The Ports (Levy on Disposals of Land, etc.) Order (Northern Ireland) 1997

• (a) the disposal period to which the disposal statement relates and, in particular, the first and last dates of that period;

• (b) the total number of disposals of relevant land or relevant estates in land which took place or are for the purposes of Article 19 of the 1994 Order to be regarded as having taken place in the disposal period to which the disposal statement relates (in this Schedule referred to as the “relevant disposals”), and also—

• (i) the number of those disposals which were section 178 or 179 disposals; and

• (ii) the number of those disposals which were not section 178 or 179 disposals;

• (c) the total amount of the consideration for all the relevant disposals;

• (d) the total number of the gains accruing or for the purposes of Article 19 of the 1994 Order to be regarded as accruing on all the relevant disposals;

• (e) the total amount of levy payable on the gains accruing on all the relevant disposals;

• (f) the total amount of interest payable on the levy to be stated under sub-paragraph (e), computed to whichever is the earlier of—

• (i) the date or dates of payment of the levy; and

• (ii) the date of the disposal statement;

• (g) the total amount of levy which the chargeable company has before the date on which the disposal statement is furnished, paid to the Department in respect of gains accruing on the relevant disposals, and the total amount of interest payable on that total amount of levy which the company has before that date paid to it;

• (h) where in the period between the end of any previous disposal period and the end of the disposal period to which the disposal statement relates an amount of levy has pursuant to Article 8(3), 8(5) or 19 to 35 become payable in respect of one or more disposals made or to be regarded as having been made in an earlier disposal period, the total amount of such amounts of levy and interest payable thereon computed as stated in sub-paragraph (f); and

• (i) whether any of the disposals of which details have in accordance with paragraph 11 been set out in any earlier disposal statement are, save as required to be stated in the disposal statement by virtue of sub-paragraph (h), disposals to which paragraphs 12 and 13 apply.

Individual relevant disposals

2

The information required by the following paragraphs 3 to 10 shall be given in the disposal statement with respect to each relevant disposal.

3

There shall be given the date of the disposal and the name of the member of the chargeable company’s group which made or is to be regarded as having made the disposal.

4

A description shall be given of the relevant land or the relevant estate in land, the subject of the disposal, together with a plan showing the location of the relevant land or of the land in which the relevant estate subsists.

5

A summary of the terms of the disposal shall be given, including—

• (a) the name of the person to whom the disposal was made or is to be regarded as having been made;

• (b) the consideration for the disposal (including any part the payment of which is deferred); and

• (c) in the case of a lease, the term for which the lease was granted.

6

In the case of a disposal other than a section 178 or 179 disposal there shall be given for the purposes of paragraph 5(b) a valuation of any part of the consideration which is not a specific amount of money made by an independent valuer; and, in the case of such a disposal, it shall be stated whether the disposal was made by way of a bargain made at arm’s length (and, for this purpose, a disposal shall be taken not to have been so made if the person to whom the disposal was made was at the time of the disposal a member of the chargeable company’s group or connected with a member of that group, any question whether a person was connected with a company being determinable in accordance with section 839(2) to (8) of the 1988 Act).

7

In the case of a disposal which is not a section 178 or 179 disposal and which is made otherwise than by way of a bargain made at arm’s length—

• (a) it shall be stated whether the consideration stated under paragraph 5 is the full value received or to be regarded as being received or derived from the disposal; and

• (b) except where the consideration is wholly in money, there shall be annexed to the disposal statement a valuation of the consideration by an independent valuer.

8

In the case of a section 178 or 179 disposal there shall be stated for the purposes of sub-paragraph 5(b) the market value at the time of the disposal of the relevant land or of the relevant estate in land the subject of the disposal, together with the assumptions and methods applied and the calculations carried out in determining that value.

9

The amount of the gain accruing on the disposal shall be given, computed in accordance with this Order, together with details of any claim or election made pursuant to this Order and affecting the computation of that amount.

10

There shall be given—

• (a) the amount of the levy chargeable on the gain accruing on the disposal;

• (b) the amount of any interest payable on that amount of levy; and

• (c) a computation showing how each such amount is calculated.

Further information

11

There shall be given—

• (a) a list of all small disposals; and

• (b) a list of all disposals being the grant of leases in relation to operational land to which Article 25(1) applies,

• which took place or are for the purposes of Article 19 of the 1994 Order to be regarded as having taken place in the disposal period to which the disposal statement relates together with, in each case, the information which would be required under paragraphs 3, 4 and 5(a) were such disposals relevant disposals.

12

If a disposal on which by virtue of Article 8(2) or (4) or Article 25(1) no gain was regarded as arising is subsequently regarded as giving rise to a gain by virtue of Article 8(3) or (5) or Article 25(2) the disposal statement shall give the date of the previous disposal statement in which information about that disposal was given in accordance with paragraph 11.

13

If in the period between the end of any previous disposal period and the end of the disposal period to which the disposal statement relates an amount of levy has pursuant to Article 8(3), 8(5) or 19 to 35 become payable in respect of a disposal made or to be regarded as having been made in an earlier disposal period, the disposal statement shall give particulars of how that amount and any interest thereon is computed (including in respect of a disposal on which a gain is regarded as arising by virtue of Article 8(3) or Article 25(2), the particulars regarding the disposal which would have fallen to be given in the disposal statement for the disposal period in which the disposal took place and had the disposal been regarded at the time when that disposal statement was furnished as one on which a gain arose).

14

If an instalment under Article 23 is payable on the annual reporting date on or before which the disposal statement is to be furnished, the disposal statement shall give—

• (a) the amount of that instalment; and

• (b) the amount of every instalment previously paid in respect of the disposal to which that instalment relates,

• specifying how the instalments have been calculated.

Interpretation

15

In this Schedule “disposal”—

• (a) does not, except in paragraphs 1(i) and 11(a), include a small disposal; and

• (b) does not, except in paragraphs 1(i) and 11(b), include a disposal for which Article 25(1) provides.

16

In this Schedule references to an independent valuer are references to a person such as is mentioned in Article 36(6).

Signed

Sealed with the Official Seal of the Department of the Environment on

J. Ritchie — Assistant Secretary — 17th January 1997.

Sealed with the Official Seal of the Department of Agriculture on

G. Lavery — Assistant Secretary — 17th January 1997.

Explanatory note

(This note is not part of the Order.)

The Ports (Northern Ireland) Order 1994 (“the 1994 Order”) provides for the transfer of the undertakings of certain port authorities to companies formed under the Companies (Northern Ireland) Order 1986, and for the disposal of the securities of such successor companies.

This Order, which is made under Article 19 of the 1994 Order, makes provision concerning the charging of levy under that Article on gains accruing to chargeable companies on chargeable disposals of relevant land and relevant estates in land taking place within the levy period (namely the period of ten years beginning when the company ceases to be a wholly-owned subsidiary of the port authority to which it is the successor company).

Article 3 supplements the meaning of relevant estate in land given in Article 19(2)(*b*)(i) and (ii) of the 1994 Order. Articles 4 and 5 provide for when and by whom a disposal is to be regarded as being made. Subject to certain exceptions, all disposals are to be chargeable disposals (Article 6), and a gain accruing to any member of a chargeable company’s group is to be regarded as a gain accruing to the company (Article 7). Article 8 provides for the computation of gains, which is principally by reference to the law relating to the corporation tax on chargeable gains. Certain disposals give rise to no gain: these are, broadly, up to 20 disposals per company per year for not more than £4,000; and any disposal which, together with “associated disposals”, is for not more than £200,000. Further, no gains are regarded as accruing where the aggregate of all disposals does not exceed £500,000. Article 9 introduces Schedule 2, which makes various modifications to the corporation tax law as applied for levy purposes.

Article 10 provides for disputes about valuation. Article 11 modifies for levy purposes the corporation tax law regarding the appropriation of land and estates in land to trading stock. Article 12 applies with modifications the corporation tax law regarding claims and elections.

Articles 13 to 17 make provisions about the payment of levy and of interest on unpaid levy, and for repayment of overpaid levy or interest.

Articles 18 to 26 make provision in respect of leases at rents, including for determining the consideration for such a lease (Article 18) and for the computation of the gain on any subsequent disposal of the reversion (Article 19). The consideration (market value) is to be redetermined if the lease is terminated early or renewed or extended (Article 20) or if the tenant remains otherwise in occupation after expiry of the lease (Article 21), with consequential adjustment of the levy (Article 22). Levy, so far as referable to rent, may be paid by instalments (Articles 23 and 24). A lease of operational land (as defined) for operational purposes gives rise to no gain (Article 25). Article 26 makes supplementary provision in respect of leases.

Articles 27 to 32 make provision in respect of gains on the granting of options. The amount of the gain is to be as on exercise of the option (Article 27); but levy referable to the consideration payable on exercise is deferred (Article 28). If the option is exercised in the levy period, the amount of the gain may be recomputed (Article 29). There are provisions for repayment of levy if an option lapses or becomes incapable of being exercised (Articles 30 to 32).

Articles 33 to 35 make provision in respect of transactions within the chargeable company’s group, in particular as to disposals within a wholly-owned group (Article 33), as to a company’s ceasing to be a member of a group following a previous intra-group disposal to that company (Article 34), and as to a decrease in the group’s equity holding in a group member owning relevant land or a relevant estate in land (Article 35).

Articles 36 to 41 provide for administration and other matters. A chargeable company must furnish yearly a disposal statement (Article 36), and in certain circumstances the Department may make assessment of levy to the best of its judgment (Article 37). Certain disputes may be referred to a referee (Article 38). Article 39 makes supplementary requirements, e.g., as to the supplying of information and the keeping of records. Article 40 provides for the service of documents, and Article 41 for the penalties for contravention of certain requirements of the Order.

Schedule 1 defines associated disposals (relevant to Article 8(2) and (3) on small disposals). Schedule 2 modifies the law on corporation tax in its application for levy purposes. Schedule 3 specifies the information to be included in a disposal statement.

Copies of the Statements of Asset Valuation Practice and Guidance Notes, referred to in Article 36(8), may be obtained from the Royal Institution of Chartered Surveyors, 12 Great George Street, London, SW1P 3AD and Red Book Subscription Services, RICS Books, Surveyor Court, Westwood Way, Coventry, CV4 8JE.

Footnotes

[^f00001]: S.I. 1994/2809 (N.I. 16); see Article 2(2) for the definition of ‘‘the Department''. The Department of Agriculture is the Department where the harbour (in relation to which a relevant port authority is or immediately before a transfer under Article 4 thereof was the harbour authority) is a fishery harbour

[^f00002]: 1988 c. 1

[^f00003]: 1992 c. 12

[^f00004]: 1882 c. 61; section 92 was amended by sections 3(1) and (3) and 4(4) of the Banking and Financial Dealings Act 1971 (c. 80)

[^f00005]: S.I. 1986/1032 (N.I. 6); Art. 231 was inserted by Art. 5 of the Companies (Northern Ireland) Order 1990 S.I. 1990/593 (N.I. 5)

[^f00006]: S.I. 1986/1032 (N.I. 6); Art. 232 was inserted by Art. 5 of the Companies (Northern Ireland) Order 1990 S.I. 1990/593 (N.I. 5)

[^f00007]: 1970 c. 1 (N.I.)

[^f00008]: 1988 c. 1

[^f00009]: Schedule 18 was amended by the Finance Act 1989 (c. 26), section 101; and by the Capital Allowances Act 1990 (c. 1), section 164 and Schedule 1, paragraph 8(1) and (40)

[^f00010]: S.I. 1986/1032 (N.I. 6); Article 246 was inserted by Art. 12 of the Companies (Northern Ireland) Order 1990 S.I. 1990/593 (N.I. 5)

[^f00011]: Article 266 was inserted by the Companies (Northern Ireland) Order 1990, Article 23(1)

[^f00012]: 1954 c. 33 (N.I.)

[^f00013]: 1947 c. 44 as applied to Northern Ireland by the Crown Proceedings (Northern Ireland) Order 1981 (S.I. 1981/233) and amended by the Magistrates' Courts (Northern Ireland) Order 1981 (S.I. 1981/1675 (N.I. 26), Schedule 6 paragraphs 2 to 4)