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House of Commons

Session 2002 - 03 Internet Publications Other Bills before Parliament

Finance Bill

Finance Bill (Volume I)
[AS AMENDED IN THE COMMITTEE AND IN STANDING COMMITTEE A]
The Bill is divided into two volumes. Volume I contains Clauses and Schedules 1 to
7 to the Bill. Volume II contains Schedules 8 to 40 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
4    Duty stamps for spirits etc
Hydrocarbon oil etc duties
5    Rates
6    Road fuel gas
7    Sulphur-free fuel
8    Definition of “fuel oil”
9    Mixing of rebated oil
10    Bioethanol
11    Biodiesel
12    Fuel substitutes
13    Warehousing
14    Treatment of certain energy products
Betting and gaming duties
15    General betting duty: pool betting
16    Rates of gaming duty
Amusement machine licence duty
17    Amusement machine licence duty: rates
Bill 127 – I 53/3
Finance Bill (Volume I) iv
Vehicle excise duty
18    Fee for payment of duty by credit card
Part 2
Value added tax
19    Disclosure of VAT avoidance schemes
20    Groups
21    Reverse charge on gas and electricity supplied by persons outside UK
22    Use of stock in trade cars for consideration less than market value
Part 3
Income tax, corporation tax and capital gains tax
Chapter 1
Income tax and corporation tax charge and rate bands
Income tax
23    Charge and rates for 2004-05
24    Personal allowances for those aged 65 or more
Corporation tax
25    Charge and main rate for financial year 2005
26    Small companies’ rate and fraction for financial year 2004
27    Corporation tax starting rate and fraction for financial year 2004
28    The non-corporate distribution rate
Trusts
29    Special rates of tax applicable to trusts
Chapter 2
Corporation tax: general
Transfer pricing
30    Provision not at arm’s length: transactions between UK taxpayers etc
31    Exemptions for dormant companies and small and medium-sized enterprises
32    Special applications of paragraph 6 of Schedule 28AA to the Taxes Act 1988
Penalties: temporary relaxation
33    Provision not at arm’s length: temporary relaxation of liability to penalty
Thin capitalisation
34    Payments of excessive interest etc
35    Elimination of double counting etc
Finance Bill (Volume I) v
36    Balancing payments and elections to pay tax instead
Transfer pricing and thin capitalisation: commencement
37    Commencement and transitional provisions
Expenses of companies with investment business and insurance companies
38    Expenses of management: companies with investment business
39    Accounting period to which expenses of management are referable
40    Expenses of insurance companies
41    Related amendments to other enactments
42    Commencement of sections 38 to 41
43    Companies with investment business: transitional provisions
44    Insurance companies: transitional provisions
Amounts reversing expenses of management deducted
45    Amounts reversing expenses of management deducted: charge to tax
Power to make consequential amendments
46    Power to make consequential amendments
Insurance companies: miscellaneous
47    Insurance companies etc.
Loan relationships and derivative contracts
48    Loan relationships: miscellaneous amendments
49    Derivative contracts: miscellaneous amendments
Accounting practice
50    Generally accepted accounting practice
51    Use of different accounting practices within a group of companies
52    Amendment of enactments that operate by reference to accounting practice
53    Treatment of expenditure on research and development
54    Trading profits etc. from securities: taxation of amounts taken to reserves
Miscellaneous
55    Duty of company to give notice of coming within charge to corporation tax
56    Relief for community amateur sports clubs
Chapter 3
Construction industry scheme
Introduction
57    Introduction
58    Sub-contractors
Finance Bill (Volume I) vi
59    Contractors
Deductions on account of tax from contract payments to sub-contractors
60    Contract payments
61    Deductions on account of tax from contract payments
62    Treatment of sums deducted
Registration of sub-contractors
63    Registration for gross payment or for payment under deduction
64    Requirements for registration for gross payment
65    Change in control of company registered for gross payment
66    Cancellation of registration for gross payment
67    Registration for gross payment: appeals
68    Registration for payment under deduction: cancellation and appeals
Verification, returns etc and penalties
69    Verification etc of registration status of sub-contractors
70    Periodic returns by contractors etc
71    Collection and recovery of sums to be deducted
72    Penalties
Supplementary
73    Regulations under this Chapter: supplementary
74    Meaning of “construction operations”
75    Meaning of “the Inland Revenue” etc and delegation of Board’s functions
76    Consequential amendments
77    Commencement and transitional provision
Chapter 4
Personal taxation
Taxable benefits
78    Childcare and childcare vouchers
79    Exemption for loaned computer equipment
80    Vans
81    Emergency vehicles
82    European travel expenses of MPs and other representatives
Gift aid
83    Giving through the self-assessment return
Gifts with a reservation
84    Charge to income tax by reference to enjoyment of property previously
owned
Finance Bill (Volume I) vii
Employment-related securities and options
85    Relief where national insurance contributions met by employee
86    Shares in employee-controlled companies and unconnected companies
87    Restricted securities with artificially depressed value
88    Shares under approved plans and schemes
89    Shares acquired on public offer
90    Associated persons etc.
Miscellaneous
91    Income of spouses: jointly held property
92    Minor amendments of or connected with ITEPA 2003
Chapter 5
Enterprise incentives
93    Enterprise investment scheme
94    Venture capital trusts
95    Corporate venturing scheme
96    Enterprise management incentives: subsidiaries
Chapter 6
Exemption from income tax for certain interest and royalty payments
Introductory
97    Introductory
Exemption from income tax
98    Exemption from income tax for certain interest and royalty payments
99    Permanent establishments and “25% associates”
Exemption notices
100    Interest payments: exemption notices
Payment without deduction
101    Payment of royalties without deduction at source
102    Claim for tax deducted at source from exempt interest or royalty payments
Special relationships and anti-avoidance
103    Special relationships
104    Anti-avoidance
Supplementary
105    Consequential amendments
106    Transitional provision
Finance Bill (Volume I) viii
Chapter 7
Savings income: double taxation arising from withholding tax
Introductory
107    Introductory
Credit etc for special withholding tax
108    Income tax credit etc for special withholding tax
109    Capital gains tax credit etc for special withholding tax
110    Credit under Part 18 of Taxes Act 1988 to be allowed first
Computation of income etc
111    Computation of income etc subject to special withholding tax only
112    Computation of income etc subject to foreign tax and special withholding tax
Certificates to avoid levy of special withholding tax
113    Issue of certificate
114    Refusal to issue certificate and appeal against refusal
Supplementary
115    Supplementary
Chapter 8
Chargeable gains
116    Restriction of gifts relief etc
117    Private residence relief
118    Authorised unit trusts: treatment of umbrella schemes
Chapter 9
Avoidance involving loss relief or partnership
Individuals benefited by film relief
119    Individuals benefited by film relief
120    “Disposal of a right of the individual to profits arising from the trade”
121    “The losses claimed” and “the individual’s capital contribution to the trade”
122    Computing the chargeable amount
123    “Film-related losses” and “non-taxable consideration”
Individuals in partnership: restriction of relief
124    Restriction of relief: non-active partners
125    Partnerships exploiting films
Finance Bill (Volume I) ix
Individuals in partnership: exit charge
126    Losses derived from exploiting licence: introductory
127    Charge to income tax
128    Definitions for purposes of section 127
129    Disposals to which section 126 applies
130    “A significant amount of time”
Companies in partnership
131    Companies in partnership
132    Companies in partnership: supplementary
133    Relationship with chargeable gains
Chapter 10
Avoidance: miscellaneous
134    Finance leasebacks
135    Manufactured dividends
136    Gilt strips
137    Life policies etc.: restriction of corresponding deficiency relief
Chapter 11
Miscellaneous
Reliefs for business
138    Relief for research and development: software and consumable items
139    Temporary increase in amount of first-year allowances for small enterprises
140    Deduction for expenditure by landlords on energy-saving items
141    Lloyd’s names: conversion to limited liability underwriting
Offshore matters
142    Offshore funds
143    Meaning of “offshore installation”
Health
144    Immediate needs annuities
145    Corporation tax: health service bodies
Part 4
Pension schemes etc
Chapter 1
Introduction
Introductory
146    Overview of Part 4

© Parliamentary copyright 2004	Revised 29 June 2004