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Finance (No. 2) Act 1997

1997 c. 58 · Enacted 31 July 1997 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 15 September 2016.

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.

[31st July 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

  1. Part I: The windfall tax
  2. 1Charge to windfall tax.
  3. 2The companies benefitting from windfalls.
  4. 3Administration of the windfall tax etc.
  5. 4The windfall tax and profit-related pay.
  6. 5Interpretation of Part I.
  7. Part II: Value Added Tax and Excise Duties
  8. Value Added Tax
  9. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  10. Alcoholic liquor duties
  11. 7Rate of duty on spirits.
  12. 8Rate of duty on beer.
  13. 9Rates of duty on wine and made-wine.
  14. 10Rates of duty on cider.
  15. Hydrocarbon oil duties
  16. 11Rates of hydrocarbon oil duties etc.
  17. Tobacco products duty
  18. 12Rates of tobacco products duty.
  19. Vehicle excise and registration
  20. 13Rates of vehicle excise duty.
  21. 14Payments where vehicle information transmitted electronically.
  22. Part III: Income tax and corporation tax
  23. Reliefs for interest and private medical insurance
  24. 15Mortgage interest payments.
  25. 16Limit on relief for interest for 1998-99. Repealed
  26. 17Withdrawal of relief on medical insurance premiums. Repealed
  27. Corporation tax
  28. 18Rates for financial year 1997.
  29. Distributions, tax credits etc on and after 2nd July 1997
  30. 19Pension funds no longer entitled to payment of tax credits.
  31. 20Losses etc not to be set against surplus franked investment income.
  32. 21Estates in administration: distributions to which s.233(1) applies. Repealed
  33. 22Lloyd’s underwriters.
  34. 23Insurance companies and friendly societies.
  35. Distributions, tax credits etc: avoidance
  36. 24Taxation of dealers in respect of distributions etc.
  37. 25Repeal of s.95(5) of the Taxes Act 1988: consequential amendments.
  38. 26Purchase and sale of securities. Repealed
  39. 27Payments to companies under section 687 of the Taxes Act 1988. Repealed
  40. 28Arrangements to pass on value of tax credit. Repealed
  41. 29Unauthorised unit trusts. Repealed
  42. Distributions, tax credits etc in and after 1999-00
  43. 30Tax credits.
  44. 31Rates of tax applicable to Schedule F income etc. Repealed
  45. 32Trusts. Repealed
  46. 33Estates of deceased persons in administration.
  47. 34Tax credits and taxation of distributions: miscellaneous provisions.
  48. 35Transitional relief for charities etc. Repealed
  49. 36Foreign income dividends.
  50. Gilt-edged securities
  51. 37Interest to be paid gross.
  52. 38Paying and collecting agents.
  53. Relief for losses etc
  54. 39Carry-back of trading losses. Repealed
  55. 40Carry-back of loan relationship deficits. Repealed
  56. 41Restrictions on group relief. Repealed
  57. Capital allowances for small and medium-sized businesses
  58. 42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  59. 43. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  60. Capital allowances and finance leases
  61. 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  62. 45. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  63. 46. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  64. 47. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  65. Films
  66. 48Relief for expenditure on production and acquisition. Repealed
  67. Part IV: Miscellaneous and supplemental
  68. Stamp duty
  69. 49Stamp duty on conveyance or transfer on sale.
  70. Provisional collection of taxes
  71. 50Statutory effect of resolutions etc.
  72. Supplemental
  73. 51Interpretation.
  74. 52Repeals.
  75. 53Short title.
  76. Schedule 1: Quantification of a privatisation windfall
  77. The basic rule
  78. 1Paragraph 1
  79. Value of a disposal in profit-making terms
  80. 2Paragraph 2
  81. Value put on a disposal for privatisation purposes
  82. 3Paragraph 3
  83. Cases where company privatised in stages
  84. 4Paragraph 4
  85. Total profits for the initial period
  86. 5Paragraph 5
  87. Meaning of the initial period etc
  88. 6Paragraph 6
  89. Apportionment between demerged successors and predecessors
  90. 7Paragraph 7
  91. General interpretation of the Schedule
  92. 8Paragraph 8
  93. Schedule 2: Administration and collection of windfall tax
  94. Returns
  95. 1Paragraph 1
  96. Notification of liability and failure to make return
  97. 2Paragraph 2
  98. Payment of windfall tax
  99. 3Paragraph 3
  100. General power to make assessments
  101. 4Paragraph 4
  102. Power to make assessments on discovery of unassessed liabilities
  103. 5Paragraph 5
  104. Supplemental provisions about assessments
  105. 6Paragraph 6
  106. Claims to relieve double assessment
  107. 7Paragraph 7
  108. Claims to correct errors or mistakes in returns etc.
  109. 8Paragraph 8
  110. Appeals against assessments and decisions on claims
  111. 9Paragraph 9
  112. Powers of Special Commissioners on an appeal
  113. 10Paragraph 10
  114. Procedures on appeal
  115. 11Paragraph 11
  116. Interest
  117. 12Paragraph 12
  118. Collection of information
  119. 13Paragraph 13
  120. Penalties for furnishing false information
  121. 14Paragraph 14
  122. Recovery of tax
  123. 15Paragraph 15
  124. Recovery against other group members
  125. 16Paragraph 16
  126. General provisions about penalties etc.
  127. 17Paragraph 17
  128. Miscellaneous applications
  129. 18Paragraph 18
  130. Interpretation
  131. 19Paragraph 19 Not yet in force
  132. Schedule 3: Insurance companies and friendly societies
  133. Section 76 of the Taxes Act 1988
  134. 1Paragraph 1 Repealed
  135. Section 432E of the Taxes Act 1988
  136. 2Paragraph 2
  137. Section 434 of the Taxes Act 1988
  138. 3Paragraph 3 Repealed
  139. Section 434A of the Taxes Act 1988
  140. 4Paragraph 4
  141. Section 436 of the Taxes Act 1988 Not yet in force
  142. 5Paragraph 5 Not yet in force
  143. Section 438 of the Taxes Act 1988
  144. 6Paragraph 6
  145. Section 439B of the Taxes Act 1988
  146. 7Paragraph 7
  147. Section 440B of the Taxes Act 1988
  148. 8Paragraph 8
  149. Section 441A of the Taxes Act 1988 Not yet in force
  150. 9Paragraph 9 Not yet in force
  151. Schedule 19AB to the Taxes Act 1988
  152. 10Paragraph 10 Repealed
  153. 11Paragraph 11 Repealed
  154. 12Paragraph 12 Repealed
  155. Schedule 19AC to the Taxes Act 1988
  156. 13Paragraph 13 Repealed
  157. Section 89 of the Finance Act 1989
  158. 14Paragraph 14
  159. Section 65 of the Finance (No.2) Act 1992
  160. 15Paragraph 15 Repealed
  161. Schedule 4: Tax credits, taxation of distributions etc
  162. Part I: General
  163. Chapter: The Taxes Management Act 1970
  164. Section 7
  165. 1Paragraph 1
  166. Section 42 (pre-corporation tax self-assessment version)
  167. 2Paragraph 2
  168. Section 42 (corporation tax self-assessment version)
  169. 3Paragraph 3
  170. Chapter: The Taxes Act 1988
  171. Section 231
  172. 4Paragraph 4 Repealed
  173. Section 232
  174. 5Paragraph 5 Repealed
  175. Section 233
  176. 6Paragraph 6 Repealed
  177. Sections 235 to 237
  178. 7Paragraph 7
  179. Section 238
  180. 8Paragraph 8 Repealed
  181. Section 241
  182. 9Paragraph 9 Repealed
  183. Section 249
  184. 10Paragraph 10 Repealed
  185. Section 421
  186. 11Paragraph 11 Repealed
  187. Section 469
  188. 12Paragraph 12 Repealed
  189. Section 549
  190. 13Paragraph 13 Repealed
  191. Section 660C
  192. 14Paragraph 14 Repealed
  193. Section 687
  194. 15Paragraph 15 Repealed
  195. Section 689B
  196. 16Paragraph 16 Repealed
  197. Section 699
  198. 17Paragraph 17 Repealed
  199. Section 703
  200. 18Paragraph 18 Repealed
  201. Section 709
  202. 19Paragraph 19
  203. Section 743
  204. 20Paragraph 20 Repealed
  205. Section 819
  206. 21Paragraph 21 Repealed
  207. Section 832
  208. 22Paragraph 22 Repealed
  209. Schedule 13
  210. 23Paragraph 23 Repealed
  211. Chapter: The Taxation of Chargeable Gains Act 1992
  212. Section 4
  213. 24Paragraph 24 Repealed
  214. Section 6
  215. 25Paragraph 25 Repealed
  216. Part II: Insurance companies and Lloyd’s underwriters
  217. Chapter: The Taxes Act 1988
  218. Section 231B
  219. 26Paragraph 26
  220. Section 434
  221. 27Paragraph 27 Repealed
  222. Section 441A
  223. 28Paragraph 28
  224. Schedule 19AC
  225. 29Paragraph 29 Repealed
  226. Chapter: The Finance Act 1993
  227. Schedule 20
  228. 30Paragraph 30 Not yet in force
  229. Schedule 5: Limitation of entitlement to relief under section 35 Repealed
  230. Part I: Qualifying distributions other than bonus issues Repealed
  231. 1Paragraph 1 Repealed
  232. 2Paragraph 2 Repealed
  233. 3Paragraph 3 Repealed
  234. 4Paragraph 4 Repealed
  235. 5Paragraph 5 Repealed
  236. Part II: Bonus issues Repealed
  237. 6Paragraph 6 Repealed
  238. 7Paragraph 7 Repealed
  239. 8Paragraph 8 Repealed
  240. Schedule 6: Foreign income dividends
  241. Section 13 of the Taxes Act 1988
  242. 1Paragraph 1
  243. Section 75 of the Taxes Act 1988
  244. 2Paragraph 2 Repealed
  245. Chapter VA of Part VI of the Taxes Act 1988
  246. 3Paragraph 3
  247. Section 247 of the Taxes Act 1988
  248. 4Paragraph 4
  249. Section 431 of the Taxes Act 1988
  250. 5Paragraph 5
  251. Section 434 of the Taxes Act 1988
  252. 6Paragraph 6
  253. Section 458 of the Taxes Act 1988
  254. 7Paragraph 7
  255. Chapter III of Part XII of the Taxes Act 1988
  256. 8Paragraph 8
  257. Section 490 of the Taxes Act 1988
  258. 9Paragraph 9
  259. Section 687 of the Taxes Act 1988
  260. 10Paragraph 10
  261. Section 689B of the Taxes Act 1988
  262. 11Paragraph 11
  263. Section 699A of the Taxes Act 1988
  264. 12Paragraph 12 Repealed
  265. Section 701 of the Taxes Act 1988
  266. 13Paragraph 13 Repealed
  267. Section 731 of the Taxes Act 1988
  268. 14Paragraph 14 Repealed
  269. Section 802 of the Taxes Act 1988
  270. 15Paragraph 15
  271. Schedule 13 to the Taxes Act 1988
  272. 16Paragraph 16
  273. Schedule 23A to the Taxes Act 1988
  274. 17Paragraph 17
  275. Section 88A of the Finance Act 1989
  276. 18Paragraph 18
  277. Section 89 of the Finance Act 1989
  278. 19Paragraph 19
  279. Section 171 of the Finance Act 1993
  280. 20Paragraph 20
  281. Schedule 7 to the Finance Act 1997
  282. 21Paragraph 21
  283. Transitional provisions
  284. 22Paragraph 22
  285. 23Paragraph 23
  286. Schedule 7: Restrictions on group relief Repealed
  287. Introductory Repealed
  288. 1Paragraph 1 Repealed
  289. New limits Repealed
  290. 2Paragraph 2 Repealed
  291. Consequential amendments Repealed
  292. 3Paragraph 3 Repealed
  293. 4Paragraph 4 Repealed
  294. 5Paragraph 5 Repealed
  295. 6Paragraph 6 Repealed
  296. 7Paragraph 7 Repealed
  297. 8Paragraph 8 Repealed
  298. Commencement Repealed
  299. 9Paragraph 9 Repealed
  300. Schedule 8: Repeals
  301. IVehicle licensing: payments where information to be transmitted electronically
  302. IIIncome tax and corporation tax
  303. Paragraph
  304. Paragraph
  305. Paragraph
  306. Paragraph
  307. Paragraph
  308. Paragraph
  309. Paragraph
  310. Paragraph
  311. IIIStatutory effect of resolutions etc