Finance Act 1997 (c. 16)

(The document as of February, 2008)

-- Back --

Page 9

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

" (7A) Where--

(a) there would be no charge to tax under this section, or

(b) there would, under section 92 below, be a repayment or cancellation of tax,

in relation to some of the chargeable securities to which the agreement between A and B relates if separate agreements had been made between them for the transfer of those securities and for the transfer of the remainder, this section and sections 88(5) and 92 below shall have effect as if such separate agreements had been made. "

(3) Subsection (7B) (which, in consequence of the repeals made by section 188(1) of the [1996 c. 8.] Finance Act 1996, is of no further utility in relation to the charge to tax but whose effect is reproduced by subsection (8) below for the purposes of repayment or cancellation of tax) shall cease to have effect.

(4) Section 88 of the Finance Act 1986 (special cases) shall be amended in accordance with subsections (5) to (7) below.

(5) In subsection (1B) (certain instruments on which stamp duty is not chargeable to be disregarded in construing the conditions in section 92(1A) and (1B) for repayment or cancellation of tax)--

(a) in paragraph (a) (the property transferred by the instrument consists of chargeable securities) after "consists of" there shall be inserted "or includes";

(b) in paragraph (b) (which relates to the acquisition of the chargeable securities so transferred) for "the chargeable securities" there shall be substituted "any of those chargeable securities"; and

(c) the word "or" at the end of sub-paragraph (ii) of that paragraph shall be omitted and after that sub-paragraph there shall be inserted--

" (iia) in pursuance of an agreement to transfer securities which was made for the purpose of performing the obligation to transfer chargeable securities described in paragraph (a) of subsection (1) of section 89B below and as regards which section 87 above did not apply by virtue of that subsection; or " .

(6) For subsections (4) and (5) (identification of the securities in question and reduction of the charge in certain cases) there shall be substituted--

" (4) If chargeable securities cannot (apart from this subsection) be identified for the purposes of subsection (1B) above, securities shall be taken as follows, that is to say, securities of the same kind acquired later in the period of two years there mentioned (and not taken for the purposes of that subsection in relation to an earlier instrument) shall be taken before securities acquired earlier in that period.

(5) If, in the case of an agreement (or of two or more agreements between the same parties) to transfer chargeable securities--

(a) the conditions in section 92(1A) and (1B) below are not satisfied by virtue only of the application of subsection (1B) above in relation to the instrument (or any one or more of the two or more instruments) in question, but

(b) not all of the chargeable securities falling to be regarded for the purposes of that subsection as transferred by the instrument (or by the two or more instruments between them) were acquired as mentioned in paragraphs (a) and (b) of that subsection,

stamp duty reserve tax shall be repaid or cancelled under section 92 below in accordance with subsection (5A) below.

(5A) Any repayment or cancellation of tax falling to be made by virtue of subsection (5) above shall be determined as if (without prejudice to section 87(7A) above) there had, instead of the agreement (or the two or more agreements) in question been--

(a) a separate agreement (or two or more separate agreements) relating to such of the securities as were acquired as mentioned in paragraphs (a) and (b) of subsection (1B) above, and

(b) a single separate agreement relating to such of the securities as do not fall within those paragraphs,

and as if the instrument in question (or the two or more instruments in question between them) had related only to such of the securities as do not fall within those paragraphs. "

(7) For the sidenote, there shall be substituted "Special cases."

(8) In section 92 of the [1986 c. 41.] Finance Act 1986 (repayment or cancellation of tax), after subsection (6) there shall be inserted--

" (7) This section shall have effect in relation to a person to whom the chargeable securities are transferred by way of security for a loan to B as it has effect in relation to a nominee of B. "

(9) The amendments made by subsections (2), (3) and (8) above have effect in relation to an agreement to transfer securities if--

(a) the agreement is conditional and the condition is satisfied on or after 4th January 1997; or

(b) the agreement is not conditional and is made on or after that date.

(10) The amendments made by subsections (5) and (6) above have effect where the instrument on which stamp duty is not chargeable by virtue of section 42 of the [1930 c. 28.] Finance Act 1930 or section 11 of the [1954 c. 23 (N.I.).] Finance Act (Northern Ireland) 1954 is executed on or after 4th January 1997 in pursuance of an agreement to transfer securities made on or after that date.

Part VIII Miscellaneous and Supplemental

Miscellaneous

107 Petroleum revenue tax: non-field expenditure

(1) Section 113 of the [1984 c. 43.] Finance Act 1984 (restrictions on relief by reference to a qualifying date) shall be amended as follows.

(2) In subsection (4) (meaning of "qualifying date"), after "means" there shall be inserted "(subject to subsection (6) below)".

(3) In subsection (6) (old participator's qualifying date to be taken into account, in the case of a transfer, in determining as respects certain expenditure the date that is to be regarded as the new participator's qualifying date), for the words from "is an applicable date" onwards there shall be substituted ", rather than the date given by subsection (4) above, shall be taken to be the qualifying date in relation to the new participator."

(4) This section has effect in relation to any expenditure in respect of which a claim is made on or after 23rd July 1996.

108 Payment of dividends on government stock

(1) For section 2 of the [1892 c. 39.] National Debt (Stockholders Relief) Act 1892 (date for striking balance for a dividend on government stock) there shall be substituted the following section--

" 2 Effect of, and time for, striking balance

(1) Any person who, at the time of the balance being struck for a dividend on stock, is inscribed as a stockholder shall, as between himself and any transferee of the stock, be entitled to the then current half-year's or quarter's dividend.

(2) Subject to subsections (3) and (4) below, the Bank may--

(a) strike the balance for a dividend on stock before the day on which the dividend is payable, and

(b) strike the balances for dividends on stock at times such that the interval between--

(i) the time at which the balance for a dividend is struck, and

(ii) the day on which the dividend is payable,

is different in different cases.

(3) The balance for a dividend on any stock shall not be struck at different times for different holdings of that stock unless--

(a) the case is one where the use of different times for different holdings of the same stock is authorised by order made by the Treasury; and

(b) such requirements (if any) as may be imposed by an order so made are complied with in relation to the striking of that balance.

(4) The time at which the balance for a dividend on any stock is struck shall not fall before--

(a) the beginning of the tenth business day before the day on which the dividend is payable; or

(b) such later time (if any) as may be determined, in accordance with an order made by the Treasury, to be the earliest time at which that balance may be struck.

(5) In this section "business day" means any day other than--

(a) a Saturday or Sunday;

(b) Good Friday or Christmas Day;

(c) a day which, in any part of the United Kingdom, is a bank holiday under the [1971 c. 80.] Banking and Financial Dealings Act 1971;

(d) a day specified in an order under section 2(1) of that Act (days on which financial dealings are suspended) and declared by that order to be a non-business day for the purposes of this section; or

(e) a day appointed by Royal proclamation as a public fast or thanksgiving day.

(6) An order made by the Treasury for the purposes of subsection (3) or (4) above--

(a) shall be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament; and

(b) may make different provision for different cases and contain such exceptions and exclusions, and such incidental, supplemental, consequential and transitional provision, as the Treasury may think fit. "

(2) This section has effect in relation to dividends other than those for which the balance is struck on or before the day on which this Act is passed.

109 Nil levy on dwelling-house disposals

Section 136 of the [1993 c. 28.] Leasehold Reform, Housing and Urban Development Act 1993 (levy on local authorities in respect of dwelling-house disposals) shall have effect, and be deemed always to have had effect, with the following subsection inserted after subsection (4)--

" (4A) The power of the Secretary of State to determine a formula for the purposes of item D in subsection (3) shall include power to determine that, in such cases as he may determine, item D is to be taken to be equal to item CR. "

110 Obtaining information from social security authorities

(1) This section applies to--

(a) any information held by the Secretary of State or the Department of Health and Social Services for Northern Ireland for the purposes of any of his or its functions relating to social security; and

(b) any information held by a person in connection with the provision by him to the Secretary of State or that Department of any services which that person is providing for purposes connected with any of those functions.

(2) Subject to the following provisions of this section, the person holding any information to which this section applies shall be entitled to supply it to--

(a) the Commissioners of Customs and Excise or any person by whom services are being provided to those Commissioners for purposes connected with any of their functions; or

(b) the Commissioners of Inland Revenue or any person by whom services are being provided to those Commissioners for purposes connected with any of their functions.

(3) Information shall not be supplied to any person under this section except for one or more of the following uses--

(a) use in the prevention, detection, investigation or prosecution of criminal offences which it is a function of the Commissioners of Customs and Excise, or of the Commissioners of Inland Revenue, to prevent, detect, investigate or prosecute;

(b) use in the prevention, detection or investigation of conduct in respect of which penalties which are not criminal penalties are provided for by or under any enactment;

(d) use in checking the accuracy of information relating to, or provided for purposes connected with, any matter under the care and management of the Commissioners of Customs and Excise or the Commissioners of Inland Revenue;

(e) use (where appropriate) for amending or supplementing any such information; and

(f) use in connection with any legal or other proceedings relating to anything mentioned in paragraphs (a) to (e) above.

(4) An enactment authorising the disclosure of information by a person mentioned in subsection (2)(a) or (b) above shall not authorise the disclosure by such a person of information supplied to him under this section except to the extent that the disclosure is also authorised by a general or specific permission granted by the Secretary of State or by the Department of Health and Social Services for Northern Ireland.

(5) In this section references to functions relating to social security include references to--

(a) functions in relation to social security contributions, social security benefits (whether contributory or not) or national insurance numbers; and

(b) functions under the [1995 c. 18.] Jobseekers Act 1995 or the [S.I 1995/2705 (N.I. 15).] Jobseekers (Northern Ireland) Order 1995.

(6) In this section "conduct" includes acts, omissions and statements.

(7) This section shall come into force on such day as the Treasury may by order made by statutory instrument appoint, and different days may be appointed under this subsection for different purposes.

111 Report on VAT on energy saving materials

Within twelve months of this Act receiving Royal Assent the Treasury shall report to Parliament on the consequences to the Exchequer of reducing VAT on energy saving materials.

Supplemental

112 Interpretation

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

113 Repeals

(1) The enactments mentioned in Schedule 18 to this Act (which include spent provisions) are hereby repealed to the extent specified in the third column of that Schedule.

(2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.

114 Short title

This Act may be cited as the Finance Act 1997.

SCHEDULES

Section 13.

SCHEDULE 1 Gaming duty: administration, enforcement etc

Part I The gaming duty register

The Register

1 The Commissioners shall establish and maintain a register of persons involved in the provision of dutiable gaming.

Interpretation

2 (1) In this Part of this Schedule--

"the register" means the gaming duty register;
"registered person" means a person registered on the register; and
"registrable person" has the meaning given by paragraph 3 below.

(2) For the purposes of this Part of this Schedule premises in the United Kingdom are "unlicensed premises" unless they are premises in Great Britain--

(a) in respect of which a licence under the [1968 c. 65.] Gaming Act 1968 is for the time being in force, or

(b) in respect of which a club or miners' welfare institute is for the time being registered under Part II of that Act.

(3) References in this Part of this Schedule to being a member of a group and to being the representative member of a group shall be construed in accordance with paragraph 8 below.

Registration

3 (1) The Commissioners shall, on receipt of a valid application made by--

(a) a registrable person, or

(b) a person who expects dutiable gaming to take place and to become a registrable person if it does,

add that person to the register.

(2) The following provisions of this paragraph have effect for the interpretation of sub-paragraph (1) above.

(3) A valid application is one which is made in such form and manner, and is accompanied by such information, as the Commissioners may require.

(4) Subject to sub-paragraph (5) below--

(a) the holder of a licence under the [1968 c. 65.] Gaming Act 1968 is a registrable person if and for so long as dutiable gaming takes place on the premises in respect of which the licence is for the time being in force;

(b) a provider of unlicensed premises is a registrable person if and for so long as dutiable gaming takes place on those premises;

(c) a person is a registrable person if and for so long as he is concerned in the organisation or management of dutiable gaming that takes place on unlicensed premises.

(5) A body corporate cannot be a registrable person if it--

(a) is a member of a group, but

(b) is not the representative member of that group.

(6) A body corporate which--

(a) is the representative member of a group, and

(b) is not a registrable person in its own right,

is a registrable person if another body corporate which is a member of that group would be a registrable person but for sub-paragraph (5) above.

Cancellation of registration

4 (1) This paragraph has effect for determining when a registered person is to be removed by the Commissioners from the register.

(2) Where the Commissioners receive a valid notice from a registered person stating that he has ceased to be a registrable person, he shall be removed from the register.

(3) Where the Commissioners receive a valid notice from a registered person stating that he will, from a time specified in the notice, cease to be a registrable person, he shall be removed from the register with effect from that time.

(4) Where--

(a) a registered person has been added to the register on an application made under paragraph 3(1)(b) above, and

(b) the Commissioners receive a valid notice from him stating--

(i) that the dutiable gaming which he expected to take place has not taken place, and

(ii) that he no longer expects it to take place,

he shall be removed from the register.

(5) Where it appears to the Commissioners that a registered person has ceased to be a registrable person, he shall be removed from the register.

(6) A registered person shall be removed from the register if--

(a) he has been added to the register on an application made under paragraph 3(1)(b) above, and

(b) it appears to the Commissioners that the dutiable gaming which he expected to take place has not taken place and can no longer be expected to take place.

(7) For the purposes of this paragraph, a valid notice is one which is given in such form and manner, and accompanied by such information, as the Commissioners may require.

Penalties in connection with registration

5 (1) There is a contravention of this sub-paragraph by every person who is a responsible person in relation to any premises if--

(a) dutiable gaming takes place on those premises on or after 1st October 1997; and

(b) at the time when the gaming takes place, no person by whom those premises are notifiable is registered on the register.

(2) For the purposes of this paragraph, a person is a responsible person in relation to any premises if--

(a) he is a registrable person; and

(b) those premises are notifiable by him.

(3) Where a person contravenes sub-paragraph (1) above, that contravention shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties) and shall also attract daily penalties.

(4) References in this paragraph to premises being notifiable are references to them being notifiable for the purposes of paragraph 6 below.

Notification of premises

6 (1) This paragraph has effect for determining the premises to be specified in a registered person's entry on the register.

(2) A person who makes an application under paragraph 3(1) above shall, on making that application, notify the Commissioners of all the premises which--

(a) are notifiable by him, or

(b) in a case where his application is made under paragraph 3(1)(b), will become notifiable by him if the expected gaming takes place;

and the Commissioners shall, on registering him on the register, cause those premises to be specified in his entry on the register.

(3) Where any premises not currently notified by a registered person become notifiable by him--

(a) he shall notify the Commissioners of those premises, and

(b) the Commissioners shall cause those premises to be specified in his entry on the register.

(4) Subject to sub-paragraph (5) below, where any premises currently notified by a registered person cease to be notifiable by him--

(a) he shall notify the Commissioners of that fact, and

(b) they shall cause those premises to be no longer specified in his entry on the register.

(5) A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (4) above in a case where--

(a) he gives notice to the Commissioners under paragraph 4(2) above; or

(b) the premises ceasing to be notifiable by him so cease in accordance with a notification previously given by him to the Commissioners under sub-paragraph (6) below.

(6) Where--

(a) any premises are currently notified by a registered person, and

(b) he notifies the Commissioners of the date on which those premises will cease to be notifiable by him,

the Commissioners shall ensure that those premises cease, with effect from that date, to be specified in his entry on the register.

(7) Subject to sub-paragraph (8) below, where--

(a) any premises are currently notified by a registered person,

(b) that person has been added to the register on an application made under paragraph 3(1)(b) above,

(d) he no longer expects that gaming to take place, and

(e) in consequence of events turning out as mentioned in paragraphs (c) and (d) above, those premises have not and will not become notifiable by him,

he shall notify the Commissioners accordingly and they shall cause those premises to be no longer specified in his entry on the register.

(8) A registered person is not required to notify the Commissioners as mentioned in sub-paragraph (7) above in a case where he gives notice to the Commissioners under paragraph 4(4) above.

(9) For the purposes of this paragraph premises are currently notified by any person at any time if at that time they are specified in his entry on the register.

(10) For the purposes of this paragraph, in the case of a person who is not a body corporate, or who is a body corporate that is not a member of any group--

(a) premises in respect of which a licence under the [1968 c. 65.] Gaming Act 1968 is for the time being in force are notifiable by him if and for so long as--

(i) he is the holder of the licence, and

(ii) dutiable gaming takes place on those premises;

(b) unlicensed premises of which he is a provider are notifiable by him if and for so long as dutiable gaming takes place on those premises; and

(i) dutiable gaming takes place on those premises, and

(ii) he is concerned in the organisation or management of that gaming.

(11) For the purposes of this paragraph, in the case of a body corporate which is the representative member of a group--

(a) premises in respect of which a licence under the Gaming Act 1968 is for the time being in force are notifiable by the representative member if and for so long as--

(i) it, or another body corporate which is a member of that group, is the holder of the licence, and

(ii) dutiable gaming takes place on those premises;

(b) unlicensed premises of which the representative member or any such other body corporate is a provider are notifiable by the representative member if and for so long as dutiable gaming takes place on those premises; and

(c) unlicensed premises which are not notifiable by the representative member by virtue of paragraph (b) above are notifiable by it if and for so long as--

(i) dutiable gaming takes place on those premises, and

(ii) it or any such other body corporate is concerned in the organisation or management of that gaming.

Penalties in connection with notification

7 (1) Where, in contravention of paragraph 6(2) above, a person fails to notify the Commissioners of any premises, that failure shall attract a penalty under section 9 of the [1994 c. 9.] Finance Act 1994 (civil penalties).

(2) Where--

(a) by virtue of paragraph 6(3), (4) or (7) above, a person at any time becomes subject to a requirement to notify the Commissioners of any premises or fact, and

(b) he fails to comply with that requirement before the end of the period of seven days beginning with the day on which that time falls,

that failure shall attract a penalty under section 9 of the Finance Act 1994 (civil penalties) and shall also attract daily penalties for every day after the end of that period on which the failure to notify continues.

Groups

8 (1) Two or more bodies corporate are eligible to be treated as members of a group for the purposes of this Part of this Schedule if each is resident or has an established place of business in the United Kingdom and--

(a) one of them controls each of the others;

(b) one person (whether a body corporate or an individual) controls all of them; or

(2) Subject to sub-paragraph (3) below, where an application for the purpose is made to the Commissioners with respect to two or more bodies corporate eligible to be treated as members of a group, then, from such date as may be specified in the application--

(a) they shall be so treated for the purposes of this Part of this Schedule; and

(b) such one of them as may be specified in the application shall be the representative member for those purposes.

(3) The Commissioners may refuse an application under sub-paragraph (2) above if, and only if, it appears to them necessary to do so for the protection of the revenue from gaming duty.

(4) Where any bodies corporate are treated as members of a group for the purposes of this Part of this Schedule and an application for the purpose is made to the Commissioners, then, from such time as may be specified in the application--

(a) a further body eligible to be so treated shall be included among the bodies so treated; or

(b) a body corporate shall be excluded from the bodies so treated; or

(d) the bodies corporate shall no longer be treated as members of a group.

(5) If it appears to the Commissioners necessary to do so for the protection of the revenue from gaming duty, they may--

(a) refuse any application made for the purpose mentioned in paragraph (a) or (c) of sub-paragraph (4) above; or

(b) refuse any application made for the purpose mentioned in paragraph (b) or (d) of that sub-paragraph in a case that does not appear to them to fall within sub-paragraph (6)(a) and (b) below.

(6) Where--

(a) a body corporate is treated as a member of a group for the purposes of this Part of this Schedule by virtue of being controlled by any person, and

(b) it appears to the Commissioners that it has ceased to be so controlled,

they shall, by notice given to that person, terminate that treatment from such date as may be specified in the notice.

(7) Where--

(a) a notice under sub-paragraph (6) above is given to a body corporate which is the representative member of a group,

(b) there are two or more other bodies corporate who will continue to be treated as members of the group after the time when that notice takes effect, and

(c) none of those bodies corporate is substituted from that time, or from before that time, as the representative member of the group in pursuance of an application under sub-paragraph (4)(c) above,

the Commissioners shall, by notice given to such one of the bodies corporate mentioned in paragraph (b) above as they think fit, substitute that body corporate as the representative member as from that time.

(8) Where a notice under sub-paragraph (6) above is given to one member of a group of which there is only one other member, then (subject to any further application under this paragraph) the other member shall also cease, from the time specified in the notice, to be treated for the purposes of this Part of this Schedule as a member of the group.

(9) An application under this paragraph with respect to any bodies corporate--

(a) must be made by one of those bodies or by the person controlling them; and

(b) must be made not less than 90 days before the date from which it is to take effect, or at such later time as the Commissioners may allow.

(10) For the purposes of this paragraph a body corporate shall be taken to control another body corporate if--

(a) it is empowered by statute to control that body's activities; or

(b) it is that body's holding company within the meaning of section 736 of the [1985 c. 6.] Companies Act 1985;

and an individual or individuals shall be taken to control a body corporate if (were he or they a company) he or they would be that body's holding company within the meaning of that Act.

(11) Sections 14 to 16 of the [1994 c. 9.] Finance Act 1994 (review and appeals) shall have effect in relation to any refusal by the Commissioners of an application under sub-paragraph (2) or (4) above as if that refusal were a decision of a description specified in Schedule 5 to that Act.

Part II Other provisions

Accounting periods

9 (1) Where, in the case of any premises, the Commissioners and every relevant person so agree, the provisions of sections 10 to 15 of this Act and this Schedule shall have effect in relation to those premises as if accounting periods for the purposes of those provisions were periods of six months beginning on such dates other than 1st October and 1st April as may be specified in the agreement.

(2) For the purposes of sub-paragraph (1) above, a person is a relevant person in relation to any premises if--

(a) he is registered on the gaming duty register, and

(b) the entry relating to him on the register specifies those premises.

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

-- Back --

Stat