Previous SectionIndexHome Page


26. Tax treatment of reverse premiums etc.

Resolved,


Resolved,


    That--


    (1) For subsection (2) of section 32 of the Finance Act 1991 there shall be substituted--
    "(2) The individual shall be entitled to relief under this subsection in respect of the payment for the year of assessment in which it is made; but relief under this subsection shall be given only on a claim made for the purpose, except where subsections (3) to (5) below apply.
    (2A) Where an individual is entitled to relief under subsection (2) above in respect of any payment made in a year of assessment, the amount of his liability for that year to income tax on his total income shall be the amount to which he would be liable apart from this section less whichever is the smaller of--
    (a) the amount which is equal to such percentage of the amount of the payment as is the basic rate for the year; and
    (b) the amount which reduces his liability to nil.
    (2B) In determining for the purposes of subsection (2A) above the amount of income tax to which a person would be liable apart from this section, no account shall be taken of--
    (a) any income tax reduction under Chapter I of Part VII of the Taxes Act 1988 or under section 347B of that Act;
    (b) any income tax reduction under section 353(1A) of the Taxes Act 1988;
    (c) any relief by way of a reduction of liability totax which is given in accordance with any arrangements having effect by virtue of section 788 of the Taxes Act 1988 or by way of a credit under section 790(1) of that Act;
    (d) any tax at the basic rate on so much of that person's income as is income the income tax on which he is entitled to charge against any other person or to deduct, retain or satisfy out of any payment."

15 Mar 1999 : Column 840


    (2) This Resolution has effect in relation to payments made on or after 6th April 1999.
    (3) This Resolution shall not require any change to be made in the amounts deductible or repayable under section 203 of the Income and Corporation Taxes Act 1988 before 18th May 1999.
    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

    28. Settlements

Resolved,


    That provision may be made amending section 660B of the Income and Corporation Taxes Act 1988.

    29. Enterprise investment scheme

Resolved,


    That provision may be made amending Chapter III of Part VII of the Income and Corporation Taxes Act 1988 and Schedule 5B to the Taxation of Chargeable Gains Act 1992.

    30. Venture capital trusts

Resolved,


    That provision may be made amending Schedule 15B to the Income and Corporation Taxes Act 1988.

    31. Court common investment funds

Resolved,


    That provision may be made for the purposes of income tax and corporation tax about common investment funds established under section 42 of the Administration of Justice Act 1982.

    32. Discounted securities etc.

Resolved,


    That provision (including provision having retrospective effect) may be made--


    (a) amending paragraph 3 of Schedule 13 to the Finance Act 1996, paragraphs 19 and 20 of Schedule 15 to that Act and sections 64 and 65 of the Finance Act 1993; and
    (b) modifying section 116 of the Taxation of Chargeable Gains Act 1992.

    33. Chargeable gains (value shifting)

Resolved,


    That provision may be made about value shifting in relation to the taxation of chargeable gains.

    34. Chargeable gains (concessions that defer a charge)

Resolved,


    That provision may be made about cases where, after a relief in respect of a chargeable gain has been obtained in reliance on a concession, a charge to tax would arise if the concession were an enactment to the corresponding effect.

    35. Pension sharing

Resolved,


    That provision may be made, for purposes connected with the sharing of pensions between ex-spouses, with respect to pensions and annuities.

    36. Purchased life annuities

Resolved,


    That section 657(2) of the Income and Corporation Taxes Act 1988 shall have effect, and shall be deemed always to have had

15 Mar 1999 : Column 841

    effect, with the substitution of the following paragraph for the "or" at the end of paragraph (d)--


    "(da) to any annuity purchased under or for the purposes of a scheme approved by virtue of section 591 or in pursuance of any obligation imposed, or offer or invitation made, under or in connection with any such scheme;".
    And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

    37. Extra-statutory arrangements for insurance groups

Resolved,


    That provision may be made, in relation to accounting periods beginning on or after 1st January 1999, about disposals of assets the acquisition cost of which has been disregarded on a previous occasion under extra-statutory arrangements relating to groups of insurance companies.

    38. Lloyd's

Resolved,


    That provision may be made about rights under syndicates held by a member of Lloyd's under a members' agent pooling arrangement.

    39. Advance pricing agreements

Resolved,


    That provision may be made for the effect in any person's case of paragraphs 6 and 7 of Schedule 28AA to the Income and Corporation Taxes Act 1988 to be modified by an agreement to which he is not a party.

    40. Controlled foreign companies

Resolved,


    That provision may be made amending Part I of Schedule 25 to the Income and Corporation Taxes Act 1988.

    41. Group relief (consequential provision)

Resolved,


    That provision may be made with respect to the consequences of a reduction in the amount available for surrender by way of group relief.

    42. Inheritance tax (gifts)

Resolved,


    That provision may be made as to the circumstances in which gifts of land are gifts of property subject to a reservation for the purposes of inheritance tax.

    43. Stamp duty (conveyances and transfers on sale)

Motion made, and Question put,


    That the following provisions shall have effect for the period beginning with 16th March 1999 and ending 31 days after the earliest of the dates mentioned in section 50(2) of the Finance Act 1973--


    (1) Section 55 of the Finance Act 1963 and section 4 of the Finance Act (Northern Ireland) 1963 shall each be amended in accordance with paragraphs (2) and (3) below.
    (2) In subsection (1)(d), for "£2" there shall be substituted "£2.50p".
    (3) In subsection (1)(e), for "£3" there shall be substituted "£3.50p".
    (4) This Resolution applies to instruments executed on or after 16th March 1999, except where the instrument in question is executed in pursuance of a contract made on or before 9th March 1999.

15 Mar 1999 : Column 842

15 Mar 1999 : Column 845

    44. Stamp duty and stamp duty reserve tax

Resolved,


    That provision may be made in relation to stamp duty and stamp duty reserve tax.


Next Section

IndexHome Page