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Finance Act 1974

1974 c. 30 · Enacted 31 July 1974 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 1 April 2012.

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 1974]X1C1I1X2

Annotations to the whole text

Modifications

C1

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

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

Editorial notes

X1

EDITORIAL NOTE Reconstituted split Act. The following sections were split among the following SIF groups: ss. 2, 57(1)(3)(a)(4)(5) group 12 (Betting, Gaming and Lotteries); ss. 6, 54, 57(1)(4) group 40 (Customs and Excise); ss. 7-48, 51, 52, 57(1)(2)(3)(b)(c)(4)-(6), Schs. 1-10, Sch. 12 paras. 9-12, Sch. 14 Pts. I, II, VI, VII group 63 (Income, Corporation and Capital Gains Taxes); 49, 57(1)(3)-(5), Sch. 11 group 144 (Stamp Duty); ss. 50, 57(1)(4) group 107(2) (Road Traffic) ; ss. 55, 57(4) group 107(1) (Road Taffic). This Act is presented, in the main, in the form in which it appears in the 1988 edition of The Taxes Acts edited by the Inland Revenue and published by Her Majesty's Stationery Office (any references in footnotes etc. to Vol. 1, 2 etc. are to the Volumes of that edition). The style of editing differs from that applicable to most Acts published in Statutes in Force.

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 AND VALUE ADDED TAX
  2. 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  3. 2Increase of certain duties on betting.
  4. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  5. 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  6. 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  7. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  8. Part II: INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX (GENERAL)
  9. 7–16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  10. 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  11. 18–20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  12. 21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  13. 22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  14. 24Returns of persons treated as employees. Repealed
  15. 25–28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  16. 29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  17. 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  18. 31–33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  19. 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  20. 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  21. 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. Part III: CAPITAL GAINS FROM LAND
  23. Chapter I: DEVELOPMENT GAINS FROM LAND
  24. 38Certain development gains from land to be taxed as income.
  25. 39Exemption or relief for small disposals.
  26. 40Development losses.
  27. 41Disposals of interests in land effected indirectly.
  28. 42Disposals of interests in settled property.
  29. 43Special rates of charge for development gains accruing to trustees, personal representatives or unit trust schemes.
  30. 44Supplementary
  31. Chapter II: FIRST LETTING OR OCCUPATION OF BUILDING AFTER MATERIAL DEVELOPMENT
  32. 45Charge to tax: first letting or occupation of building after material development.
  33. 46Interpretation, etc.
  34. Chapter III: OTHER PROVISIONS ABOUT CAPITAL GAINS FROM LAND
  35. 47Matters arising out of Chapters I and II of this Part.
  36. 48. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  37. Part IV: MISCELLANEOUS AND GENERAL
  38. 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  39. 50Vehicle excise duty-disabled persons.
  40. 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  41. 52. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  42. 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  43. 54Grants towards duty charged on bus fuel.
  44. 55Power to authorise amendment of taxi fare byelaws. Repealed
  45. 56Trustee savings banks—special investments.
  46. 57Citation, interpretation, construction and repeals.
  47. Schedule S 1, 2: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  48. Schedule 3: PROVISIONS SUPPLEMENTARY TO SECTION 38
  49. Part I: DEFINITIONS OF CURRENT USE VALUE, MATERIAL DEVELOPMENT, ETC.
  50. Definition of current use value
  51. 1Paragraph 1
  52. Current use value—part disposals
  53. 2Paragraph 2
  54. 3Paragraph 3
  55. Current use value—leases and reversions
  56. 4Paragraph 4
  57. 5Paragraph 5
  58. Definition of material development
  59. 6Paragraph 6
  60. 7Paragraph 7
  61. 8Paragraph 8
  62. Date when material development is begun
  63. 9Paragraph 9
  64. Interpretation
  65. 10Paragraph 10
  66. Part II: OTHER PROVISIONS SUPPLEMENTARY TO SECTION 38
  67. Computation of development gain in respect of disposal of interest in land after material development has been carried out
  68. 11Paragraph 11
  69. Computation of development gain in respect of disposal of interest in land reflecting expenditure on enhancement
  70. 12Paragraph 12
  71. Provisions supplementary to paragraphs 11 and 12
  72. 13Paragraph 13
  73. 14Paragraph 14
  74. Computation of amount given by subsection (3)(c) of principal section in certain cases within [paragraph 9(4) of Schedule 5 to the Capital Gains Tax Act 1979 ]
  75. 15Paragraph 15
  76. Computation of development gains in connection with replacements of business assets
  77. 16Paragraph 16
  78. 17Paragraph 17
  79. Replacement of business assets
  80. 18Paragraph 18
  81. Replacement of business assets: depreciating assets
  82. 19Paragraph 19
  83. Company amalgamations
  84. 20Paragraph 20
  85. Private residences
  86. 21Paragraph 21
  87. Transfer of business on retirement
  88. 22Paragraph 22
  89. Insurance companies
  90. 23Paragraph 23
  91. Chargeable gains in respect of mineral royalties
  92. 24Paragraph 24
  93. Computation of development gain in respect of disposal of interest in land with planning permission for the winning and working of minerals
  94. 25Paragraph 25
  95. Schedule 4: TRANSITIONAL PROVISIONS RELATING TO DEVELOPMENT GAINS
  96. 1Paragraph 1
  97. Replacement of business assets
  98. 2Paragraph 2
  99. Conditional contracts entered into before 18th December 1973
  100. 3Paragraph 3
  101. Disposals under arrangements made before 18th December 1973
  102. 4Paragraph 4
  103. Disposal to authority exercising compulsory powers where notice to treat was served before 18th December 1973
  104. 5Paragraph 5
  105. Schedule 5
  106. Schedule 6: DEVELOPMENT LOSSES
  107. Interpretation
  108. 1Paragraph 1
  109. Losses accruing to persons not resident or ordinarily resident in the United Kingdom
  110. 2Paragraph 2
  111. Modification of sections 176 and 179 of the Taxes Act (Case VI losses) in relation to development losses
  112. 3Paragraph 3
  113. 4Paragraph 4
  114. Computation of development loss in cases where paragraph 11 or 12 of Schedule 3 would apply in computing a development gain
  115. 5Paragraph 5
  116. Computation of amount given by subsection (4) of principal section in certain cases within [paragraph 9(4) of Schedule 5 to the Capital Gains Tax Act 1979 ]
  117. 6Paragraph 6
  118. Private residences
  119. 7Paragraph 7
  120. Set-off of development losses
  121. 8Paragraph 8
  122. Insurance companies
  123. 9Paragraph 9
  124. Schedule 7: TREATMENT OF DEVELOPMENT GAINS UNDER THE TAX ACTS
  125. Individuals
  126. 1Paragraph 1
  127. 2Paragraph 2
  128. Companies: general
  129. 3Paragraph 3
  130. Close companies
  131. 4Paragraph 4
  132. 5Paragraph 5
  133. 6Paragraph 6
  134. Insurance companies
  135. 7Paragraph 7
  136. Discretionary trusts
  137. 8Paragraph 8
  138. Estates of deceased persons in course of administration
  139. 9Paragraph 9
  140. Settlements on children
  141. 10Paragraph 10
  142. Schedule 8: ADAPTATIONS AND AMENDMENTS OF PROVISIONS RELATING TO THE TAXATION OF CAPITAL GAINS
  143. Persons chargeable to tax in respect of development gains
  144. 1Paragraph 1
  145. Development gains accruing to non-resident companies and trusts
  146. 2Paragraph 2
  147. 3Paragraph 3
  148. Development gains accruing in connection with replacement of business assets
  149. 4Paragraph 4
  150. Development gains accruing in connection with company amalgamations
  151. 5Paragraph 5
  152. Transfer of business to a company
  153. 6Paragraph 6 Repealed
  154. 7Paragraph 7
  155. Schedule 9: SUPPLEMENTARY PROVISIONS ABOUT DEEMED DISPOSALS UNDER SECTION 45
  156. Interpretation
  157. 1Paragraph 1
  158. The interest of a relevant person
  159. 2Paragraph 2
  160. Interests other than that of a relevant person
  161. 3Paragraph 3
  162. 4Paragraph 4
  163. 5Paragraph 5
  164. Provisions supplementary to paragraph 3
  165. 6Paragraph 6
  166. Exemption for interest in land occupied on the material date in right of that interest
  167. 7Paragraph 7
  168. Exemption for interest in land disposed of after the material date
  169. 8Paragraph 8
  170. Exemption by reference to occupation within three years of the material date of land then intended to be occupied
  171. 9Paragraph 9
  172. Exemption for interests in land subject on 18th December 1973 to certain leases or agreements for a lease
  173. 10Paragraph 10
  174. Groups of companies
  175. 11Paragraph 11
  176. Tied premises
  177. 12Paragraph 12
  178. Power to make assessments etc. in connection with certain deemed disposals
  179. 13Paragraph 13
  180. Postponement of payment of tax
  181. 14Paragraph 14
  182. Consideration for deemed disposal to be disregarded in certain circumstances in computing capital gain
  183. 15Paragraph 15
  184. Deemed disposals in cases involving the grant of a lease for a premium
  185. 16Paragraph 16
  186. 17Paragraph 17
  187. 18Paragraph 18
  188. Schedule 10: MATTERS ARISING OUT OF CHAPTERS I AND II OF PART III OF THIS ACT
  189. Recovery of tax from persons not primarily liable
  190. 1Paragraph 1
  191. Postponement of payment of tax
  192. 2Paragraph 2
  193. Returns by relevant persons
  194. 3Paragraph 3
  195. Information
  196. 4Paragraph 4
  197. Amendments of the Taxes Management Act 1970
  198. 5Paragraph 5
  199. Schedule 11
  200. Part I: PROVISIONS HAVING EFFECT IN GREAT BRITAIN
  201. 1Paragraph 1
  202. 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  203. 3-4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  204. 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  205. 6–8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  206. Duplicates and counterparts
  207. 9Paragraph 9
  208. Lease or tack
  209. 10Paragraph 10
  210. Part II: PROVISIONS HAVING EFFECT IN NORTHERN IRELAND
  211. 11Paragraph 11
  212. 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  213. 13 - 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  214. 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  215. 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  216. Duplicates and counterparts
  217. 18Paragraph 18
  218. Lease or tack
  219. 19Paragraph 19
  220. Part III
  221. 20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  222. Schedule 12: SUBSTITUTION OF “LOCAL AUTHORITY” AS DEFINED IN SECTION 52
  223. 1–5Paragraph 1–5 Repealed
  224. 7–12Paragraph 7–12 Repealed
  225. Schedule 13
  226. Schedule 14: ENACTMENTS REPEALED
  227. IINTEREST
  228. IISHARE OPTION AND SHARE INCENTIVE SCHEMES
  229. IIIStamp Duty Repeals Having Effect from 1st May 1974
  230. IVStamp Duty Repeals having effect from 1st August 1974
  231. Regional Employment Premiums
  232. VPart V
  233. VIMISCELLANEOUS
  234. VIISPENT ENACTMENTS