Office of Public Sector Information
Part I
Excise Duties
Alcoholic liquor duties
1. Rate of duty on beer.
2. Adjustment of rates of duty on sparkling liquors.
3. Rates of duty on wine and made-wine.
4. Rates of duty on cider.
5. Drawback of excise duty on beer.
Hydrocarbon oil duties
6. Charge on production without delivery.
7. Rates of duties and rebates.
8. Ultra low sulphur diesel.
9. Mixtures of heavy oils.
Tobacco products duty
10. Rates of tobacco products duty.
Gaming duty
11. Rates of gaming duty.
Amusement machine licence duty
12. Rates of amusement machine licence duty.
13. Further exception for thirty-five-penny machines.
14. Video machines.
Air passenger duty
15. Fiscal representatives.
Vehicle excise duty
16. Rates of duty where pollution reduced.
17. Restriction of exemption for old vehicles.
18. Regulations relating to nil licences.
19. Failure to pay amount required in respect of void licence.
Assessments
20. Assessments for excise duty purposes.
Part II
Value Added Tax
21. Deemed supplies.
22. Changes of place of supply: transitional.
23. Bad debt relief.
24. Long leases in Scotland.
Part III
Income Tax, Corporation Tax and Capital Gains Tax
Chapter I
Income Tax and Corporation Tax
Income tax charge, rates and reliefs
25. Charge and rates for 1998-99.
26. Relief for a woman with a child and an incapacitated husband.
27. Married couple’s allowance etc. in and after 1999-00.
Corporation tax charge and rates
28. Charge and rates for financial year 1998.
29. Charge and rates for financial year 1999.
Corporation tax: periodic payments etc
30. Corporation tax: due and payable date.
31. Abolition of advance corporation tax.
32. Unrelieved surplus advance corporation tax.
33. Relief for interest payable under the Tax Acts.
34. Charge to tax on interest payable under the Tax Acts.
35. Further provision about interest payable under the Tax Acts.
36. Arrangements with respect to payment of corporation tax.
Gilt-edged securities
37. Abolition of periodic accounting.
Rents and other receipts from land
38. Taxation of rents and other receipts from land.
39. Land managed as one estate and maintenance funds for historic buildings.
40. Treatment of premiums as rent.
41. Tied premises: receipts and expenses treated as those of trade.
Computation of profits of trade, profession or vocation
42. Computation of profits of trade, profession or vocation.
43. Barristers and advocates in early years of practice.
44. Change of accounting basis.
45. Meaning of “period of account”.
46. Minor and consequential provisions about computations.
Gifts to charities
47. Gifts in kind for relief in poor countries.
48. Gifts of money for relief in poor countries.
Employee share incentives
49. Employee share options.
50. Conditional acquisition of shares.
51. Convertible shares provided to directors and employees.
52. Information powers.
53. Provision supplemental to sections 50 to 52.
54. Amendments consequential on sections 50 to 53.
Construction industry workers
55. Construction workers supplied by agencies.
56. Transitional provisions in connection with section 55.
57. Sub-contractors in the construction industry.
Payments and other benefits in connection with termination of employment etc.
58. Payments and other benefits in connection with termination of employment, etc.
Benefits in kind
59. Car fuel.
60. Reductions for road fuel gas cars.
61. Travelling expenses.
Profit-related pay
62. Provision preventing manipulation of profit periods.
Foreign earnings deduction
63. Withdrawal except in relation to seafarers.
PAYE: non-cash benefits etc.
64. Transitory provision relating to tradeable assets.
65. Payment in the form of a readily convertible asset.
66. Enhancing the value of an asset.
67. Gains from share options etc.
68. Vouchers and credit-tokens.
69. Intermediaries, non-UK employers, agencies etc.
The enterprise investment scheme and venture capital trusts
70. Qualifying trades for EIS and VCTs.
71. Pre-arranged exits from EIS.
72. Qualifying holdings for VCTs after 2nd July 1997.
73. Other changes to requirements for VCTs.
74. Other changes to EIS etc.
Individual savings accounts etc.
75. Use of PEPs powers to provide for accounts.
76. Tax credits for accounts and for PEPs.
77. The insurance element etc.
78. Phasing out of TESSAs.
Relief for interest and losses etc.
79. Relief for loan to acquire interest in a close company.
80. Relief for losses on unlisted shares in trading companies.
81. Group relief: special rules for consortium cases.
82. Carry forward of non-trading deficit on loan relationships.
Capital allowances
83. First-year allowances for investment in Northern Ireland.
84. First-year allowances for small businesses etc.
85. First-year allowances: consequential amendments etc.
Insurance, insurance companies and friendly societies
86. Life policies etc.
87. Non-resident insurance companies: tax representatives.
88. Overseas life assurance business.
89. Personal portfolio bonds.
90. Distributions to friendly societies.
91. Provisional repayments in connection with pension business.
Pensions
92. Approved retirement benefit schemes etc.
93. Benefits received under non-approved retirement benefits scheme.
94. Approval of personal pension schemes.
95. Personal pensions: charge on withdrawal of approval.
96. Information relating to personal pension schemes etc.
97. Notices to be given to scheme administrator.
98. Assessments on scheme administrators.
Futures and options
99. Extension of provisions relating to guaranteed returns.
Securities
100. Accrued income scheme.
101. Dealers in securities etc.
102. Manufactured dividends.
Double taxation relief
103. Restriction of relief on certain interest and dividends.
104. Adjustments of interest and dividends for spared tax etc.
105. Meaning of “financial expenditure”.
106. Underlying tax reflecting interest or dividends.
107. Notification of foreign tax adjustment.
Transfer pricing, FOREX and financial instruments
108. New regime for transfer pricing etc.
109. Abolition of requirements for direction.
110. Determinations requiring the sanction of the Board.
111. Notice to potential claimants.
Controlled foreign companies
112. Exempt activities.
113. Miscellaneous amendments.
Changes in company ownership
114. Postponed corporation tax.
115. Information powers where ownership changes.
116. Provisions supplemental to sections 114 and 115.
Corporation tax self-assessment
117. Company tax returns, assessments and related matters.
Telephone claims etc.
118. Claims for income tax purposes.
119. Evidential provisions in PAYE regulations.
Chapter II
Taxation of Chargeable Gains
Rate for trustees
120. Rate of CGT for trustees etc.
Taper relief and indexation allowance
121. Taper relief for CGT.
122. Freezing of indexation allowance for CGT.
Pooling and identification of shares etc.
123. Abolition of pooling for CGT.
124. New identification rules for CGT.
125. Indexation and share pooling etc.
Stock dividends
126. Capital gains on stock dividends.
Non-residents etc.
127. Charge to CGT on temporary non-residents.
128. Disposal of interests in a settlement.
129. Attribution of gains to settlor in section 10A cases.
130. Charge on beneficiaries of settlements with non-resident settlors.
131. Charge on settlors of settlements for grandchildren.
132. Charge on settlors of pre-19th March 1991 settlements.
Groups of companies etc.
133. Transfer within group to investment trust.
134. Transfer of company’s assets to venture capital trust.
135. Transfer within group to venture capital trust.
136. Incorporated friendly societies.
137. Pre-entry gains.
138. Pre-entry losses.
139. De-grouping charges.
Abolition of reliefs
140. Phasing out of retirement relief.
141. Abolition of certain other CGT reliefs.
Part IV
Inheritance Tax etc.
142. Property of historic interest etc.
143. Removal of exemption for gifts for public benefit.
144. Maintenance funds for historic buildings, etc.
145. Accounting for property accepted in satisfaction of tax.
Part V
Other Taxes
Insurance premium tax
146. Travel insurance: higher rate tax.
147. Taxable intermediaries.
Landfill tax
148. Provisional collection of landfill tax.
Stamp duty
149. Stamp duty on conveyance or transfer on sale.
150. Relief from double stamp duties etc.
Stamp duty reserve tax
151. Depositary receipts and clearance services: exchanges of shares.
Petroleum revenue tax etc.
152. Gas valuation.
Gas levy
153. Reduction and abolition of gas levy.
Dumping duties
154. Repeal of Customs Duties (Dumping and Subsidies) Act 1969.
Part VI
Miscellaneous and Supplemental
Fiscal stability
155. Code for fiscal stability.
156. Annual Budget documents.
157. Supplementary powers of the Comptroller and Auditor General.
Government borrowing
158. Treasury’s position regarding their own securities.
159. Treasury bills.
160. National loans.
161. Non-FOTRA securities.
162. Accounting statements relating to National Savings.
The European single currency
163. Adoption of single currency by other member States.
Supplemental
164. Interpretation.
165. Repeals.
166. Short title.
Schedules:
Payments and other benefits in connection with termination of employment etc.
Life policies, life annuities and capital redemption policies.
Company tax returns, assessments and related matters.
Company tax returns, etc.: minor and consequential amendments.
Transitional provision and consequential amendments for section 131.
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.
[31st July 1998]
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:—
Finance Act 1998 (C. 36)