Finance (No. 2) Bill

Finance (No. 2) Bill - continued	House of Commons
PART III, INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX - continued
Changes in company ownership - continued

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Provisions supplemental to sections 112 and 113.

114. - (1) After subsection (1) of section 767B of the Taxes Act 1988 (supplementary provision about changes of company ownership), there shall be inserted the following subsection-

"(1A) In relation to corporation tax assessed under section 767AA, section 87A of the Management Act shall have effect as if the references to the date when the tax becomes due and payable were references to the date when the tax became due and payable by the transferred company or the associated company (as the case may be)."

(2) In subsection (2) of that section-

(a) after "767A" there shall be inserted "or 767AA"; and

(b) at the end there shall be added "or the transferred company or associated company (as the case may be)".

(3) In subsection (4) of that section, for "section 767A" there shall be substituted "sections 767A, 767AA and 767C".

(4) In subsection (10) of that section, for "section 767A" there shall be substituted "sections 767A and 767AA".

(5) In section 769 of that Act (rules for ascertaining change in ownership of a company)-

(a) in subsections (1) and (5), after "767A," there shall be inserted "767AA, 767C,";

(b) in subsection (2)(d), after "767A," there shall be inserted "767AA,"; and

(6) The preceding provisions of this section have effect in relation to changes in ownership occurring on or after 2nd July 1997 other than any change occurring in pursuance of a contract entered into before 2nd July 1997.

Corporation tax self assessment

Company tax returns, assessments and related matters.

115. - (1) The provisions of Schedule 18 to this Act have effect in place of-

(a) the provisions of Parts II and IV of the Taxes Management Act 1970 (returns, assessment and claims), so far as they relate to corporation tax,

(b) certain related provisions of Part X of that Act (penalties),

(d) Schedule A1 to the Capital Allowances Act 1990 (corporation tax allowances: claims).

(2) Schedule 18 to this Act, the Taxes Management Act 1970 and the Tax Acts shall be construed and have effect as if that Schedule were contained in that Act.

(3) The enactments mentioned in Schedule 19 to this Act have effect with the amendments specified there, which are minor amendments and amendments consequential on Schedule 18.

(4) Except as otherwise provided, the provisions of Schedules 18 and 19 to this Act have effect in relation to accounting periods ending on or after the self-assessment appointed day.

(5) In this section "the self-assessment appointed day" means the day appointed by the Treasury under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment).

Telephone claims etc.

Claims for income tax purposes.

116. - (1) Subject to the following provisions of this section, the Board may, by publishing them in such manner as they think fit, give such general directions for the purposes of income tax as they consider appropriate with respect to-

(a) the circumstances in which, and

(b) the conditions subject to which,

claims under the Tax Acts may be made by individuals by the use of a telecommunication system (within the meaning of the Telecommunications Act 1984) or otherwise without producing a claim in writing.

(2) If directions of the Board under this section are for the time being in force with respect to the making to the Board or an officer of the Board of claims of any description, then, notwithstanding any enactment or subordinate legislation requiring claims of that description to be made in writing or by notice, claims of that description may be made to the Board or, as the case may be, an officer of the Board in any manner authorised by the directions.

(3) Where directions of the Board under this section are for the time being in force with respect to the making of claims of any description, claims of that description that are made without producing the claim in writing must be made in accordance with the directions.

(4) The power of the Board to give directions under this section-

(a) shall not be exercisable in relation to the making of any claim by an individual in his capacity as a trustee, partner or personal representative; but

(b) subject to that, shall be exercisable in relation to claims made by an individual through another person acting on his behalf.

(5) The Board shall not give directions under this section with respect to-

(a) the making of any claim to which Schedule 1B to the Taxes Management Act 1970 applies; or

(b) the making of any claim under any provision of the Capital Allowances Act 1990.

(6) Directions under this section-

(a) shall not be capable of modifying any requirement by or under any enactment as to the period within which any claim is to be made or as to the contents of any claim; but

(b) may include provision as to how any requirement as to the contents of a claim is to be fulfilled when the claim is not produced in writing.

(7) Different provision may be made by directions under this section with respect to the making of claims of different descriptions; and a direction under this section may revoke or vary any previous direction given under this section.

(8) References in the preceding provisions of this section to the making of a claim include references to any of the following-

(a) the making of an election,

(b) the giving of a notification or notice,

(d) the withdrawal of any claim, election, notification or notice,

and references in those provisions to a claim shall be construed accordingly.

(9) In this section-

"return" includes any statement or declaration under the Income Tax Acts;

"subordinate legislation" has the same meaning as in the Interpretation Act 1978.

(10) In section 832(1) of the Taxes Act 1988 (interpretation), in the definition of "notice", after "writing" there shall be inserted "or in a form authorised (in relation to the case in question) by directions under section 116 of the Finance Act 1998".

Evidential provisions in PAYE regulations.

117. In section 203 of the Taxes Act 1988 (PAYE regulations), after subsection (9) there shall be inserted the following subsection-

"(10) Without prejudice to the generality of the powers conferred by the preceding provisions of this section, regulations under this section may include provision as to the manner of proving any of the matters for which the regulations provide and, in particular, of proving the contents or transmission of anything that, by virtue of the regulations, takes an electronic form or is transmitted to any person by electronic means."

Prepared 6 April 1998