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Finance Act 1990 (c. 29)

(The document as of February, 2008)

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Finance Act 1990

1990 CHAPTER 29

ARRANGEMENT OF SECTIONS

Content
  1. Part I

    Customs and Excise and Value Added Tax

    1. Chapter I

      Customs and Excise

      1. Rates of duty

        1. 1. Spirits, beer, wine, made-wine and cider.

        2. 2. Tobacco products.

        3. 3. Hydrocarbon oil.

        4. 4. Pool betting duty.

        5. 5. Vehicles excise duty.

      2. Other provisions

        1. 6. Vehicles excise duty: exemptions.

        2. 7. Entry of goods on importation.

        3. 8. Spirits methylated abroad.

        4. 9. Lodgings for officers in charge of distillery.

    2. Chapter II

      Value Added Tax

      1. 10. Registration.

      2. 11. Bad debts.

      3. 12. Domestic accommodation.

      4. 13. Goods shipped as stores.

      5. 14. Supplies to groups.

      6. 15. Power to assess.

      7. 16. Interest on tax etc. recovered or recoverable by assessment.

  2. Part II

    Income Tax, Corporation Tax and Capital Gains Tax

    1. Chapter I

      General

      1. Income tax rates and allowances

        1. 17. Rates and main allowances.

        2. 18. Relief for blind persons.

      2. Corporation tax rates

        1. 19. Charge and rate of corporation tax for 1990.

        2. 20. Small companies.

      3. Benefits in kind

        1. 21. Care for children.

        2. 22. Car benefits.

      4. Mileage allowances

        1. 23. Limit on chargeable mileage profit.

      5. Charities

        1. 24. Payroll deduction scheme.

        2. 25. Donations to charity by individuals.

        3. 26. Company donations to charity.

        4. 27. Maximum qualifying company donations.

      6. Savings

        1. 28. Tax-exempt special savings accounts.

        2. 29. Extension of SAYE.

        3. 30. Building societies and deposit-takers.

      7. Employee share ownership trusts

        1. 31. Conditions for roll-over relief.

        2. 32. Conditions for relief: supplementary.

        3. 33. The relief.

        4. 34. Dwelling-houses: special provision.

        5. 35. Shares: special provision.

        6. 36. Chargeable event when replacement assets owned.

        7. 37. Chargeable event when replacement property owned.

        8. 38. Chargeable event when bonds owned.

        9. 39. Information.

        10. 40. Other enactments.

      8. Insurance companies and friendly societies

        1. 41. Apportionment of income etc.

        2. 42. Overseas life assurance business.

        3. 43. Deduction for policy holders' tax.

        4. 44. Reinsurance commissions.

        5. 45. Policy holders' share of profits etc.

        6. 46. Annual deemed disposal of holdings of unit trusts etc.

        7. 47. Spreading of gains and losses under section 46.

        8. 48. Transfers of long term business.

        9. 49. Friendly societies: increased tax exemption.

        10. 50. Friendly societies: application of enactments.

      9. Unit and investment trusts etc.

        1. 51. Authorised unit trusts.

        2. 52. Unit trusts: repeals.

        3. 62. CT treatment of PRT repayment.

        4. 63. Disposals of certain shares deriving value from exploration or exploitation assets or rights.

        5. 64. Limitation of losses on disposal of oil industry assets.

      10. International

        1. 65. Dual resident companies: capital gains.

        2. 66. Dual resident companies: transfers of assets abroad.

        3. 67. Dual resident companies: controlled foreign companies.

        4. 68. Movements of capital between residents of member States.

        5. 69. European Economic Interest Groupings.

        6. 70. Transfer of United Kingdom branch or agency.

      11. Miscellaneous

        1. 71. Relief for interest.

        2. 72. Capital gains: annual exempt amount for 1990-91.

        3. 73. Business expansion scheme: abolition of "locality rule".

        4. 74. Debts of overseas governments etc.

        5. 75. Local enterprise agencies.

        6. 76. Training and enterprise councils and local enterprise companies.

        7. 77. Expenses of entertainers.

        8. 78. Waste disposal.

        9. 79. Priority share allocations for employees etc.

        10. 80. Broadcasting: transfer of undertakings of Independent Broadcasting Authority and Cable Authority.

        11. 81. Futures and options: exemptions.

        12. 82. Settlements: child's income.

        13. 83. Loans to traders.

        14. 84. Qualifying corporate bonds: relief.

        15. 85. Qualifying corporate bonds: reorganisations etc.

        16. 86. Groups of companies.

        17. 87. Capital allowances: vehicles provided by employees.

        18. 88. Capital allowances: miscellaneous amendments.

        19. 89. Correction of errors in Taxes Act 1988.

    2. Chapter II

      Management

      1. Returns and information

        1. 90. Income tax returns.

        2. 91. Corporation tax returns.

        3. 92. Information powers relating to interest.

        4. 93. Restrictions on Board's power to call for information.

        5. 94. Donations to charity: inspection powers.

      2. Corporation tax determinations

        1. 95. Determinations.

        2. 96. Consequential group relief adjustments.

      3. Claims by companies

        1. 97. Payment of tax credits.

        2. 98. Repayment of income tax deducted at source.

        3. 99. Loss relief.

        4. 100. Group relief: general.

        5. 101. Group relief: relieved losses.

        6. 102. Capital allowances: general.

        7. 103. Capital allowances: assimilation to claims by individuals.

      4. Miscellaneous

        1. 104. Officers.

        2. 105. Recovery of excessive repayments of tax.

        3. 106. Corporation tax: collection.

  3. Part III

    Stamp Duty and Stamp Duty Reserve Tax

    1. Repeals

      1. 107. Bearers: abolition of stamp duty.

      2. 108. Transfer of securities: abolition of stamp duty.

      3. 109. Stamp duty: other repeals.

      4. 110. Stamp duty reserve tax: abolition.

      5. 111. General.

    2. Paired shares

      1. 112. Stamp duty.

      2. 113. Stamp duty reserve tax.

    3. International organisations

      1. 114. International organisations.

  4. Part IV

    Miscellaneous and General

    1. Ports levy

      1. 115. Levy on privatisation of certain ports.

      2. 116. Amount of levy.

      3. 117. Levy on employee securities.

      4. 118. Payment of levy.

      5. 119. Information for purposes of levy.

      6. 120. Supplementary provisions relating to levy.

    2. Petroleum revenue tax

      1. 121. Limit on PRT repayment interest where loss carried back.

      2. 122. Variation, on account of fraudulent or negligent conduct, of decision on expenditure claim etc.

    3. Miscellaneous

      1. 123. Gas levy.

      2. 124. Inheritance tax: restriction on power to require information.

      3. 125. Information for tax authorities in other member States.

      4. 126. Pools payments for football ground improvements.

      5. 127. Definition of "local authority" for certain tax purposes.

      6. 128. Repayment of fees and charges.

      7. 129. Settlement of stock disputes by deputy registrars.

      8. 130. Limit for local loans.

    4. General

      1. 131. Interpretation etc.

      2. 132. Repeals.

      3. 133. Short title.

  5. Schedules:

    1. Schedule 1

      Table of rates of duty on wine and made-wine.

    2. Schedule 2

      Vehicles excise duty: rates.

      1. Part I

        Table substituted in Part II of Schedule 3 to the 1971 Act and the 1972 Act.

      2. Part II

        Amendments of Part I of Schedule 4 to the 1971 Act.

      3. Part III

        Amendments of Part I of Schedule 4 to the 1972 Act.

      4. Part IV

        Tables substituted in Part II of Schedule 4 to the 1971 Act and the 1972 Act.

    3. Schedule 3

      Entry of goods on importation.

    4. Schedule 4

      Limit on chargeable mileage profit.

    5. Schedule 5

      Building societies and deposit-takers.

    6. Schedule 6

      Life assurance: apportionment of income etc.

    7. Schedule 7

      Overseas life assurance business.

    8. Schedule 8

      Insurance companies: holdings of unit trusts etc.

    9. Schedule 9

      Insurance companies: transfers of long term business.

    10. Schedule 10

      Convertible securities.

      1. Part I

        Introduction.

      2. Part II

        Charge to tax.

      3. Part III

        The issuing company.

      4. Part IV

        Amendments.

      5. Part V

        Application of Schedule.

    11. Schedule 11

      European Economic Interest Groupings.

    12. Schedule 12

      Broadcasting: transfer of undertakings of Independent Broadcasting Authority and Cable Authority.

    13. Schedule 13

      Capital allowances: miscellaneous amendments.

    14. Schedule 14

      Amendments correcting errors in the Taxes Act 1988.

      1. Part I

        Amendments of the Taxes Act 1988.

      2. Part II

        Amendments of other enactments.

    15. Schedule 15

      Claims for group relief.

    16. Schedule 16

      Capital allowances: claims by companies.

    17. Schedule 17

      Capital allowances: assimilation of claims by companies to claims by individuals.

    18. Schedule 18

      Definition of "local authority".

    19. Schedule 19

      Repeals.

      1. Part I

        Customs and excise.

      2. Part II

        Vehicles excise duty.

      3. Part III

        Value added tax.

      4. Part IV

        Income tax, corporation tax and capital gains tax.

      5. Part V

        Management.

      6. Part VI

        Stamp duty.

      7. Part VII

        Stamp duty reserve tax.

      8. Part VIII

        National savings.

An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.

[26th July 1990]

Most Gracious Sovereign,

WE, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:--



Part I Customs and Excise and Value Added Tax

Chapter I Customs and Excise

Rates of duty

1 Spirits, beer, wine, made-wine and cider

(1) In section 5 of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979 (spirits) for "£15.77" there shall be substituted "£17.35".

(2) In section 36 of that Act (beer) for "£0.90" there shall be substituted "£0.97".

(3) For the Table of rates of duty in Schedule 1 to that Act (wine and made-wine) there shall be substituted the Table in Schedule 1 to this Act.

(4) In section 62(1) of that Act (cider) for "£17.33" there shall be substituted "£18.66".

(5) This section shall be deemed to have come into force at 6 o'clock in the evening of 20th March 1990.

2 Tobacco products

(1) For the Table in Schedule 1 to the [1979 c. 7.] Tobacco Products Duty Act 1979 there shall be substituted--

" TABLE
1. Cigarettes ... ... ... ...An amount equal to 21 per cent. of the retail price plus £34.91 per thousand cigarettes.
2. Cigars ... ... ... ...£53.67 per kilogram.
3. Hand-rolling tobacco ... ... ... ...£56.63 per kilogram.
4. Other smoking tobacco and chewing tobacco ... ... ... ...£24.95 per kilogram. "

(2) This section shall be deemed to have come into force on 23rd March 1990.

3 Hydrocarbon oil

(1) In section 6 of the [1979 c. 5.] Hydrocarbon Oil Duties Act 1979--

(a) in subsection (1), for "£0.2044" (duty on light oil) and "£0.1729" (duty on heavy oil) there shall be substituted "£0.2248" and "£0.1902" respectively; and

(b) subsection (2A) (special rate of duty on petrol below 4 star) shall cease to have effect.

(2) In section 11(1) of that Act, for "£0.0077" (rebate on fuel oil) and "£0.0110" (rebate on gas oil) there shall be substituted "£0.0083" and "£0.0118" respectively.

(3) In section 13A(1) of that Act (rebate on unleaded petrol), for "£0.0272" there shall be substituted "£0.0299".

(4) In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for "£0.0077" there shall be substituted "£0.0083".

(5) In Part I of Schedule 3 to that Act, for paragraph 10A there shall be substituted--

" 10A. Amending the definition of "aviation gasoline" in subsection (4) of section 6 of this Act. "

(6) Subsections (1) to (4) above shall be deemed to have come into force at 6 o'clock in the evening of 20th March 1990.

4 Pool betting duty

(1) In section 7(1) of the [1981 c. 63.] Betting and Gaming Duties Act 1981 (which specifies 42½ per cent. as the rate of pool betting duty), for the words "42½ per cent." there shall be substituted the words "40 per cent.".

(2) This section shall apply in relation to bets made at any time by reference to an event taking place on or after 6th April 1990.

5 Vehicles excise duty

(1) The [1971 c. 10.] Vehicles (Excise) Act 1971 ("the 1972 c. 10 (N.I.).1971 Act") and the Vehicles (Excise) Act (Northern Ireland) 1972 ("the 1972 Act") shall be amended as follows.

(2) In Schedule 3 to each Act (annual rates of duty on haulage vehicles)--

(a) in paragraph 1 of Part I, for the words from "according" to the end there shall be substituted the words "be the rate specified in relation to vehicles of that description in the second column of that Part."; and

(b) for the Table set out in Part II there shall be substituted the Table set out in Part I of Schedule 2 to this Act.

(3) Part II of Schedule 2 to this Act (which amends Part I of Schedule 4 to the 1971 Act) shall have effect.

(4) Part III of Schedule 2 to this Act (which amends Part I of Schedule 4 to the 1972 Act) shall have effect.

(5) For the Tables set out in Part II of Schedule 4 to the 1971 Act there shall be substituted the Tables set out in Part IV of Schedule 2 to this Act.

(6) The Tables set out in Part IV of Schedule 2 to this Act shall also be substituted for the Tables set out in Part II of Schedule 4 to the 1972 Act, but with the following modifications--

(a) for the words "plated gross weight", in each place where they occur, there shall be substituted the words "relevant maximum weight", and

(b) for the words "plated train weight", in each place where they occur, there shall be substituted the words "relevant maximum train weight".

(7) In paragraph 2 of Schedule 4A to each Act (annual rates of duty on vehicles used for carrying or drawing exceptional loads) for "£3,100" there shall be substituted "£3,250".

(8) This section, except subsections (3) and (4), shall apply in relation to licences taken out after 20th March 1990.

(9) Subsections (3) and (4) above shall apply in relation to licences taken out after 30th September 1990.



Other provisions

6 Vehicles excise duty: exemptions

(1) Section 4 of each of the Vehicles (Excise) Act 1971 and the Vehicles (Excise) Act (Northern Ireland) 1972 (exemptions) shall be amended as follows.

(2) In subsection (1) the following paragraph shall be inserted after paragraph (c)--

" (ca) veterinary ambulances; " .

(3) In subsection (1) the following paragraphs shall be inserted after paragraph (k)--

" (ka) vehicles (other than mowing machines) neither constructed nor adapted for use nor used for the carriage of a driver or passenger;

(kb) vehicles (other than ambulances) used for the carriage of disabled persons by bodies for the time being recognised for the purposes of this paragraph by the Secretary of State; " .

(4) The following subsections shall be inserted after subsection (1)--

" (1A) The Secretary of State shall recognise a body for the purposes of subsection (1)(kb) above if, on application made to him in such manner as he may specify, it appears to him that the body is concerned with the care of disabled persons.

(1B) The issue by the Secretary of State of a nil licence in respect of a mechanically propelled vehicle shall be treated, where the document is issued by virtue of paragraph (kb) of subsection (1) above, as recognition by him for the purposes of that paragraph of the body by reference to whose use of the vehicle the document is issued.

(1C) The Secretary of State may withdraw recognition of a body for the purposes of subsection (1)(kb) above if it appears to him that the body is no longer concerned with the care of disabled persons.

(1D) The reference in subsection (1B) above to the issue by the Secretary of State of a nil licence is a reference to the issue by him in accordance with regulations under this Act of a document which--

(a) is in the form of a vehicle licence, and

(b) has the word "NIL" marked in the space provided for indicating the amount of duty payable. "

(5) In subsection (2) the following definitions shall be inserted before the definition of "road construction vehicle"--

" "ambulance" means a vehicle which--

(a) is constructed or adapted for, and used for no other purpose than, the carriage of sick, injured or disabled persons to or from welfare centres or places where medical or dental treatment is given; and

(b) is readily identifiable as a vehicle used for the carriage of such persons by virtue of being marked "Ambulance" on both sides;

"disabled person" means a person suffering from a physical or mental defect or disability;

"veterinary ambulance" means a vehicle which--

(a) is used for no other purpose than the carriage of sick or injured animals to or from places where veterinary treatment is given; and

(b) is readily identifiable as a vehicle used for the carriage of such animals by virtue of being marked "Veterinary Ambulance" on both sides; " .

(6) This section shall be deemed to have come into force on 21st March 1990.

7 Entry of goods on importation

Schedule 3 to this Act (which amends the provisions of the [1979 c. 2.] Customs and Excise Management Act 1979 about initial and supplementary entries and postponed entry) shall have effect in relation to goods imported on or after the day on which this Act is passed.

8 Spirits methylated abroad

(1) In section 4(1) of the [1979 c. 4.] Alcoholic Liquor Duties Act 1979, for the definition of "methylated spirits" there shall be substituted--

" "methylated spirits" means--

(a) spirits mixed in the United Kingdom with some other substance in accordance with regulations made under section 77 below; or

(b) spirits mixed outside the United Kingdom with some other substance if the spirits and other substance, and the proportions in which they are mixed, are such as are prescribed by those regulations for the production of methylated spirits in the United Kingdom; " .

(2) This section shall come into force on 1st January 1991.

9 Lodgings for officers in charge of distillery

In section 12 of the Alcoholic Liquor Duties Act 1979 (licence to manufacture spirits) subsections (6) to (9) (requirement that distiller provide lodgings for officers in charge of distillery) shall cease to have effect.



Chapter II Value Added Tax

10 Registration

(1) The [1983 c. 55] Value Added Tax Act 1983 shall be amended as follows.

(2) For paragraph 1(1) to (3) of Schedule 1 (registration) there shall be substituted--

" (1) Subject to sub-paragraphs (3) to (5) below, a person who makes taxable supplies but is not registered becomes liable to be registered--

(a) at the end of any month, if the value of his taxable supplies in the period of one year then ending has exceeded £25,400; or

(b) at any time, if there are reasonable grounds for believing that the value of his taxable supplies in the period of thirty days then beginning will exceed £25,400.

(2) Where a business carried on by a taxable person is transferred to another person as a going concern and the transferee is not registered at the time of the transfer, then, subject to sub-paragraphs (3) to (5) below, the transferee becomes liable to be registered at that time if--

(a) the value of his taxable supplies in the period of one year ending at the time of the transfer has exceeded £25,400; or

(b) there are reasonable grounds for believing that the value of his taxable supplies in the period of thirty days beginning at the time of the transfer will exceed £25,400.

(3) A person does not become liable to be registered by virtue of sub-paragraph (1)(a) or (2)(a) above if the Commissioners are satisfied that the value of his taxable supplies in the period of one year beginning at the time at which, apart from this sub-paragraph, he would become liable to be registered will not exceed £24,400. "

(3) In paragraph 1(4) of Schedule 1 after "(1)(a)" there shall be inserted "or (2)(a)".

(4) In paragraph 1(5) of Schedule 1 after "sub-paragraph (1)" there shall be inserted "or (2)".

(5) In paragraph 1(6) of Schedule 1 after "sub-paragraph (1)" there shall be inserted "or (2)".

(6) For paragraphs 3 and 4 of Schedule 1 there shall be substituted--

" 3 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(a) above shall notify the Commissioners of the liability within thirty days of the end of the relevant month.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the end of the month following the relevant month or from such earlier date as may be agreed between them and him.

(3) In this paragraph "the relevant month", in relation to a person who becomes liable to be registered, means the month at the end of which he becomes liable to be registered.

4 (1) A person who becomes liable to be registered by virtue of paragraph 1(1)(b) above shall notify the Commissioners of the liability before the end of the period by reference to which the liability arises.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the beginning of the period by reference to which the liability arises.

4A (1) A person who becomes liable to be registered by virtue of paragraph 1(2) above shall notify the Commissioners of the liability within thirty days of the time when the business is transferred.

(2) The Commissioners shall register any such person (whether or not he so notifies them) with effect from the time when the business is transferred.

4B. Where a person becomes liable to be registered by virtue of paragraph 1(1)(a) above and by virtue of paragraph 1(1)(b) or 1(2) above at the same time, the Commissioners shall register him in accordance with paragraph 4(2) or 4A(2) above, as the case may be, rather than paragraph 3(2) above. "

(7) Section 33(1A) (registration of transferee of business) shall cease to have effect.

(8) In consequence of the amendment of paragraph 1 of Schedule 1, in section 28(1) (registration of local authorities) for "1(a)(ii)" there shall be substituted "1(1)(a)".

(9) Subsections (2) to (5) and (8) above shall be deemed to have come into force on 21st March 1990.

(10) Subsections (6) and (7) above apply in relation to persons who become liable to be registered after 20th March 1990.

11 Bad debts

(1) Subsection (2) below applies where--

(a) on or after 1st April 1989 a person has supplied goods or services for a consideration in money and has accounted for and paid tax on the supply,

(b) the whole or any part of the consideration for the supply has been written off in his accounts as a bad debt, and

(c) a period of two years (beginning with the date of the supply) has elapsed.

(2) Subject to the following provisions of this section and to regulations under it the person shall be entitled, on making a claim to the Commissioners, to a refund of the amount of tax chargeable by reference to the outstanding amount.

(3) In subsection (2) above "the outstanding amount" means--

(a) if at the time of the claim the person has received no payment by way of the consideration written off in his accounts as a bad debt, an amount equal to the amount of the consideration so written off;

(b) if at that time he has received a payment or payments by way of the consideration so written off, an amount by which the payment (or the aggregate of the payments) is exceeded by the amount of the consideration so written off.

(4) A person shall not be entitled to a refund under subsection (2) above unless--

(a) the value of the supply is equal to or less than its open market value, and

(b) in the case of a supply of goods, the property in the goods has passed to the person to whom they were supplied or to a person deriving title from, through or under that person.

(5) Regulations under this section may--

(a) require a claim to be made at such time and in such form and manner as may be specified by or under the regulations;

(b) require a claim to be evidenced and quantified by reference to such records and other documents as may be so specified;

(c) require the claimant to keep, for such period and in such form and manner as may be so specified, those records and documents and a record of such information relating to the claim and to subsequent payments by way of consideration as may be so specified;

(d) require the repayment of a refund allowed under this section where any requirement of the regulations is not complied with;

(e) require the repayment of the whole or, as the case may be, an appropriate part of a refund allowed under this section where the claimant subsequently receives any payment (or further payment) by way of the consideration written off in his accounts as a bad debt;

(f) include such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section;

(g) make different provision for different circumstances.

(6) The provisions which may be included in regulations by virtue of subsection (5)(f) above may include rules for ascertaining--

(a) whether, when and to what extent consideration is to be taken to have been written off in accounts as a bad debt;

(b) whether a payment is to be taken as received by way of consideration for a particular supply;

(c) whether, and to what extent, a payment is to be taken as received by way of consideration written off in accounts as a bad debt.

(7) The provisions which may be included in regulations by virtue of subsection (5)(f) above may include rules dealing with particular cases, such as those involving part payment or mutual debts; and in particular such rules may vary the way in which the following amounts are to be calculated--

(a) the outstanding amount mentioned in subsection (2) above, and

(b) the amount of any repayment where a refund has been allowed under this section.

(8) No claim for a refund may be made under subsection (2) above in relation to a supply as regards which a refund is claimed, whether before or after the passing of this Act, under section 22 of the [1983 c. 55.] Value Added Tax Act 1983 (existing provision for refund in cases of bad debts).

(9) Section 22 of that Act shall not apply in relation to any supply made after the day on which this Act is passed.

(10) Sections 4 and 5 of that Act shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section.

(11) That Act shall be amended as follows--

(a) in section 39(1A)(b) after the word "above" there shall be inserted the words "or section 11 of the Finance Act 1990";

(b) in section 40(1)(f) after the words "section 22 above" there shall be inserted the words "or section 11 of the Finance Act 1990".

(12) In section 13(2) of the [1985 c. 54.] Finance Act 1985, the word "and" at the end of paragraph (b) shall be omitted and after paragraph (c) there shall be inserted the words " and

(d) a refund under section 11 of the Finance Act 1990, " .

12 Domestic accommodation

(1) Section 14 of the Value Added Tax Act 1983 (credit for input tax against output tax) shall be amended as follows.

(2) The following subsection shall be inserted after subsection (3) (definition of "input tax")--

" (3A) For the purposes of subsection (3) above, where goods or services supplied to, or goods imported by, a company are used or to be used in connection with the provision of accommodation by the company, they shall not be treated as used or to be used for the purpose of any business carried on by the company to the extent that the accommodation is used or to be used for domestic purposes by--

(a) a director of the company, or

(b) a person connected with a director of the company. "

(3) The following subsection shall be inserted at the end--

" (11) For the purposes of this section "director" means--

(a) in relation to a company whose affairs are managed by a board of directors or similar body, a member of that board or similar body;

(b) in relation to a company whose affairs are managed by a single director or similar person, that director or person;

(c) in relation to a company whose affairs are managed by the members themselves, a member of the company;

and a person is connected with a director if that person is the director's wife or husband, or is a relative, or the wife or husband of a relative, of the director or of the director's wife or husband. "

(4) This section applies in relation to goods or services supplied, and goods imported, on or after the day on which this Act is passed.

13 Goods shipped as stores

(1) In section 16 of the [1983 c. 55.] Value Added Tax Act 1983 (zero-rating) the following subsection shall be inserted after subsection (6) (goods shipped for use as stores etc)--

" (6A) Subsection (6)(b) above shall not apply in the case of goods shipped for use as stores on a voyage or flight to be made by the person to whom the goods were supplied and to be made for a purpose which is private. "

(2) This section applies in relation to supplies made after the day on which this Act is passed.

14 Supplies to groups

(1) Section 29A of the Value Added Tax Act 1983 (supplies to groups) shall be amended as follows.

(2) In subsection (1) for "and (3)" there shall be substituted "to (3A)".

(3) The following subsection shall be inserted after subsection (3)--

" (3A) Subsection (4) below shall not apply to the extent that the chargeable assets consist of capital items in respect of which regulations made under section 15(3) and (4) above, and in force when the assets are transferred, provide for adjustment to the deduction of input tax. "

(4) This section shall have effect in relation to transfers of assets made on or after 1st April 1990.

15 Power to assess.1983 c. 55

(1) In paragraph 4(2) of Schedule 7 to the [1993 c. 55] Value Added Tax Act 1983 after the words "so paid or credited," there shall be inserted the words "or which would not have been so paid or credited had the facts been known or been as they later turn out to be,".

(2) This section shall apply in relation to an amount paid or credited to a person after the day on which this Act is passed.

16 Interest on tax etc. recovered or recoverable by assessment

(1) Section 18 of the [1985 c. 54.] Finance Act 1985 (interest on tax etc. recovered or recoverable by assessment) shall be amended as follows.

(2) In subsection (1) for the words from "tax" to "rate" there shall be substituted the words "whole of the amount assessed shall carry interest at the prescribed rate from the reckonable date".

(3) In subsection (3) for the words from "that tax" to "rate" there shall be substituted the words "the whole of the amount paid shall carry interest at the prescribed rate from the reckonable date".

(4) Subsections (4) and (5) shall cease to have effect.

(5) In subsection (7) for "(4) and (5)" there shall be substituted "(1) and (3)".

(6) This section applies in relation to assessments made on or after the day on which this Act is passed.



Part II Income Tax, Corporation Tax and Capital Gains Tax

Chapter I General

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Income tax rates and allowances

17 Rates and main allowances

(1) Income tax shall be charged for the year 1990-91, and--

Pages: P.1 | P.2 | P.3 | P.4 | P.5 | P.6 | P.7 | P.8 | P.9 | P.10 | P.11 | P.12 | P.13 | P.14 | P.15

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