Finance Act 1997 in England
1997 c. 16 · Enacted 19 March 1997 · Extends to United Kingdom
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.
[19th March 1997]
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
- Part I: Excise Duties
- Alcoholic liquor duties
- 1Rates of duty on spirits and wines of equivalent strength.
- 2Rates of duty on lower strengths of wine and made-wine.
- 3Duty on sparkling cider.
- 4Cider labelled as strong cider.
- 5Cider labelled as made-wine.
- Hydrocarbon oil duties
- 6Rates of hydrocarbon oil duties and of rebates.
- 7Ultra low sulphur diesel.
- Tobacco products duty
- 8Rates of tobacco products duty.
- Air passenger duty
- 9Rates of air passenger duty.
- Gaming duty
- 10Gaming duty to replace gaming licence duty.
- 11Rate of gaming duty.
- 12Liability to pay gaming duty.
- 13Supplemental provisions relating to gaming duty.
- 14Subordinate legislation relating to gaming duty.
- 15Interpretation of gaming duty provisions.
- Vehicle excise duty
- 16Increase in general rate.
- 17Exemption for vehicles for disabled persons.
- 18Provisions applying to exempt vehicles.
- 19Issue of licences before payment of duty.
- 20Removal and disposal of vehicles.
- Part II: Insurance Premium Tax
- New rates of tax
- 21Rate of tax.
- 22Premiums liable to tax at the higher rate.
- 23Charge to tax where different rates apply.
- 24Commencement of sections 21 to 23.
- Taxable intermediaries and their fees
- 25Certain fees to be treated as premiums under higher rate contracts.
- 26Registration of taxable intermediaries.
- 27Supplementary provisions.
- Miscellaneous
- 28Amounts charged by other intermediaries.
- 29Prevention of pre-emption.
- 30Tax point for payroll deductions.
- Part III: Value Added Tax
- Registration
- 31Aggregation of businesses.
- 32Voluntary registration.
- Zero-rating
- 33Sale of goods donated to charity.
- 34Charitable institutions providing care etc.
- Buildings and land
- 35References to grants.
- 36Buildings intended to be used as dwellings. Repealed
- 37Supplies to non-taxable persons etc.
- Exempt insurance supplies
- 38Exempt insurance supplies.
- Bad debt relief
- 39Bad debt relief.
- Groups of companies
- 40Groups containing bodies of different descriptions.
- 41Group supplies using an overseas member.
- Incidental and supplemental provisions etc.
- 42Services subject to the reverse charge.
- 43Payments on account: appeals.
- Part IV: Payments and overpayments in respect of indirect taxes
- Value added tax
- 44Liability of Commissioners to interest.
- 45Assessment for overpayments of interest.
- 46Repayments of overpayments: unjust enrichment.
- 47Repayments and assessments: time limits.
- 48Set-off of credits and debits.
- 49Transitional provision for set-offs etc.
- Excise duties and other indirect taxes
- 50Overpayments, interest, assessments, etc.
- Enforcement of payment
- 51Enforcement by distress.
- 53Amendments consequential on sections 51 and 52.
- Part V: Income Tax, Corporation Tax and Capital Gains Tax
- Income tax charge, rates and reliefs
- 54Charge and rates of income tax for 1997-98.
- 55Modification of indexed allowances. Repealed
- 56Blind person’s allowance.
- 57Limit on relief for interest. Repealed
- Corporation tax charge and rate
- 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
- 59Small companies. Repealed
- Payments for wayleaves
- 60Wayleaves for electricity cables, telephone lines, etc.
- Schedule E
- 61Phasing out of relief for profit-related pay. Repealed
- 62Travelling expenses etc. Repealed
- 63Work-related training. Repealed
- Relieved expenditure, losses etc.
- 64Postponed company donations to charity. Repealed
- 65National Insurance contributions. Repealed
- 66Expenditure on production wells etc. Repealed
- 67Annuity business of insurance companies. Repealed
- 68Consortium claims for group relief. Repealed
- Distributions etc.
- 69Special treatment for certain distributions.
- 70Distributions of exempt funds.
- 71Set-off against franked investment income.
- 72FIDs paid to unauthorised unit trusts.
- 73Tax advantages to include tax credits. Repealed
- Investments etc.
- 74Enterprise investment scheme. Repealed
- 75Venture capital trusts. Repealed
- 76Stock lending and manufactured payments.
- 77Bond washing and repos. Repealed
- 78National Savings Bank interest. Repealed
- 79Payments under certain life insurance policies. Repealed
- 80Futures and options: transactions with guaranteed returns.
- Transfer of assets abroad
- 81Transfer of assets abroad. Repealed
- Leasing and loan arrangements
- 82Finance leases and loans. Repealed
- 83Loan relationships: transitions.
- Capital allowances
- 84. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
- 85Schedule A cases etc.
- 86. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
- Chargeable gains
- 87Re-investment relief.
- 88Conversion of securities: QCBs and debentures.
- 89Earn-out rights.
- Double taxation relief
- 90Restriction of relief for underlying tax. Repealed
- 91Disposals of loan relationships with or without interest. Repealed
- Repayment supplement
- 92Time from which entitlement runs.
- Part VI: Inheritance Tax
- 93Rate bands.
- 94Agricultural property relief.
- Part VII: Stamp Duty and Stamp Duty Reserve Tax
- Stamp duty
- 95Mergers of authorised unit trusts.
- 96Demutualisation of insurance companies.
- 97Relief for intermediaries.
- 98Repurchases and stock lending.
- 99Depositary receipts and clearance services.
- Stamp duty reserve tax
- 100Mergers of authorised unit trusts.
- 101Direction to hold trust property on other trusts.
- 102Relief for intermediaries.
- 103Repurchases and stock lending.
- 104Depositary receipts and clearance services.
- 105Inland bearer instruments.
- 106Repayment or cancellation of tax.
- Part VIII: Miscellaneous and Supplemental
- Miscellaneous
- 107Petroleum revenue tax: non-field expenditure.
- 108Payment of dividends on government stock.
- 109Nil levy on dwelling-house disposals.
- 110Obtaining information from social security authorities. Repealed
- 111. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
- Supplemental
- 112Interpretation.
- 113Repeals.
- 114Short title.
- Schedule 1: Gaming duty: administration, enforcement etc
- Part I: The gaming duty register
- The Register
- 1Paragraph 1
- Interpretation
- 2Paragraph 2
- Registration
- 3Paragraph 3
- Cancellation of registration
- 4Paragraph 4
- Penalties in connection with registration
- 5Paragraph 5
- Notification of premises
- 6Paragraph 6
- Penalties in connection with notification
- 7Paragraph 7
- Groups
- 8Paragraph 8
- Part II: Other provisions
- Accounting periods
- 9Paragraph 9
- Directions as to the making of returns
- 10Paragraph 10
- Regulations
- 11Paragraph 11
- Offences
- 12Paragraph 12
- Distress and poinding
- 13Paragraph 13
- Disclosure of information
- 14Paragraph 14
- Evidence by certificate
- 15Paragraph 15
- Protection of officers
- 16Paragraph 16
- Schedule 2: Gaming duty: consequential and incidental amendments
- Part I: Amendments of the Customs and Excise Management Act 1979
- Introductory
- 1Paragraph 1
- Meaning of “revenue trade provisions” and “revenue trader”
- 2Paragraph 2
- Amendments of Part IXA
- 3Paragraph 3
- 4Paragraph 4
- Part II: Other amendments
- Licences under the Gaming Act 1968
- 5Paragraph 5
- Preferential debts on insolvency
- 6Paragraph 6 Repealed
- Assessments to duty
- 7Paragraph 7
- Schedule 3: Vehicle excise duty: exempt vehicles
- Interpretation
- 1Paragraph 1
- Registration of vehicle on issue of nil licence
- 2Paragraph 2
- Return of nil licence
- 3Paragraph 3
- Offence of not exhibiting nil licence
- 4Paragraph 4
- Offence of failing to have nil licence for exempt vehicle
- 5Paragraph 5
- Offence of forging or fraudulently using etc. nil licence
- 6Paragraph 6
- Supplemental provisions
- 7Paragraph 7
- Further amendments
- 8Paragraph 8
- Commencement
- 9Paragraph 9
- Schedule 4: Insurance premium tax: the higher rate
- Schedule to be inserted into the Finance Act 1994
- Paragraph
- Schedule 5: Indirect taxes: overpayments etc
- Part I: Unjust enrichment
- Application of Part I
- 1Paragraph 1
- Disregard of business losses
- 2Paragraph 2
- Reimbursement arrangements
- 3Paragraph 3
- Contravention of requirement to repay Commissioners
- 4Paragraph 4
- Part II: Time limits
- Repayments
- 5Paragraph 5
- Assessments
- 6Paragraph 6
- Part III: Interest
- Interest on overpaid air passenger duty
- 7Paragraph 7
- 8Paragraph 8
- Interest on overpaid insurance premium tax
- 9Paragraph 9
- 10Paragraph 10
- Interest on overpaid landfill tax
- 11Paragraph 11
- 12Paragraph 12
- Part IV: Set-off involving landfill tax
- 13Paragraph 13
- Part V: Recovery of excess payments by the Commissioners
- Assessment for excessive repayment
- 14Paragraph 14
- Assessment for overpayments of interest
- 15Paragraph 15
- Assessments under paragraphs 14 and 15
- 16Paragraph 16
- Interest on amounts assessed
- 17Paragraph 17
- Supplementary assessments
- 18Paragraph 18
- Review of decisions and appeals
- 19Paragraph 19
- Interpretation of Part V
- 20Paragraph 20
- Consequential amendment
- 21Paragraph 21
- Schedule 6: Assessments for excise duty purposes
- Assessment of amounts payable to the Commissioners
- 1Paragraph 1
- Assessments in cases of a deficiency in stores
- 2Paragraph 2
- Assessments in cases of a deficiency in warehoused goods
- 3Paragraph 3
- Assessments in cases of a deficiency in goods moved by pipe-line
- 4Paragraph 4
- Assessments in cases of untrue declarations etc.
- 5Paragraph 5
- Assessments relating to hydrocarbon oil duty
- 6Paragraph 6
- Commencement
- 7Paragraph 7
- Schedule 7: Special treatment for certain distributions
- Distributions to which Schedule applies
- 1Paragraph 1
- Distributions treated as FIDs
- 2Paragraph 2
- Distributions treated as section 686 income of trustees
- 3Paragraph 3
- Stock options
- 4Paragraph 4
- Dividends on fixed rate preference shares
- 5Paragraph 5
- Pre-sale distributions
- 6Paragraph 6
- Manufactured payments
- 7Paragraph 7
- Amendment of section 95 of the Taxes Act 1988
- 8Paragraph 8
- Information to be provided about deemed FID
- 9Paragraph 9
- Group income
- 10Paragraph 10
- Distribution accounts
- 11Paragraph 11
- Amendments consequential on paragraph 3 above
- 12Paragraph 12
- Schedule 8: Enterprise investment scheme: qualifying companies Repealed
- Introductory Repealed
- 1Paragraph 1 Repealed
- Requirements to be satisfied by the company for whose business activity money is raised Repealed
- 2Paragraph 2 Repealed
- Limit on relief for trading groups which let or operate ships Repealed
- 3Paragraph 3 Repealed
- Meaning of “qualifying company” Repealed
- 4Paragraph 4 Repealed
- Consequential amendments of section 297 Repealed
- 5Paragraph 5 Repealed
- Consequential repeals of provisions about subsidiaries Repealed
- 6Paragraph 6 Repealed
- Schedule 9: Venture capital trusts: qualifying holdings Repealed
- Introductory Repealed
- 1Paragraph 1 Repealed
- Requirements as to business of company whose shares et ceteralaetc. are qualifying holdings Repealed
- 2Paragraph 2 Repealed
- Consequential amendment of paragraph 4(7) Repealed
- 3Paragraph 3 Repealed
- Application of investment Repealed
- 4Paragraph 4 Repealed
- Qualifying subsidiaries Repealed
- 5Paragraph 5 Repealed
- Commencement Repealed
- 6Paragraph 6 Repealed
- Schedule 10: Stock lending arrangements and manufactured payments
- Part I: Stock lending
- Approved stock lending arrangements: traders
- 1Paragraph 1
- Stock lending fees
- 2Paragraph 2
- Stock lending agreements under which manufactured payments are not made
- 3Paragraph 3 Repealed
- Manufactured payments in stock lending cases etc.
- 4Paragraph 4
- Stock lending arrangements: capital gains
- 5Paragraph 5
- Premiums trust funds of Lloyd’s members
- 6Paragraph 6
- Commencement
- 7Paragraph 7
- Part II: Manufactured payments
- Repeal of section 737 of the Taxes Act 1988
- 8Paragraph 8
- Meaning of “foreign income dividend”
- 9Paragraph 9
- Manufactured dividends on UK equities
- 10Paragraph 10 Repealed
- Manufactured interest on UK securities
- 11Paragraph 11 Repealed
- Repeal of paragraph 5 of Schedule 23A
- 12Paragraph 12
- Consequential amendments in Schedule 23A
- 13Paragraph 13 Repealed
- Amendments of Taxes Management Act 1970
- 14Paragraph 14
- Repeal of powers to modify information provisions
- 15Paragraph 15
- Commencement
- 16Paragraph 16
- Schedule 11: Futures and options: taxation of guaranteed returns Repealed
- Schedule to be inserted as Schedule 5AA to the Taxes Act 1988 Repealed
- Paragraph Repealed
- Schedule 12: Leasing arrangements: finance leases and loans
- Part I: Leasing arrangements where any of the return on investment is in capital form
- Purpose of this Part of this Schedule
- 1Paragraph 1 Repealed
- Application of this Part of this Schedule
- 2Paragraph 2 Repealed
- The conditions
- 3Paragraph 3 Repealed
- The arrangements and circumstances in paragraph 3(5)
- 4Paragraph 4 Repealed
- Current lessor to be taxed by reference to accountancy rental earnings
- 5Paragraph 5 Repealed
- Reduction of taxable rent by certain excesses
- 6Paragraph 6 Repealed
- Assignments on which neither a gain nor a loss accrues
- 7Paragraph 7 Repealed
- Relief for bad debts etc: corporation tax under Schedule A
- 8Paragraph 8
- Relief for bad debts etc: cumulative accountancy rental excess
- 9Paragraph 9 Repealed
- Relief for bad debts etc: cumulative normal rental excess
- 10Paragraph 10 Repealed
- Capital allowances
- 11Paragraph 11 Repealed
- Chargeable gains
- 12Paragraph 12 Repealed
- Existing schemes where this Part does not at first apply
- 13Paragraph 13 Repealed
- New schemes where this Part begins to apply after Part II has applied
- 14Paragraph 14 Repealed
- Part II: Other finance leases
- Purpose of this Part of this Schedule
- 15Paragraph 15 Repealed
- Application of this Part of this Schedule
- 16Paragraph 16 Repealed
- Application of provisions of Part I for purposes of Part II
- 17Paragraph 17 Repealed
- Part III: Insurance companies
- Accounting purposes
- 18Paragraph 18 Repealed
- Companies carrying on life assurance business
- 19Paragraph 19
- Part IV: Supplementary provisions
- Normal rent
- 20Paragraph 20 Repealed
- Accountancy rental earnings
- 21Paragraph 21 Repealed
- Rental earnings
- 22Paragraph 22 Repealed
- Periods of account which straddle 26th November 1996
- 23Paragraph 23 Repealed
- Time apportionment where periods do not coincide
- 24Paragraph 24 Repealed
- Connected persons
- 25Paragraph 25 Repealed
- Assets which represent the leased asset
- 26Paragraph 26 Repealed
- Existing schemes and new schemes
- 27Paragraph 27 Repealed
- Accounting purposes and normal accountancy practice
- 28Paragraph 28 Repealed
- Assessments and adjustments
- 29Paragraph 29 Repealed
- Interpretation
- 30Paragraph 30 Repealed
- Schedule 13: Loan relationships: amendment of transitional provisions
- Introductory
- 1Paragraph 1
- Transitional rules for transitional accounting periods
- 2Paragraph 2 Repealed
- Opening valuations as at 1st April 1996
- 3Paragraph 3 Repealed
- Adjustments in the case of pre-commencement trading relationships
- 4Paragraph 4
- Chargeable assets held after commencement
- 5Paragraph 5
- Adjustments in the case of chargeable assets
- 6Paragraph 6
- Commencement of Schedule
- 7Paragraph 7
- Schedule 14
- Introductory
- 1Paragraph 1
- New Chapter on long-life assets
- 2Paragraph 2
- Consequential amendments
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- Commencement
- 10Paragraph 10
- Schedule 15: Capital allowances: Schedule A cases etc
- Repeal of existing rules
- 1Paragraph 1
- Removal of restriction on set-off of losses
- 2Paragraph 2
- New general provision
- 3Paragraph 3 Repealed
- 4Paragraph 4 Repealed
- Manner of making allowances and charges
- 5Paragraph 5
- 6Paragraph 6
- Meaning of capital expenditure
- 7Paragraph 7 Repealed
- Consequential amendment of section 434E of the Taxes Act 1988
- 8Paragraph 8 Repealed
- Commencement
- 9Paragraph 9
- Schedule 16
- Part I: Amendments of the Capital Allowances Act 1990
- Introductory
- 1Paragraph 1
- Interpretation of Chapter VI of Part II
- 2Paragraph 2
- Allowances in respect of expenditure by equipment lessors
- 3Paragraph 3
- Fixtures in respect of which more than one person gets an allowance
- 4Paragraph 4
- Disposal value in avoidance cases
- 5Paragraph 5
- Apportionment of expenditure by election
- 6Paragraph 6
- Prohibition of double allowances
- 7Paragraph 7
- Construction of amendments
- 8Paragraph 8
- Part II: Consequential amendment of the Taxes Management Act 1970
- 9Paragraph 9
- Schedule 17: Chargeable gains: re-investment relief
- Introductory
- 1Paragraph 1
- Qualifying investments
- 2Paragraph 2
- Loss of relief
- 3Paragraph 3
- Meaning of “qualifying company”
- 4Paragraph 4
- Meaning of “qualifying trade”
- 5Paragraph 5
- Interpretation of Chapter IA of Part V
- 6Paragraph 6
- Commencement
- 7Paragraph 7
- Schedule 18: Repeals
- IHydrocarbon Oil Duty
- IIGaming Duty
- 1Paragraph 1
- 2Paragraph 2
- IIIVehicle Excise and Registration: Exempt vehicles
- IVValue Added Tax
- VIndirect taxes
- VIIncome Tax, Corporation Tax and Capital Gains Tax
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 1Paragraph 1
- 2Paragraph 2
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- VIIStamp Duty and Stamp Duty Reserve Tax
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- 9Paragraph 9
- 10Paragraph 10