OpenLegislation

Finance Act 1987

1987 c. 16 · Enacted 15 May 1987 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 22 February 2024.

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.[15th May 1987]

X1I1X2Most 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:—

Annotations to the whole text

Commencement

I1

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. Some provisions came into force at specific times of the day.

Editorial notes

X1

The text of ss. 69 and 72(1) was taken from S.I.F. Group 10 (Banking and Currency), ss. 3–5, 72(1)(7), Sch. 16 Pt. II from S.I.F. Group 12:2 (Betting, Gaming and Lotteries: Betting and Gaming Duties), ss. 1, 6–10, 72(1)(7), Sch. 16 Pt. III from S.I.F. Group 40:1 (Customs and Excise: Customs and Excise Duties), ss. 11–19, 72(1)(7), Schs. 2, 16 Pt. IV from S.I.F. Group 40:2 (Customs and Excise: Value Added Tax and Car Tax), ss. 20–46, 61–67, 70(1), 71, 72(1)–(3)(6)(7), Schs. 3–6, 10–15, 16 Pts. V–VII, X from S.I.F. Group 63:1 (Income, Corporation and Capital Gains Taxes: Income and Corporation Taxes), s. 47 from S.I.F. Group 63:2 (Income, Corporation and Capital Gains Taxes: Capital Gains Taxes), ss. 57–60, 70(2), 72(1)(5)(7), Schs. 8, 9, 16 Pt. IX from S.I.F. Group 65 (Inheritance Tax), ss. 68, 72(1)(7) Sch. 16 Pt. XI from S.I.F. Group 99:6 (Public Finance and Economic Controls: Economic Controls), ss. 2, 72(1)(7), Schs. 1, 16 Pt. I from S.I.F. Group 107:2 (Road Traffic: Vehicle Excise Duty) and ss. 48–56, 72(1)(4)(7), Schs. 7, 16 Pt. VIII from S.I.F Group 114 (Stamp Duty); provisions omitted from SIF 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 1: Customs and Excise and Value Added Tax
  2. Chapter I: Customs and Excise
  3. Duties of excise
  4. 1Unleaded petrol.
  5. 2Part I Vehicles excise duty.
  6. 3Abolition of general betting duty on on-course bets.
  7. 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  8. 5Gaming machine licence duty: other amendments.
  9. Amendments of the Management Act
  10. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  11. 7Powers of search and access etc. in respect of vehicles. 1979 c. 2.
  12. 8Local export control.
  13. 9Records relating to importation and exportation.
  14. 10Information powers.
  15. Chapter II: Value Added Tax
  16. 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  17. 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  18. 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  19. 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  20. 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  21. 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  23. 18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  24. 19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  25. Part II: Income Tax, Corporation Tax and Capital Gains Tax
  26. Chapter I: General
  27. 20–39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  28. 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  29. 41–46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  30. Chapter II
  31. 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  32. Part III: Stamp Duty and Stamp Duty Reserve Tax
  33. Stamp duty
  34. 48Unit trusts.
  35. 49Contract notes. Repealed
  36. 50Warrants to purchase Government stock, etc.
  37. 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  38. 52Clearance services
  39. 53. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  40. 54Shared ownership transactions. Repealed
  41. 55Crown exemption.
  42. 56Stamp duty reserve tax
  43. Part IV: Inheritance Tax
  44. 57Reduced rates of tax.
  45. 58Securities, other business property and agricultural property.
  46. 59Maintenance funds for historic buildings etc.
  47. 60Acceptance in lieu: waiver of interest.
  48. Part V: Oil Taxation
  49. 61Nomination of disposals and appropriations.
  50. 62Market value of oil to be determined on a monthly basis.
  51. 63Blends of oil from two or more fields.
  52. 64Relief for research expenditure.
  53. 65Cross-field allowance of certain expenditure incurred on new fields.
  54. 66Oil allowance: adjustment for final periods.
  55. 67Variation of decisions on claims for allowable expenditure.
  56. Part VI: Miscellaneous and Supplementary
  57. 68Abolition of enactments relating to exchange control.
  58. 69Regulation of financial dealings.
  59. 70Arrangements specified in Orders in Council relating to double taxation relief etc.
  60. 71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  61. 72Short title, interpretation, construction and repeals.
  62. Schedule 1: Vehicles Excise Duty
  63. I. . . . . . . . . . . . . . . . . . . . . . . . .Part I. . . . . . . . . . . . . . . . . . . . . . . . .
  64. Part II: Recovery Vehicles
  65. Interpretation
  66. 1Paragraph 1 Repealed
  67. 2Paragraph 2 Repealed
  68. 3Paragraph 3 Repealed
  69. 4Paragraph 4 Repealed
  70. Exclusion of recovery vehicles from trade licences
  71. 5Paragraph 5 Repealed
  72. 6Paragraph 6 Repealed
  73. Part III: Miscellaneous Amendments
  74. Introductory
  75. 7Paragraph 7 Repealed
  76. Additional liability for evasion of duty
  77. 8Paragraph 8 Repealed
  78. 9Paragraph 9 Repealed
  79. 10Paragraph 10 Repealed
  80. 11Paragraph 11 Repealed
  81. 12Paragraph 12 Repealed
  82. 13Paragraph 13 Repealed
  83. Offences relating to trade licences
  84. 14Paragraph 14 Repealed
  85. 15Paragraph 15 Repealed
  86. Regulations concerning transfer etc. of vehicles
  87. 16Paragraph 16 Repealed
  88. 17Paragraph 17 Repealed
  89. Increase of certain penalties for offences under regulations
  90. 18Paragraph 18 Repealed
  91. 19Paragraph 19 Repealed
  92. Dishonoured cheques
  93. 20Paragraph 20
  94. 21Paragraph 21 Repealed
  95. Schedule 2: Amendments of Value Added Tax Act 1983
  96. Supplies received from abroad
  97. 1Paragraph 1
  98. 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  99. Transfers of going concerns
  100. 3Paragraph 3
  101. Appeals
  102. 4Paragraph 4
  103. Schedule S 3–6. . . . . . . . . . . . . . . . . . . . . . .
  104. Schedule 7: Stamp Duty Reserve Tax
  105. 1Paragraph 1
  106. Principal charge
  107. 2Paragraph 2
  108. Renounceable letters of allotment, etc.
  109. 3Paragraph 3
  110. Market makers in options
  111. 4Paragraph 4 Repealed
  112. Clearance services
  113. 5Paragraph 5
  114. Charities etc.
  115. 6Paragraph 6
  116. Interest on tax repayments
  117. 7Paragraph 7
  118. Schedule 8: Securities, Other Business Property and Agricultural Property
  119. 1Paragraph 1
  120. 2Paragraph 2
  121. 3Paragraph 3
  122. 4Paragraph 4
  123. 5Paragraph 5 Repealed
  124. 6Paragraph 6 Repealed
  125. 7Paragraph 7 Repealed
  126. 8Paragraph 8
  127. 9Paragraph 9
  128. 10Paragraph 10
  129. 11Paragraph 11
  130. 12Paragraph 12
  131. 13Paragraph 13
  132. 14Paragraph 14
  133. 15Paragraph 15
  134. 16Paragraph 16
  135. 17Paragraph 17
  136. 18Paragraph 18
  137. Schedule 9: Maintenance Funds for Historic Buildings etc.
  138. 1Paragraph 1
  139. 2Paragraph 2
  140. 3Paragraph 3
  141. 4Paragraph 4
  142. 5Paragraph 5
  143. 6Paragraph 6
  144. Schedule 10: Nomination Scheme for Disposals and Appropriation
  145. Interpretation
  146. 1Paragraph 1
  147. Transactions which may be nominated
  148. 2Paragraph 2
  149. Period for which nomination has effect
  150. 3Paragraph 3 Repealed
  151. Timing of nominations
  152. 4Paragraph 4
  153. Content of nomination
  154. 5Paragraph 5
  155. 5AParagraph 5A
  156. 5BParagraph 5B
  157. Nominated price
  158. 6Paragraph 6
  159. Nominal volume
  160. 7Paragraph 7
  161. Revision of nominations
  162. 8Paragraph 8 Repealed
  163. Effective volume for nominated transactions
  164. 9Paragraph 9 Repealed
  165. Aggregate effective volume for a month
  166. 10Paragraph 10 Repealed
  167. Aggregate nominated proceeds for a month
  168. 11Paragraph 11 Repealed
  169. Blended oil
  170. 12Paragraph 12
  171. Interpretation
  172. 12AParagraph 12A
  173. Returns
  174. 13Paragraph 13
  175. Schedule 11: Market Value of Oil
  176. Part I: Amendments of Paragraphs 2, 2a and 3 of Schedule 3 to Principal Act
  177. 1Paragraph 1
  178. 2Paragraph 2
  179. 3Paragraph 3 Repealed
  180. Part II: Consequential Amendments of Principal Act
  181. 4Paragraph 4 Repealed
  182. 5Paragraph 5 Repealed
  183. 6Paragraph 6 Repealed
  184. Schedule 12: Supplementary Provisions as to Blended Oil
  185. Interpretation
  186. 1Paragraph 1
  187. Method of allocation not suitable
  188. 2Paragraph 2
  189. Appeals
  190. 3Paragraph 3
  191. 4Paragraph 4 Repealed
  192. Schedule 13: Relief for Research Expenditure
  193. Part I: Section to be Inserted After Section 5A of the Principal Act
  194. Paragraph
  195. Part II: Amendments Relating to the New Allowance
  196. The principal Act
  197. 1Paragraph 1
  198. 2Paragraph 2
  199. 3Paragraph 3
  200. 4Paragraph 4
  201. 5Paragraph 5
  202. The Petroleum Revenue Tax Act 1980
  203. 6Paragraph 6
  204. The Finance Act 1980
  205. 7Paragraph 7
  206. The Finance Act 1981
  207. 8Paragraph 8
  208. The Finance Act 1984
  209. 9Paragraph 9
  210. Part III: Receipts to be Set Against Allowable Expenditure
  211. 10Paragraph 10
  212. 11Paragraph 11
  213. 12Paragraph 12
  214. Schedule 14: Cross-Field Allowance
  215. Part I: Elections
  216. General
  217. 1Paragraph 1
  218. Earliest date for an election
  219. 2Paragraph 2
  220. Latest date for election
  221. 3Paragraph 3
  222. Two or more elections relating to same expenditure
  223. 4Paragraph 4
  224. Part II: Effect on Receiving Field
  225. 5Paragraph 5
  226. 6Paragraph 6
  227. 7Paragraph 7
  228. Part III: Relevant New Fields and Associated Companies
  229. Relevant new fields
  230. 8Paragraph 8
  231. 9Paragraph 9
  232. Associated companies
  233. 10Paragraph 10
  234. Part IV: Supplemental and Consequential Provisions
  235. Notice of variation reducing expenditure qualifying for supplement
  236. 11Paragraph 11
  237. Elections following variation increasing expenditure qualifying for supplement
  238. 12Paragraph 12
  239. Limit on amount of tax payable in respect of receiving field
  240. 13Paragraph 13
  241. Schedule 15: Pre-Consolidation Amendments: Income Tax and Corporation Tax
  242. 1–11Paragraph 1–11 Repealed
  243. The Interpretation Act 1978 (c. 30)
  244. 12Paragraph 12
  245. 13–17Paragraph 13–17 Repealed
  246. Schedule 16: Repeals
  247. IVehicles Excise Duty
  248. 1Paragraph 1
  249. 2Paragraph 2
  250. IIBetting and Gaming Duties
  251. 1Paragraph 1
  252. 2Paragraph 2
  253. 3Paragraph 3
  254. IIIManagement of Customs and Excise
  255. IVValue Added Tax
  256. VIncome Tax and Corporation Tax: General
  257. 1Paragraph 1
  258. 2Paragraph 2
  259. 3Paragraph 3
  260. 4Paragraph 4
  261. VIUnit Trusts
  262. VIIIncome Tax and Corporation Tax: Pre-Consolidation Amendments
  263. VIIIStamp Duty
  264. 1Paragraph 1
  265. 2Paragraph 2
  266. IXInheritance Tax
  267. XOil Taxation
  268. XIExchange Control
  269. 1Paragraph 1
  270. 2Paragraph 2