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Tonnage tax |
| Tonnage tax. |
81. Schedule 22 to this Act (tonnage tax) has effect.
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Other relieving provisions |
| Relief for interest on loans to buy annuities. |
82. - (1) In section 365(3) of the Taxes Act 1988 (loans to buy annuities)-
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(a) for the words "the qualifying maximum for the year of assessment", in the first place where they occur, there shall be substituted the words "the sum of £30,000"; and |
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(b) for those words, in the second place where they occur, there shall be substituted the words "that sum". |
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(2) In section 353(1G) of that Act (percentage of interest eligible for relief), for the words from "the percentage" to the end there shall be substituted "23 per cent.".
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(3) In section 369(1A) of that Act (deductible percentage where interest payable under deduction of tax), for the words from "the percentage" to the end there shall be substituted "23 per cent.".
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(4) This section has effect in relation to payments of interest made on or after 6th April 2000.
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| Exemption of payments under New Deal 50plus. |
83. - (1) This section applies to-
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(a) the scheme under section 2(2) of the Employment and Training Act 1973 known as "New Deal 50plus", and |
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(b) the corresponding scheme under section 1 of the Employment and Training Act (Northern Ireland) 1950. |
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(2) A payment to a person as a participant in the scheme by way of an employment credit or training grant under the scheme is exempt from income tax and, accordingly, shall be disregarded in computing the amount of any receipts brought into account for income tax purposes.
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(3) This section applies to any such payment made on or after 25th October 1999.
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| Exemption of payments under Employment Zones programme. |
84. - (1) A payment to a person as a participant in an employment zone programme is exempt from income tax and, accordingly, shall be disregarded in computing the amount of any receipts brought into account for income tax purposes.
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(2) An "employment zone programme" means an employment zone programme established for an area or areas designated under section 60 of the Welfare Reform and Pensions Act 1999.
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(3) This section applies to any such payment made on or after 6th April 2000.
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| Loan where return bears inverse relationship to results. |
85. - (1) In section 209 of the Taxes Act 1988 (meaning of "distribution"), after subsection (3A) insert-
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"(3B) For the purposes of subsection (2)(e)(iii) above the consideration given by the company for the use of the principal secured shall not be treated as being to any extent dependent on the results of the company's business or any part of it by reason only of the fact that the terms of the security provide-
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(a) for the consideration to be reduced in the event of the results improving, or |
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(b) for the consideration to be increased in the event of the results deteriorating.". |
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This subsection applies to payments made on or after 21st March 2000.
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(2) In Schedule 18 to the Taxes Act 1988 (group relief: equity holders and profits available for distribution), in paragraph 1(5E)-
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(a) in paragraph (a), after "improving" insert ", or for the rate of interest to be increased in the event of the results of the company's business or any part of it deteriorating"; and |
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(b) in paragraph (b), after "increasing" insert ", or for the rate of interest to be increased in the event of the value of any of the company's assets diminishing". |
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This subsection applies for the purposes of determining whether, at any time on or after 21st March 2000, a loan is a normal commercial loan for the purposes of paragraph 1(1)(b) of Schedule 18 to the Taxes Act 1988.
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