the person winning the gas and unless the Secretary of State is satisfied--

(a) that the term (however expressed) provides for termination on the ground that the winning of gas in accordance with the contract or document has ceased to be commercially viable; and

(b) that the term was in the contract or document immediately before 16th March 1993; and

(d) that the term has been properly invoked.

(3B) For the purpose of determining whether a term is properly invoked the Secretary of State--

(a) may require the person winning the gas to supply him with any expert assessment provided under the contract or document;

(b) if no such assessment has been made, or if the Secretary of State considers it desirable for a further expert assessment to be obtained, may require the person winning the gas to obtain and supply him with an expert assessment;

and in this subsection "assessment" means an assessment as to whether winning gas in accordance with the contract or document has ceased to be commercially viable. "

(3) Where a person ceases to be liable to pay gas levy in respect of any gas won by him by virtue of the fact that winning the gas, in accordance with a contract or document, has ceased to be commercially viable, then, with respect to any chargeable period which ends--

(a) after that cessation of liability to pay gas levy, and

(b) after 30th June 1993,

any oil (whether or not consisting of gas) won and saved from the field from which the gas is won shall cease to be disregarded under section 10(1)(b) of the [1975 c. 22.] Oil Taxation Act 1975 (PRT disregard of up to 5 per cent of oil production incidental to the production of gas sold to the British Gas Corporation).

210 Trading funds

Schedule 22 to this Act (which contains provisions about trading funds) shall have effect.

211 National Debt Commissioners: securities

(1) With a view to facilitating the raising of money by means of the issue of securities under section 12 of the [1968 c. 13.] National Loans Act 1968 (power of Treasury to borrow) the National Debt Commissioners may--

(a) acquire securities issued under that section, and

(b) transfer such securities.

(2) Subject to subsection (8) below, the sums required by the Commissioners for or for purposes connected with the acquisition of securities under this section shall be issued to the Commissioners out of the National Loans Fund.

(3) Except so far as directions by the Treasury authorise the application of the sums for any purpose for which sums may be issued under subsection (2) above, the Commissioners shall pay into the National Loans Fund--

(a) any sums received by them by way of dividend or other return on securities acquired under this section;

(b) any sums received by them in respect of the redemption of such securities;

(4) The Commissioners shall prepare accounts relating to securities acquired under this section and shall send the accounts to the Comptroller and Auditor General.

(5) The Comptroller and Auditor General shall examine, certify and report on accounts sent to him under subsection (4) above and lay a copy of them and of his report on them before each House of Parliament.

(6) For the purpose of facilitating either the proper management by the Commissioners of their investments and other holdings or the carrying out of any of their other functions--

(a) sums may be advanced to the Commissioners out of the National Loans Fund against securities for the time being held by them for any purpose other than those for which they may be acquired under this section; and

(b) the Commissioners' powers shall include power to treat securities acquired under this section as appropriated to any such other purpose.

(7) This section shall have effect, and the appropriate sums shall be charged on or payable into the National Loans Fund, as if--

(a) any making by virtue of subsection (6)(a) above of an advance against any securities involved an acquisition of the securities for the purposes for which they may be acquired under this section; and

(b) any exercise of the power mentioned in subsection (6)(b) above involved the exercise of the power to transfer securities acquired under this section.

(8) The following rules shall apply for the purposes of this section--

(a) sums issued out of or paid into the National Loans Fund under this section shall be of such amount, and shall be so issued or paid at such times and in such manner, as the Treasury may direct;

(b) accounts prepared under subsection (4) above shall be in such form, shall be prepared in respect of such periods, and shall be sent to the Comptroller and Auditor General at such times, as the Treasury may direct.

(9) This section shall come into force on such day as the Treasury may appoint by order made by statutory instrument.

General

212 Interpretation

In this Act "the Taxes Act 1988" means the [1988 c. 1.] Income and Corporation Taxes Act 1988.

213 Repeals

The enactments specified in Schedule 23 to this Act (which include provisions which are already spent) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision of that Schedule.

214 Short title

This Act may be cited as the Finance Act 1993.

SCHEDULES

Section 1.

SCHEDULE 1 Table of rates of duty on wine and made-wine

Part I Wine or made-wine of a strength not exceeding 22 per cent.

Description of wine or made-wine	Rates of duty per hectolitre
	£
Wine or made-wine of a strength not exceeding 2 per cent.	13.23
Wine or made-wine of a strength exceeding 2 per cent. but not exceeding 3 per cent.	22.04
Wine or made-wine of a strength exceeding 3 per cent. but not exceeding 4 per cent.	30.86
Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5 per cent.	39.69
Wine or made-wine of a strength exceeding 5 per cent. but not exceeding 5.5 per cent.	48.50
Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling	132.26
Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent.	218.40
Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent.	220.43

Part II Wine or made-wine of a strength exceeding 22 per cent.

Description of wine or made-wine	Rates of duty per litre of alcohol in the wine or made-wine
	£
Wine or made-wine of a strength exceeding 22 per cent.	19.81

Section 49.

SCHEDULE 2 Value added tax: penalties etc.

Misdeclaration penalty under section 14 of the 1985 Act

1 (1) In subsection (2) of section 14 of the 1985 Act (penalty for misdeclaration or neglect imposed where the tax lost equals or exceeds certain amounts), for paragraphs (a) and (b) there shall be substituted "equals or exceeds whichever is the lesser of £1,000,000 and 30 per cent. of the relevant amount for that period."

(2) After subsection (4) of that section there shall be inserted the following subsections--

" (4A) In this section "the relevant amount", in relation to a prescribed accounting period, means--

(a) for the purposes of a case falling within subsection (1)(a) above, the gross amount of tax for that period; and

(b) for the purposes of a case falling within subsection (1)(b) above, the true amount of tax for that period.

(4B) In this section "the gross amount of tax", in relation to a prescribed accounting period, means the aggregate of the following amounts, that is to say-

(a) the amount of credit for input tax which (subject to subsection (5A) below) should have been stated on the return for that period, and

(b) the amount of output tax which (subject to that subsection) should have been so stated.

(4C) In relation to any return which, in accordance with prescribed requirements, includes a single amount as the aggregate for the prescribed accounting period to which the return relates of--

(a) the amount representing credit for input tax, and

(b) any other amounts representing refunds or repayments of tax to which there is an entitlement,

references in this section to the amount of credit for input tax shall have effect (so far as they would not so have effect by virtue of subsection (5B) below) as references to the amount of that aggregate. "

(3) In subsection (5A) of that section (account to be taken of corrections), for "subsection (5) above that the statement made by each of those returns is a correct statement" there shall be substituted "subsections (4B) and (5) above that the statements made by each of those returns (so far as they are not inaccurate in any other respect) are correct statements".

(4) This paragraph shall have effect in relation to any prescribed accounting period beginning on or after such day as the Treasury may by order made by statutory instrument appoint, but an order under this sub-paragraph may appoint different days for the purposes of different provisions of this paragraph or for different purposes.

Misdeclaration penalty under section 14A of the 1985 Act

2 (1) In subsection (1)(b) of section 14A of the 1985 Act (misdeclaration resulting in understatements or overclaims), for the words from "whichever" to "period" there shall be substituted "whichever is the lesser of £500,000 and 10 per cent. of the gross amount of tax for that period".

(2) For subsections (2) and (3) of that section (liability for penalty where there are misdeclarations on three or more occasions) there shall be substituted the following subsections--

" (2) Subsection (3) below applies in any case where--

(a) there is a material inaccuracy in respect of any prescribed accounting period;

(b) the Commissioners serve notice on the person concerned (in this section referred to as a "penalty liability notice") specifying a penalty period for the purposes of this section;

(c) that notice is served before the end of five consecutive prescribed accounting periods beginning with the period in respect of which there was the material inaccuracy; and

(d) the period specified in the penalty liability notice as the penalty period is the period of eight consecutive prescribed accounting periods beginning with that in which the date of the notice falls.

(3) If, where a penalty liability notice has been served on any person, there is a material inaccuracy in respect of any of the prescribed accounting periods falling within the penalty period specified in the notice, that person shall be liable, except in relation to the first of those periods in respect of which there is a material inaccuracy, to a penalty equal to 15 per cent. of the tax for the prescribed accounting period in question which would have been lost if the inaccuracy had not been discovered. "

(3) In subsection (4) of that section, for "subsections (4) to (5B)" there shall be substituted "subsections (4), (4B), (5A) and (5B)".

(4) In subsection (6) of that section (material inaccuracies not to be material in cases to which other sections apply), at the end there shall be inserted "except, in the case of an inaccuracy by reason of which a person is assessed to a penalty under section 14 above, for the purposes of subsection (2)(a) above."

(5) Subject to sub-paragraph (6) below, this paragraph shall have effect in relation to any prescribed accounting period beginning on or after such day as the Treasury may by order made by statutory instrument appoint.

(6) No penalty liability notice shall be served on or after the day appointed under sub-paragraph (5) above by reference to any material inaccuracy in respect of a prescribed accounting period beginning before that day, and the penalty period specified in any penalty liability notice served before that day shall be deemed to end with the day before that day.

Mitigation of penalties

3 (1) After section 15 of the 1985 Act there shall be inserted the following section--

" 15A Mitigation of penalties under sections 13, 14, 14A and 15.

(1) Where a person is liable to a penalty under any of sections 13, 14, 14A and 15 above, the Commissioners or, on appeal, a value added tax tribunal may reduce the penalty to such amount (including nil) as they think proper.

(2) In the case of a penalty reduced by the Commissioners under subsection (1) above, a value added tax tribunal, on an appeal relating to the penalty, may cancel the whole or any part of the reduction made by the Commissioners.

(3) None of the matters specified in subsection (4) below shall be matters which the Commissioners or any value added tax tribunal shall be entitled to take into account in exercising their powers under this section.

(4) Those matters are--

(a) the insufficiency of the funds available to any person for paying any tax due or for paying the amount of the penalty;

(b) the fact that there has, in the case in question or in that case taken with any other cases, been no or no significant loss of tax;

(2) Subsection (4) of section 13 of the 1985 Act (mitigation of penalty under section 13) shall cease to have effect; and--

(a) in subsection (1) of that section, for "subsections (4) and (7)" there shall be substituted "subsection (7)";

(b) in paragraph (b) of subsection (5) of that section, for the words from "have power" to the end of that paragraph there shall be substituted "have power under section 15A below to reduce a penalty under this section,"; and

(c) in section 40(1A) of the [1983 c. 55.] Value Added Tax Act 1983 (tribunal not to modify penalties under the 1985 Act), for "section 13(4)" there shall be substituted "section 15A".

(3) This paragraph shall have effect in relation to any penalty under section 13, 14, 14A or 15 of the 1985 Act, other than one to which any person was assessed before the day on which this Act is passed.

Interest on tax etc. recovered or recoverable by assessment

4 (1) In subsections (1) and (3) of section 18 of the 1985 Act (interest on tax etc. recovered or recoverable by assessment), after the word "shall", in each subsection, there shall be inserted "(subject to subsection (3A) below)".

(2) After subsection (3) of that section there shall be inserted the following subsection--

" (3A) Where (apart from this subsection)--

(a) the period before the assessment in question for which any amount would carry interest under subsection (1) above; or

(b) the period for which any amount would carry interest under subsection (3) above,

would exceed three years, the part of that period for which that amount shall carry interest under that subsection shall be confined to the last three years of that period. "

(3) This paragraph shall apply in relation to interest on amounts assessed or, as the case may be, paid on or after such day as the Treasury may by order made by statutory instrument appoint.

Default surcharge

5 (1) In section 19 of the 1985 Act, in subsection (2) (surcharge liability notice if default for two accounting periods)--

(a) in paragraph (a) for "any two prescribed accounting periods" there shall be substituted "a prescribed accounting period",

(b) paragraph (b) shall be omitted, and

(c) in paragraph (c) for "later period referred to in paragraph (b)" there shall be substituted "period referred to in paragraph (a)".

(2) In subsection (3) of that section for "defaults in respect of two prescribed accounting periods and the second of those periods" there shall be substituted "a default in respect of a prescribed accounting period and that period".

(3) This paragraph shall apply in relation to any case where a person is in default for the purposes of section 19 of the 1985 Act and is so in default because of a failure of the Commissioners of Customs and Excise to receive a return, or an amount of tax, on or before a day falling on or after 1st October 1993; and in the case of sub-paragraph (2) above it is immaterial when the existing surcharge period began.

6 (1) For subsection (4) of section 19 of the 1985 Act (amount of surcharge) there shall be substituted the following subsection--

" (4) Subject to subsections (6) to (9) below, if a taxable person on whom a surcharge liability notice has been served--

(a) is in default in respect of a prescribed accounting period ending within the surcharge period specified in (or extended by) that notice, and

(b) has outstanding tax for that prescribed accounting period,

he shall be liable to a surcharge equal to whichever is the greater of the following, namely, the specified percentage of his outstanding tax for that prescribed accounting period and £30. "

(2) In subsection (5) of that section (specified percentages for default surcharge)--

(a) for "subsection (4)(a) above" there shall be substituted "subsection (4) above", and

(b) after "surcharge period" there shall be inserted "and for which he has outstanding tax".

(3) After subsection (5) of that section there shall be inserted the following subsection--

" (5A) For the purposes of subsections (4) and (5) above a person has outstanding tax for a prescribed accounting period if some or all of the tax for which he is liable in respect of that period has not been paid by the last day on which he is required (as mentioned in subsection (1) above) to make a return for that period; and the reference in subsection (4) above to a person's outstanding tax for a prescribed accounting period is to so much of the tax for which he is so liable as has not been paid by that day. "

(4) This paragraph shall apply in relation to any case where a person--

(a) is in default for the purposes of section 19 of the 1985 Act in respect of a prescribed accounting period ending within a surcharge period, and

(b) is so in default because of a failure of the Commissioners of Customs and Excise to receive a return, or an amount of tax, on or before a day falling on or after 30th September 1993.

7 (1) In subsection (5) of section 19 of the 1985 Act (specified percentages for default surcharge)--

(a) at the end of paragraph (b) there shall be inserted "and", and

(b) for paragraphs (c) and (d) there shall be substituted the following paragraph--

" (c) in relation to each such period after the second, the specified percentage is 15 per cent. "

(2) Sub-paragraph (1) above shall apply in relation to any liability to a surcharge arising on or after 1st April 1993.

(3) In section 19(5) of the 1985 Act (as amended by sub-paragraph (1) above), for paragraphs (a) to (c) there shall be substituted the following paragraphs--

" (a) in relation to the first such prescribed accounting period, the specified percentage is 2 per cent.;

(b) in relation to the second such period, the specified percentage is 5 per cent.;

(d) in relation to each such period after the third, the specified percentage is 15 per cent. "

(4) Sub-paragraph (3) above shall apply in relation to any liability to a surcharge arising on or after 1st October 1993.

Meaning of "the 1985 Act"

8 In this Schedule "the 1985 Act" means the [1985 c. 54.] Finance Act 1985.

Section 72.

SCHEDULE 3 Car and car fuel benefits: 1994-95 onwards

Introductory

1 The Taxes Act 1988 shall be amended as follows.

Car benefits

2 (1) In section 157 (cars available for private use) for subsection (2) there shall be substituted the following subsection--

" (2) The cash equivalent of the benefit in the year concerned shall be ascertained in accordance with Schedule 6. "

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