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House of Commons

Session 2004 - 05 Internet Publications Other Bills before Parliament

Finance Bill

Finance Bill
The Bill is divided into two volumes. Volume I contains the Clauses to the Bill.
Volume II contains the Schedules to the 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 92 - I 53/4
Finance Bill (Volume I)
The Bill is divided into two volumes. Volume I contains the Clauses to the Bill.
Volume II contains the Schedules 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 etc duties
4    Consolidation of current rates of hydrocarbon oil duties etc.
5    Rates of hydrocarbon oil duties etc. from 1st September 2005
Gaming duty
6    Rates of gaming duty
Vehicle excise duty
7    Rates
8    Late renewal supplements
Part 2
Value added tax
9    Goods subject to warehousing regime: place of acquisition or supply
10    Cars: determination of consideration for fuel supplied for private use
11    Credit for, or repayment of, overstated or overpaid VAT
12    Section 11: consequential and supplementary provision
13    Reverse charge: gas and electricity valuation
14    Disclosure of value added tax avoidance schemes
Bill 92 – I                                                                                              53/4
Finance Bill (Volume I) iv
Part 3
Income tax, corporation tax and capital gains tax
Chapter 1
Income tax and corporation tax charge and rate bands
Income tax
15    Charge and rates for 2005-06
16    Personal allowances for those aged 65 or more
Corporation tax
17    Charge and main rate for financial year 2006
18    Small companies’ rate and fraction for financial year 2005
19    Corporation tax starting rate and fraction for financial year 2005
20    The non-corporate distribution rate for financial year 2005
Trusts
21    Special trust rates not to apply to first slice of trust income
Chapter 2
Personal taxation
Taxable benefits
22    Childcare vouchers: exempt amount
23    Extension of exemptions for childcare, workplace parking, cycles etc.
24    Employee benefits: transfer of previously loaned computer or cycle etc.
25    Extension of outplacement services etc exemption: part-time employees
Social security pension lump sums
26    Charge to income tax on lump sum
27    Meaning of “applicable year of assessment” in section 26
28    Interpretation
29    Consequential amendments
Armed forces
30    Armed forces pensions and compensation schemes
Gift aid
31    Donations to charity by individuals
Finance Bill (Volume I) v
Chapter 3
Employment-related securities and options
32    Employee securities: anti-avoidance
33    Research institution spin-out companies
34    Research institution spin-out companies: pre-2nd December 2004 cases
35    Capital gains
Chapter 4
Scientific research organisations
36    Corporation tax exemption for organisations
37    Income tax deduction for payments to organisations
38    Corporation tax deduction for payments to organisations
Chapter 5
Trusts with vulnerable beneficiary
Introductory
39    Introduction
40    Entitlement to make claim for special tax treatment
Income tax
41    Qualifying trusts income: special income tax treatment
42    Amount of relief
43    Trustees’ liability: TQTI
44    Vulnerable person’s liability: VQTI
45    Part years
Capital gains tax
46    Qualifying trusts gains: special capital gains tax treatment
47    UK resident vulnerable persons: section 77 treatment
48    Non-UK resident vulnerable persons: amount of relief
49    Vulnerable person’s liability: VQTG
Qualifying trusts
50    Disabled persons
51    Relevant minors
52    Parts of assets
Vulnerable persons
53    Vulnerable person election
54    Meaning of “disabled person”
55    Meaning of “relevant minor”
Finance Bill (Volume I) vi
Miscellaneous and supplementary
56    Power to make enquiries
57    Interpretation etc.
58    Application in relation to Scotland
59    Penalties under TMA 1970
60    Consequential amendments
61    Commencement
Chapter 6
Authorised investment funds
62    Open-ended investment companies
63    Authorised unit trusts and open-ended investment companies
64    Section 63(3): specific powers
65    Section 63: commencement and procedure
66    Unauthorised unit trusts: chargeable gains
67    Unit trusts: treatment of accumulation units
68    Section 349B ICTA: exemption for distributions to PEP/ISA managers
69    Offshore funds
Chapter 7
Alternative finance arrangements
Introductory
70    Alternative finance arrangements
Arrangements giving rise to alternative finance return
71    Alternative finance arrangements: alternative finance return
72    Arrangements within section 71: foreign currency and non-residents
Arrangements giving rise to profit share return
73    Alternative finance arrangements: profit share return
Treatment of alternative finance arrangements
74    Treatment of alternative finance arrangements: companies
75    Treatment of alternative finance arrangements: persons other than companies
76    Provision not at arm’s length
77    Treatment of section 71 arrangements: sale and purchase of asset
78    Section 73 arrangements: profit share return not to be treated as distribution
Supplementary
79    Further provisions
80    Application of Chapter
81    Interpretation of Chapter
Finance Bill (Volume I) vii
Chapter 8
Film relief
Tax relief for limited-budget films
82    Relief for production and acquisition expenditure on limited-budget films
Restrictions on relief
83    Restrictions on relief for production and acquisition expenditure
Deferred income agreements
84    Deferred income agreements which exist when relief claimed
85    Meaning of “deferred income agreement in respect of a film”
86    Deferred income agreements entered into after relief claimed
87    Sections 84 to 86: supplementary
88    Transitional provision for years of assessment before the year 2005-06
89    Corresponding provision in ITTOIA 2005
Companies benefited by film relief: exit charges
90    When a chargeable event occurs
91    Consequences of a chargeable event: exit event X or Y
92    Exit event Z: a relevant disposal at an undervalue
93    Consequences of a chargeable event: exit event Z
94    Valuation of the “rights to guaranteed income” and “disposed rights”
95    Meaning of “company” and related terms
Chapter 9
Avoidance involving partnership
Partners: restrictions on relief
96    Removal of restrictions on interest relief
97    Meaning of “contribution to the trade”
Partners: recovery of excess relief
98    Recovery of excess relief given under section 380 or 381 of ICTA
99    Computing the chargeable amount
100    Meaning of “relevant loss”
101    Transitional provision for years of assessment before the year 2005-06
102    Consequential amendments
Partners benefited by film relief
103    Meaning of “capital contribution to the trade”

© Parliamentary copyright 2005	Revised 24 March 2005