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Finance (No. 2) Act 1992

1992 c. 48 · Enacted 16 July 1992 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 1 April 2026.

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.

[16th July 1992]

I1Most 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:—C1

Annotations to the whole text

Modifications

C1

Act modified (21.2.2009) by The Banking Act 2009 (Parts 2 and 3 Consequential Amendments) Order 2009 (S.I. 2009/317), arts. 1, 3, Sch.

Commencement

I1

Act partly in force at Royal Assent; for exceptions see ss. 1(8), 2(6), 3(2), 12(2), 14(3), 16(6), 62(4) and Sch. 9 para. 22.

Contents

  1. Part I: Customs and Excise, Value Added Tax and Car Tax
  2. Chapter I: Customs and Excise
  3. Abolition of fiscal frontiers etc.
  4. 1Powers to fix excise duty point.
  5. 2Power to provide for drawback of excise duty.
  6. 3Protection of revenues derived from excise duties.
  7. 4Enforcement powers.
  8. 5Controls of persons entering the United Kingdom.
  9. Other provisions
  10. 6Abolition of duties on matches and mechanical lighters.
  11. 7Bingo duty: increased exemption etc. Repealed
  12. 8Tobacco products duty: retail price of cigarettes.
  13. 9Amendments relating to new beer duty regime.
  14. 10Search of aircraft.
  15. 11Vehicles excise duty: goods vehicles.
  16. 12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  17. 13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  18. Chapter II: Value Added Tax
  19. 14Abolition of fiscal frontiers etc.
  20. 15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  21. 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  23. Chapter III: Car Tax
  24. 18Abolition of fiscal frontiers.
  25. Part II: Income Tax, Corporation Tax and Capital Gains Tax
  26. Chapter I: General
  27. Lower rate
  28. 19Lower rate: further provisions.
  29. Married couple’s allowance etc.
  30. 20Married couple’s allowance etc.
  31. Corporation tax charge and rate
  32. 21Charge and rate of corporation tax for 1992.
  33. 22Small companies. Repealed
  34. Capital gains tax
  35. 23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  36. Groups etc.
  37. 24Amendments relating to group relief etc.
  38. 25Companies ceasing to be members of groups.
  39. Charities etc.
  40. 26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  41. 27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  42. 28Powers of inspection.
  43. Interest, dividends and distributions
  44. 29Returns of interest.
  45. 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  46. 31Equity notes. Repealed
  47. 32Information relating to distributions.
  48. Securities and deposits
  49. 33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  50. 34Rights in pursuance of deposits.
  51. 35Exchange of securities.
  52. Employee shares
  53. 36Employee share ownership trusts.
  54. 37Employee share schemes: special benefits. Repealed
  55. Business expansion scheme
  56. 38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  57. 39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  58. 40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  59. 40ARevenue nature of expenditure on master versions of films Repealed
  60. 40BAllocation of expenditure to periods Repealed
  61. 40CCases where section 40B does not apply Repealed
  62. 40DElection for sections 40A and 40B not to apply Repealed
  63. Films
  64. 41Relief for preliminary expenditure. Repealed
  65. 42Relief for production or acquisition expenditure. Repealed
  66. 43Interpretation of sections 41 and 42. Repealed
  67. Transfers of trade
  68. 44Transfer of a UK trade: amendment of 1992 Act.
  69. 45Transfer of a non-UK trade: amendment of 1992 Act.
  70. 46Transfer of a trade: supplementary (1).
  71. 47Transfer of a UK trade: amendment of 1970 Act. Repealed
  72. 48Transfer of a non-UK trade: amendment of 1970 Act. Repealed
  73. 49Transfer of a trade: supplementary (2). Repealed
  74. Double taxation relief
  75. 50Transfer of a non-UK trade. Repealed
  76. 51The Arbitration Convention.
  77. 52Interest. Repealed
  78. Miscellaneous
  79. 53Car fuel: cash equivalents.
  80. 54Foreign earnings. Repealed
  81. 55Oil extraction activities: extended transportation. Repealed
  82. 56Friendly societies.
  83. 57. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  84. 58. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  85. 59Furnished accommodation. Repealed
  86. 60Deduction on account of certain payments. Repealed
  87. 61Qualifying maintenance payments: extension to member States. Repealed
  88. 62Qualifying maintenance payments: maintenance assessments etc. Repealed
  89. 63Paying and collecting agents etc. Repealed
  90. 64Reduced and composite rate. Repealed
  91. 65Life assurance business: I minus E basis. Repealed
  92. 66Banks etc. in compulsory liquidation. Repealed
  93. Chapter II: Capital allowances
  94. 67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  95. 68. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  96. 69. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  97. 70. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  98. 71. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  99. Part III: Miscellaneous and General
  100. Inheritance tax
  101. 72Increase of rate bands.
  102. 73Business and agricultural property relief.
  103. Petroleum revenue tax
  104. 74Oil exported direct from United Kingdom off-shore fields.
  105. ...
  106. 75Change of name. Repealed
  107. 76Miscellaneous. Repealed
  108. Miscellaneous
  109. 77Northern Ireland Electricity.
  110. 78. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  111. 79. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  112. 80Publication of rates of interest.
  113. General
  114. 81Interpretation.
  115. 82Repeals.
  116. 83Short title.
  117. Schedule 1: Amendments relating to excise duties etc.
  118. The Customs and Excise Management Act 1979 (c. 2)
  119. 1Paragraph 1
  120. 2Paragraph 2
  121. 3Paragraph 3
  122. 4Paragraph 4
  123. 5Paragraph 5
  124. 6Paragraph 6
  125. 7Paragraph 7
  126. The Customs and Excise Duties (General Reliefs) Act 1979 (c. 3)
  127. 8Paragraph 8
  128. The Alcoholic Liquor Duties Act 1979 (c. 4)
  129. 9Paragraph 9
  130. 10Paragraph 10
  131. 11Paragraph 11
  132. 12Paragraph 12
  133. 13Paragraph 13
  134. Schedule 2: Protection of revenues derived from excise duties
  135. The Customs and Excise Management Act 1979 (c. 2)
  136. 1Paragraph 1
  137. 2Paragraph 2
  138. 3Paragraph 3
  139. 4Paragraph 4
  140. 5Paragraph 5
  141. 6Paragraph 6
  142. 7Paragraph 7
  143. 8Paragraph 8
  144. 9Paragraph 9
  145. The Customs and Excise Duties (General Reliefs) Act 1979 (c. 3)
  146. 10Paragraph 10
  147. Schedule 3: Value added tax: abolition of fiscal frontiers etc.
  148. Part I
  149. Introduction
  150. 1Paragraph 1
  151. Imposition and extent of tax
  152. 2Paragraph 2
  153. 3Paragraph 3
  154. Meaning of supply
  155. 4Paragraph 4
  156. Time of supply
  157. 5Paragraph 5
  158. 6Paragraph 6
  159. Place of supply
  160. 7Paragraph 7
  161. 8Paragraph 8
  162. 9Paragraph 9
  163. Acquisitions of goods from other member States
  164. 10Paragraph 10
  165. Rate of tax and determination of value
  166. 11Paragraph 11
  167. 12Paragraph 12
  168. 13Paragraph 13
  169. 14Paragraph 14
  170. Credit for input tax against output tax
  171. 15Paragraph 15
  172. 16Paragraph 16
  173. Reliefs
  174. 17Paragraph 17
  175. 18Paragraph 18
  176. 19Paragraph 19
  177. 20Paragraph 20
  178. Refunds of tax
  179. 21Paragraph 21
  180. 22Paragraph 22
  181. 23Paragraph 23
  182. Repayment
  183. 24Paragraph 24
  184. Further provisions as to importation of goods
  185. 25Paragraph 25
  186. 26Paragraph 26
  187. 27Paragraph 27
  188. Special cases
  189. 28Paragraph 28
  190. 29Paragraph 29
  191. 30Paragraph 30
  192. 31Paragraph 31
  193. 32Paragraph 32
  194. 33Paragraph 33
  195. 34Paragraph 34
  196. 35Paragraph 35
  197. 36Paragraph 36
  198. 37Paragraph 37
  199. General
  200. 38Paragraph 38
  201. 39Paragraph 39
  202. 40Paragraph 40
  203. 41Paragraph 41
  204. 42Paragraph 42
  205. 43Paragraph 43
  206. 44Paragraph 44
  207. 45Paragraph 45
  208. 46Paragraph 46
  209. 47Paragraph 47
  210. Registration in respect of supplies
  211. 48Paragraph 48
  212. 49Paragraph 49
  213. 50Paragraph 50
  214. 51Paragraph 51
  215. 52Paragraph 52
  216. 53Paragraph 53
  217. 54Paragraph 54
  218. 55Paragraph 55
  219. 56Paragraph 56
  220. 57Paragraph 57
  221. 58Paragraph 58
  222. Registration in respect of supplies and acquisitions from other member States
  223. 59Paragraph 59
  224. Matters to be treated as supplies of goods or services
  225. 60Paragraph 60
  226. Special rules for valuation
  227. 61Paragraph 61
  228. 62Paragraph 62
  229. Zero-rated supplies
  230. 63Paragraph 63
  231. Administration, collection and enforcement
  232. 64Paragraph 64
  233. 65Paragraph 65
  234. 66Paragraph 66
  235. 67Paragraph 67
  236. 68Paragraph 68
  237. 69Paragraph 69
  238. 70Paragraph 70
  239. 71Paragraph 71
  240. 72Paragraph 72
  241. 73Paragraph 73
  242. 74Paragraph 74
  243. Transitional provisions
  244. 75Paragraph 75
  245. Part II
  246. Introduction
  247. 76Paragraph 76
  248. Civil penalties
  249. 77Paragraph 77
  250. 78Paragraph 78
  251. 79Paragraph 79
  252. 80Paragraph 80
  253. 81Paragraph 81
  254. 82Paragraph 82
  255. Interest on tax
  256. 83Paragraph 83
  257. Assessments
  258. 84Paragraph 84
  259. 85Paragraph 85
  260. 86Paragraph 86
  261. Part III: Consequential amendments of other enactments
  262. The Diplomatic Privileges Act 1964 (c. 81)
  263. 87Paragraph 87
  264. The Commonwealth Secretariat Act 1966 (c. 10)
  265. 88Paragraph 88
  266. The Consular Relations Act 1968 (c. 18)
  267. 89Paragraph 89
  268. The International Organisations Act 1968 (c. 48)
  269. 90Paragraph 90
  270. The Vehicles (Excise) Act 1971 (c. 10)
  271. 91Paragraph 91 Repealed
  272. The Diplomatic and other Privileges Act 1971 (c. 64)
  273. 92Paragraph 92
  274. The Customs and Excise Duties (General Reliefs) Act 1979 (c. 3)
  275. 93Paragraph 93
  276. The Finance Act 1986 (c. 41)
  277. 94Paragraph 94
  278. The Income and Corporation Taxes Act 1988 (c. 1)
  279. 95Paragraph 95
  280. Schedule 4: Car tax: abolition of fiscal frontiers
  281. 1Paragraph 1
  282. 2Paragraph 2
  283. 3Paragraph 3
  284. 4Paragraph 4
  285. 5Paragraph 5
  286. 6Paragraph 6
  287. 7Paragraph 7
  288. 8Paragraph 8
  289. Schedule 5: Married couple’s allowance etc.
  290. 1Paragraph 1
  291. 2Paragraph 2 Repealed
  292. 3Paragraph 3 Repealed
  293. 4Paragraph 4 Repealed
  294. 5Paragraph 5 Repealed
  295. 6Paragraph 6 Repealed
  296. 7Paragraph 7 Repealed
  297. 8Paragraph 8
  298. 9Paragraph 9
  299. 10Paragraph 10
  300. Schedule 6: Group relief etc: amendments
  301. Main amendments
  302. 1Paragraph 1 Repealed
  303. 2Paragraph 2 Repealed
  304. Other amendments
  305. 3Paragraph 3 Repealed
  306. 4Paragraph 4
  307. 5Paragraph 5
  308. Application of amendments
  309. 6Paragraph 6
  310. 7Paragraph 7
  311. 8Paragraph 8
  312. 9Paragraph 9
  313. 10Paragraph 10
  314. Schedule 7
  315. 1Paragraph 1
  316. 2Paragraph 2
  317. 3Paragraph 3
  318. 4Paragraph 4
  319. 5Paragraph 5
  320. 6Paragraph 6
  321. 7Paragraph 7
  322. 8Paragraph 8
  323. Schedule 8: Rights in pursuance of deposits
  324. Disposal or exercise of rights
  325. 1Paragraph 1
  326. Building societies
  327. 2Paragraph 2 Repealed
  328. 3Paragraph 3 Repealed
  329. Deposit-takers
  330. 4Paragraph 4 Repealed
  331. Accrued income scheme
  332. 5Paragraph 5 Repealed
  333. General
  334. 6Paragraph 6
  335. Schedule 9: Friendly societies
  336. Amendments of the Taxes Act 1988
  337. 1Paragraph 1
  338. 2Paragraph 2
  339. 3Paragraph 3 Repealed
  340. 4Paragraph 4
  341. 5Paragraph 5
  342. 6Paragraph 6
  343. 7Paragraph 7
  344. 8Paragraph 8
  345. 9Paragraph 9 Repealed
  346. 10Paragraph 10
  347. 11Paragraph 11
  348. 12Paragraph 12
  349. 13Paragraph 13
  350. 14Paragraph 14
  351. 15Paragraph 15 Repealed
  352. 16Paragraph 16
  353. 17Paragraph 17
  354. 18Paragraph 18
  355. 19Paragraph 19
  356. Amendments of enactments relating to chargeable gains
  357. 20Paragraph 20
  358. 21Paragraph 21
  359. Commencement
  360. 22Paragraph 22
  361. Schedule 10: Furnished Accommodation Repealed
  362. Introduction Repealed
  363. 1Paragraph 1 Repealed
  364. 2Paragraph 2 Repealed
  365. 3Paragraph 3 Repealed
  366. 4Paragraph 4 Repealed
  367. 5Paragraph 5 Repealed
  368. 6Paragraph 6 Repealed
  369. 7Paragraph 7 Repealed
  370. 8Paragraph 8 Repealed
  371. Exemption etc. Repealed
  372. 9Paragraph 9 Repealed
  373. 10Paragraph 10 Repealed
  374. Adjusted profits etc. Repealed
  375. 11Paragraph 11 Repealed
  376. 12Paragraph 12 Repealed
  377. Application of Schedule Repealed
  378. 13Paragraph 13 Repealed
  379. Schedule 11: Paying and collecting agents etc. Repealed
  380. 1Paragraph 1 Repealed
  381. 2Paragraph 2 Repealed
  382. 3Paragraph 3 Repealed
  383. 4Paragraph 4 Repealed
  384. 5Paragraph 5 Repealed
  385. 6Paragraph 6 Repealed
  386. Schedule 12: Banks etc. in compulsory liquidation Repealed
  387. Introductory Repealed
  388. 1Paragraph 1 Repealed
  389. 2Paragraph 2 Repealed
  390. Taxation of certain receipts Repealed
  391. 3Paragraph 3 Repealed
  392. Relief from tax Repealed
  393. 4Paragraph 4 Repealed
  394. Application of charge etc. where rights to payments transferred Repealed
  395. 5Paragraph 5 Repealed
  396. Election for carry-back Repealed
  397. 6Paragraph 6 Repealed
  398. Commencement Repealed
  399. 7Paragraph 7 Repealed
  400. Schedule 13
  401. Introduction
  402. 1Paragraph 1
  403. Buildings and structures purchased before use
  404. 2Paragraph 2
  405. 3Paragraph 3
  406. 4Paragraph 4
  407. 5Paragraph 5
  408. 6Paragraph 6
  409. 7Paragraph 7
  410. Buildings and structures purchased within two years of use
  411. 8Paragraph 8
  412. 9Paragraph 9
  413. Exclusion of expenditure
  414. 10Paragraph 10
  415. 11Paragraph 11
  416. 12Paragraph 12
  417. Miscellaneous
  418. 13Paragraph 13
  419. Commencement
  420. 14Paragraph 14
  421. 15Paragraph 15
  422. 16Paragraph 16
  423. 17Paragraph 17
  424. Schedule 14: Inheritance tax
  425. Business property
  426. 1Paragraph 1
  427. 2Paragraph 2
  428. 3Paragraph 3
  429. Agricultural property
  430. 4Paragraph 4
  431. Payment by instalments
  432. 5Paragraph 5
  433. 6Paragraph 6
  434. Gifts with reservation
  435. 7Paragraph 7
  436. Commencement
  437. 8Paragraph 8
  438. 9Paragraph 9
  439. Schedule 15: Amendments relating to oil exported directly from off-shore fields
  440. THE OIL TAXATION ACT 1975
  441. 1Paragraph 1
  442. 2Paragraph 2
  443. 3Paragraph 3
  444. 4Paragraph 4
  445. THE FINANCE ACT 1982
  446. 5Paragraph 5
  447. THE OIL TAXATION ACT 1983
  448. 6Paragraph 6
  449. 7Paragraph 7
  450. 8Paragraph 8
  451. THE FINANCE ACT 1986
  452. 9Paragraph 9
  453. Schedule 16: General and Special Commissioners Repealed
  454. 1Paragraph 1 Repealed
  455. Remuneration of General Commissioners etc. Repealed
  456. 2Paragraph 2 Repealed
  457. Jurisdiction Repealed
  458. 3Paragraph 3 Repealed
  459. Practice and procedure Repealed
  460. 4Paragraph 4 Repealed
  461. 5Paragraph 5 Repealed
  462. Oil taxation appeals Repealed
  463. 6Paragraph 6 Repealed
  464. 7Paragraph 7 Repealed
  465. Inheritance tax appeals Repealed
  466. 8Paragraph 8 Repealed
  467. Schedule 17: Northern Ireland Electricity
  468. Interpretation
  469. 1Paragraph 1
  470. Transfer to successor companies: general
  471. 2Paragraph 2
  472. Roll-over relief
  473. 3Paragraph 3
  474. Unallowed capital losses
  475. 4Paragraph 4
  476. Arrangements in favour of other successor companies
  477. 5Paragraph 5
  478. Restriction of losses by reference to capital allowances
  479. 6Paragraph 6
  480. Transfers between successor companies
  481. 7Paragraph 7
  482. Apportionments etc.
  483. 8Paragraph 8
  484. Securities of successor companies
  485. 9Paragraph 9
  486. Stamp duty reserve tax
  487. 10Paragraph 10
  488. Schedule 18: Repeals
  489. IExcise duties: general
  490. 1Paragraph 1
  491. 2Paragraph 2
  492. 3Paragraph 3
  493. 4Paragraph 4
  494. 5Paragraph 5
  495. 6Paragraph 6
  496. IIMatches and mechanical lighters
  497. IIIVehicles excise duty: goods vehicles
  498. IVVehicles excise duty: disabled persons
  499. Part V: Value added tax
  500. (1) Abolition of fiscal frontiers
  501. (2) Fuel and power
  502. VICar tax
  503. Part VII: Income tax and corporation tax
  504. (1) Married couple’s allowance etc.Chapter (1) Married couple’s allowance etc.
  505. (2) Charities: powers of inspectionChapter (2) Charities: powers of inspection
  506. (3) Returns of InterestChapter (3) Returns of Interest
  507. (4) DistributionsChapter (4) Distributions
  508. (5) Deep gain securitiesChapter (5) Deep gain securities
  509. (6) Transfers of tradeChapter (6) Transfers of trade
  510. (7) Oil extractionChapter (7) Oil extraction
  511. (8) Paying and collecting agents etc.Chapter (8) Paying and collecting agents etc.
  512. (9) Enterprise zonesChapter (9) Enterprise zones
  513. VIIIOil taxation
  514. IXGeneral and Special Commissioners
  515. XNorthern Ireland Electricity
  516. XITreasury bills
  517. XIINational loans