Source: http://www.legislation.gov.uk/ukpga/2008/9
Timestamp: 2014-03-17 19:25:03
Document Index: 757477463

Matched Legal Cases: ['art 1', 'art 1', 'art 2', 'art 2', 'art 1', 'art 3', 'art 3']

Skip to main contentSkip to navigationlegislation.gov.ukThe National ArchivesHelpSite MapAccessibilityContact UsCymraegHomeAbout UsBrowse LegislationNew LegislationChanges To LegislationSearch LegislationSearch LegislationTitle: (or keywords in the title)Year:Number:Type:All Legislation (excluding draft)All Primary Legislation UK Public General Acts UK Local Acts Acts of the Scottish Parliament Acts of the National Assembly for Wales Measures of the National Assembly for Wales Church Measures Acts of the Northern Ireland Assembly Acts of the Old Scottish Parliament Acts of the English Parliament Acts of the Old Irish Parliament Acts of the Parliament of Great Britain Northern Ireland Orders in Council Measures of the Northern Ireland Assembly Acts of the Northern Ireland ParliamentAll Secondary Legislation UK Statutory Instruments Wales Statutory Instruments Scottish Statutory Instruments Northern Ireland Statutory Rules Church Instruments UK Ministerial Orders UK Statutory Rules and OrdersAll Draft Legislation UK Draft Statutory Instruments Scottish Draft Statutory Instruments Northern Ireland Draft Statutory RulesAll Impact Assessments UK Impact AssessmentsSearchAdvanced SearchFinance Act 2008You are here:2008 c. 9Whole ActTable of ContentsContentMore ResourcesPreviousNextPlain ViewPrint OptionsWhat VersionLatest available (Revised)Original (As enacted)Advanced FeaturesShow Geographical Extent(e.g. England, Wales, Scotland, Northern Ireland)Show Timeline of ChangesOpening OptionsOpen whole ActOpen Act without schedulesOpen Schedules onlyMore ResourcesOriginal Print PDFView moreStatus:This version of this Act contains provisions that are prospective.Changes to legislation:There are outstanding changes not yet made by the legislation.gov.uk editorial team to Finance Act 2008. Any changes that have already been made by the team appear in the content and are referenced with annotations.E+W+S+N.I.Finance Act 20082008 CHAPTER 9An 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.[21st July 2008]Most Gracious Sovereign
Part 1 E+W+S+N.I.Charges, rates, allowances, reliefs etcIncome taxE+W+S+N.I.1Charge and main rates for 2008-09E+W+S+N.I.(1)Income tax is charged for the tax year 2008-09.
2Personal allowance for those aged under 65E+W+S+N.I.(1)For the tax year 2008-09 the amount specified in—
(personal allowance for those aged under 65) is replaced with “ £6,035 ”.
3Personal allowances for those aged 65 and overE+W+S+N.I.(1)For the tax year 2008-09—
(a)the amount specified in section 36(1) of ITA 2007 and section 257(2) of ICTA (personal allowance for those aged 65 to 74) is replaced with “ £9,030 ”, and
(b)the amount specified in section 37(1) of ITA 2007 and section 257(3) of ICTA (personal allowance for those aged 75 and over) is replaced with “ £9,180 ”.
4Basic rate limitE+W+S+N.I.(1)In section 10 of ITA 2007 (income charged at main rates: individuals), for subsection (5) substitute—
5Abolition of starting and savings rates and creation of starting rate for savingsE+W+S+N.I.(1)Section 6 of ITA 2007 (rates at which income tax is charged) is amended as follows.
Corporation taxE+W+S+N.I.6Charge and main rates for financial year 2009E+W+S+N.I.(1)Corporation tax is charged for the financial year 2009.
Capital gains taxE+W+S+N.I.8Rate etcE+W+S+N.I.(1)In TCGA 1992, for section 4 substitute—
“4Rate of capital gains taxThe rate of capital gains tax is 18%.”
9Entrepreneurs' reliefE+W+S+N.I.Schedule 3 contains provision for and in connection with entrepreneurs' relief.
Inheritance taxE+W+S+N.I.10Transfer of unused nil-rate band etcE+W+S+N.I.Schedule 4 contains provisions about the transfer of unused nil-rate band between spouses and civil partners for the purposes of the charge to inheritance tax etc.
Alcohol and tobaccoE+W+S+N.I.11Rates of alcoholic liquor dutyE+W+S+N.I.(1)ALDA 1979 is amended as follows.
(2)In section 5 (rate of duty on spirits), for “£19.56” substitute “ £21.35 ”.
(3)In section 36(1AA)(a) (standard rate of duty on beer), for “£13.71” substitute “ £14.96 ”.
(a)in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£172.33” substitute “ £188.10 ”,
(b)in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£39.73” substitute “ £43.37 ”, and
(c)in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.48” substitute “ £28.90 ”.
E+W+S+N.I.“Table of rates of duty on wine and made-wine Part 1 E+W+S+N.I.Wine or made-wine of a strength not exceeding 22 per centDescription of wine or made-wineRates of duty per hectolitre£Wine or made-wine of a strength not exceeding 4 per cent59.87Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent82.32Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling194.28Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent but less than 8.5 per cent188.10Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent248.85Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent259.02 Part 2 E+W+S+N.I.Wine or made-wine of a strength exceeding 22 per centDescription of wine or made-wineRates of duty per litre of alcohol in the wine or made-wine£Wine or made-wine of a strength exceeding 22 per cent21.35”.(6)The amendments made by this section are treated as having come into force on 17 March 2008.
“Table1. CigarettesAn amount equal to 22 per cent of the retail price plus £112.07 per thousand cigarettes2. Cigars£163.22 per kilogram3. Hand-rolling tobacco£117.32 per kilogram4. Other smoking tobacco and chewing tobacco£71.76 per kilogram”.(2)The amendment made by subsection (1) is treated as having come into force at 6pm on 12 March 2008.
Fuel dutiesE+W+S+N.I.13Rates and rebates: simplificationE+W+S+N.I.(1)HODA 1979 is amended as follows.
14Biodiesel and bioblendE+W+S+N.I.Schedule 5 contains provision about biodiesel and bioblend.
15Rates and rebates: increase from 1 October 2008E+W+S+N.I.(1)HODA 1979 is amended as follows.
16Fuel for aircraft and boats, heating oil and fuel for certain enginesE+W+S+N.I.(1)In section 6(1A) of HODA 1979 (main rates)—
(b)in paragraph (b), after “petrol” insert “ or aviation gasoline ”.
Environmental taxes and dutiesE+W+S+N.I.17Rates of vehicle excise dutyE+W+S+N.I.(1)Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
(a)in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£180” substitute “ £185 ”, and
(b)in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£115” substitute “ £120 ”.
“TableCO2 emissions figureRate(1)(2)(3)(4)ExceedingNot exceedingReduced rateStandard rateg/kmg/km££100120153512015010012015016512545165185150170185225195210225385400The table has effect in relation to vehicles first registered before 23 March 2006 as if— (a)in column (3), in the last row, “ 195 ” were substituted for “385”, and
(b)in column (4), in the last row, “ 210 ” were substituted for “400”.”
(a)in sub-paragraph (a) (vehicle which is not lower-emission van), for “£175” substitute “ £180 ”, and
(b)in sub-paragraph (b) (lower-emission van), for “£115” substitute “ £120 ”.
(a)in paragraph (b) (motorbicycle and engine's cylinder capacity more than 150cc but not more than 400cc), for “£32” substitute “ £33 ”,
(b)in paragraph (c) (motorbicycle and engine's cylinder capacity more than 400cc but not more than 600cc), for “£47” substitute “ £48 ”, and
(c)in paragraph (d) (any other case), for “£64” substitute “ £66 ”.
18Standard rate of landfill taxE+W+S+N.I.(1)In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£32” substitute “ £40 ”.
19Rates of climate change levyE+W+S+N.I.(1)In Schedule 6 to FA 2000 (climate change levy), for the table in paragraph 42(1) substitute—
“TableTaxable commodity suppliedRate at which levy payable if supply is not a reduced-rate supplyElectricity£0.00470 per kilowatt hourGas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility£0.00164 per kilowatt hourAny petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state£0.01050 per kilogramAny other taxable commodity£0.01281 per kilogram”.(2)The amendment made by subsection (1) has effect in relation to supplies treated as taking place on or after 1 April 2009.
20Rate of aggregates levyE+W+S+N.I.(1)In section 16(4) of FA 2001 (rate of aggregates levy), for “£1.95” substitute “ £2 ”.
21Carbon reduction trading scheme: charges for allocationsE+W+S+N.I.(1)The Treasury may impose charges by providing for carbon reduction trading scheme allowances to be allocated in return for payment.
Gambling dutiesE+W+S+N.I.22Rates of gaming dutyE+W+S+N.I.(1)For the table in section 11(2) of FA 1997 substitute—
“TablePart of gross gaming yieldRateThe first £1,911,00015 per centThe next £1,317,00020 per centThe next £2,307,00030 per centThe next £4,869,50040 per centThe remainder50 per cent”.(2)The amendment made by subsection (1) has effect in relation to accounting periods beginning on or after 1 April 2008.
23Amusement machine licence dutyE+W+S+N.I.(1)In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—
“TableMonths for which licence grantedCategory ACategory B1Category B2Category B3Category B4Category C££££££1455230180180165702905450355355320135313556755355354852004180590571071064526552260113089089080533562710135510651065965400731601580124512451125465836101805142014201290530940652030160016001450600104515226017751775161066511496524851955195517707301251602580203020301840760”.(2)The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4pm on 14 March 2008.
Part 2 E+W+S+N.I.Income tax, corporation tax and capital gains tax_generalResidence and domicileE+W+S+N.I.24Periods of residenceE+W+S+N.I.(1)Section 831 of ITA 2007 (foreign income of individuals in United Kingdom for temporary purpose) is amended as follows.
25Remittance basisE+W+S+N.I.Schedule 7 contains provision for and in connection with the revision of the remittance basis.
Research and developmentE+W+S+N.I.26Rates of R&D relief and vaccine research reliefE+W+S+N.I.Schedule 8 contains provision about the rates of research and development relief and vaccine research relief.
27Qualifying expenditure: R&D relief and vaccine research reliefE+W+S+N.I.(1)Paragraph 5 of Schedule 20 to FA 2000 (R&D tax relief: staffing costs) is amended as follows.
28Companies in difficulty: SME R&D relief and vaccine research reliefE+W+S+N.I.Schedule 9 contains provision preventing a company from claiming research and development relief and vaccine research relief if it is not a going concern.
29Cap on R&D aidE+W+S+N.I.(1)A company is only entitled to R&D relief in respect of expenditure attributable to a research and development project if, or to the extent that, at that time, the total R&D aid in respect of expenditure by the company attributable to the project would not exceed 7.5 million euros.
(b)Schedule 13 to FA 2002 (tax relief for expenditure on vaccine research etc), and
(a)in accordance with Part 1 of Schedule 10, and
Annotations:Commencement InformationI1S. 29 partly in force; s. 29(5) in force at Royal Assent see s. 29(5)30Vaccine research relief: declaration about effect of reliefE+W+S+N.I.(1)In paragraph 21 of Schedule 13 to FA 2002 (tax relief for expenditure by large companies on vaccine research etc), after sub-paragraph (3) insert—
Venture capital schemes etcE+W+S+N.I.31Enterprise investment scheme: increase in amount of reliefE+W+S+N.I.(1)In section 158(2)(b) of ITA 2007 (form and amount of EIS relief), for “£400,000” substitute “ £500,000 ”.
32Venture capital schemesE+W+S+N.I.Schedule 11 contains provision about venture capital schemes.
33Enterprise management incentives: qualifying companiesE+W+S+N.I.(1)Part 3 of Schedule 5 to ITEPA 2003 (enterprise management incentives: qualifying companies) is amended as follows.
“12A“The number of employees requirement(1)The number of employees requirement in the case of a single company is that the full-time equivalent employee number for it is less than 250.
“20A“Excluded activities: shipbuilding“20AIn paragraph 16(ia) “shipbuilding” has the same meaning as in the Framework on state aid to shipbuilding (2003/C 317/06), published in the Official Journal on 30 December 2003.
20BExcluded activities: producing coal(1)This paragraph supplements paragraph 16(ib).
20CExcluded activities: producing steel20CIn paragraph 16(ic) “steel” means any of the steel products listed in Annex 1 to the Guidelines on national regional aid (2006/C 54/08), published in the Official Journal on 4 March 2006.”
Other business and investment measuresE+W+S+N.I.34Tax credits for certain foreign distributionsE+W+S+N.I.(1)Schedule 12 contains provision about tax credits for certain foreign distributions.
Annotations:Commencement InformationI2S. 39 partly in force; s. 39(1)-(6)(8) in force at Royal Assent see s. 39(8)40Individual investment plan regulationsE+W+S+N.I.In section 701 of ITTOIA 2005 (investment plan regulations: general and supplementary), insert at the end—
Offshore fundsE+W+S+N.I.41Tax treatment of participants in offshore fundsE+W+S+N.I.(1)The Treasury may by regulations make provision about the treatment of participants in an offshore fund for the purposes of enactments relating to income tax, capital gains tax or corporation tax.
Annotations:Commencement InformationI3S. 41 partly in force; s. 41(1)-(5)(8)(9) in force at Royal Assent see s. 41(8)42Regulations under section 41: supplementaryE+W+S+N.I.(1)Regulations under section 41 may, in particular—
Insurance companies and friendly societiesE+W+S+N.I.43Insurance companies etcE+W+S+N.I.Schedule 17 contains provisions relating to insurance companies etc.
44Friendly societiesE+W+S+N.I.Schedule 18 contains provision relating to friendly societies.
Employment mattersE+W+S+N.I.45Homes outside UK owned through company etcE+W+S+N.I.(1)In ITEPA 2003, after section 100 insert—
Charities etcE+W+S+N.I.53Gift aid: payments to charitiesE+W+S+N.I.Schedule 19 contains provision for the Commissioners for Her Majesty's Revenue and Customs to make payments to charities which receive donations under the gift aid scheme.
54Community investment tax reliefE+W+S+N.I.(1)Paragraph 35 of Schedule 16 to FA 2002 (community investment tax relief) is amended as follows.
LeasingE+W+S+N.I.55Leases of plant or machineryE+W+S+N.I.Schedule 20 contains provision about leases of plant or machinery.
56Sale of lessor companies etcE+W+S+N.I.(1)Schedule 10 to FA 2006 (sale etc of lessor companies etc) is amended as follows.
Double taxation arrangementsE+W+S+N.I.57Double taxation reliefE+W+S+N.I.(1)Section 798 of ICTA (limits on foreign tax credit: trade income) is amended as follows.
58UK residents and foreign partnershipsE+W+S+N.I.(1)In section 115 of ICTA (partnerships involving companies: supplementary), after subsection (5B) insert—
59UK residents and foreign enterprisesE+W+S+N.I.(1)In ICTA, after section 815A insert—
“815AZAUK residents and foreign enterprises(1)Where arrangements having effect under section 788 make the provision mentioned in subsection (2) (however expressed), that provision does not prevent income of a person resident in the United Kingdom being chargeable to income tax or corporation tax.
Other anti-avoidance provisionsE+W+S+N.I.60Restrictions on trade loss relief for individualsE+W+S+N.I.Schedule 21 contains provision restricting relief for losses made by individuals who, otherwise than in partnership, carry on trades in a non-active capacity.
MiscellaneousE+W+S+N.I.67Income of beneficiaries under settlor-interested settlementsE+W+S+N.I.(1)In section 685A of ITTOIA 2005 (settlor-interested settlements), after subsection (5) insert—
Part 3 E+W+S+N.I.Capital allowancesPlant and machinery: qualifying expenditureE+W+S+N.I.71Thermal insulation of buildingsE+W+S+N.I.(1)Section 28 of CAA 2001 (thermal insulation of industrial buildings) is amended as follows.
(a)for “consisting of a trade” substitute “ other than an ordinary property business or an overseas property business ”,
(b)for “an industrial” substitute “ a ”, and
(c)for “the trade” substitute “ the qualifying activity ”.
(3)In subsection (2), for “an industrial” substitute “ a ”.
72Expenditure on required fire precautionsE+W+S+N.I.(1)In CAA 2001, omit section 29 (expenditure on required fire precautions).
73Integral featuresE+W+S+N.I.(1)In section 23 of CAA 2001 (expenditure unaffected by sections 21 and 22)—
(a)in subsection (2), after the entry for section 33 insert— “ section 33A (integral features); ”, and
(iii)in item 6, for “Lifts, hoists, escalators and moving walkways.” substitute “ Hoists. ”
“Expenditure on integral featuresE+W+S+N.I.33AExpenditure on provision or replacement of integral features(1)This section applies where a person carrying on a qualifying activity incurs expenditure on the provision or replacement of an integral feature of a building or structure used by the person for the purposes of the qualifying activity.
33BMeaning of “replacement” in section 33A(1)Expenditure to which this section applies is to be treated for the purposes of section 33A as expenditure on the replacement of an integral feature.
“Integral featuresE+W+S+N.I.55AExpenditure on integral featuresSection 33A(3) of CAA 2001 provides that no deduction is allowed in respect of certain expenditure on an integral feature of a building or structure (within the meaning of that section).”
“section 55Aexpenditure on integral features”(6)The amendments made by this section have effect—
Plant and machinery: annual investment allowanceE+W+S+N.I.74Annual investment allowanceE+W+S+N.I.Schedule 24 contains provision about an annual investment allowance in respect of certain qualifying expenditure on plant or machinery.
Plant and machinery: first-year allowancesE+W+S+N.I.75First-year allowance for small and medium-sized enterprises discontinuedE+W+S+N.I.(1)CAA 2001 is amended as follows.
76Repeal of spent first-year allowancesE+W+S+N.I.(1)CAA 2001 is amended as follows.
77Cars with low carbon dioxide emissionsE+W+S+N.I.(1)Section 45D of CAA 2001 (expenditure on cars with low carbon dioxide emissions) is amended as follows.
(2)In subsection (1)(a), for “2008” substitute “ 2013 ”.
(3)In subsection (4), for “120” substitute “ 110 ”.
(a)in section 60(2)(b) of FA 2002 (period for which section 578A(2A) and (2B) of ICTA have effect), for “2008” (in both places) substitute “ 2013 ”, and
(b)in section 50(3) of ITTOIA 2005 (cases in which expenses incurred on hiring car with low carbon dioxide emissions are not excluded from section 48 of that Act), for “2008” substitute “ 2013 ”.
78Gas refuelling stationsE+W+S+N.I.(1)Section 45E of CAA 2001 (expenditure on plant or machinery for gas refuelling station) is amended as follows.