Finance Bill

House of Commons

Session 2002 - 03
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Finance Bill

Finance Bill
Schedule 39 — Stamp duty land tax: application to certain partnership transactions
581

MV is the market value of the interest in land at that date,
and
SL is the amount outstanding at that date on any loan
secured solely on the interest in land.
      (7)
If, in relation to an interest in land, SL is greater than MV, the net
5
market value of the interest in land shall be taken to be nil.
      (8)
If the excluded amount is greater than the actual consideration for
the transaction, the consideration for the transaction shall be taken
to be nil.
      (9)
Where this paragraph applies in relation to an instrument, the
10
instrument shall not be regarded as duly stamped unless it has
been stamped in accordance with section 12 of the Stamp Act 1891.
Construction of references to partnership property or partnership share
25    (1)
Any reference in this Part of this Schedule to partnership property
is to an interest or right held by or on behalf of a partnership, or
15
the members of a partnership, for the purposes of the partnership
business.
      (2)
Any reference in this Part of this Schedule to a person’s
partnership share at any time is to the proportion in which he is
entitled at that time to share in the income profits of the
20
partnership.
Construction of references to transfer of interest in land to a partnership
26
For the purposes of this Part of this Schedule, there is a transfer of
an interest in land to a partnership in any case where an interest in
land becomes partnership property.
25
Construction of references to transfer of interest in a partnership
27
For the purposes of this Part of this Schedule, there is a transfer of
an interest in a partnership where arrangements are entered into
under which—
(a)
a partner transfers the whole or part of his interest as
30
partner to another person (who may be an existing
partner), or
(b)
a person becomes a partner and an existing partner
reduces his interest in the partnership or ceases to be a
partner.
35
Construction of references to connected persons
28
Section 839 of the Taxes Act 1988 (connected persons) has effect for
the purposes of this Part of this Schedule.
Construction of references to arrangements
29
In this Part of this Schedule “arrangements” includes any scheme,
40
agreement or understanding, whether or not legally enforceable.”.

Finance Bill
Schedule 40 — Repeals
Part 1 — Excise duties
582

2
The following amendments are consequential on the amendment made by
paragraph 1—
(a)
in section 104(2) of the Finance Act 2003 (c. 14) (partnerships), for the
words following “Part 3” substitute “makes special provision for
certain transactions”;
5
(b)
in section 125(8) of that Act (continued application of stamp duty in
relation to certain partnership transactions), for “paragraph 13(2)
and (3)” substitute “paragraph 23”;
(c)
in paragraph 5 of Schedule 15 to that Act (partnerships: introduction
to Part 2 of Schedule 15), for the words following “Part 3 of this
10
Schedule” substitute “(transactions to which special provisions
apply)”.
3     (1)
The preceding provisions of this Schedule have effect in relation to
partnership transactions the effective date of which is after the day on which
this Act is passed.
15
      (2)
“Partnership transaction” means a transaction mentioned in paragraph 9(1)
of Schedule 15 to the Finance Act 2003 (c. 14) (as substituted by paragraph 1
of this Schedule).
      (3)
For the purpose of determining the effective date of a transaction mentioned
in paragraph 9(1)(b) of Schedule 15 to that Act, the transaction shall be taken
20
to be a land transaction.
Schedule 40
Section 318

Repeals
Part 1
Excise duties
25
(1) Hydrocarbon oil etc duties

Short title and chapter
Extent of repeal

Hydrocarbon Oil Duties Act
In section 6AA(2), the word “or” preceding

1979 (c. 5)
paragraph (b).

In section 20AAB(3), “or (2)”.

30

Schedule 2A.

1
The repeal in section 6AA(2) of the Hydrocarbon Oil Duties Act 1979 has
effect in accordance with section 11(2) of this Act.
2
The other repeals have effect in accordance with section 9(4) of this Act.

Finance Bill
Schedule 40 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax
583

(2) General betting duty

Short title and chapter
Extent of repeal

Betting and Gaming Duties Act
In section 7B(2)(b), the words “the bet is made

1981 (c. 63)
otherwise than by means of a totalisator and”.

In section 12(4), the definition of “sponsored

5

pool betting”.

In Schedule 1, in paragraph 10(1), the words “,

or that facilities for sponsored pool betting on

those events are being or are to be provided,”.


These repeals have effect in accordance with section 15(10) of this Act.
10
Part 2
Income tax, corporation tax and capital gains tax
(1) Transfer pricing

Short title and chapter
Extent of repeal

Income and Corporation Taxes
In section 494—

15

Act 1988 (c. 1)
(a)
in subsection (2), paragraph (d) and the

word “and” preceding it, and the third

sentence;

(b)
subsection (2B).

In Schedule 24, paragraph 20.

20

Income and Corporation Taxes
In Schedule 28AA—

Act 1988 (c. 1)—cont.
(a)
in paragraph 5, in sub-paragraph (1), the

words “(but subject to sub-paragraph (2)

below)” and sub-paragraphs (2) to (6);

(b)
in paragraph 11, sub-paragraph (2), in

25

sub-paragraph (3), paragraph (e) and the

word “and” preceding it and, in sub-

paragraph (4), the words “(2) or”.

Finance Act 1998 (c. 36)
In Schedule 17, paragraph 24.

Finance Act 2002 (c. 23)
In Schedule 29, in paragraph 92(3), paragraph

30

(c) and the word “and” preceding it.

Finance Act 2003 (c. 14)
In Schedule 33, paragraph 13(10).


These repeals have effect in accordance with section 37 of this Act.

Finance Bill
Schedule 40 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax
584

(2) Thin capitalisation

Short title and chapter
Extent of repeal

Income and Corporation Taxes
Section 74(1)(n).

Act 1988 (c. 1)
In section 209—

(a)
in subsection (2), paragraph (da) and, in

5

paragraph (e), the words “or (da)”;

(b)
in subsection (3), the words “, (da)”;

(c)
in subsection (3A)(a), the words “, (da)”;

(d)
subsections (8A) to (8F).

In section 212—

10

(a)
in subsection (1)(b), the words

“paragraph (da) of section 209(2) or”;

(b)
in subsection (3), the words “Without

prejudice to subsection (4) below,” and

the words from “and does not apply” to

15

the end of the subsection;

(c)
subsection (4).

Section 710(3)(a).

In section 730A(5), the words “and (da)”.

Finance Act 1995 (c. 4)
Section 87(1), (3), (4) and (5).

20

Finance Act 1996 (c. 8)
In Schedule 9, in paragraph 11A—

(a)
sub-paragraphs (2)(a) and (3)(a);

(b)
in sub-paragraph (3)(b), the words “in a

case falling within paragraph (b) of that

sub-paragraph,”;

25

(c)
in sub-paragraph (5)(b), the words “the

terms would have been the same, except

that”.


These repeals have effect in accordance with section 37 of this Act.
(3) Expenses: companies with investment business and insurance companies
30

Short title and chapter
Extent of repeal

Income and Corporation Taxes
In section 77(1), the words from “and the

Act 1988 (c. 1)
incidental costs” onwards.

Finance Act 1989 (c. 26)
In section 85(2), the word “or” at the end of

paragraph (a) and paragraphs (c) to (d).

35

Section 86(5), (5A) and (7).

Finance Act 1990 (c. 29)
Section 44.

In Schedule 7, paragraph 1.

Finance Act 1991 (c. 31)
Section 47.

In Schedule 7, paragraph 13(1).

40

Finance Act 1995 (c. 4)
In Schedule 8, paragraphs 7 and 23(3).

Finance Bill
Schedule 40 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax
585

Short title and chapter
Extent of repeal

Finance Act 1996 (c. 8)
Section 164(1), (2) and (6).

In Schedule 11, in paragraph 4(3), the word

“net”.

In Schedule 14, paragraph 8.

5

In Schedule 31, paragraph 3(1) and (2).

Finance Act 1997 (c. 16)
Section 67(4)(a).

Finance (No. 2) Act 1997 (c. 58)
In Schedule 3, paragraph 1.

In Schedule 6, paragraph 2.

Finance Act 1998 (c. 36)
In Schedule 3, paragraph 9.

10

In Schedule 7, in paragraph 1 the words “86(2)

definition of “deductible”,”.

Finance Act 2000 (c. 17)
In Schedule 27, paragraph 7.

Capital Allowances Act 2001
In Schedule 2, paragraphs 15 and 70.

(c. 2)

15

Finance Act 2001 (c. 9)
In Schedule 23, paragraph 2.

Finance Act 2003 (c. 14)
In Schedule 33, paragraphs 6(6), 8(1) and 12(1).


These repeals have effect in accordance with section 42 of this Act.
(4) Loan relationships

Short title and chapter
Extent of repeal

20

Finance Act 1996 (c. 8)
In Schedule 9—

(a)
paragraph 18(3A);

(b)
in paragraph 20(1), paragraph (c) and

the word “and” preceding it;

(c)
paragraph 20(2).

25

These repeals have effect in accordance with Schedule 8 to this Act.
(5) Derivative Contracts

Short title and chapter
Extent of repeal

Finance Act 2002 (c. 23)
In Schedule 26, in paragraph 33(4)(b), the words

“issued by the Financial Services Authority”.

30

This repeal has effect in accordance with Schedule 9 to this Act.

35

Finance Bill
Schedule 40 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax
586

(6) Amendment of enactments that operate by reference to accounting
practice

Short title and chapter
Extent of repeal

Income and Corporation Taxes
In section 730A(6), paragraph (b) (but not the

Act 1988 (c. 1)
word “and” following it).

5

Section 730BB(12).

Finance Act 1996 (c. 8)
In section 84—

(a)
in subsection (1) the words “in

accordance with an authorised

accounting method”;

10

(b)
subsections (2) and (4A).

Section 84A(4) to (7).

Section 88(2)(b) and (3)(b).

Section 88A(5).

Section 90.

15

Section 92.

Sections 93, 93A, 93B and 94.

Section 96(3).

In section 103(1)—

(a)
the definition of “authorised accounting

20

method”, “authorised accruals basis of

accounting” and “authorised mark to

market basis of accounting”;

(b)
the definition of “statutory accounts”.

Section 103(5).

25

Finance Bill
Schedule 40 — Repeals
Part 2 — Income tax, corporation tax and capital gains tax
587

Short title and chapter
Extent of repeal

Finance Act 1996 (c. 8)—cont.
In Schedule 9—

(a)
paragraph 5(1) to (2A);

(b)
in paragraph 5A(9), the words “by virtue

of paragraph 5(2) above”;

5

(c)
in paragraph 5A(15), the words “under

paragraph 5(1)”;

(d)
in paragraph 6(2), the words “in

accordance with that accounting

method”;

10

(e)
in paragraph 6C(2), the words “by virtue

of paragraph 5(2) above”;

(f)
in paragraph 9(2), the word “or” at the

end of paragraph (b);

(g)
paragraph 10A(5);

15

(h)
in paragraph 12(2A), paragraph (b) and

the word “and” preceding it;

(i)
in paragraph 13(1), the words “given by

the authorised accounting method

used”;

20

(j)
in paragraph 14(1), the words “given by

an authorised accounting method”;

(k)
in paragraph 16(2), the words “,

notwithstanding the provisions of any

authorised accounting method,”;

25

(l)
paragraph 19(10).

In Schedule 10, in paragraphs 2A(1) and 2B(1),

the words “, notwithstanding section 84(2)(b)

of this Act”.

Finance Act 1997 (c. 16)
Section 83(1) to (5).

30

Finance Act 1999 (c. 16)
Section 65(7).

Capital Allowances Act 2001
In Schedule 2, paragraphs 88 and 89.

(c. 1)

Finance Act 2002 (c. 23)
Sections 72 to 77.

In section 103(4)—

35

(a)
in paragraph (b), the words “93(2),”;

(b)
in paragraph (d), the words “sections

84(2)(b) and 85(2)(a),”.

In Schedule 23, paragraphs 4, 5 and 8.

In Schedule 24, paragraphs 1 to 6.

40

In Schedule 25, paragraphs 4 to 6, 10 and 12.