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| UK public revenue dividends: deduction of tax. |
111. - (1) In subsection (A1) of section 50 of the Taxes Act 1988 (Treasury directions for payment of public revenue dividends without deduction of tax), for "registered gilt-edged securities" substitute "gilt-edged securities".
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(2) After subsection (3B) of section 349 of that Act (payments not out of profits or gains brought into charge to income tax, and annual interest) insert-
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"(3C) Subject to any provision to the contrary in the Income Tax Acts, where any UK public revenue dividend is paid, the person by or through whom the payment is made shall, on making the payment, deduct out of it a sum representing the amount of income tax on it for the year in which the payment is made.".
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(3) At the end of subsection (4) of that section insert-
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""UK public revenue dividend" means any income from securities which is paid out of the public revenue of the United Kingdom or Northern Ireland, but does not include interest on local authority stock.". |
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(4) After section 350 of that Act insert-
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| "UK public revenue dividends: deduction of tax. |
350A. - (1) The Board may by regulations-
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(a) make provision as to the time and manner in which persons who under section 349(3C) deduct sums representing income tax out of payments of UK public revenue dividends are to account for and pay those sums; and |
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(b) otherwise modify the provisions of sections 349 and 350 in their application to such dividends; |
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and in this section "UK public revenue dividend" has the same meaning as in section 349.
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(2) Regulations under this section may-
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(a) make different provision for different descriptions of UK public revenue dividend and for different circumstances; |
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(b) make special provision for UK public revenue dividends which- |
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(i) are payable to the Bank of Ireland out of the public revenue of the United Kingdom, or
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(ii) are entrusted to the Bank of Ireland for payment and distribution and are not payable by that Bank out of its principal office in Belfast;
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(c) include such transitional and other supplementary provisions as appear to the Board to be necessary or expedient. |
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(3) No regulations under this section shall be made unless a draft of them has been laid before and approved by a resolution of the House of Commons.".
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(5) This section applies to payments made on or after 1st April 2001.
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| Tax treatment of expenditure on production or acquisition of films. |
112. - (1) In section 68 of the of the Capital Allowances Act 1990 (expenditure relating to films, tapes and discs), for subsection (1) substitute-
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"(1) Expenditure incurred on the production or acquisition of a film, tape or disc shall be regarded for the purposes of the Tax Acts as expenditure of a revenue nature, subject to any election under subsection (9) below.".
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(2) For subsection (2) of that section substitute-
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"(2) In this section any reference to a film, tape or disc is to the master negative, master tape or master audio disc of a film as defined in section 43 of the Finance (No.2) Act 1992.
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Any such reference includes a reference to any rights in the film (or its soundtrack) that are held or acquired with the master negative, master tape or master audio disc.".
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(3) In section 42 of the Finance (No.2) Act 1992 (relief for production of acquisition expenditure), for subsection (9) substitute-
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"(9) This section has effect in relation to expenditure incurred-
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(a) on the production of a film completed on or after 10th March 1992,or |
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(b) on the acquisition of the master negative, master tape or master disc of a film completed on or after that date.". |
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(4) In section 43 of that Act (interpretation)-
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(a) in subsection (2)(b) (treatment of acquisition of rights in film), for "any description of rights in it" substitute "any rights in the film (or its soundtrack) that are held or acquired with the master negative, master tape or master audio disc"; and |
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(b) in subsection (3), omit paragraph (b) and the word "or" preceding it. |
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(5) This section applies to expenditure on the production of a film-
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(a) if the first day of principal photography is on or after 21st March 2000, or |
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(b) if the first day of principal photography is before that date but- |
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(i) the film is completed on or after that date, and
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(ii) the person incurring the expenditure elects that the provisions of this section should apply.
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For this purpose a film is completed at the time when it is first in a form in which it can reasonably be regarded as ready for copies of it to be made and distributed for presentation to the general public.
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Any election under paragraph (b)(ii) above, once made, is irrevocable.
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(6) This section applies to expenditure incurred on the acquisition of a master negative, master tape or master audio disc of a film (as defined in section 43 of the Finance (No.2) Act 1992) on or after 6th April 2000.
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