Finance (No. 2) Bill - continued        House of Commons

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SCHEDULE 19
 
  COMPANY TAX RETURNS, ETC.: MINOR AND CONSEQUENTIAL AMENDMENTS
 
Taxes Management Act 1970 (c.9)
     1. The following provisions of the Taxes Management Act 1970 shall cease to have effect-
 
      
    section 10 (notice of liability to corporation tax),
      
    section 11 (return of profits),
      
    section 11AA (return of profits to include self-assessment),
      
    section 11AB (power to enquire into return of profits),
      
    sections 11AC to 11AE (modifications of sections 11AA and 11AB for certain insurance companies and friendly societies).
     2. In section 12(2) of the Taxes Management Act 1970 (information about chargeable gains), omit "or section 11".
 
     3. In section 12AA(7) of the Taxes Management Act 1970 (partnership return: information about chargeable gains), after "section 12(2) of this Act" insert "or paragraph 13 of Schedule 18 to the Finance Act 1998".
 
     4. In section 12AB of the Taxes Management Act 1970 (partnership return to include partnership statement), for subsection (4) substitute-
 
 
    "(4) Where a partnership statement is amended under subsection (2) above, the officer shall by notice to the partners amend-
 
 
    (a) their self-assessment under section 9 of this Act, or
 
    (b) their company tax return,
  so as to give effect to the amendments of the partnership statement.".
 
     5. In section 12AC of the Taxes Management Act 1970 (power to enquire into partnership return), for subsection (3) substitute-
 
 
    "(3) The giving of notice under subsection (1) above at any time shall be deemed to include-
 
 
    (a) the giving of notice under section 9A(1) of this Act to each partner who at that time has made a return under section 9 of this Act or at any subsequent time makes such a return;
 
    (b) the giving of notice of enquiry under Schedule 18 to the Finance Act 1998 to each partner who at that time has made a company tax return or at any subsequent time makes such a return.".
     6. In section 12B(1) of the Taxes Management Act 1970 (records to be kept for purposes of returns), omit ", 11".
 
     7. In section 19A(1) of the Taxes Management Act 1970 (power to call for documents for purposes of certain enquiries), omit ", 11AB(1)".
 
     8. - (1) Section 28A of the Taxes Management Act 1970 (amendment of self-assessment where enquiries made) is amended as follows.
 
      (2) In subsection (1) omit "or 11AB(1)".
 
      (3) In subsection (7B) omit paragraph (b) and the word "and" preceding it.
 
      (4) Omit subsection (7C).
 
      (5) For subsection (8) substitute-
 
 
    "(8) In this section "filing date" means the day mentioned in section 8(1A) or section 8A(1A) of this Act, as the case may be.".
 
     9. Sections 28AA and 28AB of the Taxes Management Act 1970 (amendment of return of profits made for wrong period) shall cease to have effect.
 
     10. - (1) Section 28B of the Taxes Management Act 1970 (amendment of partnership statement where enquiries made) is amended as follows.
 
      (2) For subsection (4) substitute-
 
 
    "(4) Where a partnership statement is amended under this section, the officer shall by notice to each of the partners amend-
 
 
    (a) the partner's self-assessment under section 9 of this Act, or
 
    (b) the partner's company tax return,
  so as to give effect to the amendments of the partnership statement.".
 
      (3) For subsection (6B) substitute-
 
 
    "(6B) For the purposes of subsection (6A) above-
 
 
    (a) "period of account" has the same meaning as in section 12AB of this Act, and
 
    (b) the cases where alternative methods are allowed by the Tax Acts are those specified in section 28A(7B) of this Act or paragraph 74(2) or (3) of Schedule 18 to the Finance Act 1998.".
     11. Sections 28D, 28E and 28F of the Taxes Management Act 1970 (determination of corporation tax in absence of self-assessment) shall cease to have effect.
 
     12. - (1) Section 29 of the Taxes Management Act 1970 (assessment where loss of tax discovered) is amended as follows.
 
      (2) In subsection (1) for "profits which ought to have been assessed to tax" substitute "income which ought to have been assessed to income tax, or chargeable gains which ought to have been assessed to capital gains tax,".
 
      (3) For "chargeable period", wherever it occurs, substitute "year of assessment".
 
      (4) In subsections (2), (3), (5)(a), (6)(a) and (7)(a) for "section 8, 8A or 11" substitute "section 8 or 8A".
 
      (5) In subsection (3)(b) omit "in the case of a return under section 8 or 8A,".
 
      (6) Omit subsection (10).
 
     13. - (1) Section 30 of the Taxes Management Act 1970 (recovery of overpayment of tax, etc.) is amended as follows.
 
      (2) In subsection (1) for "tax" in the first place where it occurs substitute "income tax or capital gains tax".
 
      (3) In subsection (2)(a), omit "or 825".
 
      (4) Omit subsection (2A).
 
      (5) In subsection (3), omit "or corporation tax".
 
      (6) Omit subsection (3A).
 
      (7) For subsection (4) substitute-
 
 
    "(4) An assessment to income tax under this section shall be made under Case VI of Schedule D.".
 
      (8) Omit subsection (4A).
 
      (9) In subsection (5)(a), for "chargeable period" substitute "year of assessment".
 
     14. - (1) Section 30B of the Taxes Management Act 1970 (amendment of partnership statement where loss of tax discovered) is amended as follows.
 
      (2) For subsection (2) substitute-
 
 
    "(2) Where a partnership statement is amended under subsection (1) above, the officer shall by notice to each of the relevant partners amend-
 
 
    (a) the partner's self-assessment under section 9 of this Act, or
 
    (b) the partner's company tax return,
  so as to give effect to the amendments of the partnership statement.".
 
      (3) In subsection (7)(b) for "section 8, 8A or 11" substitute "section 8 or 8A".
 
      (4) In subsection (9) for the definition of "profits" substitute-
 
 
    ""profits"-
 
      (a) in relation to income tax, means income,
 
      (b) in relation to capital gains tax, means chargeable gains, and
 
      (c) in relation to corporation tax, means profits as computed for the purposes of that tax;".
     15. - (1) Section 33 of the Taxes Management Act 1970 (error or mistake) is amended as follows.
 
      (2) For subsection (1) substitute-
 
 
    "(1) If a person who has paid income tax or capital gains tax under an assessment (whether a self-assessment or otherwise) alleges that the assessment was excessive by reason of some error or mistake in a return, he may by notice in writing at any time not later than five years after the 31st January next following the year of assessment to which the return relates, make a claim to the Board for relief.".
 
      (3) In subsection (5), after paragraph (a) insert ", and" and omit paragraph (c).
 
     16. - (1) Section 33A of the Taxes Management Act 1970 (error or mistake in partnership statement) is amended as follows.
 
      (2) In subsection (1) omit "under section 9 or 11AA of this Act".
 
      (3) For subsection (4) substitute-
 
 
    "(4) Where a partnership statement is amended under subsection (3) above, the Board shall by notice to each of the relevant partners amend-
 
 
    (a) the partner's self-assessment under section 9 of this Act, or
 
    (b) the partner's company tax return,
  so as to give effect to the amendments of the partnership statement.".
 
     17. In section 34(1) of the Taxes Management Act 1970 (ordinary time limit for assessment), for the words from "an assessment to tax may be made" to the end substitute "an assessment to income tax or capital gains tax may be made at any time not later than five years after the 31st January next following the year of assessment to which it relates".
 
     18. In section 36(1) of the Taxes Management Act 1970 (fraudulent or negligent conduct)-
 
 
    (a) for "loss of tax" substitute "loss of income tax or capital gains tax", and
 
    (b) for the words from "not later than" to the end substitute "not later than 20 years after the 31st January next following the year of assessment to which it relates".
     19. Sections 41A, 41B and 41C of the Taxes Management Act 1970 (corporation tax determinations) shall cease to have effect.
 
     20. - (1) Section 42 of the Taxes Management Act 1970 (procedure for making claims, etc.) is amended as follows.
 
      (2) In subsections (2), (9) and (11)(a) omit ", 11".
 
      (3) Omit subsections (4) and (4A), and in subsection (5) the words from "and the reference in subsection (4)" to the end.
 
      (4) In subsection (13), after paragraph (a) insert ", and" and omit paragraph (c).
 
     21. In section 43 of the Taxes Management Act 1970, for subsection (1) substitute-
 
 
    "(1) Subject to any provision of the Taxes Acts prescribing a longer or shorter period, no claim for relief in respect of income tax or capital gains tax may be made more than five years after the 31st January next following the year of assessment to which it relates.".
 
     22. - (1) Section 43A of the Taxes Management Act 1970 (further assessments: claims etc.) is amended as follows.
 
      (2) In subsection (1) for paragraph (a) substitute-
 
 
    "(a) where by virtue of section 29 of this Act an assessment to income tax or capital gains tax is made on any person for a year of assessment, and".
      (3) In subsections (2), (3), (4) and (5) for "chargeable period", wherever occurring, substitute "year of assessment".
 
     23. In section 46(2) of the Taxes Management Act 1970 (determinations of Commissioner to be final), omit the words "and in particular save as provided by section 29 of this Act".
 
     24. In section 46B(2) of the Taxes Management Act 1970 (questions to be determined by Special Commissioners), for paragraph (a) substitute-
 
 
    "(a) an appeal against an amendment of a self-assessment under-
 
      (i) section 28A(2) or (4) of this Act, or
 
      (ii) paragraph 30 or 34(2) of Schedule 18 to the Finance Act 1998;".
     25. In section 46C(2) of the Taxes Management Act 1970 (jurisdiction of Special Commissioners), for paragraph (a) substitute-
 
 
    "(a) an appeal against an amendment of a self-assessment under-
 
      (i) section 28A(2) or (4) of this Act, or
 
      (ii) paragraph 30 or 34(2) of Schedule 18 to the Finance Act 1998;".
 
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