Made | 7th September 2004 | ||
Laid before the House of Commons | 7th September 2004 | ||
Coming into force | 28th September 2004 |
expressions which are defined in section 43 of the Finance Act 2004 have the same meaning as they have in that section.
Amendments to enactments in consequence of sections 38, 40 and 45 of, and Schedule 6 to, the Finance Act 2004
2.
The Schedule to these Regulations, which contains amendments in consequence of the provisions of sections 38, 40 and 45 of, and Schedule 6 to, the Finance Act 2004, has effect.
Nick Ainger
Derek Twigg
Two of the Lords Commissioners of Her Majesty's Treasury
7th September 2004
2.
The Taxes Act 1988 is amended as follows.
Relief for contributions to certain bodies
3.
- (1) Section 79 (contributions to local enterprise agencies)[5], section 79A (contributions to training and enterprise councils, business link organisations and local enterprise companies)[6], and section 79B (contributions to urban regeneration companies)[7] are each amended as follows.
(2) In subsection (2) (contribution by investing company treated as expenses of management) for "an investment company" substitute "a company with investment business".
(3) After subsection (2) insert -
Costs of establishing share option or profit sharing schemes: relief
4.
- (1) Section 84A[8] is amended as follows.
(2) In subsection (2) for paragraph (b) (expenditure to be treated as expenses of management) substitute -
(3) In subsection (3) (timing rule where approval given more than 9 months after end of period of account in which expenditure incurred) for the words following paragraph (b) substitute -
(4) After subsection (3) insert -
Payment to trustees of approved profit sharing schemes
5.
- (1) Section 85[9] is amended as follows.
(2) In subsection (1), for paragraph (b) (expenditure to be treated as expenses of management) substitute -
Costs of establishing employee share ownership trusts
6.
- (1) Section 85A[10] is amended as follows.
(2) In subsection (2) -
(3) In subsection (3) (timing rule where trust established more than 9 months after end of period of account in which expenditure incurred) for the words following paragraph (b) substitute -
(4) After subsection (3) insert -
Employees seconded to charities and educational establishments
7.
- (1) Section 86[11] is amended as follows.
(2) In subsection (1) (expenditure on seconded employees deductible as if employee's service were available for employer's trade etc) for "notwithstanding anything in section 74 or 75, any expenditure incurred (or disbursed)" substitute "notwithstanding anything in section 74, 75 or 76, any expenditure incurred".
(3) In subsection (2) (definitions) for the definition of "deductible" substitute -
as the case may be.".
Charitable donations: contributions to agent's expenses
8.
- (1) Section 86A[12] is amended as follows.
(2) In subsection (2), for paragraph (b) (expenditure to be treated as expenses of management for the purposes of sections 75 and 76) substitute -
Payments to Export Credits Guarantee Department
9.
- (1) Section 88[13] is amended as follows.
(2) For paragraph (b) (expenditure to be treated as expenses of management for the purposes of sections 75 and 76) substitute -
Additional payments to redundant employees
10.
- (1) Section 90[14] is amended as follows.
(2) For subsection (1) (expenditure that would be allowable as a deduction or eligible for relief under section 75 or 76 as expenses of management) substitute -
but for the permanent discontinuance of the trade, profession, vocation or business, the additional payment shall, subject to subsection (2) below, be so allowable, deductible or regarded notwithstanding that discontinuance.
it shall be treated as made, or (as the case may be) as referable to the accounting period ending, on the last day on which the trade, profession, vocation or business was carried on.".
(3) After subsection (1) insert -
Other grants under Industrial Development Act 1982 etc
11.
- (1) Section 93 is amended as follows.
(2) In subsection (1) (which includes provision about certain payments to an investment company) for "an investment company" substitute "a company with investment business".
Schedule A losses
12.
- (1) Section 392A[15] is amended as follows.
(2) For subsection (3) (investment company ceasing to carry on Schedule A business) substitute -
any Schedule A loss that cannot be used under the preceding provisions shall be carried forward to the succeeding accounting period and be treated for the purposes of section 75 as if it were expenses of management deductible for that period.".
(3) In subsection (4) (definitions) in paragraph (b) (definition of "investment company") for ""investment company"" substitute ""company with investment business"".
(4) Any loss which would, apart from this sub-paragraph, have fallen to be carried forward under section 392A(3) of the Taxes Act 1988 and treated as if it had been disbursed as expenses of management for the first accounting period of a company to begin on or after 1st April 2004 shall be treated as if that provision instead provided for the loss to be carried forward and treated for the purposes of section 75 of that Act as if it were expenses of management deductible for that period.
Write-off of government investment
13.
- (1) Section 400[16] is amended as follows.
(2) In subsection (2) (a body's tax losses) for paragraph (b) (expenses of management investment company) substitute -
(3) In paragraph (bb) of that subsection, for sub-paragraph (ii) (losses treated under section 392A(3) as disbursed in the next accounting period) substitute -
(4) The amendments made by this article also have effect (in addition to their application for the purposes of the periods mentioned in article 1(2)) for the purpose of determining a body's tax losses for an accounting period which -
(5) In section 400(2) -
Group relief: meaning of "management expenses" in section 403
14.
- (1) Section 403ZD (other amounts available by way of group relief)[17] is amended as follows.
(2) For subsection (4) (meaning of "management expenses" in section 403) substitute -
(3) Omit subsection (5) (which is rendered unnecessary by section 76 no longer applying section 75).
(4) In section 403ZD(4) -
Computation of gross profits
15.
- (1) Section 403ZE[18] is amended as follows.
(2) In subsection (1) (gross profits for surrender period) in paragraph (b)(ii) (no deduction by virtue of section 75(3) of the Taxes Act 1988) for "75(3)" substitute "75(9)".
(3) In section 403ZE(2)(b)(ii), the reference to section 75(9) of the Taxes Act 1988 includes a reference to the old section 75(3).
(4) Omit subsection (2) (which is rendered unnecessary by section 76 no longer applying section 75).
Limitation of group relief in relation to certain dual resident companies
16.
- (1) Section 404 is amended as follows.
(2) In subsection (2)(c) (accounting period for which expenses of management are disbursed)[19] for "disbursed" substitute "deductible".
(3) The amendment made by sub-paragraph (2) has effect in any case where the accounting period referred to in section 404(2) of the Taxes Act 1988 begins on or after 1st April 2004.
Losses from Schedule A business or overseas property business
17.
- (1) Section 432AB[20] is amended as follows.
(2) For subsection (3) (loss to be treated as expenses of management under section 76 disbursed for the period in which the loss arose) substitute -
General annuity business
18.
- (1) Section 437[21] is amended as follows.
(2) In subsection (1A) (new annuities to be brought into account by treating an amount as a sum disbursed as expenses of management) for the words from "as a sum" to the end of the subsection substitute -
Transfers of business
19.
- (1) Section 444A[22] is amended as follows.
(2) For subsection (2) (treatment of expenses of management) substitute -
(3) In subsection (4) (treatment of acquisition expenses) for "expenses of management of the transferee" substitute "expenses payable by the transferee".
Authorised unit trusts
20.
Section 468(4) is repealed.
Interest distributions
21.
- (1) Section 468L[23] is amended as follows.
(2) In subsection (6)(a) for "sums disbursed as expenses of management" substitute "expenses of management".
Credit unions
22.
- (1) Section 487 is amended as follows.
(2) In subsection (4) (credit union not to be regarded as an investment company for purposes of section 75 or Part 2 of the Capital Allowances Act)[24] for "an investment company" substitute "a company with investment business".
Business entertaining expenses
23.
- (1) Section 577[25] is amended as follows.
(2) In subsection (1)(a) (expenses not to be included in computing expenses of management in respect of which may be given under the Tax Acts) -
Expenditure involving crime
24.
- (1) Section 577A[26] is amended as follows.
(2) In subsection (2) (expenditure not to be included in computing expenses of management in respect of which relief may be given under the Tax Acts) -
Expenditure on car hire
25.
- (1) Section 578A[27] is amended as follows.
(2) In subsection (1) (amounts for which the section provides a reduction) in paragraph (b) for "an investment company" substitute "a company with investment business".
(3) In subsection (1), at the end of paragraph (b) insert -
Statutory redundancy payments
26.
- (1) Section 579[28] is amended as follows.
(2) For subsection (3) (amount of payment to be allowable as expenses of management eligible for relief under section 75 or 76 etc) substitute -
the amount of the redundancy payment, or the corresponding amount of the other employer's payment, shall (to the extent that it would not otherwise fall to be so treated) be deductible under section 75 as expenses of management or as the case may be, be included at Step 1 in section 76(7).
(3A) If in a case where subsection (3) above applies, the payment in question is for the purposes of section 75 or 76 referable to an accounting period beginning after discontinuance, it shall be treated as referable to the accounting period ending on the last day on which the business was carried on.".
Gifts of shares, securities and real property to charities etc
27.
- (1) Section 587B[29] is amended as follows.
(2) In subsection (8) (disposal by company carrying on life assurance business) in paragraph (b)(i), for ""an expense of management"" substitute ""expenses payable falling to be brought into account at Step 3 in section 76(7)"".
Training courses for employees
28.
- (1) Section 588[30] is amended as follows.
(2) For subsection (4) (modification of subsection (3) for expenses of management) substitute -
(3) After subsection (5) (consequences of failure to meet condition) insert -
Counselling services for employees
29.
- (1) Section 589A[31] is amended as follows.
(2) For subsection (9) (modification of subsection (8) for expenses of management) substitute -
Exempt approved schemes
30.
- (1) Section 592[32] is amended as follows.
(2) For subsection (4) (deduction of employer's contributions) substitute -
(b) for the purposes of section 75 (expenses of management: companies with investment business), the contributions -
(c) for the purposes of section 76 (expenses of insurance companies), the contributions -
(3) In subsection (5) (limit on amount that may be deducted under subsection (4)) for "be deducted under subsection (4) above" substitute the following paragraphs -
(4) For subsection (6) (power of Board to direct sum not paid by way of ordinary annual contribution to be treated as expense incurred in chargeable period in which paid or to be spread over period of years) substitute -
or as an expense to be spread over such period of years as the Board think proper.".
Social security benefits and contributions
31.
- (1) Section 617[33] is amended as follows.
(2) In subsection (4) (exception from subsection (3) of certain contributions) in paragraph (b) (expenses of management etc) for "under that section as applied by section 76" substitute -
Sale and lease-back: limitation on tax reliefs
32.
- (1) Section 779[34] is amended as follows.
(2) In subsection (13)(d) (deductions by way of relevant tax relief), for "allowance of a payment" substitute "a deduction".
Assets leased to traders and others
33.
- (1) Section 781[35] is amended as follows.
(2) In subsection (4)(c) (deductions by way of tax relief to which subsection (1) applies), for "allowance of a payment" substitute "a deduction".
Limits on credit for foreign tax: corporation tax
34.
- (1) Section 797[36] is amended as follows.
(2) In subsection (3) (power of company to allocate deductions against such of its profits as it thinks fit after "expenses of management" insert "expenses payable (within the meaning of section 76(1))".
Share incentive plans: corporation tax deductions
35.
- (1) Schedule 4AA[37] is amended as follows.
(2) In paragraph 1 (introductory) in sub-paragraph (4) for "investment companies" substitute "companies with investment business".
(3) In paragraph 7 (deduction for costs of setting up plan) in sub-paragraph (3) (approval given more than 9 months after end of period in which expenses incurred) for "incurred in" substitute "deductible for".
(4) In paragraph 13 (application of provisions to expenses of management of investment companies etc) for sub-paragraphs (1) and (2) substitute -
in accordance with the following provisions.
(2) The provisions of this Schedule which allow a deduction in calculating the profits of a trade apply -
(5) The heading to paragraph 13 accordingly becomes "Application of provisions to expenses of management of companies with investment business etc".
Modification of the Taxes Act 1988 in relation to overseas life insurance companies
36.
- (1) Schedule 19AC[38] is amended as follows.
(2) For paragraph 5 substitute -
5ZA.
After subsection (11) there shall be treated as inserted the following subsections -
Manufactured overseas dividends
37.
- (1) Schedule 23A[41] is amended as follows.
(2) Paragraph 4[42] is amended as follows.
(3) After sub-paragraph (1) insert -
(4) In sub-paragraph (2) -
(5) After sub-paragraph (2) insert -
(6) Paragraph 7 is amended as follows.
(7) In sub-paragraph (1) for "notwithstanding anything in paragraphs 2 to 4 above." substitute -
Controlled foreign companies: relief against liability for tax in respect of chargeable profits
38.
- (1) Schedule 26 is amended as follows.
(2) In paragraph 1(3) (trading losses and group relief: meaning of "relevant allowance")[43] after paragraph (c) (expenses of management) insert -
Change in ownership of investment company: deductions
39.
- (1) Schedule 28A[44] is amended as follows.
(2) In Part 2 (amounts in issue for the purpose of section 768B) in paragraph 6(a)[45] for -
substitute "the amount of any expenses of management referable to the accounting period (within the meaning of section 75)".
(3) In paragraph 6(c) for "section 75(3)" substitute "section 75(9)".
(4) In paragraph 6(d) for "section 75(4)" substitute "section 75(7)".
(5) In Part 3 (apportionment for purposes of section 768B) for paragraph 7(1)(a), substitute -
(6) In paragraph 7(1)(e) (apportionment in case of debits falling to be brought into account on the assumption that interest does not accrue until paid etc)[46] for sub-paragraphs (iii) and (iv) substitute -
(7) In Part 4 (disallowed debits)[47] in paragraph 11(1) (debits that fall within paragraph 11)[48] for paragraphs (b) and (bb) substitute -
(8) In Part 5 (amounts in issue for the purposes of section 768C) in paragraph 13(1)[49] -
(9) In Part 6 (apportionment for purposes of section 768C) for paragraph 16(1)(a), substitute -
(10) In paragraph 16(1)(e) (manner of apportionment in case of debits falling to be brought into account on the assumption that interest does not accrue until paid)[50] for sub-paragraphs (iii) and (iv) substitute -
(11) The heading to the Schedule accordingly becomes "Change in ownership of company with investment business: deductions".
Provision not at arm's length
40.
- (1) Schedule 28AA[51] is amended as follows.
(2) In paragraph (a) of the definition of "losses" in paragraph 14(1), for "section 75(3)" substitute "section 75(9)".
Investment and insurance companies: computation
42.
- (1) Section 44 of the Finance Act 1989[53] is amended as follows.
(2) For subsection (1) (no deduction for late paid remuneration) substitute -
(3) In subsection (5) (profits of trade calculated before end of the period of 9 months) for "the profits of the trade" substitute "the profits of the company".
(4) For subsection (7) (application to the company carrying on life assurance business) substitute -
(5) In subsection (8) (definitions) -
(6) The side note to the section accordingly becomes "Companies with investment business and insurance companies: computation".
Non-approved retirement benefit schemes
43.
- (1) Section 76 of the Finance Act 1989[54] is amended as follows.
(2) In subsection (1) (no deduction in respect of expenses falling within subsection (1) or (2)) for the words from "and no expenses" to the end of the subsection substitute -
(3) In subsection (4) (no deduction unless sum actually expended) for paragraph (b) substitute -
(4) After subsection (4) insert -
Management expenses
44.
- (1) Section 87 of the Finance Act 1989[55] is amended as follows.
(2) Subsections (6) and (7) (carry forward and use of pre-1990 expenses under section 75(3) of the Taxes Act 1988) are repealed.
Corporation tax: policy holders' fraction of profits
45.
- (1) Section 88 of the Finance Act 1989[56] is amended as follows.
(2) In subsection (3) (relevant profits to be income and gains of life assurance business reduced by aggregate amount of the items in the paragraphs) for the words from the end of paragraph (aa)[57] to the end substitute -
Policy holder's share of profits
46.
- (1) Section 89 of the Finance Act 1989[58] is amended as follows.
(2) In subsection (1B) (BLAGAB profits to be income and chargeable gains referable to company's basic life assurance and general annuity business reduced by aggregate amount of the items in the paragraphs) for the words from paragraph (a) to the end of the subsection substitute -
(3) In subsection (7), in the definition of "Case I profits" (which refers to adjustment in respect of losses in accordance with section 76(2C) and (2D) of the Taxes Act 1988) for "section 76(2C) and (2D)" substitute "the second sentence of section 76(10)".
Loan relationships: claims etc relating to deficits
50.
- (1) Schedule 8 to the Finance Act 1996[62] is amended as follows.
(2) In paragraph 3 (claim to carry back deficit to previous accounting periods) in sub-paragraph (6) (reliefs which fall to be given in priority) in paragraph (c) (case where company is an investment company) for "an investment company" substitute "a company with investment business".
(3) In sub-paragraph (4) for "life assurance business" substitute "brought into account".
Related definitions
53.
For section 18 of the Capital Allowances Act 2001 substitute -
Giving of allowances: managing investments of company with investment business
54.
- (1) Section 253 of the Capital Allowances Act 2001 (investment companies) is amended as follows.
(2) In subsection (1) (section applies if qualifying activity is management of an investment company) for "the management of an investment company" substitute "managing the investment business".
(3) The side note to the section, and the italic heading preceding it, accordingly each become "Companies with investment business".
Life assurance business: different giving effect rules for different categories of business
55.
- (1) Section 256 of the Capital Allowance Act 2001 is amended as follows.
(2) In subsection (2)(a) (allowances in respect of basic life assurance and general annuity business to be treated as additional expenses of management within section 76 of the Taxes Act 1988) for "additional expenses of management within section 76" substitute "expenses payable which fall to brought into account at Step 3 in section 76(7)".
Provisions supplementary to sections 255 and 256
56.
- (1) Section 257 of Capital Allowances Act 2001 is amended as follows.
(2) In subsection (2), for paragraph (b) (subsection (1) not to prevent allowance being taken into account in calculation for purposes of section 76(2) of Taxes Act 1988) substitute -
Management assets
57.
- (1) Section 544 of the Capital Allowances Act 2001 is amended as follows.
(2) For subsections (3) and (4) (which define management of life assurance business) substitute -
(4) In sub-paragraph (8) (Schedule A loss where amount to be carried forward under section 75(3) of the Taxes Act 1988) -
(5) For sub-paragraph (9) (disregard of amounts brought forward from either periods under section 75(3) of the Taxes Act 1988 etc) substitute -
Land remediation tax credit: restriction of losses carried forward
59.
- (1) In Schedule 22 to the Finance Act 2001 paragraph 17 is amended as follows.
(2) In sub-paragraph (3) (case where sub-paragraph (4) applies) -
substitute -
(b) in paragraph (b) (amount falls to be carried forward to succeeding accounting period under section 75(3) of the Taxes Act 1988) -
(3) In sub-paragraph (4) (amount carried forward under section 75(3) of Taxes Act 1988 to be reduced by loss surrendered) -
Land remediation tax credit: entitlement to relief: "I minus E" basis
60.
- (1) In Schedule 22 to the Finance Act 2001 paragraph 22 is amended as follows.
(2) In sub-paragraph (3) (amount of company's qualifying expenditure) for -
Land remediation tax credit: giving effect to relief: enhanced expenses of management
61.
- (1) In Schedule 22 to the Finance Act 2001 paragraph 23 is amended as follows.
(2) In sub-paragraph (1) (which contains a description of section 76 of the Taxes Act 1988) for "deduction of expenses of management etc" substitute "deduction in respect of expenses payable".
(3) In sub-paragraph (2) (claim to treat 150% of qualifying expenditure as part of company's expenses of management) for "as part of its expenses of management for that period" substitute -
(4) The heading to the paragraph accordingly becomes "Giving effect to relief: enhanced expenses payable".
Land remediation tax credit: entitlement to life assurance company tax credit
62.
- (1) In Schedule 22 to the Finance Act 2001 paragraph 24 is amended as follows.
(2) In sub-paragraph (2) (qualifying loss) in paragraph (b) (amount falls to be carried forward to succeeding accounting period under section 75(3) of the Taxes Act 1988) -
(3) For sub-paragraph (3) (disregard of amounts brought forward from earlier periods under section 75(3) of the Taxes Act 1988 etc) substitute -
Land remediation tax credit: restriction on carrying forward expenses of management as follows
63.
- (1) In Schedule 22 to the Finance Act 2001 paragraph 27 is amended as follows.
(2) For sub-paragraph (1) (amount to be carried forward under section 75(3) of Taxes Act 1988 to be reduced by expenses of management surrendered) substitute -
is treated as reduced by the amount of the expenses payable surrendered.".
(3) In sub-paragraph (2) (amount of expenses of management surrendered) for "expenses of management" substitute "expenses payable".
(4) The heading to the paragraph accordingly becomes "Restriction on carrying forward expenses payable".
Expenditure on vaccine research etc: entitlement to relief in respect of "I minus E" basis
65.
- (1) In Schedule 13 to the Finance Act 2002 paragraph 23 is amended as follows.
(2) For sub-paragraph (2) (application of Part 3 to treat amounts as disbursed as expenses of management) substitute -
Loan relationships
66.
- (1) In Schedule 25 to the Finance Act 2002 paragraph 58 is amended as follows.
(2) Sub-paragraph (6)(a) (consequential amendment of enactments: paragraph 11 of Schedule 28A to the Taxes Act 1988) and the word "and" following that paragraph are repealed.
(3) Sub-paragraph (9) (consequential amendment of enactments: paragraph 16(1)(e) of Schedule 28A to the Taxes Act) is repealed.
Intangible fixed assets: special provisions relating to insurance companies
67.
- (1) In Schedule 29 to the Finance Act 2002 paragraph 36 is amended as follows.
(2) In sub-paragraph (3) (insurance company carrying on basic life assurance and general annuity business) for paragraph (c) (non-trading loss treated as additional expenses of management) substitute -
Business entertainment and gifts: exception where employer's expenses disallowed
68.
- (1) Section 357 of ITEPA[67] is amended as follows.
(2) For subsection (3) (amount disallowed in calculating employer's expenses of management) substitute -
Corporation tax relief for employee share acquisition: shares: method of giving relief
69.
- (1) In Schedule 23 to the Finance Act 2003[68], paragraph 9 is amended as follows.
(2) For sub-paragraph (2) (investment company) substitute -
(3) For sub-paragraph (3) (insurance company carrying on life assurance business) substitute -
Corporation tax relief for employee share acquisition: options: method of giving relief
70.
- (1) In Schedule 23 to the Finance Act 2003, paragraph 16 is amended as follows.
(2) For sub-paragraph (2) (investment company) substitute -
(3) For sub-paragraph (3) (insurance company carrying on life assurance business) substitute -
Restriction of deductions for employee benefit contributions: life assurance business
71.
- (1) Schedule 24 to the Finance Act 2003 is amended as follows.
(2) For paragraph 7 (life assurance business) substitute -
Extinguishment of BNFL losses for tax purposes
72.
- (1) The Energy Act 2004[69] is amended as follows.
(2) In section 44(2)(c), for "section 75(3)" substitute "section 75(9)".
(6) In subsection (11), for "basic life assurance" substitute "taxable basic life assurance" wherever the words occur.
(7) The modifications in paragraphs (3) and (5)(b) only apply to a friendly society to which Chapter 5 of the Prudential Sourcebook (Friendly Societies) applies.".
The Open-ended Investment Companies (Tax) Regulations 1997
76.
- (1) The Open-ended Investment Companies Regulations 1997[75] are amended as follows.
(2) Regulation 10(3) is revoked.
(3) In regulation 25(4), for sub-paragraph (a) substitute -
The European Single Currency (Taxes) Regulations 1998
77.
- (1) The European Single Currency (Taxes) Regulations 1998[76] are amended as follows.
(2) In regulation 6 -
(c) paragraphs (2) and (3) are revoked; and
(d) in paragraph (4), for "has the meaning" substitute -
The Insurance Companies (Capital Redemption Business)(Modification of the Corporation Tax Acts) Regulations 1999
78.
Regulation 4 of the Insurance Companies (Capital Redemption Business) (Modification of the Corporation Tax Acts) Regulations 1999[77] is revoked.
The second group of amendments reflect the fact that section 76 has been decoupled from section 75 and uses a different phraseology ("expenses payable brought into account in Step 1 of section 76(7)"). The amendments in this group are to -
The third group amends references to "disbursed", which are replaced by "deductible" or other phrases appropriate to the terminology of the new section 75 in the following provisions -
The fourth group amends special timing rules that apply to section 75 to reflect the new language of section 75 in the following provisions -
The fifth group amends references to a carry forward of management expenses under the old section 75(3) by substituting references to new section 75(9) in the following provisions -
The sixth group amends references to amounts being treated as expenses of management under the old section 76 by replacing them with references to being expenses payable (including expenses brought into account in Step 1 or Step 3 in the new section 76) or an expenses deduction, in the following provisions -
The seventh group amends references to the old sections 75 and 76 to reflect the fact that the payments fall to be treated as expenses payable under new section 75 without needing to be so treated under new section 76 in the following places -
The eighth group comprises amendments to the language of the carry forward under the old section 76(5) (minimum profits test) to reflect the new section 76(13) in paragraphs 14, 17, 53 and 54(2) of Schedule 22 to Finance Act 2001 (remediation of contaminated land: entitlement to land remediation tax credit).
Life assurance provisions not covered in previous paragraphs are amended as a result of changes to the minimum profits test (otherwise know as the notional Case I restriction) and other changes to section 76 made by section 40 Finance Act 2004. The provisions concerned -
In addition paragraphs 72 to 78 make consequential amendments to subordinate legislation.
These Regulations do not impose new costs on business.
[5] There are amendments which are not relevant for present purposes.back
[6] Section 79A was inserted by section 76 of the Finance Act 1990 (c. 29) and amended by section 145 of the Finance Act 1994 (c. 9) and section 88 of the Finance Act 2000 (c. 17).back
[7] Section 79B was inserted by section 180 of the Finance Act 2003 (c. 14).back
[8] Section 84A was inserted by section 42 of the Finance Act 1991 and amended by paragraph 1 of Schedule 7 to the Finance Act 1998 (c. 36) and paragraph 11 of Part 1 of Schedule 6 and paragraph 92 of Part 11 of Schedule 7 to ITEPA.back
[9] Section 85 was amended by paragraph 1 of Schedule 7 to the Finance Act 1998.back
[10] Section 85A was inserted by section 43 of the Finance Act 1991 and amended by paragraph 1 of Schedule 7 to the Finance Act 1998.back
[11] Section 86 was amended by paragraph 1 of Schedule 7 to the Finance Act 1998 and section 58 of the Finance Act 1999 (c. 16).back
[12] Section 86A was inserted by section 69 of the Finance Act 1993 and amended by paragraph 1 of Schedule 7 to the Finance Act 1998 and paragraph 13 of Schedule 6 to ITEPA.back
[13] Section 88 was amended by paragraph 1 of Schedule 7 to the Finance Act 1998.back
[14] Section 90 was amended by paragraph 1 of Schedule 7 to the Finance Act 1998.back
[15] Section 392A was inserted by paragraph 28 of Schedule 5 to the Finance Act 1998.back
[16] Section 400 was amended by paragraph 35 of Schedule 2 to the Taxation of Chargeable Gains Act 1992 (c. 12), paragraph 8(5) of Schedule 14 to the Finance Act 1993, paragraph 36 of Schedule 5 to the Finance Act 1998, paragraph 35 of Schedule 2 to the Capital Allowances Act 2001 (c. 2) and paragraph 87 of Part 1 of Schedule 2 to S.I. 1999/1870.back
[17] Section 403ZD was substituted for the original section 403 by paragraph 29 of Schedule 5 to the Finance Act 1998 and amended by paragraph 2(2) of Schedule 30 to the Finance Act 2002 (c. 23).back
[18] Section 403ZE was substituted for the original section 403 by paragraph 29 of Schedule 5 to the Finance Act 1998.back
[19] Section 404 has been amended: the relevant amendment is that made by paragraph 37(2) of Schedule 5 to the Finance Act 1998.back
[20] Section 432AB was inserted by paragraph 39 of Schedule 5 to the Finance Act 1998.back
[21] Section 437 has been amended. The relevant amendments are those made by paragraphs 5 and 18 of Schedule 7 to the Finance Act 1991, section 67(1) and (7) of the Finance Act 1997, and paragraph 6 of Schedule 33 to the Finance Act 2003.back
[22] Section 444A was inserted by paragraph 7 of Schedule 9 to the Finance Act 1990. There are amendments which are not relevant for present purposes.back
[23] Section 486L was inserted by paragraph 7 of Schedule 14 to the Finance Act 1994 (c. 9). There are amendments which are not relevant for present purposes.back
[24] Section 487 has been amended: the relevant amendment is that made by paragraph 40 of Schedule 2 to the Capital Allowances Act 2001.back
[25] Section 577 has been amended: relevant amendments are those made by paragraph 1 of Schedule 7, and Part III(4) of Schedule 27 to the Finance Act 1998, paragraph 51 of Schedule 2 to the Capital Allowances Act 2001 and paragraph 62 of Schedule 6 to ITEPA.back
[26] Section 577A was inserted by section 123 of the Finance Act 1993: the relevant amendments are those made by section 141 of the Finance Act 1994 and paragraph 1 of Schedule 7, and Part III(4) of Schedule 27, to the Finance Act 1998.back
[27] Section 578A was inserted by paragraph 52 of Schedule 2 to the Capital Allowances Act 2001 and amended by paragraph 11 of Part 2 of Schedule 12 to the Finance Act 2001.back
[28] There are amendments which are not relevant for present purposes.back
[29] Section 587B was inserted by section 43 of the Finance Act 2000, and amended by section 97 of the Finance Act 2002, section 139 of the Finance Act 2004 and articles 13 and 40 of S.I. 2001/3629.back
[30] Section 588 has been amended: the relevant amendment is that made by paragraph 67 of Part 1 of Schedule 6 to ITEPA.back
[31] Section 589A was inserted by section 108 of the Finance Act 1993: the relevant amendment is that made by paragraph 1 of Schedule 7 to the Finance Act 1998.back
[32] There are amendments which are not relevant for present purposes. Section 592 is prospectively repealed by the relevant entry in Part 3 of Schedule 42 to the Finance Act 2004.back
[33] Section 617 has been amended: the relevant amendments are those made by section 65 of the Finance Act 1997 (c. 16), section 61 of the Finance Act 1999 and paragraph 87 of Part 1 of Schedule 6 to ITEPA.back
[34] There are amendments which are not relevant for present purposes.back
[35] There are amendments which are not relevant for present purposes.back
[36] There are amendments which are not relevant for present purposes.back
[37] Schedule 4AA was inserted by paragraph 108 of Part 1 of Schedule 6 to ITEPA.back
[38] Schedule 19AC was inserted by paragraph 1 of Schedule 9 to the Finance Act 1993.back
[40] This section was inserted by section 149 of the Finance Act 2003.back
[41] Schedule 23A was inserted by paragraph 1 of Schedule 13 to the Finance Act 1991.back
[42] Paragraph 4 has been amended: the relevant amendment is that made by paragraph 1(5) of Schedule 30 to the Finance Act 2002.back
[43] There are amendments to paragraph 1 which are not relevant for present purposes.back
[44] Schedule 28A was inserted by paragraph 5 of Schedule 6 to the Finance Act 1995 (c. 4).back
[45] There are amendments to paragraph 6 which are not relevant for present purposes.back
[46] Paragraph 7(1)(e)(iv) was inserted by paragraph 58(4) of Part 2 of Schedule 25 to the Finance Act 2002 (c. 23).back
[47] Part 4 was substituted by paragraph 54(4) of Schedule 14 to the Finance Act 1996 (c. 8).back
[48] The relevant amendment to paragraph 11 is that made by paragraph 58 of Part 2 of Schedule 25 to the Finance Act 2002.back
[49] There are amendments to paragraph 13 which are not relevant for present purposes.back
[50] Paragraph 16(1)(e) was inserted by paragraph 54(7) of Schedule 14 to the Finance Act 1996 and amended by paragraph 58(9) of Part 2 of Schedule 25 and Part 3(12) of Schedule 40 to the Finance Act 2002.back
[51] Schedule 28AA was inserted by Schedule 16 of the Finance Act 1998 (c. 36): there are amendments which are not relevant for present purposes.back
[52] 1988 c. 39: there are amendments which are not relevant for present purposes.back
[53] 1989 c. 26. Section 44 was substituted by paragraph 158 of Part 2 of Schedule 6 to ITEPA. There are subsequent amendments which are not relevant for present purposes.back
[54] There are amendments which are not relevant for present purposes. This section is prospectively repealed by the relevant entry in Part 3 of Schedule 42 to the Finance Act 2004.back
[55] Section 87(6) was partly repealed by paragraph 8(2) of Schedule 33 and Part 3(12) of Schedule 14 to the Finance Act 2003.back
[56] Section 88(3) was substituted by paragraph 57(1) of Schedule 8 to the Finance Act 1995 and amended by paragraph 56 of Schedule 14 to the Finance Act 1996 (c. 26).back
[57] Paragraph (aa) was inserted before paragraph (a) in subsection (3) by paragraph 56 of Schedule 14 to the Finance Act 1996.back
[58] Subsection (1B) was inserted by paragraph 6 of Schedule 33 to the Finance Act 2003, and subsection (7) was inserted by article 58 of S.I. 2001/3629 and amended by paragraph 7 of Schedule 33 to the Finance Act 2003.back
[59] 1991 c. 31. Paragraph 16(1) has been amended by section 67 of the Finance Act 1997 and further amended by paragraph 6(10) of Schedule 33 to the Finance Act 2003: there are other amendments which are not relevant for present purposes.back
[60] 1992 c. 12. There are amendments to section 37 which are not relevant for present purposes.back
[62] Paragraph 3(6) has been amended by paragraph 96 of Schedule 2, to the Capital Allowances Act 2001 and paragraph 18 of Part 1 of Schedule 25 to the Finance Act 2002.back
[63] 1999 c. 16. There are amendments to the Schedule which are not relevant for present purposes.back
[70] S.I. 1993/2004. There are amendments to regulation 4 which are not relevant for present purposes. Regulation 5 was amended by regulation 6 of S.I. 2003/2582.back
[72] Regulation 3 was amended by S.I. 1996/1621.back
[73] There are amendments to regulation 6 which are not relevant for present purposes.back
[75] S.I. 1997/1154. There are amendments which are not relevant for present purposes.back