Finance Bill
The Bill is divided into two volumes. Volume I contains the Clauses and Schedules
1 to 7 to the Bill. Volume II contains Schedules 8 to 46 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 89
54/3
Contents
Part 1
Charges, rates, allowances, reliefs etc
Income tax
1
Charge and main rates for 2008-09
2
Personal allowances for those aged 65 and over
3
Abolition of starting and savings rates and creation of starting rate for savings
Corporation tax
4
Charge and main rates for financial year 2009
5
Small companies’ rates and fractions for financial year 2008 etc
Capital gains tax
6
Rate etc
7
Entrepreneurs’ relief
Inheritance tax
8
Transfer of unused nil-rate band etc
Alcohol and tobacco
9
Rates of alcoholic liquor duty
10
Rates of tobacco products duty
Fuel duties
11
Rates and rebates: simplification
12
Biodiesel and bioblend
13
Rates and rebates: increase from 1 October 2008
14
Fuel for aircraft and boats, heating oil and fuel for certain engines
ii
Environmental taxes and duties
15
Rates of vehicle excise duty
16
Standard rate of landfill tax
17
Rates of climate change levy
18
Rate of aggregates levy
19
Carbon reduction trading scheme: charges for allocations
Gambling duties
20
Rates of gaming duty
21
Amusement machine licence duty
Part 2
Income tax, corporation tax and capital gains tax - general
Residence and domicile
22
Periods of residence
23
Remittance basis
Research and development
24
Rates of R&D relief and vaccine research relief
25
Companies in difficulty: SME R&D relief and vaccine research relief
26
Cap on R&D aid
27
Vaccine research relief: declaration about effect of relief
Venture capital schemes etc
28
Enterprise investment scheme: increase in amount of relief
29
Venture capital schemes
30
Enterprise management incentives: qualifying companies
Other business and investment measures
31
Tax credits for certain foreign distributions
32
Small companies’ relief: associated companies
33
Company gains from investment life insurance contracts etc
34
Trade profits: changes in trading stock
35
Non-residents: investment managers
36
Dormant bank and building society accounts
37
Individual investment plan regulations
Offshore funds
38
Tax treatment of participants in offshore funds
39
Regulations under section 38: supplementary
Insurance companies and friendly societies
40
Insurance companies etc
41
Friendly societies
iii
Employment matters
42
Homes outside UK owned through company etc
43
In-work and return to work credits and payments
44
Company cars: lower threshold for CO2 emissions figure
45
Van fuel benefit
46
Employment-related securities etc: deductible amounts etc
47
Employment-related securities: repeal of obsolete provisions
48
Armed forces: the Council Tax Relief
49
Greater London Authority: severance payments
Charities etc
50
Gift aid: payments to charities
51
Community investment tax relief
Leasing
52
Leases of plant or machinery
53
Sale of lessor companies etc
Double taxation arrangements
54
Double taxation relief
55
UK residents and foreign partnerships
56
UK residents and foreign enterprises
Other anti-avoidance provisions
57
Restrictions on trade loss relief for individuals
58
Non-active partners
59
Financial arrangements avoidance
60
Manufactured payments
61
Controlled foreign companies
62
Intangible fixed assets: related parties
63
Repeal of obsolete anti-avoidance provisions
Miscellaneous
64
Income of beneficiaries under settlor-interested settlements
65
Income charged at dividend upper rate
66
Payments on account of income tax
67
Allowances etc for non-resident nationals of an EEA state
Part 3
Capital allowances
Plant and machinery: qualifying expenditure
68
Thermal insulation of buildings
69
Expenditure on required fire precautions
70
Integral features
iv
Plant and machinery: annual investment allowance
71
Annual investment allowance
Plant and machinery: first-year allowances
72
First-year allowance for small and medium-sized enterprises discontinued
73
Repeal of spent first-year allowances
74
Cars with low carbon dioxide emissions
75
Gas refuelling stations
76
First-year tax credits
Plant and machinery: writing-down allowances and pools
77
Main rate of writing down allowance
78
Small pools
79
Special rate expenditure and the special rate pool
80
Existing long-life asset expenditure treated as special rate expenditure
Industrial and agricultural buildings allowances
81
Abolition of allowances from 2011
82
Phasing out of allowances before abolition
83
Qualifying enterprise zone expenditure: transitional provision
84
Phasing out of industrial buildings allowance: anti-avoidance
Supplementary provision
85
Power to make consequential and transitional provision
Anti-avoidance
86
Balancing allowances on transfers of trade
Part 4
Pensions
87
Spreading of relief on indirect contributions
88
Inheritance etc of tax-relieved pension savings
89
Pension schemes: further provision
Part 5
Stamp taxes
Stamp duty land tax
90
Zero-carbon homes
91
Notification and registration of transactions
92
Charge where consideration includes rent: 0% band
93
Withdrawal of group relief
94
Transfers of interests in property-investment partnerships
v
Stamp duty
95
Exemption from ad valorem stamp duty for low value transactions
96
Abolition of fixed stamp duty on certain instruments
97
Loan capital
Part 6
Oil
Petroleum revenue tax
98
Meaning of “participator”
99
Abandonment expenditure: default by participator met by former
participator
100
Abandonment expenditure: former participator reimbursed by defaulter
101
Returns of relevant sales of oil
102
Elections for oil fields to become non-taxable
103
Capital allowances: plant and machinery for use in ring fence trade
104
Capital allowances: decommissioning expenditure
105
Capital allowances: abandonment expenditure after ceasing ring fence trade
106
Losses: set off against profits of earlier accounting periods
107
Ring fence trade: no deduction for expenses of investment management
Part 7
Administration
Chapter 1
Information etc
New information etc powers
108
Information and inspection powers
109
Computer records etc
Other measures
110
Record-keeping
111
Disclosure of tax avoidance schemes
112
Power to open or unpack containers
Chapter 2
Time limits for claims and assessments etc
General
113
Time limits for assessments, claims etc