Finance Act 1989

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Finance Act 1989

1989 c. 26

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Finance Act 1989

1989 Chapter c. 26

ARRANGEMENT OF SECTIONS

Part I
Customs and Excise, Value Added Tax and Car Tax
Chapter I
Customs and Excise
Hydrocarbon oil duties
1.	Rates.
2.	Reliefs.

Alcoholic liquor duties
3.	Original gravity of beer.
4.	Blending made-wines etc.
5.	Description as beer.

Vehicles excise duty
6.	Rates.
7.	Community buses.
8.	Special machines.
9.	Recovery vehicles.
10.	Powers of Secretary of State with respect to assignment of registration marks.
11.	Retention of registration mark pending transfer to another vehicle.
12.	Sale by Secretary of State of rights to particular registration marks.
13.	Registration documents.
14.	Dishonoured cheques.

General
15.	Estimation of excise duty.
16.	Time limits for proceedings.
17.	Disbursements in Port of London.

Chapter II
Value Added Tax
Zero-rating etc.
18.	Buildings and land.
19.	Sewerage services and water.
20.	News services.
21.	Fuel and power.
22.	Protective boots and helmets.
23.	Incorrect certificates.

Other provisions
24.	Recovery of overpaid VAT.
25.	Administration etc.
26.	Input tax on self-supplies.

Chapter III
Miscellaneous
27.	Relief from car tax where vehicle leased to the handicapped.
28.	Reliefs from duties and taxes for persons enjoying certain immunities and privileges.
29.	Recovery of overpaid excise duty and car tax.

Part II
Income Tax, Corporation Tax and Capital Gains Tax
Chapter I
General
Income tax rates and allowances
30.	Charge and rates of income tax for 1989-90.
31.	Age allowance.
32.	Operative date for PAYE.
33.	Married couples.

Corporation tax rates etc.
34.	Charge and rate of corporation tax for financial year 1989.
35.	Corporation tax: small companies.

Receipts basis etc.
36.	Schedule E: revised Cases.
37.	Schedule E: assessment on receipts basis.
38.	Schedule E: unpaid emoluments.
39.	Schedule E: unremitted emoluments.
40.	Schedule E: emoluments already paid.
41.	Schedule E: pensions etc.
42.	Schedule E: supplementary.
43.	Schedule D: computation.
44.	Investment and insurance companies: computation.
45.	PAYE: meaning of payment.

Interest
46.	Relief for interest.
47.	Close company loans: business expansion scheme.
48.	Close company loans: material interest.

Benefits in kind
49.	Car benefits.
50.	Security assets and services.
51.	Assets used partly for security.
52.	Security: supplementary.
53.	Employees earning £8,500 or more and directors.

Medical insurance
54.	Relief.
55.	Eligible contracts.
56.	Certification of contracts.
57.	Medical insurance: supplementary.

Charities
58.	Payroll deduction scheme.
59.	Covenanted subscriptions.
60.	British Museum and Natural History Museum.

Profit-related pay, share schemes etc.
61.	Profit-related pay.
62.	Savings-related share option schemes.
63.	Profit sharing schemes.
64.	Share option and profit sharing schemes: shares of consortium member.
65.	Employee share schemes: material interest.
66.	Priority share allocations for employees etc.

Employee share ownership trusts
67.	Tax relief.
68.	Principal charges to tax.
69.	Chargeable events.
70.	Chargeable amounts.
71.	Further charges to tax: borrowing.
72.	Limit on chargeable amount.
73.	Information.
74.	Interpretation.

Pensions etc.
75.	Retirement benefits schemes.
76.	Non-approved retirement benefits schemes.
77.	Personal pension schemes.

Unit trusts etc.
78.	Certified unit trusts.
79.	Funds of funds.
80.	Gilt unit trusts.
81.	Offshore funds operating equalisation arrangements.

Life assurance
82.	Calculation of profits.
83.	Receipts to be brought into account.
84.	Interpretation of sections 85 to 89 and further provisions about insurance companies.
85.	Charge of certain receipts of basic life assurance business.
86.	Spreading of relief for acquisition expenses.
87.	Management expenses.
88.	Corporation tax: policy holders' fraction of profits.
89.	Shareholders' and policy holders' fractions.
90.	Life policies etc. held by companies.

Underwriters
91.	Premiums trust funds: stock lending.
92.	Regulations about underwriters etc.

Securities
93.	Deep discount securities: amendments.
94.	Deep gain securities.
95.	Treasury securities issued at a discount.
96.	Securities: miscellaneous.

Groups of companies
97.	Set-off of ACT where companies remain in same group.
98.	Restriction on set-off of ACT.
99.	Dividends etc. paid by one member of a group to another.
100.	Change in ownership of company.
101.	Treatment of convertible shares or securities for purposes relating to group relief etc.
102.	Surrender of company tax refund etc. within group.

Close companies
103.	Repeal of apportionment provisions.
104.	Meaning of "close company".
105.	Small companies' rate not available to certain close companies.
106.	Restriction on payment of tax credits.
107.	Close companies: consequential amendments.

Settlements etc.
108.	Outright gifts etc. between husband and wife.
109.	Settlements where settlor retains interest in settled property.
110.	Residence of trustees.
111.	Residence of personal representatives.

Miscellaneous
112.	Security: trades etc.
113.	Security: trades etc. (supplementary).
114.	Relief for pre-trading expenditure.
115.	Double taxation: tax credits.
116.	Interest payments to Netherlands Antilles subsidiaries.

Chapter II
Capital Allowances
117.	Security.
118.	Security: supplementary.
119.	Expenditure on stands at sports grounds.
120.	Forestry land: abolition of agricultural buildings allowances.
121.	Miscellaneous amendments.

9 9 9 Chapter III
Capital Gains
Exemptions
122.	Annual exempt amount for 1989-90.
123.	Increase of chattel exemption.

9 9 9 Gifts
124.	Relief for gifts.
125.	Gifts to housing associations.

9 9 9 9 Non-residents etc.
126.	Non-resident carrying on profession or vocation in the United Kingdom.
127.	Non-residents: deemed disposals.
128.	Non-residents: post-cessation disposals.
129.	Non-residents: roll-over relief.
130.	Exploration or exploitation assets: definition.
131.	Exploration or exploitation assets: deemed disposals.
132.	Dual resident companies: deemed disposal.
133.	Dual resident companies: roll-over relief.
134.	Non-payment of tax by non-resident companies.

9 9 9 9 9 Value shifting and groups of companies
135.	Value shifting.
136.	Value shifting: reductions attributable to distributions within a group.
137.	Value shifting: transactions treated as a reorganisation of share capital.
138.	Groups of companies.

9 9 9 9 9 9 Miscellaneous
139.	Corporate bonds.
140.	Collective investment schemes.
141.	Re-basing to 1982 etc.

Chapter IV
Management
Information
142.	Power to call for documents and information.
143.	Power to call for papers of tax accountant.
144.	Restrictions on powers under TMA ss.20 and 20A.
145.	Falsification etc. of documents.
146.	Entry with warrant to obtain documents.
147.	Procedure where documents etc. are removed.
148.	Interpretation.

Assessments, claims etc.
149.	Assessments founded on fraudulent or negligent conduct.
150.	Further assessments: claims etc.
151.	Assessment of trustees etc.

Distress and poinding etc.
152.	Distress for non-payment of tax.
153.	Priority in cases of distraint by others.
154.	Recovery of tax from debtor in Scotland.
155.	Priority in cases of poinding etc. by others in Scotland.

Interest etc.
156.	Interest on overdue tax.
157.	Effect of certain claims on interest.
158.	Small amounts of interest.
159.	Interest on tax in case of failure or error.
160.	Determinations under TMA s.88.
161.	Tax carrying interest under TMA ss.86 and 88.

Penalties
162.	Failure to make return.
163.	Incorrect return, accounts etc.
164.	Special returns, information etc.
165.	Special penalties in the case of certain returns.
166.	Assisting in preparation of incorrect return etc.
167.	Determination of penalties.
168.	Amendments consequential on section 167.
169.	Time limits.
170.	Up-rating of certain penalties.

Part III
Miscellaneous and General
Inheritance tax
171.	Gifts to housing associations.
172.	Abatement of exemption where claim settled out of beneficiary's own resources.

Stamp duty etc.
173.	Insurance: abolition of certain duties.
174.	Unit trusts.
175.	Stamp duty: stock exchange nominees.
176.	Stamp duty reserve tax: stock exchange nominees.
177.	Stamp duty reserve tax: information.

Interest etc.
178.	Setting of rates of interest.
179.	Provisions consequential on section 178.
180.	Repayment interest: period of accrual.

Miscellaneous
181.	Broadcasting: additional payments by programme contractors.
182.	Disclosure of information.
183.	Government securities: redemption and transfer.
184.	National savings accounts.
185.	Winding up of Redemption Annuities Account.

General
186.	Interpretation etc.
187.	Repeals.
188.	Short title.

Schedules:

Schedule 1—

Vehicles excise duty: rates.

Part I—

Table substituted in Part II of Schedule 2 to the 1971 and 1972 Acts.

Part II—

Tables substituted in Part II of Schedule 4 to the 1971 and 1972 Acts.

Schedule 2—

Vehicles excise duty: special machines.

Schedule 3—

Value added tax: buildings and land.

Schedule 4—

Profit-related pay.

Schedule 5—

Employee share ownership trusts.

Schedule 6—

Retirement benefits schemes.

Part I—

Amendments of Taxes Act.

Part II—

Approved schemes: general.

Part III—

Approved schemes: additional voluntary contributions.

Schedule 7—

Personal pension schemes.

Part I—

Amendments of Taxes Act.

Part II—

Schemes approved before passing of this Act.

Schedule 8—

Amendments of Chapter I of Part XII of Taxes Act 1988 (Insurance Companies).

Schedule 9—

Life policies etc. held by companies.

Schedule 10—

Deep discount securities: amendments.

Schedule 11—

Deep gain securities.

Schedule 12—

Close companies.

Part I—

Administrative provisions.

Part II—

Amendments connected with repeal of Chapter III of Part XI of Taxes Act 1988.

Schedule 13—

Capital allowances: miscellaneous amendments.

Schedule 14—

Capital gains tax: gifts etc.

Schedule 15—

Capital gains: re-basing to 1982 etc.

Schedule 16—

Broadcasting: additional payments by programme contractors.

Part I—

Amendments of the principal sections.

Part II—

Provisions inserted as Schedule 4 to the Broadcasting Act 1981.

Part III—

Transitional provisions.

Schedule 17—

Repeals.

Part I—

Customs and Excise.

Part II—

Vehicles excise duty.

Part III—

Value added tax.

Part IV—

Income and corporation tax: general.

Part V—

Close companies.

Part VI—

Capital allowances.

Part VII—

Capital gains.

Part VIII—

Management.

Part IX—

Stamp duty: insurance.

Part X—

Rates of interest.

Part XI—

Broadcasting.

Part XII—

Government stock: redemption.

Part XIII—

National Savings.

Part XIV—

Tithe redemption.

Prepared 20th September 2000

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