OpenLegislation

Finance Act 1930

Geo5/20-21 c. 28 · Enacted 1 August 1930 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 15 September 2016.

An Act to grant certain duties of Customs and Inland Revenue (including Excise), to alter other duties, and to amend the law relating to Customs and Inland Revenue (including Excise) and the National Debt, and to make further provision in connection with finance.[1st August 1930] E1I1C1X1C2X2

Annotations to the whole text

Modifications

C1

Words of enactment omitted under authority of Statute Law Revision Act 1948 (c. 62), s. 3

C2

General amendments etc. to Tax Acts (or Income Tax Acts or Corporation Tax Acts as the case may be) made by Taxes Management Act 1970 (c. 9, SIF 63:1), s. 41A(7) (as added by Finance Act 1990 (c. 29, SIF 63:1), s. 95(1)(2), British Telecommunications Act 1981 (c. 38, SIF 96), s. 82(2)(7); Telecommunications Act 1984 (c. 12, SIF 96), s. 72(3); Finance Act 1984 (c. 43, SIF 63:1), ss. 82(6), 85(2), 89(1)(7), 96(1)(7), 98(7), Sch. 9 para. 3(2)(9), Sch. 16 paras. 6, 12 and Finance Act 1985 (c. 54, SIF 63:1), ss. 72(1), 74(5), Sch. 23 para. 15(4), S.I. 1987/530, regs. 11(2), 13(1), 14, Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 4, 6, 7, 9, 32, 34, 78, 134, 135, 141, 142, 185, 191, 193, 194, 195, 200, 203, 209, 212, 213, 219, 247, 253, 272, 287, 314, 315, 317, 318, 325, 326, 327, 345, 350, 351, 368, 375, 381, 397, 414, 432, 440, 442, 446, 458, 460, 461, 463, 463(2)(3) (as added by Finance Act 1990 (c. 29, SIF 63:1), s. 50(2) ), 468, 474, 475, 486, 490, 491, 503, 511, 518, 524, 532, 544, 550, 556, 558, 569, 572, 582, 595, 601, 613, 617, 619, 621, 639, 656, 660, 663, 676, 689, 691, 694, 700, 701, 714, 716, 739, 743, 754, 763, 776, 780, 781, 782, 787, 789, 811, 828, 829, 832, 833, 834, 835, 837, 838, 839, 840, 841, 842, Sch. 2 para. 5, Sch. 4 para. 5, Sch. 13 para. 10, Sch. 16 para. 10, Sch. 21 para. 6, Sch. 26 para. 1, Sch. 27 para. 20, Finance Act 1988 (c. 39, SIF 63:1), ss. 66, 127(1)(6), Sch. 12 para. 6, Capital Allowances Act 1990 (c. 1, SIF 63:1), ss. 28(1), 68(8), 74, 82, 83(5), 148(5), 163(4), 164(2), S.I. 1990/627 and Finance Act 1990 (c. 29, SIF 63:1), s. 25(10)

Commencement

I1

Act partly in force at Royal Assent, partly retrospective; all provisions as far as unrepealed wholly in force at 1.2.1991.

Extent

E1

For the extent of this Act in relation to Northern Ireland see S. 53(7)

Editorial notes

X1

The text of ss.42, 53(4) was taken from S.I.F. Group 114 (Stamp Duty), s. 49 from S.I.F. 99:3 (Public Finance and Economic Controls: National Debt) and ss 51 and 53(5)(6)(7) was taken from S.I.F. Group 63:1 (Income, Corporation & Capital Gains Taxes) ; provisions omitted from S.I.F. have been dealt with as referred to in other commentary.

X2

General amendments to Tax Acts, Income Tax Acts, and/or Corporation Tax Acts made by legislation after 1.2.1991 are noted against Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1) but not against each Act

Contents

  1. Part I: Customs and Excise.
  2. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  3. 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  4. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  5. 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  6. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  7. 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  8. Part II: Income Tax.
  9. 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  10. Part III: Estate Duty.
  11. 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  12. Part IV: Stamps.
  13. 41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  14. 42Relief from transfer stamp duty in case of transfer of property as between associated companies.
  15. 42ACertain arrangements not within section 42
  16. 42BCertain mortgage arrangements not within section 42
  17. 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  18. 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  19. 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  20. Part V: National Debt.
  21. 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  23. 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  24. 49Amendment of Part VII of National Debt Act 1870.
  25. 50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  26. Part VI: Miscellaneous and General.
  27. 51Bank for International Settlements to be exempt from taxation.
  28. 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  29. 53†Construction, short title, application and repeal.
  30. Schedule FIRST SCHEDULE
  31. Schedule SECOND SCHEDULE
  32. Schedule 3

1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1C1

41. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

42Relief from transfer stamp duty in case of transfer of property as between associated companies.C1

(1)

Stamp duty under F1Part I of Schedule 13 to the Finance Act 1999 (conveyance or transfer on sale), shall not be chargeable on an instrument to which this section applies;

Provided that no such instrument shall be deemed to be duly stamped unless either it is stamped with the duty to which it would but for this section be liable, or it has in accordance with the provisions of section twelve of the said Act been stamped with a particular stamp denoting either that it is not chargeable with any duty or that it is duly stamped.

(2)

F2This section applies to any instrument as respects which it is shown to the satisfaction of the Commissioners F3that—.

(a)

the effect of the instrument is to convey or transfer a beneficial interest in property from one body corporate F4(“the transferor”) to another (“the transferee”), and

(b)

the bodies in question are associated at the time the instrument is executed

F5unless at the time the instrument is executed arrangements are in existence by virtue of which at that or some later time any person has or could obtain, or any persons together have or could obtain, control of the transferee but not of the transferor F6(but see sections 42A and 42B) .

(2A)

F7For the purposes of this section bodies corporate are associated at a particular time if at that time one is the parent of the other or another body corporate is the parent of each.

(2B)

For the purposes of this section one body corporate is the parent of another at a particular time if at that time the first body

(a)

is beneficially owner of not less than 75 per cent. of the ordinary share capital of the second body

(b)

F9is beneficially entitled to not less than 75 per cent of any profits available for distribution to equity holders of the second body; and

(c)

would be beneficially entitled to not less than 75 per cent of any assets of the second body available for distribution to its equity holders on a winding-up.

(3)

The ownership referred to in F10paragraph (a) of subsection F11(2B) above is ownership either directly or through another body corporate or other bodies corporate, or partly directly and partly through another body corporate or other bodies corporate, and Part I of Schedule 4 to the M1Finance Act 1938 (determination of amount of capital held through other bodies corporate) shall apply for the purposes of F12that paragraph. . ..

(4)

F13In this section “ordinary share capital”, in relation to a body corporate, means all the issued share capital (by whatever name called) of the body corporate, other than capital the holders of which have a right to a dividend at a fixed rate but have no other right to share in the profits of the body corporate.

(5)

F14F15Chapter 6 of Part 5 of the Corporation Tax Act 2010 shall apply for the purposes of paragraphs (b) and (c) of subsection (2B) as it applies for the purposes of F16section 151(4)(a) and (b) of that Act; but this is subject to subsection (6).

(6)

In determining for the purposes of this section whether a body corporate is the parent of the transferor, F17sections 171(1)(b) and (3), 173, 174 and 176 to 178 of the Corporation Tax Act 2010 shall not apply for the purposes of paragraph (b) or (c) of subsection (2B).

(7)

In this section, “control” shall be construed in accordance with F18section 1124 of the Corporation Tax Act 2010 .

42ACertain arrangements not within section 42

(1)

F1Arrangements entered into by a joint venture company which, apart from this section, would be arrangements of the kind mentioned in section 42(2) are not to be treated as such arrangements if and so long as—

(a)

the arrangements fall within subsection (2), and

(b)

none of the contingencies mentioned in subsection (3) to which the arrangements relate has occurred.

(2)

Arrangements fall within this subsection if they are—

(a)

an agreement which provides for the transfer of shares or securities in the joint venture company to one or more members of that company on, or as a result of, one or more contingencies mentioned in subsection (3) occurring, or

(b)

a provision in a constitutional document of the joint venture company which provides for the suspension of a member’s voting rights on, or as a result of, one or more of those contingencies occurring.

(3)

The contingencies referred to in subsection (1)(b) and (2) are—

(a)

the voluntary departure of a member,

(b)

the commencement of the liquidation, administration, administrative receivership or receivership of, or the entering into of a voluntary arrangement by, a member under the Insolvency Act 1986 or the Insolvency (Northern Ireland) Order 1989 or the commencement, or entering into, of equivalent proceedings or arrangements under the law of any country or territory outside the United Kingdom,

(c)

a serious deterioration in the financial condition of a member,

(d)

a change of control of a member,

(e)

a default by a member in performing its obligations under any agreement between the members or with the joint venture company (which, for this purpose, includes any constitutional document of the joint venture company),

(f)

an external change in the commercial circumstances in which the joint venture company operates such that its viability is threatened,

(g)

an unresolved disagreement between members, and

(h)

any contingency of a similar kind to that mentioned in any of paragraphs (a) to (g) which is provided for, but not intended to happen, when the arrangements in question are entered into.

(4)

This section does not apply if a member could alone or together with connected persons dictate the terms or timing of—

(a)

the transfer of the shares or securities, or

(b)

suspension of a member’s voting rights,

in advance of one or more of the contingencies occurring.

(5)

For the purposes of subsection (4) members are not connected with each other by reason only of their membership of the joint venture company.

(6)

In this section—

  • “connected” has the same meaning as in section 1122 of the Corporation Tax Act 2010;

  • “constitutional document” means a memorandum of association, articles of association or any other similar document regulating the affairs of the joint venture company;

  • “joint venture company” means a company which—

    1. has two or more member companies, and

    2. carries on a commercial activity governed by an agreement regulating the affairs of its members;

  • “member” means a holder of shares or securities in the joint venture company.

42BCertain mortgage arrangements not within section 42

(1)

F1Arrangements entered into by a company which, apart from this section, would be arrangements of the kind mentioned in section 42(2) are not to be treated as such arrangements if and so long as—

(a)

the arrangements are a mortgage, secured by way of shares or securities in the company, which on default or the happening of any other event allows the mortgagee to exercise its rights against the mortgagor, and

(b)

the mortgagee has not exercised its rights against the mortgagor.

(2)

This section does not apply if the mortgagee—

(a)

possesses greater rights in respect of the shares or securities which are the subject of the mortgage than it requires to protect its interest as mortgagee, or

(b)

could alone or together with connected persons dictate the terms or timing of the default or the happening of any event which allows it to exercise its rights against the mortgagor.

(3)

For the purposes of subsection (2)(b) a mortgagee is not, by reason only of the mortgage, connected with a company whose shares or securities are the subject of the mortgage.

(4)

In this section—

  • “connected” has the same meaning as in section 1122 of the Corporation Tax Act 2010;

  • “mortgage” means—

    1. in England and Wales, and Northern Ireland, any legal or equitable charge, and

    2. in Scotland, any right in security.

43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

49Amendment of Part VII of National Debt Act 1870.

(1)

Part VII of the M1National Debt Act 1870, shall have effect as if the capital sums secured on bearer bonds issued under the War Loan Acts 1914 to 1919, were stock within the meaning of the said Part VII and as if the bonds and coupons attached thereto were respectively stock certificates and coupons issued under the National Debt Act 1870.

(2)

For the purposes of this section a bond shall be deemed to have been issued if it has been made out and paid for, notwithstanding that it has not been taken up by the person entitled thereto.

50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

51Bank for International Settlements to be exempt from taxation.

The Bank for International Settlements shall not be liable to any taxation, present or future, in respect either of the capital amount of, or of any income arising from, any part of the funds or investments of the Bank which result from payments made by the Government of the German Reich under the agreement entered into at the Hague on the twentieth day of January, nineteen hundred and thirty, between the Government of the German Reich and certain other Governments, including the Government of the United Kingdom.

52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .F1

53†Construction, short title, application and repeal.C1

(1)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1

(2)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2

(3)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(4)

Part IV of this Act shall be construed as one with the M1Stamp Act 1891.

(5)

Any reference in this Act to any enactment shall be construed as a reference to that enactment as amended by any subsequent enactment, including this Act.

(6)

This Act may be cited as the Finance Act, 1930.

(7)

Such of the provisions of this Act as relate to matters with respect to which the Parliament of Northern Ireland has power to make laws shall not extend to Northern Ireland.

(8)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4