OpenLegislation

Finance Act 1991

1991 c. 31 · Enacted 25 July 1991 · Extends to United Kingdom

Not fully up to date. 1 change made by later legislation has not yet been written into this text, which is revised to 31 December 2020.

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ProvisionChangeMade by
Sch. 2 para.009repealedFinance Act 1998 Sch. 27 Pt. 1(1) Note
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.[25th July 1991]

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:—

Contents

  1. Part I: CUSTOMS AND EXCISE, VALUE ADDED TAX AND CAR 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. 4Section 4
  8. 5Pool betting duty.
  9. 6Section 6 Repealed
  10. Duties of excise: other provisions
  11. 7Beer duty.
  12. 8Vehicles excise duty: exemptions. Repealed
  13. 9Section 9 Repealed
  14. 10Section 10 Repealed
  15. Management
  16. 11Revenue traders and registered excise dealers and shippers.
  17. 12Protection of the revenues derived from excise duties.
  18. Chapter II: VALUE ADDED TAX
  19. 13Section 13 Repealed
  20. 14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  21. 15Section 15 Repealed
  22. 16Section 16 Repealed
  23. 17Section 17 Repealed
  24. 18Section 18 Repealed
  25. Chapter III: CAR TAX
  26. 19Vehicles leased to the handicapped. Repealed
  27. 20Research vehicles. Repealed
  28. Part II: INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX
  29. Chapter I: GENERAL
  30. Income tax rates and allowances
  31. 21Charge and rates of income tax for 1991-92. Repealed
  32. 22Married couple’s allowance. Repealed
  33. Corporation tax rates
  34. 23Rate of corporation tax for 1990.
  35. 24Charge and rate of corporation tax for 1991.
  36. 25Small companies. Repealed
  37. Interest
  38. 26Relief for interest.
  39. 27Abolition of higher rate relief on certain mortgage interest etc.
  40. 28Mortgage interest relief: caravans.
  41. Benefits in kind
  42. 29Car benefits.
  43. 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  44. 31Section 31 Repealed
  45. Vocational training
  46. 32Relief.
  47. 33Section 32: supplementary.
  48. Retirement benefits schemes
  49. 34Conditions for approval: amendments. Repealed
  50. 35Cessation of approval. Repealed
  51. 36Cessation of approval: general provisions. Repealed
  52. Profit-related pay, share schemes etc.
  53. 37Section 37 Repealed
  54. 38Employee share schemes: non-discrimination.
  55. 39Approved share option schemes: price at which shares may be acquired. Repealed
  56. 40Savings-related share option schemes. Repealed
  57. 41Profit sharing schemes.
  58. 42Costs of establishing share option or profit sharing schemes: relief. Repealed
  59. 43Costs of establishing employee share ownership trusts: relief. Repealed
  60. 44Priority share allocations for employees etc. Repealed
  61. Foreign earnings
  62. 45Section 45 Repealed
  63. 46Workers in Kuwait or Iraq. Repealed
  64. Insurance companies and friendly societies
  65. 47Investor protection schemes. Repealed
  66. 48Assimilation of basic life assurance business and general annuity business.
  67. 49. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  68. 50Friendly societies.
  69. Building societies
  70. 51Qualifying shares.
  71. 52Marketable securities.
  72. 53Income Tax (Building Societies) Regulations 1986. Repealed
  73. Securities
  74. 54New issues.
  75. 55Purchase and sale of securities: options. Repealed
  76. 56Section 56 Repealed
  77. 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  78. 58Manufactured dividends and interest.
  79. Capital allowances
  80. 59. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  81. 60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  82. 61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  83. Oil industry
  84. 62Expenditure on and under abandonment guarantees. Repealed
  85. 63Relief for reimbursement expenditure under abandonment guarantees. Repealed
  86. 64Relief for expenditure incurred by a participator in meeting defaulter’s abandonment expenditure. Repealed
  87. 65Reimbursement by defaulter in respect of certain abandonment expenditure. Repealed
  88. 66Restriction on setting ACT against liability to corporation tax on profits from oil extraction activities etc. Repealed
  89. 67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  90. Miscellaneous
  91. 68Gifts to educational establishments. Repealed
  92. 69Expenses of entertainers. Repealed
  93. 70Personal equity plans. Repealed
  94. 71Donations to charity.
  95. 72Deduction of trading losses. Repealed
  96. 73Relief for company trading losses.
  97. 74Trade unions and employers’ associations. Repealed
  98. 75Audit powers in relation to non-residents. Repealed
  99. 76Capital element in annuities.
  100. 77Definition of “normal commercial loan”.
  101. 78Sharing of transmission facilities.
  102. 79Abolition of CRT: consequential amendment.
  103. 80Interest on certain debentures.
  104. 81. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  105. 82Certificates of non-liability to tax.
  106. Chapter II: CAPITAL GAINS
  107. Settlements
  108. 83. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  109. 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  110. 85. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  111. 86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  112. 87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  113. 88. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  114. 89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  115. 90. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  116. 91. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  117. 92. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  118. Private residence
  119. 93. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  120. 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  121. Miscellaneous
  122. 95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  123. 96. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  124. 97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  125. 98. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  126. 99. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  127. 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  128. 101. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  129. 102. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  130. Part III: OIL TAXATION
  131. Abandonment etc.
  132. 103Allowance of certain expenditure relating to abandonment, decommissioning assets, etc.
  133. 104Abandonment guarantees.
  134. 105Restriction of expenditure relief by reference to payments under abandonment guarantees. Repealed
  135. 106Relief for reimbursement expenditure under abandonment guarantees. Repealed
  136. 107Allowance of expenditure of participator meeting defaulter’s field abandonment expenditure.
  137. 108Reimbursement by defaulter in respect of certain abandonment expenditure. Repealed
  138. Penalties
  139. 109PRT: proceedings for penalties.
  140. Part IV: STAMP DUTY AND STAMP DUTY RESERVE TAX
  141. 110Stamp duty abolished in certain cases.
  142. 111Stamp duty reduced in certain cases.
  143. 112Apportionment of consideration for stamp duty purposes.
  144. 113Certification of instruments for stamp duty purposes.
  145. 114Acquisition under statute: exempt property.
  146. 115. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  147. 116Investment exchanges, clearing houses and central securities depositories: stamp duty
  148. 117Investment exchanges, clearing houses and central securities depositories: SDRT
  149. Part V: MISCELLANEOUS AND GENERAL
  150. Miscellaneous
  151. 118Designated international organisations: miscellaneous exemptions.
  152. 119Trading funds.
  153. 120National savings: date of issue of repayment warrants etc. Repealed
  154. 121Pools payments to support games etc. Repealed
  155. General
  156. 122Interpretation etc.
  157. 123Repeals.
  158. 124Short title.
  159. Schedule 1
  160. Paragraph
  161. Schedule 2: AMENDMENTS RELATING TO BEER DUTY
  162. General amendment of enactments relating to beer
  163. 1Paragraph 1
  164. The Alcoholic Liquor Duties Act 1979 (c.4)
  165. 2Paragraph 2
  166. 3Paragraph 3
  167. 4Paragraph 4
  168. 5Paragraph 5
  169. 6Paragraph 6
  170. 7Paragraph 7
  171. 8Paragraph 8
  172. 9Paragraph 9
  173. 10Paragraph 10 Repealed
  174. 11Paragraph 11
  175. 12Paragraph 12 Repealed
  176. 13Paragraph 13
  177. 14Paragraph 14
  178. 15Paragraph 15
  179. 16Paragraph 16
  180. 17Paragraph 17 Repealed
  181. 18Paragraph 18
  182. 19Paragraph 19
  183. 20Paragraph 20
  184. The Bankruptcy (Scotland) Act 1985 (c.66)
  185. 21Paragraph 21 Repealed
  186. The Insolvency Act 1986 (c.45)
  187. 21AParagraph 21A Repealed
  188. 22Paragraph 22 Repealed
  189. The Insolvency (Northern Ireland) Order 1989
  190. 22AParagraph 22A Repealed
  191. 23Paragraph 23 Repealed
  192. The Licensing (Northern Ireland) Order 1990
  193. 24Paragraph 24 Repealed
  194. Schedule 3: MODIFICATION OF ENACTMENTS EXTENDED TO NORTHERN IRELAND
  195. Part I: THE VEHICLES (EXCISE) ACT 1971
  196. Introduction
  197. 1Paragraph 1 Repealed
  198. Excise duty on, and licensing of, mechanically propelled vehicles
  199. 2Paragraph 2 Repealed
  200. Exemptions from duty
  201. 3Paragraph 3 Repealed
  202. 4Paragraph 4 Repealed
  203. 5Paragraph 5
  204. Liability to pay duty and consequences of non-payment
  205. 6Paragraph 6 Repealed
  206. 7Paragraph 7 Repealed
  207. 8Paragraph 8 Repealed
  208. 9Paragraph 9 Repealed
  209. 10Paragraph 10 Repealed
  210. Registration and registration marks, etc.
  211. 11Paragraph 11 Repealed
  212. Miscellaneous
  213. 12Paragraph 12 Repealed
  214. 13Paragraph 13 Repealed
  215. 14Paragraph 14 Repealed
  216. 15Paragraph 15 Repealed
  217. 16Paragraph 16 Repealed
  218. 17Paragraph 17 Repealed
  219. Supplementary
  220. 18Paragraph 18 Repealed
  221. 19Paragraph 19 Repealed
  222. Schedules
  223. 20Paragraph 20 Repealed
  224. 21Paragraph 21 Repealed
  225. 22Paragraph 22 Repealed
  226. 23Paragraph 23 Repealed
  227. Part: . . .
  228. 24Paragraph 24
  229. Schedule 4: REGISTERED EXCISE DEALERS AND SHIPPERS
  230. Schedule 5: PROTECTION OF THE REVENUES DERIVED FROM EXCISE DUTIES
  231. Schedule 6: RESTRICTION OF HIGHER RATE RELIEF: BENEFICIAL LOANS ETC
  232. Taxation of beneficial loan arrangements
  233. 1Paragraph 1 Repealed
  234. 2Paragraph 2 Repealed
  235. 3Paragraph 3 Repealed
  236. 4Paragraph 4 Repealed
  237. 5Paragraph 5 Repealed
  238. Applicable rates of capital gains tax
  239. 6Paragraph 6 Repealed
  240. Schedule 7: BASIC LIFE ASSURANCE AND GENERAL ANNUITY BUSINESS
  241. Management expenses
  242. 1Paragraph 1
  243. Interpretation of Chapter I of Part XII
  244. 2Paragraph 2 Repealed
  245. Apportionment of income and gains
  246. 3Paragraph 3 Repealed
  247. Computation of trading profit
  248. 4Paragraph 4
  249. Deduction for annuities referable to basic life assurance and general annuity business
  250. 5Paragraph 5 Repealed
  251. Transfer of assets between classes of business
  252. 6Paragraph 6 Repealed
  253. United Kingdom branches of overseas life assurance companies
  254. 7Paragraph 7
  255. Treatment of tax-free income
  256. 8Paragraph 8
  257. Life annuity contracts: taxation of gain on chargeable event
  258. 9Paragraph 9 Repealed
  259. Computation of offshore income gains
  260. 10Paragraph 10 Repealed
  261. Interpretation of sections 85 to 89 of Finance Act 1989
  262. 11Paragraph 11 Repealed
  263. Miscellaneous receipts
  264. 12Paragraph 12 Repealed
  265. Spreading of relief for acquisition expenses
  266. 13Paragraph 13
  267. Deemed disposal of unit trusts etc
  268. 14Paragraph 14 Repealed
  269. Exemptions and exclusions from charges by virtue of section 46
  270. 15Paragraph 15 Repealed
  271. Transitional relief for old general annuity contracts
  272. 16Paragraph 16
  273. Transitional provisions for chargeable gains and unrelieved general annuity losses
  274. 17Paragraph 17
  275. Application of this Schedule
  276. 18Paragraph 18
  277. Schedule 8
  278. Schedule 9: FRIENDLY SOCIETIES
  279. Tax exempt life or endowment business
  280. 1Paragraph 1 Repealed
  281. 2Paragraph 2 Repealed
  282. Maximum benefits payable to members
  283. 3Paragraph 3 Repealed
  284. Qualifying policies
  285. 4Paragraph 4
  286. 5Paragraph 5
  287. Schedule 10: BUILDING SOCIETIES: QUALIFYING SHARES
  288. Capital gains: exemption
  289. 1Paragraph 1 Repealed
  290. Accrued income scheme: inclusion
  291. 2Paragraph 2 Repealed
  292. Incidental costs of issue
  293. 3Paragraph 3 Repealed
  294. Preferential rights of acquisition
  295. 4Paragraph 4 Repealed
  296. Schedule 11: BUILDING SOCIETIES: MARKETABLE SECURITIES
  297. Deduction of income tax
  298. 1Paragraph 1 Repealed
  299. 2Paragraph 2
  300. Collection
  301. 3Paragraph 3 Repealed
  302. 4Paragraph 4 Repealed
  303. Information
  304. 5Paragraph 5
  305. Schedule 12: SECURITIES: NEW ISSUES
  306. General treatment of extra return
  307. 1Paragraph 1 Repealed
  308. Accrued income scheme
  309. 2Paragraph 2 Repealed
  310. Deep discount securities
  311. 3Paragraph 3 Repealed
  312. Deep gain securities
  313. 4Paragraph 4 Repealed
  314. General
  315. 5Paragraph 5
  316. Schedule 13: MANUFACTURED DIVIDENDS AND INTEREST
  317. The new arrangements
  318. 1Paragraph 1
  319. Power to obtain information in connection with dealings in securities
  320. 2Paragraph 2 Repealed
  321. Manufactured dividends etc: amendments of section 737
  322. 3Paragraph 3 Repealed
  323. Consequential provisions
  324. 4Paragraph 4 Repealed
  325. Schedule 14
  326. Part I: INDUSTRIAL BUILDINGS AND STRUCTURES
  327. Buildings and structures in enterprise zones
  328. 1Paragraph 1
  329. Transitional relief for regional projects
  330. 2Paragraph 2
  331. Writing-down allowances
  332. 3Paragraph 3
  333. Balancing allowances and balancing charges
  334. 4Paragraph 4
  335. Writing off of expenditure and meaning of “residue of expenditure
  336. 5Paragraph 5
  337. Part II: MACHINERY AND PLANT
  338. Transitional relief for regional projects
  339. 6Paragraph 6
  340. Writing-down allowances and balancing adjustments
  341. 7Paragraph 7
  342. The disposal value
  343. 8Paragraph 8
  344. Short-life assets
  345. 9Paragraph 9
  346. Fixtures
  347. 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  348. Further restrictions on allowances
  349. 11Paragraph 11
  350. Part III: SCIENTIFIC RESEARCH
  351. Deduction for additional VAT liability on capital expenditure
  352. 12Paragraph 12
  353. Charge in respect of additional VAT rebate on capital expenditure
  354. 13Paragraph 13
  355. Part IV: SUPPLEMENTARY PROVISIONS
  356. General provisions about additional VAT liabilities and rebates
  357. 14Paragraph 14
  358. Schedule 15: RELIEF FOR COMPANY TRADING LOSSES
  359. The Taxes Management Act 1970 (c. 9)
  360. 1Paragraph 1
  361. 2Paragraph 2 Repealed
  362. The Income and Corporation Taxes Act 1988 (c. 1)
  363. 3Paragraph 3 Repealed
  364. 4Paragraph 4 Repealed
  365. 5Paragraph 5 Repealed
  366. 6Paragraph 6 Repealed
  367. 7Paragraph 7 Repealed
  368. 8Paragraph 8 Repealed
  369. 9Paragraph 9 Repealed
  370. 10Paragraph 10 Repealed
  371. 11Paragraph 11 Repealed
  372. 12Paragraph 12 Repealed
  373. 13Paragraph 13 Repealed
  374. 14Paragraph 14 Repealed
  375. 15Paragraph 15 Repealed
  376. 16Paragraph 16 Repealed
  377. 17Paragraph 17 Repealed
  378. 18Paragraph 18 Repealed
  379. 19Paragraph 19 Repealed
  380. 20Paragraph 20 Repealed
  381. 21Paragraph 21 Repealed
  382. 22Paragraph 22
  383. 23Paragraph 23
  384. 24Paragraph 24
  385. 25Paragraph 25
  386. 26Paragraph 26 Repealed
  387. 27Paragraph 27
  388. The Capital Allowances Act 1990 (c. 1)
  389. 28Paragraph 28 Repealed
  390. Schedule 16
  391. Conditions for the charge
  392. 1Paragraph 1 Repealed
  393. The charge
  394. 2Paragraph 2 Repealed
  395. Construction of paragraph 1(1)(e)
  396. 3Paragraph 3 Repealed
  397. Test whether settlor has interest
  398. 4Paragraph 4 Repealed
  399. Exceptions to charge
  400. 5Paragraph 5 Repealed
  401. 6Paragraph 6 Repealed
  402. 7Paragraph 7 Repealed
  403. Right of recovery
  404. 8Paragraph 8 Repealed
  405. Meaning of “settlor”
  406. 9Paragraph 9 Repealed
  407. Meaning of “originating”
  408. 10Paragraph 10 Repealed
  409. Qualifying settlements, and commencement
  410. 11Paragraph 11 Repealed
  411. Information
  412. 12Paragraph 12 Repealed
  413. 13Paragraph 13 Repealed
  414. 14Paragraph 14 Repealed
  415. 15Paragraph 15 Repealed
  416. 16Paragraph 16 Repealed
  417. 17Paragraph 17 Repealed
  418. Schedule 17
  419. Introduction
  420. 1Paragraph 1 Repealed
  421. Qualifying amounts
  422. 2Paragraph 2 Repealed
  423. Matching capital payments
  424. 3Paragraph 3 Repealed
  425. Increased tax: the main rule
  426. 4Paragraph 4 Repealed
  427. More than one qualifying amount
  428. 5Paragraph 5 Repealed
  429. Payment partly ignored
  430. 6Paragraph 6 Repealed
  431. Parts of amounts matched
  432. 7Paragraph 7 Repealed
  433. Transfers between settlements
  434. 8Paragraph 8 Repealed
  435. Matching after transfer
  436. 9Paragraph 9 Repealed
  437. Schedule 18
  438. Computation rules
  439. 1Paragraph 1 Repealed
  440. Dual-resident settlements
  441. 2Paragraph 2 Repealed
  442. 3Paragraph 3 Repealed
  443. Payments by and to companies
  444. 4Paragraph 4 Repealed
  445. Beneficiaries
  446. 5Paragraph 5 Repealed
  447. Other amendments
  448. 6Paragraph 6 Repealed
  449. Schedule 19: REPEALS
  450. IBETTING AND GAMING DUTIES
  451. IIBEER DUTY
  452. IIIVEHICLES EXCISE DUTY: GENRAL
  453. 1Paragraph 1
  454. 2Paragraph 2
  455. 3Paragraph 3
  456. 4Paragraph 4
  457. IVVEHICLE EXCISE DUTY: NORTHERN IRELAND
  458. VINCOME TAX AND CORPORATION TAX
  459. 1Paragraph 1
  460. 2Paragraph 2
  461. 3Paragraph 3
  462. 4Paragraph 4
  463. 5Paragraph 5
  464. 6Paragraph 6
  465. 7Paragraph 7
  466. 8Paragraph 8
  467. 9Paragraph 9
  468. 10Paragraph 10
  469. 11Paragraph 11
  470. 12Paragraph 12
  471. VICAPITAL GAINS
  472. 1Paragraph 1
  473. 2Paragraph 2
  474. 3Paragraph 3
  475. 4Paragraph 4
  476. VIISTAMP DUTY
  477. VIIITRADING FUNDS