Source: http://www.legislation.gov.uk/ukpga/2002/23
Timestamp: 2015-05-05 07:19:29
Document Index: 364132206

Matched Legal Cases: ['art 1', 'art. 26', 'art. 27', 'art 1', 'art 2', 'art 1', 'art. 223', 'art 1', 'art 2', 'art 3', 'art 5', 'art 6']

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 2002You are here:2002 c. 23Whole 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 2002. 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 20022002 CHAPTER 23An 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.[24th July 2002]Most Gracious Sovereign,
Part 1 E+W+S+N.I.Excise dutiesTobacco products dutyE+W+S+N.I.1 Rates of tobacco products dutyE+W+S+N.I.(1)For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute—
1. CigarettesAn amount equal to 22 per cent of the retail price plus £94.24 per thousand cigarettes.2. Cigars£137.26 per kilogram.3. Hand-rolling tobacco£98.66 per kilogram.4. Other smoking tobacco and chewing tobacco£60.34 per kilogram.(2)This section shall be deemed to have come into force at 6 o’clock in the evening of 17th April 2002.
Alcoholic liquor dutiesE+W+S+N.I.2 Rates of duty on ciderE+W+S+N.I.(1)In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rates of duty on cider)—
(a)in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent that is not sparkling cider), for “£39.21” substitute “ £38.43 ”;
(b)in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.13” substitute “ £25.61 ”.
3 Duty on beverages made with spirits to be at spirits rateE+W+S+N.I.(1)Omit section 1(9) of the Alcoholic Liquor Duties Act 1979 (under which alcoholic beverages of a strength between 1.2 and 5.5 per cent made with spirits are treated as not being spirits, unless of a description specified by Treasury order).
4 Reduced rates of duty on beer from small breweriesE+W+S+N.I.(1)Schedule 1 to this Act (which makes provision for the excise duty on beer to be charged at reduced rates on beer produced in small breweries) has effect.
Annotations:Commencement InformationI1S. 4 wholly in force; s. 4(1) in force at 1.6.2002 for specified purposes, otherwise s. 4 in force at 24.7.2002, see s. 4(2)(3)Hydrocarbon oil dutiesE+W+S+N.I.5 BiodieselE+W+S+N.I.(1)The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows.
“2AA Biodiesel(1)In this Act “biodiesel” means diesel quality liquid fuel—
“6AA Excise duty on biodiesel(1)A duty of excise shall be charged on the setting aside for a chargeable use by any person, or (where it has not already been charged under this section) on the chargeable use by any person, of biodiesel.
6AB Excise duty on blends of biodiesel and heavy oils(1)A duty of excise shall be charged on bioblend—
6AC Application to biodiesel and bioblend of provisions relating to hydrocarbon oil(1)The Commissioners may by regulations provide for—
Annotations:Subordinate Legislation MadeP1S. 5(6)(a) power fully exercised: 25.7.2002 appointed by S.I. 2002/1926, art. 26 Regulating trade in rebated heavy oil etcE+W+S+N.I.(1)Schedule 3 to this Act has effect.
Annotations:Subordinate Legislation MadeP2S. 6(3) power wholly exercised: 1.4.2003 appointed for specified purposes by S.I. 2002/3056, art. 27 Fuel substitutesE+W+S+N.I.(1)In section 6A of the Hydrocarbon Oil Duties Act 1979 (c. 5) (fuel substitutes)—
(a)in subsection (5) (power to provide that fuel substitute to be treated as if it were a description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ”;
(b)in subsection (6)(a) (power to be exercised so that fuel substitute charged with duty and otherwise treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (5) above” substitute “ hydrocarbon oil of the description ”.
(a)in subsection (2) (power to provide that mineral oil fuel substitute to be treated as if it were a particular description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ”;
(b)in subsection (3) (power to be exercised so that mineral oil fuel substitute treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (2) above” substitute “ hydrocarbon oil of the description ”.
Betting and gaming dutiesE+W+S+N.I.8 Amusement machine licences: excepted machinesE+W+S+N.I.(1)Section 21 of the Betting and Gaming Duties Act 1981 (c. 63) (amusement machine licences) is amended as follows.
(4)In subsection (3C) (definition of the price for a solo game), for “35p”, in both places where it occurs, substitute “ 50p ”.
(5)In section 25 of that Act (definition of different types of machine), in subsections (4) and (6) (treatment of machines capable of being played by more than one person at a time), for “an excepted video machine falling within section 21(3A)(d) above” substitute “ a fifty-penny machine within section 21(3B) above ”.
9 Amusement machine licence duty: ratesE+W+S+N.I.(1)In the Table in section 23(2) of the Betting and Gaming Duties Act 1981 (c. 63) (rates of amusement machine licence duty), for column (4) (medium-prize machines other than five-penny machines) and column 6 (machines not in any other category) substitute—
“(4)(6)Category CCategory E££802251604352356303058203709904301155485130053514405851560625167566517756951860”(2)This section applies in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 30th April 2002.
10 Rates of gaming dutyE+W+S+N.I.(1)For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute—
Part of gross gaming yieldRateThe first £488,0002.5 per cent.The next £1,083,50012.5 per cent.The next £1,083,50020 per cent.The next £1,897,00030 per cent.The remainder40 per cent.”(2)This section has effect in relation to accounting periods beginning on or after 1st April 2002.
11 Gaming duty to be chargeable in respect of sic bo and three card pokerE+W+S+N.I.(1)In section 10(2) of the Finance Act 1997 (c. 16) (games in respect of which gaming duty is chargeable)—
(a)after “American roulette” insert “ sic bo ”;
(b)after “super pan 9” insert “ three card poker ”.
12 Pool betting duty etcE+W+S+N.I.(1)Schedule 4 to this Act has effect.
Annotations:Commencement InformationI2S. 12 wholly in force; s. 12(1) in force at 31.3.2002 or 24th April 2002, otherwise s. 12 in force at 24.7.2002, see. s. 12(5)-(7)13 General betting duty: spread betsE+W+S+N.I.(1)For section 3(2) of the Betting and Gaming Duties Act 1981 (c. 63) (definition of “spread bet” by reference to the Financial Services Act 1986) substitute—
14 General betting duty: overseas bet-brokersE+W+S+N.I.(1)In Part 1 of the Betting and Gaming Duties Act 1981 (betting duties), after section 9 (prohibitions for protection of revenue) insert—
Annotations:Commencement InformationI3S. 14 wholly in force; s. 14(2)-(6) in force at 24.7.2002 and s. 14(1) in force at 25.7.2002 by s. 14(5)Vehicle excise dutyE+W+S+N.I.15 Cars registered on or after 1st March 2001: rates of dutyE+W+S+N.I.(1)For the Table in paragraph 1B of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rates of duty applicable to light passenger vehicles registered on or after 1st March 2001 on basis of certificate specifying CO2 emissions figure) substitute—
“CO2 emissions figureRate(1)(2)(3)(4)(5)ExceedingNot exceedingReduced rateStandard RatePremium rateg/kmg/km£££–12060708012015090100110150165110120130165185130140150185–150155160”(2)This section applies to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002.
16 Vans registered on or after 1st March 2001: rates of dutyE+W+S+N.I.(1)For paragraph 1J of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rate of duty applicable to light goods vehicles first registered on or after 1st March 2001) substitute—
For the purposes of paragraph 1J, a vehicle to which this Part of this Schedule applies is a “lower-emission van” if—1K(a)the vehicle is first registered on or after 1st March 2003, and
Reference mass of vehicleLimit values for types of emissions by reference to vehicle typeCOHCNOxHC + NOxPMExceedingNot exceedingPetrolDieselPetrolPetrolDieselDieselDieselkgkgg/kmg/kmg/kmg/kmg/kmg/kmg/km–1,3051.00.50.10.080.250.30.0251,30517601.810.630.130.10.330.390.041,7603,5002.270.740.160.110.390.460.061LIn paragraph 1K—
17 Disclosure of information for vehicle excise duty exemptionsE+W+S+N.I.In the Vehicle Excise and Registration Act 1994 (c. 22), after section 22 insert—
“22ZA Nil licences for vehicles for disabled persons: information(1)This section applies to information that—
18 Motorcycles (and motorcycle trade licences): rates of dutyE+W+S+N.I.(1)For paragraph 2(1) to (1B) of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rates of duty applicable to motorcycles not exceeding 450 kilograms in weight unladen) substitute—
(2)In sections 13(3)(a), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(a) of that Act as substituted under paragraph 8 of Schedule 4 to that Act (references to paragraph 2(1)(c) of Schedule 1 in connection with motorcycle trade licences), for “(1)(c)” substitute “ (1)(d) ”.
19 Registered vehicles etcE+W+S+N.I.(1)Schedule 5 to this Act, which provides—
Annotations:Commencement InformationI4S. 19 partly in force, s. 19(1)in force for specified purposes at 24.7.2002, otherwiseprosp., see s. 19(2)(3); s. 19(2)-(5) in force at 24.7.200220 Calculating cylinder capacity of vehiclesE+W+S+N.I.(1)In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of duty: general), after sub-paragraph (2A) insert—
GeneralE+W+S+N.I.21 Drawback of excise dutyE+W+S+N.I.(1)In section 133 of the Customs and Excise Management Act 1979 (c. 2) (claims for drawback of excise duty)—
(a)in subsection (2), for “subsections (3) to (6)” substitute “ subsections (4) to (6) ”;
Part 2 E+W+S+N.I.Value added tax22 Disallowance of input tax where consideration not paidE+W+S+N.I.(1)In Part 1 of the Value Added Tax Act 1994 (c. 23) (the charge to tax), after section 26 insert—
“26A Disallowance of input tax where consideration not paid(1)Where—
Annotations:Subordinate Legislation MadeP3S. 22(3) power fully exercised: 1.1.2003 appointed by S.I. 2002/3028, art. 223 Flat-rate schemeE+W+S+N.I.(1)In Part 1 of the Value Added Tax Act 1994 (c. 23) (the charge to tax), after section 26A (inserted by section 22 above) insert—
“26B Flat-rate scheme(1)The Commissioners may by regulations make provision under which, where a taxable person so elects, the amount of his liability to VAT in respect of his relevant supplies in any prescribed accounting period shall be the appropriate percentage of his relevant turnover for that period.
Prospective24 InvoicesE+W+S+N.I.(1)In the Value Added Tax Act 1994 (c. 23) omit the following (which are superseded by the provision inserted by subsection (2))—
“VAT invoices2A(1)Regulations may require a taxable person supplying goods or services to provide an invoice (a “VAT invoice”) to the person supplied.
Self-billed invoices2B(1)This paragraph applies where a taxable person provides to himself a document (a “self-billed invoice”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person.
“Electronic communication and storage of VAT invoices etc3(1)Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to—
(a)in section 6(15), for “paragraph 2(1)” substitute “ paragraph 2A ”;
(i)in subsection (5), for “paragraph 2” substitute “ paragraph 2A ”;
(ii)in subsection (6), for “section 6(9) or paragraph 7 of Schedule 4” substitute “ paragraph 7 of Schedule 4 or paragraph 2B(4) of Schedule 11 ”.
25 Relief from VAT on acquisition if importation would attract reliefE+W+S+N.I.In Part 2 of the Value Added Tax Act 1994 (reliefs, exemptions and repayments), after section 36 insert—
E+W+S+N.I.“Acquisitions
36A Relief from VAT on acquisition if importation would attract relief(1)The Treasury may by order make provision for relieving from VAT the acquisition from another member State of any goods if, or to the extent that, relief from VAT would be given by an order under section 37 if the acquisition were an importation from a place outside the member States.
Part 3 E+W+S+N.I.Income tax, corporation tax and capital gains tax Chapter 1 E+W+S+N.I.Charge and rate bandsIncome taxE+W+S+N.I.26 Charge and rates for 2002-03E+W+S+N.I.Income tax shall be charged for the year 2002-03, and for that year—
27 Indexed rate bands for 2002-03: PAYE deductions etcE+W+S+N.I.For the year 2002-03, the following provisions of the Taxes Act 1988 shall have effect as if “17th June” were substituted for “ 17th May ”
28 Personal allowance for 2003-04 for those aged under 65E+W+S+N.I.(1)For the year 2003-04 the amount specified in section 257(1) of the Taxes Act 1988 (personal allowance for those aged under 65) shall be taken to be £4,615.
29 Personal allowances for 2003-04 for those aged 65 or overE+W+S+N.I.(1)For the year 2003-04—
Corporation taxE+W+S+N.I.30 Charge and main rate for financial year 2003E+W+S+N.I.Corporation tax shall be charged for the financial year 2003 at the rate of 30%.
31 Small companies’ rate and fraction for financial year 2002E+W+S+N.I.For the financial year 2002—
(a)the small companies’ rate shall be 19%, and
32 Corporation tax starting rate and fraction for financial year 2002E+W+S+N.I.For the financial year 2002—
Chapter 2 E+W+S+N.I.Other provisionsEmployment income and related mattersE+W+S+N.I.33 Employer-subsidised public transport bus servicesE+W+S+N.I.(1)In Part 5 of the Taxes Act 1988 (provisions relating to the Schedule E charge), section 197AB (exclusion of tax charge in respect of support by employer for certain transport services) is amended as follows.
(a)“the sub-contractor” means the person for whose labour (or for whose employees’ or officers’ labour) the payment is made;
(3)In section 59D of the Taxes Management Act 1970 (c. 9) (payment of corporation tax), in subsection (4)(d) (amounts treated as corporation tax previously paid), for “under section 559” substitute “ by virtue of regulations under section 559A ”.
41 Parliamentary visits to EU candidate countries: tax treatment of members’ expensesE+W+S+N.I.(1)This section amends—
(2)In subsection (3)(b) of section 200, and in paragraph (b) of the definition of “EU travel expenses” in subsection (3) of section 200ZA, after “of another member State” insert “ or of a candidate country ”.
Chargeable gainsE+W+S+N.I.42 Reallocation within group of gain or loss accruing under section 179E+W+S+N.I.(1)After section 179 of the Taxation of Chargeable Gains Act 1992 (c. 12) (company ceasing to be member of group) insert—
“179A Reallocation within group of gain or loss accruing under section 179(1)This section applies where—
“7AIn section 179A(12), the words “section 11(2)(b), (c) or (d) of the Taxes Act” shall be treated as substituted for “section 10(3)".”.
(a)after sub-paragraph (ii) of paragraph (a) insert “or— (iii)an election under section 179A of that Act as a result of which a chargeable gain is treated as accruing to the transferor company instead of to another member of the group, or an allowable loss is treated as accruing to another member of the group instead of to the transferor company,”;
(b)in paragraph (aa) for “the deemed transfer” substitute “ the election ”.
43 Roll-over of degrouping charge on business assetsE+W+S+N.I.(1)After section 179A of the Taxation of Chargeable Gains Act 1992 (c. 12) (inserted by section 42 above) insert—
“179B Roll-over of degrouping charge on business assets(1)Where a company is treated by virtue of section 179(3) or (6) as having sold and immediately reacquired an asset at market value, relief under section 152 or 153 (roll-over relief on replacement of business assets) is available in accordance with this section in relation to any gain accruing to the company on the deemed sale.
44 Exemptions for disposals by companies with substantial shareholdingE+W+S+N.I.(1)In Chapter 1 of Part 6 of the Taxation of Chargeable Gains Act 1992 (c. 12) (provisions relating to chargeable gains of companies), after section 192 insert—
E+W+S+N.I.“Disposals by companies with substantial shareholding
192A Exemptions for gains or losses on disposal of shares etcSchedule 7AC (exemptions for disposal of shares etc by companies with substantial shareholding) has effect.”.
45 Share exchanges and company reconstructionsE+W+S+N.I.(1)Schedule 9 to this Act (chargeable gains: share exchanges and company reconstructions) has effect.
46 Taper relief: holding period for business assetsE+W+S+N.I.(1)In the table in section 2A(5) of the Taxation of Chargeable Gains Act 1992 (calculation of taper relief), for the first two columns (under the heading “Gains on disposals of business assets”) substitute—
Number of whole years in qualifying holding periodPercentage of gain chargeable1502 or more25(2)This section applies to disposals on or after 6th April 2002.
47 Taper relief: minor amendmentsE+W+S+N.I.Schedule 10 to this Act contains minor amendments relating to taper relief under the Taxation of Chargeable Gains Act 1992 (c. 12).
48 Use of trading losses against chargeable gainsE+W+S+N.I.(1)In section 72 of the Finance Act 1991 (c. 31) (use of trading losses against chargeable gains), in subsection (4) (which has the effect that the maximum amount of trading loss that may be so used is calculated by reference to the amount of chargeable gains after taper relief) for “disregarding section 3(1)” substitute “ disregarding sections 2A (taper relief) and 3(1) (annual exempt amount) ”.
49 Election to forgo roll-over relief on transfer of businessE+W+S+N.I.(1)After section 162 of the Taxation of Chargeable Gains Act 1992 (c. 12) (roll-over relief on transfer of business) insert—
“162A Election for section 162 not to apply(1)Section 162 shall not apply where the transferor makes an election under this section.
50 Shares acquired on same day: election for alternative treatmentE+W+S+N.I.(1)After section 105 of the Taxation of Chargeable Gains Act 1992 (c. 12) (disposal on or before day of acquisition of shares and other unidentified assets) insert—
“105A Shares acquired on same day: election for alternative treatment(1)Subsection (2) below applies where an individual—
105B Provision supplementary to section 105A(1)The provisions of section 105A have effect in the case of any disposal notwithstanding that some or all of the securities disposed of are otherwise identified—
51 Deduction of personal losses from gains treated as accruing to settlorsE+W+S+N.I.Schedule 11 to this Act (deduction of personal losses from gains treated as accruing to settlors) has effect.
52 Capital gains tax: variation of dispositions taking effect on deathE+W+S+N.I.(1)In section 62(7) of the Taxation of Chargeable Gains Act 1992 (c. 12) (election to treat subsequent variation of dispositions taking effect on death as if effected by deceased) for the words from “unless” to the end of the subsection substitute “ unless the instrument contains a statement by the persons making the instrument to the effect that they intend the subsection to apply to the variation. ”.
New reliefsE+W+S+N.I.53 Tax relief for expenditure on research and developmentE+W+S+N.I.(1)Schedule 12 to this Act has effect for accounting periods ending on or after 1st April 2002.
54 Tax relief for expenditure on vaccine research etcE+W+S+N.I.(1)Schedule 13 to this Act (which makes provision for tax relief for companies’ expenditure on vaccine research etc) has effect.
55 Gifts of medical supplies and equipmentE+W+S+N.I.(1)This section applies where, for humanitarian purposes, a company makes a gift from trading stock of medical supplies, or medical equipment, for human use.
56 R&D tax relief for small and medium-sized enterprises: minor and consequential amendmentsE+W+S+N.I.Schedule 15 to this Act (which makes minor amendments to Schedule 20 to the Finance Act 2000 (tax relief for R&D expenditure of small and medium-sized enterprises), including amendments consequential on Schedules 12 and 13 to this Act) has effect for accounting periods ending on or after 1st April 2002.
57 Community investment tax reliefE+W+S+N.I.(1)Schedule 16 to this Act (community investment tax relief) has effect.
58 Relief for community amateur sports clubsE+W+S+N.I.(1)Schedule 18 to this Act (relief for community amateur sports clubs) has effect.
Capital allowances and related mattersE+W+S+N.I.59 Cars with low carbon dioxide emissionsE+W+S+N.I.Schedule 19 to this Act (first-year allowances in respect of expenditure on cars with low CO2 emissions and exemption from single asset pool rules) has effect in relation to expenditure incurred on or after 17th April 2002.
60 Expense of hiring cars with low carbon dioxide emissionsE+W+S+N.I.(1)In section 578A of the Taxes Act (expenditure on car hire) after subsection (2) (cars to which section 578A applies) insert—
61 Plant or machinery for gas refuelling station: first-year allowancesE+W+S+N.I.Schedule 20 to this Act (first-year allowances in respect of expenditure on plant or machinery for gas refuelling station) has effect in relation to expenditure incurred on or after 17th April 2002.
62 Expenditure on green technologies: leasingE+W+S+N.I.(1)In section 46 of the Capital Allowances Act 2001 (c. 2) (general exclusions affecting first-year qualifying expenditure) after subsection (4) (which is inserted by Schedule 19) insert—
63 First-year allowances for expenditure wholly for a ring fence tradeE+W+S+N.I.(1)Schedule 21 to this Act shall have effect.
Computation of profitsE+W+S+N.I.64 Adjustment on change of basisE+W+S+N.I.(1)The provisions of Schedule 22 to this Act have effect as to the adjustment or adjustments to be made for tax purposes where—
65 Postponement of change to mark to market in certain casesE+W+S+N.I.(1)This section applies in relation to the computation in accordance with the provisions of Case I of Schedule D of the profits of the insurance business, other than life assurance business, of—
(b)a corporate member of Lloyd’s, or
“corporate member of Lloyd’s” means a corporate member as defined in section 230(1) of the Finance Act 1994 (c. 9).
66 Election to continue postponement of mark to marketE+W+S+N.I.(1)Where section 65 (postponement of change to mark to market in certain cases) applies in relation to a period of account, the company may elect that it shall continue to apply in relation to subsequent periods of account as regards assets held by it on 1st January 2002.
(a)a scheme under section 105 of the Financial Services and Markets Act 2000 (c. 8), including an excluded scheme falling within Case 2, 3 or 4 of subsection (3) of that section, or
(b)a qualifying overseas transfer scheme.
67 Mark to market: miscellaneous amendmentsE+W+S+N.I.(1)In section 473 of the Taxes Act 1988 (roll-over of securities held as circulating capital)—
(b)in subsection (2)(a), and in subsection (7), for “would result” substitute “ results ”; and
(c)in subsection (2)(b) for “would be” substitute “ is ”.
68 Expenditure involving crimeE+W+S+N.I.(1)In section 577A(1) of the Taxes Act 1988 (no deduction to be made for expenditure incurred in making a payment the making of which constitutes a criminal offence)—
(a)after “incurred” insert “ (a) ”, and
(b)at the end insert “, or (b)in making a payment outside the United Kingdom where the making of a corresponding payment in any part of the United Kingdom would constitute a criminal offence there.”.
Financial instrumentsE+W+S+N.I.69 F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.Annotations:Amendments (Textual)F1s. 69 repealed (with effect in accordance with s. 83(3)) by 2002 c. 23, s. 141, Sch. 40, Pt. 3(13) Note 270F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .E+W+S+N.I.Annotations:Amendments (Textual)F2S. 70 repealed (with effect in accordance with s. 83(3)) by 2002 c. 23, s. 141, Sch. 40, Pt. 3(13) Note 2Loan relationshipsE+W+S+N.I.71 Accounting method where rate of interest etc is resetE+W+S+N.I.(1)After section 88 of the Finance Act 1996 (c. 8) insert—
“88A Accounting method where rate of interest is reset(1)This section applies where—
72 Convertible securities etc: loan relationshipsE+W+S+N.I.(1)Section 92 of the Finance Act 1996 (c. 8) (convertible securities etc) is amended as follows.
(3)In paragraph (b) (which requires the asset to carry rights to acquire any shares in a company) for “any shares in a company” substitute “ shares in a company ”.
(5)In paragraph (c) (extent to which shares may be acquired under that provision not to be determined using specified cash value) for “that provision”, where first occurring, substitute “ any such provision ”.
(6)In paragraph (d) (asset not to be a relevant discounted security within the meaning of Schedule 13 to the Finance Act 1996) after “Act” insert “ or an excluded indexed security within the meaning of that Schedule ”.
(8)In paragraph (e)(more than negligible likelihood of the right to acquire shares being exercised to significant extent)—
(a)for “the right” substitute “ the rights ”, and
(12)In consequence of the amendments made by this section and sections 73 and 74, the sidenote becomes “ Convertible securities etc: creditor relationships ”.
73 Convertible securities etc: issuing company not to be connected companyE+W+S+N.I.(1)In section 92 of the Finance Act 1996 (convertible securities etc) after subsection (1D) (which is inserted by section 72) insert—
(6)The first condition is that, during any period before 19th December 2001 when the creditor company was hol