{
  "url": "https://openlegislation.uk/finance-act-2004/schedule-42/part-2",
  "json_url": "https://openlegislation.uk/finance-act-2004/schedule-42/part-2.json",
  "legislation": "ukpga/2004/12",
  "legislation_title": "Finance Act 2004",
  "legislation_url": "https://openlegislation.uk/finance-act-2004",
  "path": "schedule/42/part/2",
  "kind": "part",
  "number": "2",
  "heading": "Income Tax, Corporation Tax and Capital Gains Tax",
  "text": "(1) Transfer Pricing\nThese repeals have effect in accordance with section 37 of this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn section 494—\n(a) in subsection (2), paragraph (d) and the word “and” preceding it, and the third sentence;\n(b) subsection (2B).\nIn Schedule 24, paragraph 20.\nIn Schedule 28AA—\n(a) in paragraph 5, in sub-paragraph (1), the words “(but subject to sub-paragraph (2) below)” and sub-paragraphs (2) to (6);\n(b) in paragraph 11, sub-paragraph (2), in sub-paragraph (3), paragraph (e) and the word “and” preceding it and, in sub-paragraph (4), the words “(2) or”.\nFinance Act 1998 (c. 36)\nIn Schedule 17, paragraph 24.\nFinance Act 2002 (c. 23)\nIn Schedule 29, in paragraph 92(3), paragraph (c) and the word “and” preceding it.\nFinance Act 2003 (c. 14)\nIn Schedule 33, paragraph 13(10).\n(2) Thin Capitalisation\nThese repeals have effect in accordance with section 37 of this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nSection 74(1)(n).\nIn section 209—\n(a) in subsection (2), paragraph (da) and, in paragraph (e), the words “or (da)”;\n(b) in subsection (3), the words “, (da)”;\n(c) in subsection (3A)(a), the words “, (da)”;\n(d) subsections (8A) to (8F).\nIn section 212—\n(a) in subsection (1)(b), the words “paragraph (da) of section 209(2) or”;\n(b) in subsection (3), the words “Without prejudice to subsection (4) below,” and the words from “and does not apply” to the end of the subsection;\n(c) subsection (4).\nSection 710(3)(a).\nIn section 730A(5), the words “and (da)”\nFinance Act 1995 (c. 4)\nSection 87(1), (3), (4) and (5).\nFinance Act 1996 (c. 8)\nIn Schedule 9, in paragraph 11A—\n(a) sub-paragraphs (2)(a) and (3)(a) ;\n(b) in sub-paragraph (3)(b), the words “in a case falling within paragraph (b) of that sub-paragraph,”;\n(c) in sub-paragraph (5)(b), the words “the terms would have been the same, except that”.\n(3) Expenses: Companies with Investment Business and Insurance Companies\nThese repeals have effect in accordance with section 42 of this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn section 77(1), the words from “and the incidental costs” onwards.\nFinance Act 1989 (c. 26)\nIn section 85(2), the word “or” at the end of paragraph (a) and paragraphs (c) to (d).\nSection 86(5), (5A) and (7).\nFinance Act 1990 (c. 29)\nSection 44.\nIn Schedule 7, paragraph 1.\nFinance Act 1991 (c. 31)\nSection 47.\nIn Schedule 7, paragraph 13(1).\nFinance Act 1995 (c. 4)\nIn Schedule 8, paragraphs 7 and 23(3).\nFinance Act 1996 (c. 8)\nSection 164(1), (2) and (6).\nIn Schedule 11, in paragraph 4(3), the word “net”.\nIn Schedule 14, paragraph 8.\nIn Schedule 31, paragraph 3 (1) and (2).\nFinance Act 1997 (c. 16)\nSection 67(4)(a).\nFinance (No. 2) Act 1997 (c. 58)\nIn Schedule 3, paragraph 1.\nIn Schedule 6, paragraph 2.\nFinance Act 1998 (c. 36)\nIn Schedule 3, paragraph 9.\nIn Schedule 7, in paragraph 1 the words “86(2) definition of “deductible”,”.\nFinance Act 2000 (c. 17)\nIn Schedule 27, paragraph 7.\nCapital Allowances Act 2001 (c. 2)\nIn Schedule 2, paragraphs 15 and 70.\nFinance Act 2001 (c. 9)\nIn Schedule 23, paragraph 2.\nFinance Act 2003 (c. 14)\nIn Schedule 33, paragraphs 6(6), 8 (1) and 12(1).\n(4) Loan Relationships\nThese repeals have effect in accordance with Schedule 8 to this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 1996 (c. 8)\nIn Schedule 9—\n(a) paragraph 18(3A);\n(b) in paragraph 20(1), paragraph (c) and the word “and” preceding it;\n(c) paragraph 20(2).\n(5) Derivative Contracts\nThis repeal has effect in accordance with Schedule 9 to this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 2002 (c. 23)\nIn Schedule 26, in paragraph 33(4)(b), the words “issued by the Financial Services Authority”.\n(6) Amendment of Enactments That Operate By Reference To Accounting Practice\n1These repeals have effect in accordance with section 52(3) of this Act.\n2The repeals of section 92 of the Finance Act 1996, section 65(7) of the Finance Act 1999 and sections 72 and 73 of, and paragraph 5 of Schedule 23 to, the Finance Act 2002 have effect subject to the provisions of paragraph 9(2) and (3) of Schedule 10 to this Act.\n3The repeals of sections 93, 93A and 93B of the Finance Act 1996 and sections 75 to 77 of, and paragraph 18 of Schedule 27 to, the Finance Act 2002 have effect subject to the provisions of paragraph 11(2) and (3) of Schedule 10 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn section 730A(6), paragraph (b) (but not the word “and” following it).\nSection 730BB(12).\nFinance Act 1996 (c. 8)\nIn section 84—\n(a) in subsection (1) the words “in accordance with an authorised accounting method”;\n(b) subsections (2) and (4A).\nSection 84A(4) to (7).\nSection 88(2)(b) and (3)(b).\nSection 88A(5).\nSection 90.\nSections 92 to 94\nSection 96(3).\nIn section 103(1)—\n(a) the definition of “authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting”;\n(b) the definition of “statutory accounts”.\nSection 103(5).\nIn Schedule 9—\n(a) paragraph 5 (1) to (2A);\n(b) in paragraph 5A(9), the words “by virtue of paragraph 5(2) above”;\n(c) in paragraph 5A(15), the words “under paragraph 5(1)”;\n(d) in paragraph 6(2), the words “in accordance with that accounting method”;\n(e) in paragraph 6C(2), the words “by virtue of paragraph 5(2) above”;\n(f) in paragraph 9(2), the word “or” at the end of paragraph (b) ;\n(g) paragraph 10A(5);\n(h) in paragraph 12(2A), paragraph (b) and the word “and” preceding it;\n(i) in paragraph 13(1), the words “given by the authorised accounting method used”;\n(j) in paragraph 14(1), the words “given by an authorised accounting method”;\n(k) in paragraph 16(2), the words “, notwithstanding the provisions of any authorised accounting method,”;\n(l) paragraph 19(10).\nIn Schedule 10, in paragraphs 2A (1) and 2B (1), the words “, notwithstanding section 84(2)(b) of this Act”.\nFinance Act 1997 (c. 16)\nSection 83 (1) to (5).\nFinance Act 1999 (c. 16)\nSection 65(7).\nCapital Allowances Act 2001 (c. 1)\nIn Schedule 2, paragraphs 88 and 89.\nFinance Act 2002 (c. 23)\nSections 72 to 77.\nIn section 103(4)—\n(a) in paragraph (b), the words “93(2),”;\n(b) in paragraph (d), the words “sections 84(2)(b) and 85(2)(a),”.\nIn Schedule 23, paragraphs 4, 5 and 8.\nIn Schedule 24, paragraphs 1 to 6.\nIn Schedule 25, paragraphs 4 to 6, 10 and 12.\nIn Schedule 26—\n(a) in paragraph 15(1), the words “in accordance with an authorised accounting method and”;\n(b) paragraph 15(2), (3) and (6);\n(c) paragraph 16(4) to (7);\n(d) paragraph 22 (1) to (4);\n(e) in paragraph 22(5), paragraph (b) and the word “and” preceding it;\n(f) paragraph 22A(5);\n(g) in paragraph 23(2) and (3), the words “given by the authorised accounting method used”;\n(h) in paragraph 25(1), the words “given by an authorised accounting method”;\n(i) in paragraph 31A(2), the words “, notwithstanding the provisions of any authorised accounting method,”.\n(j) in paragraphs 32 (1) and 33 (1), the words “, notwithstanding paragraph 15”;\n(k) paragraph 52;\n(l) in paragraph 54 (1) the definitions of “authorised accounting method”, “authorised accruals basis of accounting” and “authorised mark to market basis of accounting” and of “statutory accounts”.\nIn Schedule 27, paragraph 18.\nFinance Act 2003 (c. 14)\nIn Schedule 27, paragraph 3.\n(7) Construction Industry Scheme\nThese repeals have effect in accordance with section 77 of this Act.\nShort title and chapter\nExtent of repeal\nTaxes Management Act 1970 (c. 9)\nIn section 98, in the Table—\n(a) in the first column, the entry relating to section 561(8) of the Income and Corporation Taxes Act 1988;\n(b) in the second column, the entry relating to regulations under section 566(1), (2) or (2A) of that Act.\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn Part 13, Chapter 4.\nCompanies Act 1989 (c. 40)\nSection 139(5).\nIn Schedule 10, paragraph 38(3).\nFinance Act 1994 (c. 9)\nIn Schedule 17, paragraph 5.\nFinance Act 1995 (c. 4)\nSection 139.\nSchedule 27.\nFinance Act 1996 (c. 8)\nSection 72(3).\nSection 178.\nFinance Act 1997 (c. 16)\nSection 54(5).\nFinance Act 1998 (c. 36)\nSection 55(2).\nSection 57.\nSchedule 8.\nGovernment of Wales Act 1998 (c. 38)\nIn Schedule 16, paragraph 58.\nFinance Act 1999 (c. 16)\nSection 53.\nFinance Act 2002 (c. 23)\nIn section 40—\n(a) subsection (1),\n(b)subsection (3), and\n(c) in subsection (4), the second sentence.\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nIn Schedule 6, paragraphs 58, 59, 60 and 61.\nFinance Act 2003 (c. 14)\nSection 147(1).\n(8) Exemption For Loaned Computers\nThis repeal has effect in accordance with section 79(4) of this Act.\nShort title and chapter\nExtent of repeal\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nSection 320(4) and (5).\n(9) Vans\nThe repeals in section 171 of, and Schedule 1 to, the Income Tax (Earnings and Pensions) Act 2003 have effect for the year 2007-08 and subsequent years of assessment and the other repeals have effect for the year 2005-06 and subsequent years of assessment.\nShort title and chapter\nExtent of repeal\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nIn section 114(2), the word “and” following paragraph (b).\nIn section 171, in subsection (2), the words “or van” and, in subsection (3), the words “or a van”.\nIn Part 2 of Schedule 1, in the entry relating to the age of a car or van (in Chapter 6 of Part 3) and in the entry relating to the date of first registration (in relation to a car or van) (in Chapter 6 of Part 3), the words “or van”.\nIn Part 3 of Schedule 7, paragraph 24.\n(10) Income Tax Relief Where National Insurance Contributions Met By Employee\n1These repeals come into force in accordance with section 85(2) of this Act.\n2The repeal of section 119A(8) of the Taxation of Chargeable Gains Act 1992 has effect subject to paragraph 6(4) of Schedule 16 to this Act.\n3The repeals in paragraphs 21(4) and 22C(4) of Schedule 23 to the Finance Act 2003 have effect subject to paragraph 5(6) of Schedule 16 to this Act.\nShort title and chapter\nExtent of repeal\nTaxation of Chargeable Gains Act 1992 (c. 12)\nSection 119A(8).\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nSection 480(7).\nIn section 484(7), the definition of “the Contributions and Benefits Act” and the word “and” preceding it.\nFinance Act 2003 (c. 14)\nIn Schedule 23, in paragraphs 21(4) and 22C(4), the words “increased by any amounts deducted under sections 481 and 482 of that Act”.\n(11) Employment-related Securities and Options: Other Provisions\n1The repeals in sections 429, 443, 446R and 449 of the Income Tax (Earnings and Pensions) Act 2003 have effect in accordance with section 86(8) of this Act.\n2The remaining repeals have effect in accordance with section 88(11) of this Act.\nShort title and chapter\nExtent of repeal\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nSection 421G.\nSection 429(5).\nSection 443(5).\nSection 446R(5).\nSection 449(4).\nIn section 519(1), the word “and” at the end of paragraph (a).\nIn section 524(1), the word “and” at the end of paragraph (a).\nSection 701(2)(c)(ii).\nFinance Act 2003 (c. 14)\nIn Schedule 21, paragraph 18(4).\n(12) Minor Amendments of or Connected with the Income Tax (Earnings and Pensions) Act 2003\n1The repeals of paragraph 5(1ZA) of Schedule 20 to the Finance Act 2000, paragraph 5(1A) of Schedule 22 to the Finance Act 2001 and paragraph 245 of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 have effect in accordance with paragraph 7(3) of Schedule 17 to this Act.\n2The repeal of paragraph 166(3) of Schedule 6 to the Income Tax (Earnings and Pensions) Act 2003 has effect in accordance with paragraph 5(2) of Schedule 17 to this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 2000 (c. 17)\nIn Schedule 20, paragraph 5(1ZA).\nFinance Act 2001 (c. 9)\nIn Schedule 22, paragraph 5(1A).\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nSection 577(3).\nIn section 677(1), in Part 2 of Table B, the entry relating to compensation payments where child support reduced because of a change in legislation.\nIn Schedule 6—\n(a) paragraph 166(3);\n(b) paragraph 245.\n(13) Enterprise Incentives\n1The repeal in section 303A of the Taxes Act 1988 has effect in accordance with paragraph 8(2) of Schedule 18 to this Act.\n2The repeals in Schedule 28B to the Taxes Act 1988, and in section 73 of the Finance Act 1998, have effect in accordance with paragraph 16 of Schedule 19 to this Act.\n3The repeals of section 151A(3) of, in paragraph 2(4) of Schedule 5B to, and of Schedule 5C to, the Taxation of Chargeable Gains Act 1992, and the repeals in the Finance Act 1995, have effect in accordance with paragraph 7 of Schedule 19 to this Act.\n4The repeal in paragraph 14A of Schedule 5B to the Taxation of Chargeable Gains Act 1992 has effect in accordance with paragraph 18(2) of Schedule 18 to this Act.\n5The repeals in the Income Tax (Earnings and Pensions) Act 2003 have effect in accordance with section 96 of this Act.\n6The remaining repeals have effect in relation to shares issued on or after 17th March 2004.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn section 289(1)(a), the words “wholly in cash”.\nIn section 289A(8)(b), the words “it is shown that”.\nIn section 293(4A), the words “which is in administration or receivership”.\nSection 303A(6)(a).\nIn section 308—\n(a) in subsection (1)(a), the words from “and, except” to “relevant period”,\n(b) subsection (2)(a) to (c),\n(c) in subsection (3)(a), the words “it is shown that”,\n(d) subsection (3)(b) and the word “and” immediately preceding it,\n(e) in subsection (4), the words “within the relevant period” and “it is shown that”,\n(f) subsection (5).\nIn Schedule 28B—\n(a) in paragraph 3(3), the words from “and for the purposes” to the end,\n(b) paragraph 6(5),\n(c) paragraph 10(3)(a) to (c),\n(d) in paragraph 10(4), the words “it is shown”, the first “that” in paragraph (a) and the word “that” in paragraph (b),\n(e) in paragraph 10(5), the words “it is shown that”,\n(f) paragraph 10(6),\n(g) in paragraph 11(4), the words “it is shown”, the first “that” in paragraph (a) and the word “that” in paragraph (b).\nTaxation of Chargeable Gains Act 1992 (c. 12)\nSection 151A(3).\nIn Schedule 5B—\n(a) in paragraph 1(2)(a), the words “wholly in cash”,\n(b) in paragraph 2(4), the words “or Schedule 5C”,\n(c) paragraph 14A(6)(a).\nSchedule 5C.\nFinance Act 1995 (c. 4)\nSection 72(4).\nSchedule 16.\nFinance Act 1998 (c. 36)\nIn section 73—\n(a) subsection (2),\n(b) in subsection (3), the words from “and after paragraph (b)” to the end,\n(c) in subsection (4), the words from “and after” to the end.\nIn Schedule 13—\n(a) paragraph 1(1)(a),\n(b) paragraph 21.\nFinance Act 2000 (c. 17)\nIn Schedule 15—\n(a) paragraph 21(2)(a) to (c),\n(b) in paragraph 24(1), the words “which is in administration or receivership”.\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nIn Schedule 5, paragraph 11(2)(a) to (c) and (3).\n(14) Chargeable Gains: Gifts Relief etc\n1The repeals in section 260 of the Taxation of Chargeable Gains Act 1992 and in the Finance Act 1995 have effect in accordance with paragraph 10(8) of Schedule 21 to this Act.\n2The repeal in section 281 of the Taxation of Chargeable Gains Act 1992 has effect in relation to disposals on or after the passing of this Act.\nShort title and chapter\nExtent of repeal\nTaxation of Chargeable Gains Act 1992 (c. 12)\nSection 260(6A) and (6B).\nIn section 281(3)(c), the words “nor dealt in on the Unlisted Securities Market”.\nFinance Act 1995 (c. 4)\nSection 72(6).\nIn Schedule 13, paragraph 4(2).\n(15) Chargeable Gains: Private Residence Relief\nThis repeal has effect in accordance with paragraph 7(2) of Schedule 22 to this Act.\nShort title and chapter\nExtent of repeal\nTaxation of Chargeable Gains Act 1992 (c. 12)\nIn section 223(4)(a), the words “or those provisions as applied by section 225”.\n(16) Manufactured Dividends\n1The repeal of paragraph 2A(1A)(a) of Schedule 23A to the Taxes Act 1988 has effect in accordance with paragraph 2(7) of Schedule 24 to this Act.\n2The other repeals in paragraph 2A(1A) of Schedule 23A to the Taxes Act 1988 and the repeals in paragraph 2A(1B) of that Schedule have effect in accordance with paragraph 2(11) of Schedule 24 to this Act.\n3The repeal of section 108(2) of the Finance Act 2002 has effect in accordance with paragraph 2(7) and (9) of Schedule 24 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn Schedule 23A, in paragraph 2A—\n(a) in sub-paragraph (1A), paragraph (a), paragraph (c) and the word “or” before it and the words following paragraph (c) ;\n(b) in sub-paragraph (1B), paragraph (c) and the word “or” before it;\n(c) in sub-paragraph (4), in paragraph (a), the words “or corporation tax” and in paragraph (b), the words “or, as the case may be, total profits”.\nFinance Act 2002 (c. 23)\nSection 108(2).\n(17) Life Policies etc.: Restriction of Corresponding Deficiency Relief\nThis repeal has effect in accordance with section 140(4) to (6) of this Act.\nShort title and chapter\nExtent of repeal\nFinance Act 2001 (c. 9)\nIn Schedule 28, paragraph 13.\n(18) Offshore Funds\n1These repeals have effect in accordance with section 145(2) of this Act.\n2The repeal of paragraph 3 of Schedule 10 to the Finance Act 1996 has effect subject to paragraph 1(3) and (4) of Schedule 26 to this Act.\n3The repeal of paragraph 35 of Schedule 26 to the Finance Act 2002 has effect subject to paragraph 2(3) and (4) of Schedule 26 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nSection 759 (1) and (1A).\nIn section 760—\n(a) in subsection (3), paragraphs (b) to (d) and the word “or” preceding paragraph (b) ;\n(b) subsections (4) to (7).\nIn Schedule 27—\n(a) paragraph 10;\n(b) in paragraph 11 (1) and (4), the words “section 760(3) and”;\n(c) paragraphs 12 and 13;\n(d) in paragraph 16(1), the words “by a trustee or officer thereof”.\nTaxation of Chargeable Gains Act 1992 (c. 12)\nIn Schedule 10, paragraph 14(46).\nFinance Act 1995 (c. 4)\nSection 134 (1) to (3) and (8).\nFinance Act 1996 (c. 8)\nIn Schedule 10, paragraph 3.\nFinance Act 2002 (c. 23)\nIn Schedule 26, paragraph 35.\n(19) Meaning of “Offshore Installation”\n1The repeal in section 298 of the Taxes Act 1988 has effect in accordance with paragraph 4(5) and (6) of Schedule 27 to this Act.\n2The repeal in Schedule 28B to the Taxes Act 1988 has effect in accordance with paragraph 5(5) and (6) of Schedule 27 to this Act.\n3The repeal in Schedule 15 to the Finance Act 2000 has effect in accordance with paragraph 6(5) and (6) of Schedule 27 to this Act.\n4The repeal in Schedule 22 to the Finance Act 2000 has effect in accordance with paragraph 7(2) of Schedule 27 to this Act.\n5The repeals in the Capital Allowances Act 2001 have effect in accordance with paragraph 11 (1) of Schedule 27 to this Act.\n6The repeal in section 305 of the Income Tax (Earnings and Pensions) Act 2003 has effect in accordance with paragraph 16 of Schedule 27 to this Act.\n7The repeal in Schedule 5 to the Income Tax (Earnings and Pensions) Act 2003 has effect in accordance with paragraph 17(6) and (7) of Schedule 27 to this Act.\nShort title and chapter\nExtent of repeal\nIncome and Corporation Taxes Act 1988 (c. 1)\nIn section 298(5), the definition of “oil rig”.\nIn paragraph 5 (1) of Schedule 28B, the definition of “oil rig”.\nFinance Act 2000 (c. 17)\nIn paragraph 28(6) of Schedule 15, the definition of “oil rig”.\nIn Schedule 22, paragraph 20(5).\nCapital Allowances Act 2001 (c. 2)\nSection 94(2)(b) and (3).\nSection 153(3).\nIncome Tax (Earnings and Pensions) Act 2003 (c. 1)\nIn section 305(6), the definition of “offshore installation”.\nIn paragraph 18(8) of Schedule 5, the definition of “oil rig”.",
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    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2004/12/schedule/42/part/2",
    "retrieved_at": "2026-10-29T09:17:16.113356+00:00"
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  "licence": "Open Government Licence v3.0",
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  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
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