Finance (No. 2) Bill

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House of Commons

Session 2004 - 05
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Finance (No. 2) Bill

Finance (No. 2) 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 (No. 2) Bill are compatible with the
Convention rights.

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Finance (No. 2) Bill

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Finance (No. 2) 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
Part 2
Income tax, corporation tax and capital gains tax
Chapter 1
Income tax and corporation tax charge and rate bands
Income tax
8
Charge and rates for 2005-06
9
Personal allowances for those aged 65 or more

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Corporation tax
10
Charge and main rate for financial year 2006
11
Small companies’ rate and fraction for financial year 2005
12
Corporation tax starting rate and fraction for financial year 2005
13
Non-corporate distribution rate for financial year 2005
Trusts
14
Special trust rates not to apply to first slice of trust income
Chapter 2
Personal taxation
Taxable benefits
15
Childcare vouchers: exempt amount
16
Extension of exemptions for childcare, workplace parking, cycles etc
17
Transfer of previously loaned computer or cycle etc
18
Extension of outplacement services etc exemption: part-time employees
Armed forces
19
Armed forces pensions and compensation schemes
Chapter 3
Employment-related securities
20
Research institution spin-out companies
21
Research institution spin-out companies: pre-2nd December 2004 cases
22
Capital gains
Chapter 4
Trusts with vulnerable beneficiary
Introductory
23
Introduction
24
Entitlement to make claim for special tax treatment
Income tax
25
Qualifying trusts income: special income tax treatment
26
Amount of relief
27
Trustees’ liability: TQTI
28
Vulnerable person’s liability: VQTI
29
Part years
Capital gains tax
30
Qualifying trusts gains: special capital gains tax treatment
31
UK resident vulnerable persons: section 77 treatment

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32
Non-UK resident vulnerable persons: amount of relief
33
Vulnerable person’s liability: VQTG
Qualifying trusts
34
Disabled persons
35
Relevant minors
36
Parts of assets
Vulnerable persons
37
Vulnerable person election
38
Meaning of “disabled person”
39
Meaning of “relevant minor”
Miscellaneous and supplementary
40
Power to make enquiries
41
Interpretation etc.
42
Application in relation to Scotland
43
Penalties under TMA 1970
44
Consequential amendments
45
Commencement
Chapter 5
Alternative finance arrangements
Introductory
46
Alternative finance arrangements
Arrangements giving rise to alternative finance return
47
Alternative finance arrangements: alternative finance return
48
Arrangements within section 47 : foreign currency and non-residents
Arrangements giving rise to profit share return
49
Alternative finance arrangements: profit share return
Treatment of alternative finance arrangements
50
Treatment of alternative finance arrangements: companies
51
Treatment of alternative finance arrangements: persons other than companies
52
Provision not at arm’s length
53
Treatment of section 47 arrangements: sale and purchase of asset
54
Section 49 arrangements: profit share return not to be treated as distribution
Supplementary
55
Further provisions
56
Application of Chapter
57
Interpretation of Chapter

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Chapter 6
Film relief
Tax relief for limited-budget films
58
Relief for production and acquisition expenditure on limited-budget films
Restrictions on relief
59
Restrictions on relief for production and acquisition expenditure
Deferred income agreements
60
Deferred income agreements which exist when relief claimed
61
Meaning of “deferred income agreement in respect of a film”
62
Deferred income agreements entered into after relief claimed
63
Sections 60 to 62 : supplementary
64
Transitional provision for years of assessment before the year 2005-06
65
Corresponding provision in ITTOIA 2005
Companies benefited by film relief: exit charges
66
When a chargeable event occurs
67
Consequences of a chargeable event: exit event X or Y
68
Exit event Z: a relevant disposal at an undervalue
69
Consequences of a chargeable event: exit event Z
70
Valuation of the “rights to guaranteed income” and “disposed rights”
71
Meaning of “company” and related terms
Chapter 7
Avoidance involving partnership
Partners: restrictions on relief
72
Removal of restrictions on interest relief
73
Meaning of “contribution to the trade”
Partners: recovery of excess relief
74
Recovery of excess relief given under section 380 or 381 of ICTA
75
Computing the chargeable amount
76
Meaning of “relevant loss”
77
Transitional provision for years of assessment before the year 2005-06
78
Consequential amendments
Partners benefited by film relief
79
Meaning of “capital contribution to the trade”

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Chapter 8
Accounting practice and related matters
80
Accounting practice and related matters
81
Computation of profits: change of accounting basis
82
Change of accounting practice: deferment of transitional adjustments
83
Application of accounting standards to securitisation companies
84
Taxation of securitisation companies
Chapter 9
International matters
Double taxation relief: general
85
Dividends by reference to which a deduction is allowed: no underlying tax
Double taxation relief: restrictions
86
Limits on credit: income tax and corporation tax: trading profits
87
Schemes and arrangements designed to increase relief
88
Self-assessment amendments
Controlled foreign companies
89
ADP dividends and double taxation relief
90
Foreign taxation of group as single entity: exclusion of ADP CFCs
Annual payments and double taxation relief
91
Tax avoidance involving annual payments and double taxation relief
Chapter 10
Miscellaneous
Capital allowances
92
Capital allowances: renovation of business premises in disadvantaged areas
Tonnage tax
93
Tonnage tax
Part 3
Stamp taxes
Stamp duty land tax
94
Alternative property finance

© Parliamentary copyright 2005
Revised 6 April 2005