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House of Commons

Session 2002 - 03 Internet Publications Other Bills before Parliament

Finance Bill

Finance Bill
EUROPEAN CONVENTION ON HUMAN RIGHTS
Mr Chancellor of the Exchequer has made the following statement under section
19(1)(a) of the Human Rights Act 1998:
In my view the provisions of the Finance Bill are compatible with the Convention
rights.
Bill 94 53/2
Finance Bill
The Bill is divided into two volumes. Volume I contains the Clauses and Schedules
1 to 20 to the Bill. Volume II contains Schedules 21 to 43 to the Bill.
Contents
Part 1
Excise duties
Tobacco products duty
1        Rates of tobacco products duty
Alcoholic liquor duties
2        Rate of duty on beer
3        Rates of duty on wine and made-wine
Hydrocarbon oil duties
4        Rates of hydrocarbon oil duties
5        Rebates on hydrocarbon oil duties
Betting and gaming duties
6        General betting duty and pool betting duty: relief for losses
7        General betting duty: betting exchanges
8        General betting duty: restriction of exemption for on-course bets
9        Bingo duty
10        Amusement machines not operated by coins or tokens
11        Amusement machines: use of currencies other than sterling
12        Responsibility for unlicensed amusement machines
13        Rates of gaming duty
Vehicle excise duty
14        Vehicle excise duty: rates
15        Disclosure for exemptions: Northern Ireland
16        Duty at higher rate: exception for tractive units
Bill 94 53/2
Finance Bill iv
Part 2
Value added tax
17        Requirement of evidence or security
18        Joint and several liability for unpaid VAT of another trader
19        Face-value vouchers
20        Supplies arising from prior grant of fee simple
21        Business gifts
22        Non-business use of business property
23        Supply of electronic services in member States: special accounting scheme
Part 3
Taxes and duties on importation and exportation: penalties
Preliminary
24        Introductory
The penalties
25        Penalty for evasion
26        Penalty for contravention of relevant rule
27        Exceptions from section 26
28        Liability of directors etc where body corporate liable to penalty for evasion
Reduction of amount of penalty
29        Reduction of penalty under section 25 or 26
Demand notices
30        Demands for penalties
31        Time limits for demands for penalties
32        No prosecution after demand notice for penalty under section 26
Reviews
33        Right to review of certain decisions
34        Time limit and right to further review
35        Powers of Commissioners on a review
Appeals
36        Appeals to a tribunal
37        Appeal tribunals
Evidence
38        Admissibility of certain statements and documents
Finance Bill v
Miscellaneous and supplementary
39        Service of notices
40        Penalties not to be deducted for income tax or corporation tax purposes
41        Regulations and orders
Part 4
Stamp duty land tax
Introduction
42        The tax
Land transactions
43        Land transactions
44        Contract and conveyance
45        Contract and conveyance: effect of transfer of rights
46        Options and rights of pre-emption
47        Exchanges
Chargeable interests, chargeable transactions and chargeable consideration
48        Chargeable interests
49        Chargeable transactions
50        Chargeable consideration
51        Contingent, uncertain or unascertained consideration
52        Annuities etc: chargeable consideration limited to twelve years’ payments
53        Deemed market value where transaction involves connected company
54        Exceptions from deemed market value rule
Amount of tax chargeable
55        Amount of tax chargeable: general
56        Amount of tax chargeable: rent
Reliefs
57        Disadvantaged areas relief
58        Part-exchange of residential property
59        Relocation relief
60        Compulsory purchase facilitating development
61        Compliance with planning obligations
62        Group relief and reconstruction or acquisition relief
63        Demutualisation of insurance company
64        Demutualisation of building society
65        Incorporation of limited liability partnership
66        Transfers involving public bodies
67        Transfer in consequence of reorganisation of parliamentary constituencies
68        Charities relief
69        Acquisition by bodies established for national purposes
70        Right to buy transactions, shared ownership leases etc
71        Certain acquisitions by registered social landlord
Finance Bill vi
72        Alternative property finance: land sold to financial institution and leased to
individual
73        Alternative property finance: land sold to financial institution and re-sold to
individual
74        Collective enfranchisement by leaseholders
75        Crofting community right to buy
Returns and other administrative matters
76        Duty to deliver land transaction return
77        Notifiable transactions
78        Returns, enquiries, assessments and related matters
79        Registration of land transactions etc
80        Adjustment where contingency ceases or consideration is ascertained
81        Further return where relief withdrawn
82        Loss or destruction of, or damage to, return etc
83        Formal requirements as to assessments, penalty determinations etc
84        Delivery and service of documents
Liability for and payment of tax
85        Liability for tax
86        Payment of tax
87        Interest on unpaid tax
88        Interest on penalties
89        Interest on repayment of tax overpaid etc
90        Application to defer payment in case of contingent or uncertain consideration
91        Collection and recovery of tax etc
92        Payment by cheque
Compliance
93        Information powers
94        Power to inspect premises
95        Offence of fraudulent evasion of tax
96        Penalty for assisting in preparation of incorrect return etc
97        Power to allow further time and reasonable excuse for failure
98        Admissibility of evidence not affected by offer of settlement etc
99        General provisions about penalties
Application of provisions
100        Companies
101        Unit trust schemes
102        Open-ended investment companies
103        Joint purchasers
104        Partnerships
105        Trustees
106        Persons acting in a representative capacity etc
107        Crown application
Supplementary provisions
108        Linked transactions
Finance Bill vii
109        General power to vary this Part by regulations
110        Approval of regulations under general power
111        Claim for repayment if regulations under general power not approved
112        Power to amend certain provisions before implementation
113        Functions conferred on “the Inland Revenue”
114        Orders and regulations made by the Treasury or the Inland Revenue
115        General Commissioners and appeals and other proceedings
Interpretation
116        Meaning of “residential property”
117        Meaning of “major interest” in land
118        Meaning of “market value”
119        Meaning of “effective date” of a transaction
120        Meaning of “lease” and related expressions
121        Minor definitions
122        Index of defined expressions
Final provisions
123        Consequential amendments
124        Commencement and transitional provisions
Part 5
Stamp duty
125        Abolition of stamp duty except on instruments relating to stock or marketable
securities
126        Circumstances in which group relief withdrawn
127        Circumstances in which relief for company acquisitions withdrawn
128        Exemption of certain leases granted by registered social landlords
129        Relief for certain leases granted before section 128 has effect
Part 6
Income tax and corporation tax: charge and rate bands
Income tax
130        Charge and rates for 2003-04
131        Indexed rate bands for 2003-04: PAYE deductions etc
Corporation tax
132        Charge and main rate for financial year 2004
133        Small companies’ rate and fraction for financial year 2003
134        Corporation tax starting rate and fraction for financial year 2003
Finance Bill viii
Part 7
Income tax, corporation tax and capital gains tax: general
Employment income and related matters
135        Provision of services through intermediary
136        Exemption where homeworker’s additional expenses met by employer
137        Taxable benefits: lower threshold for cars with a CO2 emissions figure
138        Approved share plans and schemes
139        Employee securities and options
140        Corporation tax relief for employee share acquisitions
141        Ending of relief for contributions to QUESTS
142        Restriction of deductions for employee benefit contributions
143        PAYE on notional payments: reimbursement period
144        PAYE: regulations and notional payments
145        Payroll giving: extension of 10% supplement to 5th April 2004
146        Sub-contractor deductions etc: interest on late payment or repayment
Taxation of non-resident companies and related matters
147        Meaning of “permanent establishment”
148        Non-resident companies: basis of charge to corporation tax
149        Non-resident companies: assessment, collection and recovery of corporation
tax
150        Non-resident companies: extent of charge to income tax
151        Non-resident companies: transactions carried out through broker, investment
manager or Lloyd’s agent
152        General replacement of references to branch or agency of company
153        Double taxation relief: profits attributable to overseas permanent
establishment
154        Consequential amendments
155        Overseas life insurance companies
Chargeable gains
156        Life insurance policies and deferred annuity contracts
157        Application of market value rule in case of exercise of option
158        Reporting limits and annual exempt amount
159        Taper relief: assets qualifying as business assets
160        Earn-out rights to be treated as securities unless contrary election
161        Deferred unascertainable consideration: election for treatment of loss
162        Transfers of value: attribution of gains to beneficiaries
Capital allowances and related matters
163        Avoidance affecting proceeds of balancing event
164        Extension of first-year allowances for ICT expenditure by small companies
165        Expenditure on software for sub-licensing
166        First-year allowances for expenditure on environmentally beneficial plant or
machinery
167        Relief for research and development
168        Tonnage tax: extension of capital allowance restrictions on lessors of ships

© Parliamentary copyright 2003	Revised 16 April 2003