OpenLegislation

Finance Act 1990

1990 c. 29 · Enacted 26 July 1990 · Extends to United Kingdom

Not fully up to date. 2 changes made by later legislation have not yet been written into this text, which is revised to 1 April 2013.

See the changes not yet applied
ProvisionChangeMade by
Sch. 14 para. 10omittedFinance Act 2008 s. 41(7)(b)
Sch. 14 para. 11omittedFinance Act 2008 s. 41(7)(b)
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.[26th July 1990]

X1X2Most 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

Editorial notes

X1

Ss. 4, 132, Sch. 19 Pt. I from Gp 12:2 (Betting, Gaming and Lotteries), ss. 1-3, 7-9, 132, 133, Schs. 1, 3, 19 Pt. I from Gp 40:1 (Customs and Excise), ss. 10-16, 131(2), 132, 133, Sch. 19 Pt III from Gp 40:2 (Customs and Excise), ss. 132, 133 from Gp 44:2 (Energy), ss. 115-120, 133 from Gp 58 (Harbours, Docks and Piers), ss. 17-30, 39(9), 41-62, 65-71, 73-82, 86-106, 114, 121, 122, 125-127, 131-133, Schs. 4-17, 18 paras. 2, 5, Sch 19 Pts IV, V from Gp 63:1 (Income, Corporation and Capital Gains Taxes), ss 28(3), 31-40, 48, 54, 56, 63, 64, 70(5)-(9), 72, 81(3)(6)(8), 83-85, 89, 127(2)-(4), 131(3), 133, Sch 9 paras 2, 7, Sch. 10 paras 28, 29, Sch. 14 paras 17-19, Sch 18 para 3 from Gp 63:2 (Income, Corporation and Capital Gains Taxes), ss 124-126, 127(3)(4), 133, Sch 18 para 4 from Gp 65 (Inheritance Tax), ss 128-130, 132, 133, Sch 19 Pt VIII from Gp 99:5 (Public Finance and Economic Controls), ss. 5, 6, 132, 133, Schs 2, 19 Pt II from Gp 107:2 (Road Traffic), ss. 107-114, 127(3)(4), 132, 133, Sch 18 para 1, Sch 19 Pts VI, VII from Gp 114 (Stamp Duty)

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. Chapter I: Customs and Excise
  3. Rates of duty
  4. 1Spirits, beer, wine, made-wine and cider.
  5. 2Tobacco products.
  6. 3Hydrocarbon oil.
  7. 4Pool betting duty.
  8. 5Vehicles excise duty.
  9. Other provisions
  10. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  11. 7Entry of goods on importation.
  12. 8Spirits methylated abroad. Repealed
  13. 9Lodgings for officers in charge of distillery.
  14. Chapter II: Value Added Tax
  15. 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  16. 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  17. 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  18. 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  19. 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  20. 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  21. 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. Part II: Income Tax, Corporation Tax and Capital Gains Tax
  23. Chapter I: General
  24. Income tax rates and allowances
  25. 17Rates and main allowances. Repealed
  26. 18Relief for blind persons. Repealed
  27. Corporation tax rates
  28. 19Charge and rate of corporation tax for 1990.
  29. 20Small companies. Repealed
  30. Benefits in kind
  31. 21Care for children. Repealed
  32. 22Car benefits.
  33. Mileage allowances
  34. 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  35. Charities
  36. 24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  37. 25Donations to charity by individuals.
  38. 26Company donations to charity. Repealed
  39. 27Maximum qualifying company donations.
  40. Savings
  41. 28Tax-exempt special savings accounts.
  42. 29Extension of SAYE. Repealed
  43. 30Building societies.
  44. Employee share ownership trusts
  45. 31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  46. 32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  47. 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  48. 34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  49. 35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  50. 36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  51. 37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  52. 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  53. 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  54. 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  55. Insurance companies and friendly societies
  56. 41Apportionment of income etc. Repealed
  57. 42Overseas life assurance business. Repealed
  58. 43Deduction for policy holders’ tax. Repealed
  59. 44Reinsurance commissions. Repealed
  60. 45Policy holders’ share of profits etc.
  61. 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  62. 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  63. 48Transfers of long term business. Repealed
  64. 49Friendly societies: increased tax exemption.
  65. 50Friendly societies: application of enactments. Repealed
  66. Unit and investment trusts etc.
  67. 51. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  68. 52Unit trusts: repeals.
  69. 53Unit trust managers: exemption from bond-washing provisions. Repealed
  70. 54. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  71. 55Investment trusts. Repealed
  72. Securities
  73. 56. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  74. 57Deep gain securities.
  75. 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  76. 59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  77. Oil industry
  78. 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  79. 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  80. 62CT treatment of PRT repayment.
  81. 63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  82. 64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  83. International
  84. 65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  85. 66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  86. 67Dual resident companies: controlled foreign companies.
  87. 68Movements of capital between residents of member States.
  88. 69European Economic Interest Groupings.
  89. 70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  90. Miscellaneous
  91. 71Relief for interest.
  92. 72. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  93. 73. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  94. 74. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  95. 75. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  96. 76Training and enterprise councils and local enterprise companies. Repealed
  97. 77Expenses of entertainers. Repealed
  98. 78Waste disposal. Repealed
  99. 79Priority share allocations for employees etc. Repealed
  100. 80Broadcasting: transfer of undertakings of Independent Broadcasting Authority and Cable Authority.
  101. 81Futures and options: exemptions.
  102. 82. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  103. 83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  104. 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  105. 85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  106. 86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  107. 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  108. 88Capital allowances: miscellaneous amendments.
  109. 89Correction of errors in Taxes Act 1988.
  110. Chapter II: Management
  111. Returns and information
  112. 90Income tax returns.
  113. 91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  114. 92Information powers relating to interest.
  115. 93Restrictions on Board’s power to call for information.
  116. 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  117. Corporation tax determinations
  118. 95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  119. 96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  120. Claims by companies
  121. 97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  122. 98Repayment of income tax deducted at source.
  123. 99Loss relief. Repealed
  124. 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  125. 101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  126. 102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  127. 103. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  128. Miscellaneous
  129. 104Officers.
  130. 105Recovery of excessive repayments of tax.
  131. 106Corporation tax: collection.
  132. Part III: Stamp Duty and Stamp Duty Reserve Tax
  133. Repeals
  134. 107Stamp duty to be abolished on bearer instruments.
  135. 108Transfer of securities: abolition of stamp duty.
  136. 109Stamp duty: other repeals.
  137. 110Stamp duty reserve tax: abolition.
  138. 111General.
  139. Paired shares
  140. 112Stamp duty.
  141. 113Stamp duty reserve tax.
  142. International organisations
  143. 114International organisations.
  144. Part IV: Miscellaneous and General
  145. Ports levy
  146. 115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  147. 116. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  148. 117. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  149. 118. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  150. 119. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  151. 120. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  152. Petroleum revenue tax
  153. 121Limit on PRT repayment interest where loss carried back.
  154. 122Variation, on account of fraudulent or negligent conduct, of decision on expenditure claim etc. Repealed
  155. Miscellaneous
  156. 123. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  157. 124Inheritance tax: restriction on power to require information. Repealed
  158. 125Information for tax authorities in other member States.
  159. 126Pools payments for football ground improvements. Repealed
  160. 127Definition of “local authority” for certain tax purposes.
  161. 128Repayment of fees and charges.
  162. 129Settlement of stock disputes by deputy registrars.
  163. 130Limit for local loans.
  164. General
  165. 131Interpretation etc.
  166. 132Repeals.
  167. 133Short title.
  168. Schedule 1: Table of Rates of Duty on Wine and Made-Wine
  169. Schedule 2: Vehicles Excise Duty: Rates
  170. IPart I
  171. Part II: Amendments of Part I of Schedule 4 to the 1971 Act
  172. 1Paragraph 1 Repealed
  173. 2Paragraph 2 Repealed
  174. 3Paragraph 3 Repealed
  175. 4Paragraph 4 Repealed
  176. 5Paragraph 5 Repealed
  177. 6Paragraph 6
  178. 7Paragraph 7 Repealed
  179. 8Paragraph 8 Repealed
  180. 9Paragraph 9 Repealed
  181. Part III
  182. 10Paragraph 10 Repealed
  183. 11Paragraph 11 Repealed
  184. Part IV: Tables Substituted in Part II of Schedule 4 to the 1971 Act and the 1972 Act
  185. Paragraph Not yet in force
  186. Schedule 3: Entry of Goods on Importation
  187. 1Paragraph 1
  188. 2Paragraph 2
  189. 3Paragraph 3
  190. 4Paragraph 4
  191. Schedule 4
  192. Schedule 5: Building Societies and Deposit-Takers
  193. Introduction
  194. 1Paragraph 1
  195. Building societies
  196. 2Paragraph 2
  197. 3Paragraph 3
  198. 4Paragraph 4 Repealed
  199. Deposit-takers
  200. 5Paragraph 5
  201. 6Paragraph 6
  202. 7Paragraph 7 Repealed
  203. 8Paragraph 8 Repealed
  204. 9Paragraph 9 Repealed
  205. General
  206. 10Paragraph 10 Repealed
  207. 11Paragraph 11 Repealed
  208. 12Paragraph 12
  209. 13Paragraph 13
  210. 14Paragraph 14
  211. Management
  212. 15Paragraph 15
  213. Transitional provision
  214. 16Paragraph 16 Repealed
  215. Schedule 6: Life Assurance: Apportionment of Income etc.
  216. 1Paragraph 1 Repealed
  217. 2Paragraph 2 Repealed
  218. 3Paragraph 3 Repealed
  219. 4Paragraph 4 Repealed
  220. 5Paragraph 5 Repealed
  221. 6Paragraph 6 Repealed
  222. 7Paragraph 7 Repealed
  223. 8Paragraph 8 Repealed
  224. 9Paragraph 9 Repealed
  225. 10Paragraph 10 Repealed
  226. 11Paragraph 11
  227. 12Paragraph 12
  228. Schedule 7: Overseas Life Assurance Business Repealed
  229. 1Paragraph 1 Repealed
  230. 2Paragraph 2 Repealed
  231. 3Paragraph 3 Repealed
  232. 4Paragraph 4 Repealed
  233. 5Paragraph 5 Repealed
  234. 6Paragraph 6 Repealed
  235. 7Paragraph 7 Repealed
  236. 8Paragraph 8 Repealed
  237. 9Paragraph 9 Repealed
  238. 10Paragraph 10 Repealed
  239. Schedule 8
  240. General
  241. 1Paragraph 1 Repealed
  242. Exemption for certain linked assets
  243. 2Paragraph 2 Repealed
  244. Replacement of assets
  245. 3Paragraph 3 Repealed
  246. 4Paragraph 4 Repealed
  247. 5Paragraph 5 Repealed
  248. Supplementary
  249. 6Paragraph 6 Repealed
  250. Schedule 9: Insurance Companies: Transfers of Long Term Business
  251. Capital gains
  252. 1Paragraph 1 Repealed
  253. 2Paragraph 2 Repealed
  254. Accounting periods
  255. 3Paragraph 3 Repealed
  256. Expenses of management and losses
  257. 4Paragraph 4 Repealed
  258. Capital allowances
  259. 5Paragraph 5 Repealed
  260. Transfer to friendly society
  261. 6Paragraph 6 Repealed
  262. Commencement
  263. 7Paragraph 7 Repealed
  264. Schedule 10
  265. Part I: Introduction
  266. Qualifying provision for redemption
  267. 1Paragraph 1
  268. Qualifying convertible securities
  269. 2Paragraph 2
  270. Events after issue
  271. 3Paragraph 3
  272. Securities becoming subject to later options
  273. 4Paragraph 4
  274. Other later events in relation to securities
  275. 5Paragraph 5
  276. Deep gain
  277. 6Paragraph 6
  278. Income period
  279. 7Paragraph 7
  280. Redemption period
  281. 8Paragraph 8
  282. Yield to redemption
  283. 9Paragraph 9
  284. Transfer etc.
  285. 10Paragraph 10
  286. Miscellaneous
  287. 11Paragraph 11
  288. Part II: Charge to Tax
  289. The charge
  290. 12Paragraph 12
  291. Chargeable amount
  292. 13Paragraph 13
  293. Total income element
  294. 14Paragraph 14
  295. Income elements
  296. 15Paragraph 15
  297. Death
  298. 16Paragraph 16
  299. Market value
  300. 17Paragraph 17
  301. Underwriters
  302. 18Paragraph 18
  303. Trustees
  304. 19Paragraph 19
  305. Receipts in United Kingdom
  306. 20Paragraph 20
  307. Charities
  308. 21Paragraph 21
  309. Retirement benefit schemes
  310. 22Paragraph 22
  311. Stock lending
  312. 23Paragraph 23
  313. Identification of securities
  314. 24Paragraph 24
  315. Part III: The Issuing Company
  316. 25Paragraph 25
  317. Part IV: Amendments
  318. (1) Deep discount securities
  319. 26Paragraph 26
  320. (2) Deep gain securities
  321. 27Paragraph 27
  322. (3) Corporate bonds
  323. 28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  324. Part V: Application of Schedule
  325. 29Paragraph 29
  326. Schedule 11: European Economic Interest Groupings
  327. Taxation
  328. 1Paragraph 1 Repealed
  329. Management
  330. 2Paragraph 2
  331. 3Paragraph 3
  332. 4Paragraph 4
  333. Commencement
  334. 5Paragraph 5
  335. Schedule 12: Broadcasting: Transfer of Undertakings of Independent Broadcasting Authority and Cable Authority
  336. Transfer of IBA’s transmission activities to nominated company: corporation tax
  337. 1Paragraph 1
  338. Transfer of IBA’s assets to Commission and Radio Authority: chargeable gains
  339. 2Paragraph 2
  340. Disposal by IBA of DBS assets to DBS programme contractor: chargeable gains
  341. 3Paragraph 3
  342. Transfer of Cable Authority’s assets to Commission: chargeable gains
  343. 4Paragraph 4
  344. Transfer of shares from Commission to Channel 4 company: chargeable gains
  345. 5Paragraph 5
  346. Apportionment of unallowed capital losses between relevant transferees
  347. 6Paragraph 6
  348. Roll-over relief in connection with nominated company
  349. 7Paragraph 7
  350. Disputes as to apportionments etc.
  351. 8Paragraph 8
  352. Securities of nominated company
  353. 9Paragraph 9
  354. Interpretation
  355. 10Paragraph 10
  356. Schedule 13: Capital Allowances: Miscellaneous Amendments
  357. Hotels in enterprise zones: initial allowances
  358. 1Paragraph 1 Repealed
  359. Scientific research allowance: writing off of expenditure
  360. 2Paragraph 2 Repealed
  361. Disposal value of machinery or plant after succession to trade
  362. 3Paragraph 3 Repealed
  363. Non-resident companies: use of allowances
  364. 4Paragraph 4 Repealed
  365. Contributions: machinery and plant
  366. 5Paragraph 5 Repealed
  367. Sale of machinery or plant
  368. 6Paragraph 6 Repealed
  369. Assured tenancies allowance
  370. 7Paragraph 7
  371. Schedule 14: Amendments Correcting Errors in the Taxes Act 1988
  372. Part I: Amendments of the Taxes Act 1988
  373. 1Paragraph 1
  374. 2Paragraph 2 Repealed
  375. 3Paragraph 3 Repealed
  376. 4Paragraph 4
  377. 5Paragraph 5 Repealed
  378. 6Paragraph 6 Repealed
  379. 7Paragraph 7 Repealed
  380. 8Paragraph 8
  381. 9Paragraph 9
  382. 10Paragraph 10 Repealed
  383. 11Paragraph 11 Repealed
  384. 12Paragraph 12 Repealed
  385. 13Paragraph 13 Repealed
  386. Part II: Amendments of Other Enactments
  387. The Taxes Management Act 1970 (c. 9)
  388. 14Paragraph 14
  389. 15Paragraph 15 Repealed
  390. The Oil Taxation Act 1975 (c. 22)
  391. 16Paragraph 16
  392. The Capital Gains Tax Act 1979 (c. 14)
  393. 17Paragraph 17 Repealed
  394. The Finance Act 1981 (c. 35)
  395. 18Paragraph 18 Repealed
  396. Commencement
  397. 19Paragraph 19
  398. Schedule 15
  399. Schedule 16
  400. Schedule 17
  401. Introductory
  402. 1Paragraph 1
  403. Industrial buildings and structures
  404. 2Paragraph 2
  405. Machinery and plant: general
  406. 3Paragraph 3
  407. 4Paragraph 4
  408. 5Paragraph 5
  409. 6Paragraph 6
  410. Machinery and plant: ships
  411. 7Paragraph 7
  412. 8Paragraph 8
  413. Machinery and plant: leased assets and inexpensive cars
  414. 9Paragraph 9
  415. 10Paragraph 10
  416. 11Paragraph 11
  417. 12Paragraph 12
  418. 13Paragraph 13
  419. Machinery and plant: supplementary
  420. 14Paragraph 14
  421. 15Paragraph 15
  422. Schedule 18: Definition of “Local Authority”
  423. 1Paragraph 1
  424. 2Paragraph 2
  425. 3Paragraph 3 Repealed
  426. 4Paragraph 4 Repealed
  427. 5Paragraph 5 Repealed
  428. Schedule 19: REPEALS
  429. ICUSTOMS AND EXCISE
  430. IIVEHICLES EXCISE DUTY
  431. IIIVALUE ADDED TAX
  432. IVINCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX
  433. VMANAGEMENT
  434. VISTAMP DUTY
  435. VIISTAMP DUTY RESERVE TAX
  436. VIIINATIONAL SAVINGS