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Sub-contractors in the construction industry |
| Exemption certificates. |
49. - (1) Sections 562 to 565 of the Taxes Act 1988 (exemption certificates for the scheme for sub-contractors in the construction industry) shall have effect in relation to any application to which this section applies, and shall be deemed always to have had effect in relation to such an application-
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(a) with the substitution of the subsection set out in subsection (2) below for the subsection (2B) inserted in section 562 by paragraph 4(3) of Schedule 27 to the Finance Act 1995 (which defined the payments to be taken into account in assessing turnover for the purposes of exemption); and |
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(b) as if paragraphs 3 to 5 of Schedule 8 to the Finance Act 1998 (which extended the description of payments for certain cases) had not been enacted. |
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(2) That subsection is as follows-
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"(2B) In subsection (2A) above "relevant payments" means payments under contracts relating to, or to the work of individuals participating in the carrying out of, any operations which-
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(a) are of a description specified in subsection (2) of section 567; but |
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(b) are not of a description specified in subsection (3) of that section, |
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other than so much of the payments as represents the direct cost to the person receiving the payments of materials used or to be used in carrying out the operations in question."
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(3) This section applies to any application for the issue or renewal of a certificate under section 561 of the Taxes Act 1988 which is or has been made with respect to any period beginning on or after 1st August 1999.
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Reverse premiums |
| Tax treatment of reverse premiums. |
50. - (1) Schedule 6 to this Act (tax treatment of receipts by way of reverse premium) has effect.
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(2) The provisions of that Schedule apply in relation to a reverse premium (within the meaning of that Schedule) received on or after 9th March 1999, unless it is a payment or other benefit to which the recipient was entitled immediately before that date.
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(3) In determining whether a payment or benefit was one to which the recipient was entitled immediately before 9th March 1999, no account shall be taken of any arrangements made on or after that date.
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Charities |
| Gifts in kind to charities etc. |
51. - (1) The following section shall be inserted after section 83 of the Taxes Act 1988-
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| "Gifts in kind to charities etc. |
83A. - (1) This section applies where a person carrying on a trade, profession or vocation gives an article falling within subsection (2) below to-
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(a) a charity within the meaning of section 506, or |
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(b) a body listed in section 507(1). |
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(2) An article falls within this subsection if-
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(a) it is an article manufactured, or of a class or description sold, by the donor in the course of his trade; or |
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(b) it is an article used by the donor in the course of his trade, profession or vocation which for the purposes of Part II of the 1990 Act constitutes machinery or plant used by him wholly or partly in the course of that trade, profession or vocation. |
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(3) Subject to subsections (4) and (5) below, where this section applies in the case of the gift of an article-
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(a) no amount shall be required, in consequence of the donor's disposal of that article from trading stock, to be brought into account for the purposes of the Tax Acts as a trading receipt of the donor; and |
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(b) section 24(6) of the 1990 Act shall not require the donor to bring into account any disposal value in respect of the article for the purposes of that section. |
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(4) In any case where-
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(a) relief is given under subsection (3) above in respect of the gift of an article, and |
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(b) any benefit received in any chargeable period by the donor or any person connected with him is in any way attributable to the making of that gift, |
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the donor shall in respect of that chargeable period be charged to tax under Case I or Case II of Schedule D or, if he is not chargeable to tax under either of those Cases for that period, under Case VI of Schedule D on an amount equal to the value of that benefit.
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(5) Subsection (3) above shall not apply unless the donor makes a claim for relief under this section; and such a claim-
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(a) must be made within the required period; and |
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(b) must specify the article given and the name of the charity or body to which it is given. |
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(6) In subsection (5)(a) above "the required period" means-
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(a) in the case of a claim with respect to income tax, the period ending with the first anniversary of the 31st January next following the year of assessment in whose basis period the gift is made; and |
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(b) in the case of a claim with respect to corporation tax, the period of two years beginning at the end of the accounting period in which the gift is made. |
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(7) In subsection (6)(a) above "basis period" means-
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(a) in relation to a year of assessment for which a basis period is given by sections 60 to 63, that basis period; and |
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(b) in relation to a year of assessment for which no basis period is given by those sections, the year of assessment. |
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(8) Section 839 applies for the purposes of this section."
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(2) Section 47 of the Finance Act 1998 (gifts in kind for relief in poor countries) shall cease to have effect.
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(3) Subsections (1) and (2) above have effect in relation to gifts made on or after the day on which this Act is passed.
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| Aggregation of money gifts for relief in poor countries. |
52. - (1) Section 48 of the Finance Act 1998 (gifts of money made for relief in poor countries) shall have effect, and be deemed always to have had effect, with the following amendments.
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(2) In subsection (4) (aggregated small gifts to be treated as a single payment made at the time of the last of them), after "that section" there shall be inserted "(but subject to subsection (4A) below)".
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(3) After that subsection there shall be inserted the following subsection-
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"(4A) Subsection (10) of section 25 of the Finance Act 1990 (receipts of gifts by a charity to be treated as payments of grossed-up amounts after deduction of basic rate income tax) shall have effect where-
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(a) any aggregated gifts are treated under this section as a single qualifying donation made to a charity, and |
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(b) the aggregated gifts include gifts made in different years of assessment, |
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as if that single qualifying donation had been received by the charity in the year of assessment in which the first of the aggregated gifts was made and as if that were the relevant year of assessment for the purposes of that subsection."
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Education and training |
| Employees seconded to educational establishments. |
53. - (1) Section 86 of the Taxes Act 1988 (employees seconded to charities and educational establishments) shall be amended as follows.
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(2) In subsection (3) (relief for expenditure attributable to the employment before 1st April 1997 of employees seconded to educational establishments), the words "and before 1st April 1997" shall be omitted.
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(3) In that subsection, for paragraphs (a) to (c) there shall be substituted-
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"(a) in England and Wales, any body falling within subsection (4) below; |
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(b) in Scotland, any body falling within subsection (5) below; |
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(c) in Northern Ireland, any body falling within subsection (6) below; and". |
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(4) After subsection (3) there shall be inserted-
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"(4) A body falls within this subsection if it is-
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(a) a local education authority; |
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(b) an educational institution maintained by such an authority (including a grant-maintained school or a grant-maintained special school within the meaning of the Education Act 1996); |
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(c) an independent school, within the meaning of the Education Act 1996, whose registration under section 465 of that Act is final; or |
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(d) an institution within the further education sector, or the higher education sector, within the meaning of the Further and Higher Education Act 1992. |
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(5) A body falls within this subsection if it is-
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(a) an education authority; |
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(b) an educational establishment managed by such an authority within the meaning of the Education (Scotland) Act 1980 ("the 1980 Act"); |
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(c) a public or grant-aided school within the meaning of the 1980 Act; |
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(d) a self-governing school within the meaning of the Self-Governing Schools etc. (Scotland) Act 1989; |
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(e) an independent school within the meaning of the 1980 Act; |
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(f) a central institution within the meaning of the 1980 Act; |
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(g) an institution within the higher education sector within the meaning of section 56(2) of the Further and Higher Education (Scotland) Act 1992; or |
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(h) a college of further education within the meaning of section 36(1) of that Act. |
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(6) A body falls within this subsection if it is-
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(a) an education or library board within the meaning of the Education and Libraries (Northern Ireland) Order 1986; |
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(b) a college of education or a controlled, maintained, grant-maintained integrated, controlled integrated, voluntary or independent school within the meaning of that Order; or |
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(c) an institution of further education within the meaning of the Further Education (Northern Ireland) Order 1997." |
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(5) The amendment made by subsection (2) above shall be deemed always to have had effect.
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(6) The amendments made by subsections (3) and (4) above have effect for the year 1999-00 and subsequent years of assessment.
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