Finance Act 1982

• (b) the property of a political party qualifying for exemption under paragraph 11 of Schedule 6 to the Finance Act 1975;

• (c) the property of a body mentioned in paragraph 12 of that Schedule (national purposes etc.); or

• (d) the property of a body not established or conducted for profit.

• (2) Subsection (1)(d) above shall not apply unless the Treasury so direct, whether before or after the time when the property becomes the property of the body in question, and the property is within sub-paragraph (2) of paragraph 13 of Schedule 6 to the Finance Act 1975; and sub-paragraphs (3) to (8) of that paragraph shall apply for the purposes of this subsection as they apply for the purposes of that paragraph.

• (3) If the amount on which tax would be charged apart from this section in respect of any property exceeds the value of the property immediately after it becomes property of a description specified in paragraphs (a) to (d) of subsection (1) above (less the amount of any consideration for its transfer received by the trustees), that subsection shall not apply but the amount on which tax is charged shall be equal to the excess.

• (4) The reference in subsection (3) above to the amount on which tax would be charged is a reference to the amount on which it would be charged—

• (a) assuming (if it is not in fact so) that the tax is not paid out of settled property, and

• (b) apart from Schedule 10 to the Finance Act 1976 (business property) and Schedule 14 to the Finance Act 1981 (agricultural property);

and the reference in that subsection to the amount on which tax is charged is a reference to the amount on which it would be charged on that assumption and apart from those Schedules.

• (5) Subsection (1) above shall not apply in relation to any property if the disposition by which it becomes property of the relevant description is defeasible; but for this purpose a disposition which has not been defeated at a time twelve months after the property concerned becomes property of the relevant description and is not defeasible after that time shall be treated as not being defeasible, whether or not it was capable of being defeated before that time.

• (6) Subsection (1) above shall not apply in relation to any property if it or any part of it may become applicable for purposes other than charitable purposes or purposes of a body mentioned in subsection (1)(b), (c) or (d) above.

• (7) Subsection (1) above shall not apply in relation to any property if, at or before the time when it becomes property of the relevant description, an interest under the settlement is or has been acquired for a consideration in money or money's worth by an exempt body otherwise than from a charity or a body mentioned in subsection (1)(b) or (c) above.

• (8) In subsection (7) above " exempt body " means a charity or a body mentioned in subsection (1)(b), (c) or (d) above ; and for the purposes of subsection (7) above a body shall be treated as acquiring an interest for a consideration in money or money's worth if it becomes entitled to the interest as a result of transactions which include a disposition for such consideration (whether to that body or to another person) of that interest or of other property.

Miscellaneous

Initial interest of settlor or spouse

120

• (1) Where a settlor or his spouse is beneficially entitled to an interest in possession in property immediately after it becomes comprised in the settlement, the property shall for the purposes of this Chapter be treated as not having become comprised in the settlement on that occasion ; but when the property or any part of it becomes held on trusts under which neither of those persons is beneficially entitled to an interest in possession, the property or part shall for those purposes be treated as becoming comprised in a separate settlement made by that one of them who ceased (or last ceased) to be beneficially entitled to an interest in possession in it.

• (2) References in subsection (1) above to the spouse of a settlor include references to the widow or widower of a settlor.

• (3) This section applies whether the occasion first referred to in subsection (1) above occurred before or after the passing of this Act, but not if it occurred before 27th March 1974.

Property moving between settlements

121

• (1) Where property which ceases to be comprised in one settlement becomes comprised in another then, unless in the meantime any person becomes beneficially entitled to the property (and not merely to an interest in possession in the property), it shall for the purposes of this Chapter be treated as remaining comprised in the first settlement.

• (2) Subsection (1) above applies only if the date on which property ceases to be comprised in a settlement falls after 9th December 1981; but where property ceased to be comprised in one settlement before 10th December 1981 and after 26th March 1974 and, by the same disposition, became comprised in another settlement, it shall for the purposes of this Chapter be treated as remaining comprised in the first settlement.

Excluded property

122

• (1) For the purposes of this Chapter property to which section 120 or 121 above applies shall not be taken to be excluded property by virtue of paragraph 2(1)(a) of Schedule 5 to the Finance Act 1975 unless the condition in subsection (3) below is satisfied (in addition to the conditions in that paragraph that the property is situated outside the United Kingdom and that the settlor was not domiciled there when the settlement was made).

• (2) Section 108(8) above shall not have effect in relation to property to which section 120 or 121 above applies unless the condition in subsection (3) below is satisfied (in addition to the condition in section 108(8) that the settlor was not domiciled in the United Kingdom when the settlement was made).

• (3) The condition referred to in subsections (1) and (2) above is—

• (a) in the case of property to which section 120 above applies, that the person who is the settlor in relation to the settlement first mentioned in that section, and

• (b) in the case of property to which subsection (1) or (2) of section 121 above applies, that the person who is the settlor in relation to the second of the settlements mentioned in the subsection concerned,

was not domiciled in the United Kingdom when that settlement was made.

• (4) In determining for the purposes of section 108(8) whether the condition in subsection (3) above is satisfied in relation to property which became comprised in the settlement before 10th December 1974, section 45 of the Finance Act 1975 shall be disregarded.

Property becoming settled on a death

123

Property which becomes comprised in a settlement in pursuance of a will or intestacy shall for the purposes of this Chapter be taken to have become comprised in it on the death of the testator or intestate (whether it occurred before or after the passing of this Act).

Income applied for charitable purposes

124

For the purposes of this Chapter, where the trusts on which settled property is held require part of the income of the property to be applied for charitable purposes, a corresponding part of the settled property shall be regarded as held for charitable purposes.

Annual charges under Finance Act 1975

125

No charge to tax shall be imposed under paragraph 12(2) of Schedule 5 to the Finance Act 1975 by reference to any year ending after 31st December 1981 ; and any tax charged under that provision and not already allowed as a credit under paragraph 12(3) of that Schedule or under this section shall be allowed as a credit against tax chargeable under this Chapter in respect of the settled property or part concerned.

Minor interpretative provisions

126

• (1) In this Chapter, unless the context otherwise requires—

• " payment" includes a transfer of assets other than money; and

• " quarter " means a period of three months.

• (2) In this Chapter " trade or professional compensation fund " means a fund which is maintained or administered by a representative association of persons carrying on a trade or profession and the only or main objects of which are compensation for or relief of losses or hardship that, through the default or alleged default of persons carrying on the trade or profession or of their agents or servants, are incurred or likely to be incurred by others.

Amendments

127

Schedule 17 to this Act (which makes amendments relating to the preceding provisions of this Chapter) shall have effect.

Part V — Stamp Duty

Reduction of duty on conveyances and leases

128

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exemption from duty on grants, transfers to charities, etc.

129

• (1) Where any conveyance, transfer or lease is made or agreed to be made to a charitable company or to the trustees of a charitable trust or to the Trustees of the National Heritage Memorial Fund ..., no stamp duty shall be chargeable under Part I or II... of Schedule 13 to the Finance Act 1999—

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

on the instrument by which the conveyance, transfer or lease, or the agreement for it, is effected.

• (2) An instrument in respect of which stamp duty is not chargeable by virtue only of subsection (1) above shall not be treated as duly stamped unless it is stamped in accordance with section 12 of the Stamp Act 1891 with a stamp denoting that it is not chargeable with any duty.

• (3) This section applies to instruments executed on or after 22nd March 1982 and shall be deemed to have come into force on that date.

Exemption from duty for substituted life policies

130

Maintenance funds for historic buildings

131

Part VI — Oil Taxation

Chapter I — General

Increase of petroleum revenue tax and ending of supplementary petroleum duty

132

• (1) With respect to chargeable periods ending after 31st December 1982, section 1(2) of the principal Act (rate of petroleum revenue tax) shall be amended by substituting for the words “70 per cent.” the words “ 75 per cent. ”.

• (2) At the end of subsection (5) of section 122 of the Finance Act 1981 (the chargeable periods for which supplementary petroleum duty is chargeable) for the words “and 30th June 1982” there shall be substituted the words “ 30th June 1982 and 31st December 1982 and to no other periods ”.

Export sales of gas

133

• (1) In section 2 of the principal Act (assessable profits and allowable losses) at the beginning of subsection (5) there shall be inserted the words “ Subject to subsection (5A) below ” and at the end of that subsection there shall be inserted the following subsection—

(5A) In any case where oil consisting of gas is disposed of in a sale at arm’s length and the terms of the contract are such that the seller is required to transport the gas from a place on land in the United Kingdom for delivery at a place outside the United Kingdom or to meet some or all of the costs of or incidental to its transportation from and to such places then, for the purposes of this Part of this Act— (a) the price received or receivable for the gas shall be deemed to be that for which it would have been sold, and (b) the gas shall be deemed to be delivered at the time it would have been delivered, if the terms of the contract required the gas to be delivered as mentioned in paragraph 2(2)(b) of Schedule 3 to this Act and did not require the seller to meet any such costs as are mentioned above.

• (2) In section 122(3) of the Finance Act 1981 (gross profit for Purposes of supplementary petroleum duty) for “2(4) and (5)” there shall be substituted “ 2(4) to (5A) ”.

• (3) This section has effect with respect to chargeable periods ending after 31st December 1981.

Alternative valuation of ethane used for petrochemical purposes

134

• (1) Where an election is made under this section and accepted by the Board, the market value for taxation purposes of any ethane to which the election applies shall be determined, not in accordance with paragraphs 2, 2A and 3 of Schedule 3 to the principal Act (value under a notional contract), but in accordance with a price formula specified in the election; and, in relation to any such ethane, any reference to market value in any other provision of the principal Act , in Part 8 of the Corporation Tax Act 2010 or in Chapter 16A of Part 2 of the Income Tax (Trading and Other Income) Act 2005 shall be construed accordingly.

• (2) Subject to subsection (3) below, an election under this section must be made before 1st January 1994 and applies only to ethane—

• (a) which, during the period covered by the election, is either disposed of otherwise than in sales at arm’s length or relevantly appropriated; and

• (b) which is used or to be used for petrochemical purposes by or on behalf of the person to whom it is so disposed of or, as the case may be, by or on behalf of the participator by whom it is appropriated; and

• (c) which is not subjected to fractionation between the time at which it is disposed of or appropriated as mentioned in paragraph (a) above and the time at which it is used as mentioned in paragraph (b) above.

• (3) In any case where—

• (a) at a time during the period covered by an election, market value falls to be determined for ethane to which subsection (4)(b) or subsection (5)(d) of section 2 of the principal Act applies (oil stocks at the end of chargeable periods), and

• (b) after the expiry of the chargeable period in question, the ethane is disposed of or appropriated and used as mentioned in subsection (2) above,

the market value of that ethane at the time referred to in paragraph (a) above shall be determined as if it were then ethane to which the election applies.

• (4) Where any ethane is used principally for the petro-chemical purposes specified in the election but some of it is used for fuel, as an incident of the principal use, the whole of it shall be regarded as ethane to which the election applies; but, subject thereto, the market value of ethane used otherwise than for those purposes shall be determined as if no election had been made.

• (5) The provisions of Schedule 18 to this Act shall have effect for supplementing this section.

• (6) In the preceding provisions of this section—

• (a) “ethane” means oil consisting of gas of which the largest component by volume over any chargeable period is ethane and which—

• (i) before being disposed of or appropriated as mentioned in subsection (2)(a) above either is not subjected to initial treatment or is subjected to initial treatment which does not include fractionation, or

• (ii) results from the fractionation of gas before it is disposed of or relevantly appropriated;

• (b) “taxation purposes” means the purposes of Part I of the principal Act and of Part VIII of the Finance Act 1981 (supplementary petroleum duty).

• (7) In this section “fractionation” means the treatment of gas in order to separate gas of one or more kinds as mentioned in Paragraph 2A(3) of Schedule 3 to the principal Act; and for the purposes of subsection (6)(a) above,—

• (a) the proportion of ethane in any gas shall be determined at a temperature of 15 degrees centigrade and at a pressure of one atmosphere; and

• (b) “component” means ethane, methane or liquified petroleum gas.

Determination of oil fields

135

• (1) In any case where a determination of an oil field is made under Schedule 1 to the principal Act and before the date of the determination oil has been won from the oil field so determined,—

• (a) Part I of the principal Act, except Schedule 7, and Part VIII of the Finance Act 1981 (supplementary petroleum duty) shall apply as if the determination had been made immediately before oil was first won from the field;

• (b) where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of a chargeable period for the oil field, then as respects that chargeable period sections 33(1) and 34 of the Taxes Management Act 1970 (in their application by virtue of paragraph 1 of Schedule 2 to the principal Act), paragraphs 2(1), 5(1) and 13 of Schedule 2 to the principal Act and paragraph 9 of Schedule 16 to the Finance Act 1981 shall have effect as if any reference to the end of a chargeable period were a reference to the actual date of the determination;

• (c) where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of a claim period in relation to the oil field, then as respects that claim period paragraph 2(1) of Schedule 5 to the principal Act and paragraph 1(2) of Schedule 6 to that Act shall have effect as if any reference to the end of the claim period in which the expenditure is incurred were a reference to that actual date; and

• (d) where the actual date of the determination is later than the date which by virtue of paragraph (a) above is the end of the transfer period, within the meaning of Schedule 17 to the Finance Act 1980, in relation to the oil field, then as respects that transfer period paragraph 3(1) of that Schedule shall have effect as if the reference to the end of the transfer period were a reference to that actual date.

• (2) In any case where—

• (a) a determination is made under paragraph 5 of Schedule 1 to the principal Act (variation of fields) varying an earlier determination; and

• (b) in consequence of that variation an existing oil field is altered to any extent;

then Part I of the principal Act and Part VIII of the Finance Act 1981 shall apply in relation to the oil field subject only to the modifications provided by subsection (3) below.

• (3) Where subsection (2) above applies—

• (a) the time allowed—

• (i) by paragraph 2 or paragraph 5 of Schedule 2 to the principal Act for making returns, or

• (ii) by paragraph 3 of Schedule 17 to the Finance Act 1980 for delivering notices—

shall as respects returns or notices containing such particulars as may be required in consequence of the later determination be extended to a period ending, in the case of a return under paragraph 2 or a notice under paragraph 3, two months and, in the case of a return under paragraph 5, one month after the actual date of that determination;

• (b) any claim falling to be made in accordance with Schedule 5 or 6 to the principal Act in respect of any expenditure incurred before the actual date of the later determination which could not have been made before that determination may be made at any time before the expiry of the period of six years beginning with that date;

• (c) section 1 of the Petroleum Revenue Tax Act 1980 (payments of tax on account). section 105 of the Finance Act 1980 (advance payments of tax) and paragraph 10 of Schedule 16 to the Finance Act 1981 (payments on account of supplementary petroleum duty) shall not apply in relation to any return made under paragraph 2 of Schedule 2 to the principal Act in so far as it is made by virtue of paragraph (a) above; and

• (d) section 139 below (advance petroleum revenue tax) shall not apply in relation to so much of the gross profit as accrues to any person in a chargeable period ending before the actual date of the later determination by virtue only of that later determination.

• (4) In subsection (3) of section 12 of the principal Act (references to things done etc. before determination of field) the words from “as regards” to “any oil field” shall cease to have effect.

• (5) This section has effect in relation to determinations made after 31st December 1981.

Treatment of losses and charges on income

136

Expenditure met by regional development grants to be disregarded for certain purposes

137

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Provisions supplementary to section 137

138

Chapter II — Advance Petroleum Revenue Tax

Liability for APRT and credit against liability for petroleum revenue tax

139

• (1) For each of the following chargeable periods, namely—

• (a) the first chargeable period ending after 31st December 1982 and before 1st January 1987 in which, subject to sections 140 and 141 below, a gross profit accrues to a participator from an oil field, and

• (b) every one out of the immediately succeeding chargeable periods (if any) which ends before 1st January 1987 and in which, subject to those sections, a gross profit accrues to him from that field,

the participator shall be liable to pay an amount of petroleum revenue tax (to be known as “advance petroleum revenue tax” and in this Chapter referred to as “APRT”) in accordance with this section.

• (2) Subject to sections 140 and 141 below, APRT shall be payable on the gross profit accruing to the participator in the chargeable period in question and shall be payable

• (a) for the chargeable period ending on 30th June 1983, at the rate of 20 per cent.;

• (b) for subsequent chargeable periods ending on or before 31st December 1984, at the rate of 15 per cent.;

• (c) for chargeable periods ending in 1985, at the rate of 10 per cent.; and

• (d) for chargeable periods ending in 1986, at the rate of 5 per cent..

• (3) The aggregate of—

• (a) any APRT which is payable and paid by a participator in respect of any chargeable period and not repaid, and

• (b) any APRT which is carried forward from the previous chargeable period by virtue of subsection (4) below,

shall be set against the participator’s liability for petroleum revenue tax charged in any assessment made on him in respect of the assessable profit accruing to him in the period referred to in paragraph (a) above from the oil field in question (which liability is in this Chapter referred to as his liability for petroleum revenue tax for a chargeable period) and shall, accordingly, discharge a corresponding amount of that liability.

• (4) If, for any chargeable period, the aggregate of—

• (a) any APRT which is payable and paid by a participator for that period and not repaid, and

• (b) any APRT carried forward from the previous chargeable period by virtue of this subsection,

exceeds the participator’s liability for petroleum revenue tax for that period, the excess shall be carried forward as an accretion to any APRT paid (and not repaid) for the next chargeable period; and any reference in this Chapter to a participator’s APRT credit for a chargeable period is a reference to the aggregate of any APRT paid for that period and not repaid and any APRT carried forward from the previous chargeable period by virtue of this subsection.

• (5) The references in section 1 of the Provisional Collection of Taxes Act 1968 to petroleum revenue tax include a reference to APRT.

• (6) The provisions of Schedule 19 to this Act shall have effect for supplementing this section and, accordingly, section 105 of the Finance Act 1980 (advance payments of petroleum revenue tax) shall cease to have effect with respect to chargeable periods ending after 30th June 1983.

• (7) This Chapter shall be included in the Oil Taxation Acts for the purposes of sections 107 and 108 of the Finance Act 1980 (transmedian fields and gas banking schemes).

Increase of gross profit by reference to royalties in kind

140

• (1) This section applies where part of a participator’s share of the oil won and saved from an oil field is delivered by him in a chargeable period to the OGA pursuant to a requirement imposed under the terms of a licence granted under the Petroleum (Production) Act 1934.

• (2) In determining for the purposes of APRT the gross profit accruing to the participator from the field in the chargeable period the aggregate of the amounts mentioned in paragraphs (a), (b) and (c) of subsection (5) of section 2 of the principal Act shall be increased by multiplying it by a fraction of which—

• (a) the numerator is the total of the quantity of oil won from the field which is delivered or relevantly appropriated by him in the period including the oil delivered to the OGA ; and

• (b) the denominator is that total excluding the oil delivered to the OGA .

• (3) Where oil is delivered pursuant to a requirement which relates to oil of one or more kinds but not to others, subsection (2) above shall apply only in relation to oil of the kind or kinds to which the requirement relates ; and where oil is delivered pursuant to a requirement which specifies different proportions in relation to different kinds of oil, that subsection shall apply separately in relation to each of those kinds.

• (4) For the purposes of subsection (5) of section 2 of the principal Act as it applies in determining for the purposes of APRT the gross profit accruing to a participator, the exclusion by paragraph 4 of Schedule 3 to that Act of oil delivered to the OGA under the terms of a licence granted under the said Act of 1934 shall be deemed to extend to oil which is inadvertently delivered to him in excess of the amount required ; and oil so delivered shall be treated for the purposes of this section as delivered pursuant to a requirement imposed under the terms of such a licence.

• (5) Any reference in this section or in section 141 below to the purposes of APRT includes a reference to the purpose of determining whether APRT is payable for a chargeable period by virtue of section 139(1) above.

Reduction of gross profit by reference to exempt allowance

141

• (1) For the purposes of APRT there shall be for each oil field in each chargeable period an exempt allowance of 500,000 metric tonnes of oil divided between the participators in shares proportionate to their shares of the oil won and saved from the field during the period.

• (2) If the gross profit accruing to a participator in a chargeable period from a field exceeds the cash equivalent of his share of the exempt allowance, the gross profit shall be reduced to an amount equal to the excess.

• (3) If the gross profit accruing to a participator in a chargeable period from a field does not exceed the cash equivalent of his share of the exempt allowance, the gross profit shall be reduced to nil.

• (4) Subject to subsection (5) below, the cash equivalent of a participator’s share of the exempt allowance for an oil field for a chargeable period shall be equal to such proportion of the gross profit accruing to him from the field in that period (before any reduction under this section) as his share of the exempt allowance bears to his share, exclusive of excluded oil within the meaning of section 10 of the principal Act, of the oil won and saved from the field during the period.

• (5) If a participator in an oil field so elects by notice in writing given to the Board at the time when he makes his return under paragraph 2 of Schedule 2 to the principal Act for a chargeable period, the cash equivalent of his share of the exempt allowance for the field for that period shall be determined under subsection (4) above—

• (a) to the extent that his share of that exempt allowance does not exceed his share of the oil (other than gas) won and saved from the field in the period, as if in computing the gross profit accruing to him in the period all amounts relating to gas fell to be disregarded; and

• (b) to the extent, if any, that his share of that allowance exceeds his share of the oil (other than gas) so won and saved, as if in computing the gross profit so accruing all amounts relating to oil other than gas fell to be disregarded.

• (6) In this section references to a participator’s share of the oil won and saved from a field are to his share as expressed in metric tonnes and for that purpose 1,100 cubic metres of oil consisting of gas at a temperature of 15 degrees centigrade and pressure of one atmosphere shall be counted as equivalent to one metric tonne of oil other than gas.

Consequences of crediting APRT against liability for petroleum revenue tax

142

• (1) If it appears to the Board—

• (a) that any amount of APRT credit which has been set off against a participator’s assessed liability to petroleum revenue tax for any chargeable period ought not to have been so set off, or that the amount so set off has become excessive, or

• (b) that, disregarding any liability to or credit for APRT, a participator is entitled to a repayment of petroleum revenue tax for any chargeable period,

then, for the purpose of securing that the liabilities of the participator to petroleum revenue tax and APRT (including interest on unpaid tax) for the chargeable period in question are what they ought to have been, the Board may make such assessments to, and shall make such repayments of, petroleum revenue tax and APRT as in their judgment are necessary in the circumstances.

• (2) In a case falling within paragraph (a) of subsection (1) above, any necessary assessment to petroleum revenue tax may, where the revised amount of set off is ascertained as a result of an appeal, be made at any time before the expiry of the period of six years beginning at the end of the chargeable period in which the appeal is finally determined; and in a case falling within paragraph (b) of that subsection any necessary assessment to APRT may be made at any time before the expiry of the period of six years beginning at the end of the chargeable period in which the participator became entitled as mentioned in that paragraph.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (5) Paragraphs 13, 14 and 15 of Schedule 2 to the principal Act (payment of tax, appeals and interest on tax) apply in relation to an assessment to petroleum revenue tax under subsection (1) above as they apply to an assessment under that Schedule.

Part VII — Miscellaneous and Supplementary

Reduction of national insurance surcharge

143

Additional payments by programme contractors

144

• (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Certificates of tax deposit: extension of interest period

145

For the purposes of certificates of tax deposit issued by the Treasury under section 12 of the National Loans Act 1968 on terms published before 31st July 1980, the date which is the due date in relation to—

• (a) income tax charged at a rate other than the basic rate, and

• (b) capital gains tax,

is by virtue of this section postponed, with respect to the year 1980-81 and any subsequent year of assessment, from the date specified in the prospectuses concerned to 1st December following the end of the year of assessment for which the tax is payable.

Transfer of assets of British National Oil Corporation

146

Transfer of assets of British Gas Corporation

147

Transfer of assets of Hops Marketing Board

148

Recovery of overpayment of tax, etc, 150. Investment in gilt-edged unit trusts

149

• (1) The following section shall be substituted for section 30 of the Taxes Management Act 1970—

(30) (1) Where an amount of tax has been repaid to any person which ought not to have been repaid to him, that amount of tax may be assessed and recovered as if it were unpaid tax. (2) In any case where— (a) a repayment of tax has been increased in accordance with section 47 or 48 of the Finance (No. 2) Act 1975 (supplements added to repayments of tax, etc.); and (b) the whole or any part of that repayment has been paid to any person but ought not to have been paid to him; and (c) that repayment ought not to have been increased either at all or to any extent; then the amount of the repayment assessed under subsection (1) above may include an amount equal to the amount by which the repayment ought not to have been increased. (3) In any case where— (a) a payment, other than a repayment of tax to which subsection (2) above applies, is increased in accordance with section 47 or 48 of the Finance (No. 2) Act 1975; and (b) that payment ought not to have been increased either at all or to any extent; then an amount equal to the amount by which the payment ought not to have been increased may be assessed and recovered as if it were unpaid income tax or corporation tax. (4) An assessment to income tax or corporation tax under this section shall be made under Case VI of Schedule D. (5) An assessment under this section shall not be out of time under section 34 of this Act if it is made before the end of the chargeable period following that in which the amount so assessed was repaid or paid as the case may be. (6) Subsection (5) above is without prejudice to sections 36, 37 and 39 of this Act. (7) In this section any reference to an amount repaid or paid includes a reference to an amount allowed by way of set-off.

• (2) Subsection (5) of section 22 of the Finance Act 1978 (recovery of repayments of tax to spouses) shall not apply in relation to any amount repaid on or after 6th April 1982.

• (3) Subsection (1) above has effect in relation to any amount repaid or paid on or after 6th April 1982.

150

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

National savings accounts

151

• (1) The National Savings Bank Act 1971 shall have effect subject to the amendments specified in Schedule 20 to this Act.

• (2) This section and Schedule 20 to this Act shall come into force on the expiry of the period of three months beginning with the day on which this Act is passed.

Additional power of Treasury to borrow

152

• (1) At the beginning of subsection (1) of section 12 of the National Loans Act 1968 (power of Treasury to borrow) there shall be inserted the words “ Any money which the Treasury consider it expedient to raise for the purpose of promoting sound monetary conditions in the United Kingdom and ”.

• (2) After the said subsection (1) there shall be inserted the following subsection:

(1A) The terms (as to interest or otherwise) on which any balance for the time being in the National Loans Fund is to be held shall be such as may be agreed between the Treasury and the Bank of England.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Variable rates of interest for government lending

153

• (1) For section 5 of the National Loans Act 1968 (rates of interest) there shall be substituted the following section—

(5) (1) This section has effect as respects any rate of interest— (a) which under any provision in Schedule 1 to this Act is to be determined in accordance with this Act, or (b) which is to be determined by the Treasury under section 3 of this Act, and, where any enactment passed after this Act provides for the payment of interest on advances or loans made out of the National Loans Fund, and for the rate at which that interest is to be payable to be determined or approved by the Treasury, then, except as otherwise expressly provided, this section has effect as respects that rate of interest. (2) For any loan or class of loans the Treasury may determine or approve either— (a) a fixed rate of interest, that is to say a specified rate or a formula rate which is to be applied, throughout the period of the loan or any loan of that class, with the value which it has when the loan is made, or (b) a variable rate of interest, that is to say a formula rate which is to be applied, for each of the successive periods of the loan or any loan of that class which are of a length specified in the determination or approval (in this section referred to as interest periods), with the value which it has at the beginning of that period; and in this subsection “formula rate” means a rate which is so expressed (whether by means of a formula or otherwise) that it will or may have different values at different times. (3) The Treasury shall, on each occasion when they determine or approve a fixed rate of interest for a loan or class of loans, satisfy themselves that the rate would be at least sufficient to prevent a loss if— (a) the loan, or any loan of that class— (i) were made forthwith, and (ii) were met out of money borrowed by the Treasury at the lowest rate at which the Treasury are for the time being able to borrow money (of whatever amount) for a comparable period, and on other comparable terms, and (b) the interest on the money so borrowed, together with the Treasury’s expenses of borrowing, were set off against the interest received on the loan. (4) The Treasury shall, on, each occasion when they determine or approve a variable rate of interest for a loan or class of loans, satisfy themselves that the rate would be at least sufficient to prevent a loss if— (a) the loan, or any loan of that class,— (i) were made forthwith, (ii) were to be repaid at the end of its first interest period, and (iii) were met out of money borrowed by the Treasury at the lowest rate at which the Treasury are for the time being able to borrow money (of whatever amount) for a comparable period, and (b) the interest on the money so borrowed were set off against the interest received on the loan. (5) If at any time the Treasury are satisfied that a rate of interest determined or approved for a class of loans, or for a loan not yet made, would not meet the requirements of subsection (3) or, as the case may be, subsection (4) above if it were determined or approved at that time, that determination or approval shall be withdrawn; and another rate shall be determined or approved in accordance with that subsection for further loans of that class or, as the case may be, for that loan. (6) The Treasury may in determining or approving a rate of interest take into account any consideration justifying a rate higher than that required by subsection (3) or (4) above. (7) Different fixed rates of interest may be determined or approved in respect of loans which are to be made for the same length of time; and different variable rates of interest may be determined or approved for loans which are to have interest periods of the same length. (8) The Treasury shall cause— (a) all rates of interest determined from time to time by them in respect of local loans, and (b) all other rates of interest determined from time to time by them otherwise than by virtue of subsection (6) above, to be published in the London and Edinburgh Gazettes as soon as may be after the determination of those rates.

• (2) The enactments amended by Schedule 1 to that Act (government lending and advances) shall have effect as if in the third column of that Schedule for the word “fixed”, wherever it occurs, there were substituted the word “ determined ”.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Local loans

154

Extinguishment of deferred liability of charities for development land tax

155

Dissolution of Board of Referees

156

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Short title, interpretation, construction and repeals

157

• (1) This Act may be cited as the Finance Act 1982.

• (2) In this Act—

• (a) “the Taxes Act 1970” means the Income and Corporation Taxes Act 1970; and

• (b) “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988.

• (3) Part III of this Act, so far as it relates to income tax, shall be construed as one with the Income Tax Acts, so far as it relates to corporation tax, shall be construed as one with the Corporation Tax Acts and, so far as it relates to capital gains tax, shall be construed as one with the Capital Gains Tax Act 1979.

• (4) Part IV of this Act shall be construed as one with Part III of the Finance Act 1975.

• (5) Part VI of this Act shall be construed as one with Part I of the Oil Taxation Act 1975 . . . and references in Part VI to the principal Act are references to that Act.

• (6) The enactments and Orders mentioned in Schedule 22 to this Act (which include spent enactments) are hereby repealed to the extent specified in the third column of that Schedule, but subject to any provision at the end of any Part of that Schedule.

• (7) The provisions of Part XI of Schedule 22 to this Act, except in so far as they relate to the Wellington Museum Act 1947 and the Finance (No. 2) Act 1975, shall have effect in substitution for the provisions of Section B of Part VI of Schedule 20 to the Finance Act 1980 and, accordingly, that Section shall be deemed not to have taken effect at the beginning of the year 1982-83.

SCHEDULE 1

SCHEDULE 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 3

I — Provisions Substituted for Part II of Schedule 1

II — Provisions Substituted for Part II of Schedule 2

III — Provisions Substituted for Part II of Schedule 3

IV — Provisions Substituted for Part II of Schedule 4Tables Showing Annual Rates of Duty on Goods Vehicles

V — Provisions Substituted for Part II of Schedule 5

Schedule 4

I — . . .

II — . . .

III — . . .

IV — . . .

V — . . .

Schedule 5

Part A

PART I — GENERAL PROVISIONS

Vehicles chargeable at the basic rate of duty

1

• (1) Subject to paragraphs 5 and 6 below, the annual rate of duty applicable to a goods vehicle—

• (a) which has a plated gross weight or a plated train weight which does not exceed 7.5 tonnes; or

• (b) which has neither a plated gross weight nor a plated train weight but which has an unladen weight which exceeds 1,525 kilograms; or

• (c) which is a tower wagon, having an unladen weight which exceeds 1,525 kilograms;

shall be £170.

• (2) Any reference in the following provisions of this Schedule to the basic rate of duty is a reference to the annual rate of duty for the time being applicable to vehicles falling within sub-paragraph (1) above.

Vehicles exceeding 75 but not exceeding 12 tonnes plated weight

2

Subject to paragraphs 1(1)(c) above and 6 below, the annual rate of duty applicable to a goods vehicle which has a plated gross weight or a plated train weight which exceeds 7.5 tonnes but does not exceed 12 tonnes shall be £360.

Rigid goods vehicles exceeding 12 tonnes plated gross weight

3

• (1) Subject to the provisions of this Schedule, the annual rate of duty applicable to a goods vehicle which is a rigid goods vehicle and has a plated gross weight which exceeds 12 tonnes shall be determined in accordance with Table A in Part II of this Schedule by reference to—

• (a) the plated gross weight of the vehicle; and

• (b) the number of axles on the vehicle.

• (2) If a rigid goods vehicle to which sub-paragraph (1) above applies is used for drawing a trailer which—

• (a) has a plated gross weight exceeding 4 tonnes; and

• (b) when so drawn, is used for the conveyance of goods or burden;

the annual rate of duty applicable to it in accordance with that sub-paragraph shall be increased by the amount of the supplement which, in accordance with Table B in Part II of this Schedule, is appropriate to the gross plated weight of the trailer being drawn.

Tractor units exceeding 12 tonnes plated train weight

4

• (1) This paragraph applies to a tractor unit which has a plated train weight exceeding 12 tonnes.

• (2) The annual rate of duty applicable to a tractor unit to which this paragraph applies and which has not more than two axles shall be determined, subject to the followingh provisions of this Schedule, in accordance with Table C in Part II of this Schedule by reference to—

• (a) the plated train weight of the tractor unit; and

• (b) the types of semi-trailers, distinguished according to the number of their axles, which are to be drawn by it.

• (3) The annual rate of duty applicable to a tractor unit to which this paragraph applies and which has three or more axles shall be determined subject to the following provisions of this Schedule in accordance with Table D in Part II of this Schedule by reference to—

• (a) the plated train weight of the tractor unit; and

• (b) the types of semi-trailers, distinguished according to the number of their axles, which are to drawn by it.

Special types of vehicles

5

• (1) This paragraph applies to a goods vehicle—

• (a) which has an unladen weight exceeding 1,525 kilograms; and

• (b) which does not comply with regulations under section 40 of the Road Traffic Act 1972 (construction and use regulations); and

• (c) which is for the time being authorised for use on roads by virtue of an order under section 42 of that Act (authorisation of special vehicles).

• (2) The annual rate of duty applicable to a goods vehicle to which this paragraph applies and which falls within a class specified by an order of the Secretary of State made for the purposes of this paragraph shall be determined, on the basis of the assumption in sub-paragraph (3) below, by the application of Table A, Table C or Table D in Part II of this Schedule, according to whether the vehicle is a rigid goods vehicle or a tractor unit and, in the latter case, according to the number of its axles.

• (3) The assumptions referred to in sub-paragraph (2) above are—

• (a) where Table A applies, that the vehicle has a plated gross weight which exceeds 30 tonnes but does not exceed 30.49 tonnes; and

• (b) where Table C or Table D applies, that the vehicle has a plated train weight which exceeds 32 tonnes but does not exceed 32.52 tonnes.

• (4) In the case of a goods vehicle to which this paragraph applies and which does not fall within such class as is referred to in sub-paragraph (2) above, the annual rate of duty shall be the basic rate of duty.

• (5) The power to make an order under sub-paragraph (2) above shall be exercisable by statutory instrument ; but no such order shall be made unless a draft of it has been laid before Parliament and approved by a resolution of each House of Parliament.

Farmer's goods vehicles and showmen's goods vehicles

6

• (1) If the unladen weight of—

• (a) a farmer’s goods vehicle; or

• (b) a showman’s goods vehicle;

does not exceed 1,525 kilograms, the annual rate of duty applicable to it shall be £60.

• (2) If a farmer’s goods vehicle or a showman’s goods vehicle has a plated gross weight or a plated train weight, the annual rate of duty applicable to it shall be—

• (a) £100, if that weight does not exceed 7.5 tonnes;

• (b) £130, if that weight exceeds 7.5 tonnes but does not exceed 12 tonnes; and

• (c) the appropriate Part II rate, if that weight exceeds 12 tonnes.

• (3) In sub-paragraph (2) above the “appropriate Part II rate” means the rate determined in accordance with paragraph 3 or, as the case may be, 4 above but by reference—

• (a) in the case of a farmer’s goods vehicle, to Table A(1), Table B(1), Table C(1) or, as the case may be, Table D(1) in Part II of this Schedule, in place of the corresponding Table referred to in that paragraph; and

• (b) in the case of a showman’s goods vehicle, to Table A(2), Table B(2), Table C(2) or, as the case may be, Table D(2) in Part II of this Schedule, in place of the corresponding Table referred to in that paragraph.

• (4) In the case of any other farmer’s goods vehicle or showman’s goods vehicle, the annual rate of duty applicable to it shall be £100.

Smaller goods vehicles

7

If a goods vehicle—

• (a) has an unladen weight which does not exceed 1,525 kilograms; and

• (b) does not fall within paragraph 6 above;

the annual rate of duty applicable to it shall be £80.

Vehicles treated as having reduced plated weights

8

• (1) The Secretary of State may by regulations provide that, on an application made in accordance with the regulations, the goods vehicle to which the application relates shall be treated for the purposes of this Schedule as if its plated gross weight or plated train weight (the “operating weight”) specified in the application.

• (2) Where, following an application duly made in accordance with the regulations, a licence is issued for the vehicle concerned at the rate of duty applicable to the operating weight, that weight shall be shown on the licence.

• (3) The regulations may provide that the use of any vehicle in respect of which a lower rate of duty is chargeable by virtue of this paragraph shall be subject to prescribed conditions and to such further conditions as the Secretary of State may think fit to impose in any particular case.

• (4) In any case where a vehicle in respect of which a lower rate of duty has been charged by virtue by virtue of this paragraph is used in contravention of a condition imposed by virtue of sub-paragraph (3) above, then—

• (a) the higher rate of duty applicable to its plated gross weight or plated train weight shall become chargeable as from the date of the contravention; and

• (b) section 19 of this Act shall apply as if—

• (i) that higher rate had become chargeable under subsection (1) of that section by reason of the vehicle being used as mentioned in that subsection; and

• (ii) subsections (5) to (9) were omitted.

Plated and unladen weights

9

• (1) Any reference in this Schedule to the plated gross weight of a goods vehicle or trailer is a reference—

• (a) to that plated weight, within the meaning of Part II of the Road Traffic Act 1972, which is the maximum gross weight which may not be exceeded in Great Britain for the vehicle or trailer in question; or

• (b) in the case of any trailer which may lawfully be used in Great Britain without a plated gross weight, to the maximum laden weight at which the trailer may lawfully be used in Great Britain.

• (2) Any reference in this Schedule to the plated train weight of a vehicle is a reference to that plated weight, within the meaning of the said Part II, which is the maximum gross weight which may not be exceeded in Great Britain for an articulated vehicle consisting of the vehicle in question and any semi-trailer which may be drawn by it.

• (3) A mechanically propelled vehicle which—

• (a) is constructed or adapted for use and used for the conveyance of a machine or contrivance and no other load except articles used in connection with the machine or contrivance; and

• (b) is not a vehicle for which an annual rate of duty is specified in Schedule 3 to this Act; and

• (c) has neither a plated gross weight nor a plated train weight,

shall, notwithstanding that the machine or contrivance is built in as part of the vehicle, be chargeable with duty at the rate which would be applicable if the machine or contrivance were burden.

Goods vehicles used partly for private purposes

10

• (1) Where a goods vehicle is partly used for private purposes, the annual rate of duty applicable to it shall, if apart from this paragraph it would be less, be the rate determined in accordance with Schedule 5 to this Act.

• (2) A vehicle shall not be prevented from being a farmer’s goods vehicle for the purposes of this Schedule solely by reason of its being used partly for private purposes.

• (3) In this paragraph “partly used for private purposes” means used partly otherwise than for the conveyance of goods or burden for hire or reward or for or in connection with a trade or business.

Exempted vehicles

11

Duty shall not be chargeable by virtue of this Schedule in respect of—

• (a) a vehicle chargeable with duty by virtue of Schedule 1 to this Act;

• (b) an agricultural machine which is a goods vehicle by reason of the fact that it is constructed or adapted for use, and used, for the conveyance of farming or forestry implements fitted to it for operation while so fitted;

• (c) a mobile crane, works truck or fisherman’s tractor; or

• (d) a vehicle which, though constructed or adapted for use for the conveyance of goods or burden, is not so used for hire or reward or for or in connection with a trade or business.

12

• (1) This paragraph and paragraph 13 below apply to agricultural machines which do not draw trailers.

• (2) Subject to paragraph 13 below, a vehicle to which this paragraph applies shall not be chargeable with duty by virtue of this Schedule by reason of the fact that it is constructed or adapted for use and used for the conveyance of permitted goods or burden if they are carried in or on not more than one appliance and the conditions mentioned in sub-paragraph (3) below are satisfied.

• (3) The conditions are that—

• (a) the appliance is fitted either to the front or to the back of the vehicle;

• (b) the appliance is removable;

• (c) the area of the horizontal plane enclosed by verticle lines passing through the outside edges of the appliance is not, when the appliance is in the position in which it is carried when the vehicle is travelling and the appliance is loaded, greater than—

• (i) 0.65 of a square metre, if the appliance is carried at the front; or

• (ii) 1.394 square metres, if it is carried at the back.

• (4) In sub-paragraph (2) above “permitted goods or burden” means goods or burden the haulage of which is permissable under paragraph 2(1) of Schedule 3 to this Act.

• (5) Sub-paragraph (2) above does not apply—

• (a) to the use of a vehicle on a public road more than 15 miles from a farm occupied by the person in whose name the vehicle is registered under this Act;

• (b) to three-wheeled vehicles; or

• (c) to any vehicle in respect of which the distance between the centre of the area of contact with the road surface of the relevant wheel and that of the nearest wheel on the other side of the vehicle is less than 1.22 metres.

• (6) In sub-paragraph (5)(c) above “relevant wheel” means—

• (a) in a case where only one appliance is being used for the carriage of goods or burden and that appliance is fitted to the back of the vehicle, a back wheel; and

• (b) in any other case, any wheel on a side of the vehicle.

• (7) For the purposes of this paragraph a vehicle which has two wheels at the front shall, if the distance between them (measured between the centres of their respective areas of contact with the road) is less than 46 centimetres, be treated as a three-wheeled vehicle.

13

• (1) This paragraph shall have effect in relation to any vehicle fitted with an appliance of any description prescribed for the purposes of all or any of the provisions of this paragraph by regulations under this paragraph.

• (2) The limitation in paragraph 12(2) above to one appliance shall have effect as a limitation to two appliances of which at least one must be an appliance prescribed for the purposes of this sub-paragraph ; but if two appliances are used they must be fitted at opposite ends of the vehicle.

• (3) Regulations under this paragraph may provide for all or any of the following matters where an appliance prescribed for the purposes of this paragraph is being used, that is to say, that paragraph 12(2) above shall not apply unless the prescribed appliance is fitted to the prescribed end of the vehicle, or unless the use of the prescribed or any appliance is limited to prescribed goods or burden or to use in prescribed circumstances.

• (4) Regulations under this paragraph may provide that paragraph 12(3)(c) above shall not have effect in relation to appliances prescribed for the purposes of this sub-paragraph, but that in relation to those appliances paragraph 12(5)(a) above shall have effect with the substitution of such shorter distance as may be prescribed.

• (5) In sub-paragraphs (2) to (4) above references to use are references to use for the carriage of goods or burden ; and regulations under this paragraph may make different provision in relation to different descriptions of prescribed appliances.

Tractor units used with semi-trailers having only one axle when duty paid by reference to use with semi-trailers having more than one axle

14

• (1) This paragraph applies in any case where—

• (a) a vehicle licence has been taken out for a tractor unit having two axles which is to be used only with semi-trailers with not less than two axles or for a tractor unit having two axles which is to be used only with semi-trailers with not less than three axles; and

• (b) the rate of duty paid on taking out the licence is equal to or exceeds the rate of duty applicable to a tractor unit having two axles—

• (i) which has a plated train weight equal to the maximum laden weight at which a tractor unit having two axles may lawfully be used in Great Britain with a semi-trailer with a single axle; and

• (ii) which is to be used with semi-trailers with any number of axles.

• (2) If, in a case to which this paragraph applies, the tractor unit is used with a semi-trailer with a single axle and, when so used, the laden weight of the tractor unit and semi-trailer taken together does not exceed the maximum laden weight mentioned in sub-paragraph (1)(b)(i) above, the tractor unit shall, when so used, be taken to be licensed in accordance with the requirements of this Act.

Interpretation

15

• (1) In this Schedule, unless the context otherwise requires—

• “agricultural machine” has the same meaning as in Schedule 3 to this Act;

• “axle” includes—

• (i) two or more stub axles which are fitted on opposite sides of the longitudinal axis of the vehicle so as to form—

• (a) a pair in the case of two stub axles, and

• (b) pairs in the case of more than two stub axles,

• (ii) a single stub axle which is not one of a pair; and

• (iii) a retractable axle;

• “basic rate of duty” has the meaning given by paragraph 1(2);

• “business” includes the performance by a local or public authority of its functions;

• “farmer’s goods vehicle” means, subject to paragraph 10(2) above, a goods vehicle registered under this Act in the name of a person engaged in agriculture and used on public roads solely by him for the purpose of the conveyance of the produce of, or of articles required for the purposes of, the agricultural land which he occupies, and for no other purposes;

• “fishermen’s tractor” has the same meaning as in Schedule 3 to this Act;

• “goods vehicle” means a mechanically propelled vehicle (including a tricycle as defined in Schedule 1 to this Act and weighing more than 425 kilograms unladen) constructed or adapted for use and used for the conveyance of goods or burden of any description, whether in the course of trade or otherwise;

• “mobile crane” has the same meaning as in Schedule 3 to this Act;

• “rigid goods vehicle” means a goods vehicle which is not a tractor unit;

• “showman’s goods vehicle” means a showman’s vehicle which is a goods vehicle and is permanently fitted with a living van or some other special type of body or superstructure, forming part of the equipment of the show of the person in whose name the vehicle is registered under this Act;

• “showman’s vehicle” has the same meaning as in Schedule 3 to this Act;

• “stub axle” means an axle on which only one wheel is mounted;

• “tower wagon” means a goods vehicle—

• (a) into which there is built, as part of the vehicle, any expanding or extensible contrivance designed for facilitating the erection, inspection, repair or maintenance of overhead structures or equipment; and

• (b) which is neither constructed nor adapted for use nor used for the conveyance of any load, except such a contrivance and articles used in connection therewith;

• “tractor unit” means a goods vehicle to which a semi-trailer may be so attached that part of the semi-trailer is super-imposed on part of the goods vehicle and that when the semi-trailer is uniformly loaded not less than 20 per cent. of the weight of its load is borne by the goods vehicle;

• “trailer” shall be construed in accordance with sub-paragraph (2) below;

• “unladen weight” has the same meaning as it has for the purposes of the Road Traffic Act 1972 by virtue of section 194 of that Act; and

• “works truck” has the same meaning as in Schedule 3 to this Act.

• (2) In this Schedule “trailer” does not include—

• (a) an appliance constructed and used solely for the purpose of distributing on the road loose gritting material;

• (b) a snow plough;

• (c) a road construction vehicle as defined in section 4(2) of this Act;

• (d) a farming implement not constructed or adapted for the conveyance of goods or burden of any description, when drawn by a farmer’s goods vehicle;

• (e) a trailer used solely for the carriage of a container for holding gas for the propulsion of the vehicle by which it is drawn, or plant and materials for producing such gas.

PART II

Part B — . . .

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Schedule 6

Part I — General

1

In this Schedule—

Part II

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III — Gaming Licence Duty

3

In section 14 of the 1981 Act (rate of duty) for the Table set out in subsection (1) there shall be substituted the following Table—

Part of gross gaming yield	Rate
The first £500,000	5 per cent.
The next £1,750,000	12½ per cent.
The remainder	25 per cent.

.

Part IV — Bingo Duty

4

In section 17 of the 1981 Act (bingo duty) in subsection (2)(a) (duty by reference to amount paid for bingo cards) after the words “the money taken” there shall be inserted the words “ (if any) ”.

5

• (1) Schedule 3 to the 1981 Act (exemptions from bingo duty) shall have effect subject to the following provisions of this paragraph.

• (2) For paragraphs 2, 3 and 4 there shall be substituted the following paragraph—

(2) (1) Bingo duty shall not be charged in respect of bingo promoted by any person and played on any day in a week (the “chargeable week”) at any premises, other than premises which are licensed under the Gaming Act 1968, if— (a) where a person’s eligibility to particpate in that bingo depends upon his being a member of a particular society or his being a guest of such a member or of the society— (i) the total value of the prizes won on any day in a relevant week at those premises in bingo played by members of that society or by guests of such members or of the society does not exceed £300; and (ii) the total value of prizes won during any relevant week at those premises in bingo played by any such persons does not exceed £1,000; and (b) in any other case— (i) the total value of the prizes won on any day in a relevant week at those premises in bingo promoted by that person does not exceed £300; and (ii) the total value of the prizes won during any relevant week at those premises in bingo promoted by that person does not exceed £1,000. (2) In sub-paragraph (1) above— - “relevant week”, in relation to any chargeable week, means (subject to sub-paragraph (3) below that week or any of the preceding twelve weeks; and - “society” includes any club, institution, organisation or association of persons, by whatever name called, and any separate branch or section of such club, institution, organisation or association but a branch or section shall not be treated as a separate branch or section unless it occupies separate premises. (3) For the purposes of this paragraph there shall be disregarded any bingo which— (a) is played in any week beginning before 27th September 1982; or (b) is exempt from duty by virtue of paragraph 5 or 6 below.

• (3) In paragraph 10 (registration of bingo promoters)—

• (a) the following sub-paragraph shall be inserted after sub-paragraph (1)—

(1A) Any person who is a bingo-promoter but is not registered as such and is not a person to whom sub-paragraph (1) above applies shall within five days of the date on which he became a bingo-promoter (disregarding any day which is a Saturday or Sunday or a Bank Holiday) notify the Commissioners of that fact and of the place where the bingo was and (if he intends to continue to promote the playing of bingo which will or may be chargeable with duty) is to be played and apply to be registered as a bingo-promoter.

; and

• (b) in sub-paragraph (2) of that paragraph for the words “notifies his intention as aforesaid” there shall be su8bstituted the words “ gives notice to the Commissioners under sub-paragraph (1) or (1A) above ” and at the end of that sub-paragraph there shall be inserted the words—

Conditions shall not be imposed under this sub-paragraph if the premises at which the bingo in question is or is to be played are not licensed under the Gaming Act 1968.

.

• (4) In paragraph 12 (preservation of records by bingo-promoters)—

• (a) in sub-paragraph (1) for the word “bingo-promoter” there shall be substituted the words “ promoter of bingo other than bingo which is exempt from duty by virtue of paragraph 1, 5 or 6 above ”;

• (b) in sub-paragraph (3) for the words “A bingo-promoter” there shall be substituted the words “ Any such promoter of bingo ”; and

• (c) in sub-paragraph (4) for the word “bingo-promoters” there shall be substituted the words “ such promoters of bingo as aforesaid ”.

• (5) In paragraph 15 (computation of amount of payments for cards and of the value of prizes) in sub-paragraph (1)—

• (a) for the words from “a bingo-promoter” to “any prize” there shall be substituted the words “ a promoter of bingo as to the amount taken by him or on his behalf on a particular occasion as payment by players for cards or as to the value of the prizes won in bingo promoted by him or by any other promoter on one or more occasions, ”;

• (b) in sub-paragraph (a) for the words “the bingo-promoter” there shall be substituted the words “ the promoter ”; and

• (c) in sub-paragraph (b) after the words “amount of duty” there shall be inserted the words “ (if any) ”.

• (6) The following sub-paragraph shall be inserted in paragraph 15 after sub-paragraph (3)—

(4) In any case where a promoter of bingo disputes the amount of duty chargeable to and recoverable from him by reference to bingo which is chargeable to duty by reason only that one or other (or both) of the conditions specified in sub-paragraph (1)(a) of paragraph 2 above is not satisfied with respect to that bingo, any information obtained in pursuance of this Schedule relating to bingo promoted by any other person may be disclosed to him and shall be admissible in evidence in any proceedings against him.

Part V — Gaming Machine Licence Duty

Great Britain

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

In subsection (2) of section 21 of the 1981 Act (duration of licences) at the end of paragraph (b) there shall be added the words

or (c) a quarter-year licence for any period of three months beginning on 1st January, 1st April, 1st July or 1st October.

8

In subsection (1) of section 22 of the 1981 Act (charge to duty) in paragraph (b) for the words " the higher or the peak rate " there shall be substituted the words " or the higher rate ".

9

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12

In subsection (6) of section 24 of the 1981 Act (penalty for knowingly or recklessly contravening section 24) for sub-paragraph (a) there shall be substituted the following sub-paragraph—

(a) on summary conviction to a penalty— (i) of the prescribed sum, or (ii) of an amount equal to three times the amount of duty payable on a whole-year gaming machine licence for those premises and that machine or, where more than one machine has been provided on those premises in contravention of this section, those machines (whether or not the duty has been paid), whichever is the greater, or to imprisonment for a term not exceeding six months or to both such penalty and imprisonment;

.

13

In subsection (4) of section 25 of the 1981 Act (gaming machines playable by more than one person)—

• (a) after the words “a machine” in the second place where they occur, there shall be inserted the words “ other than a two-penny machine ”;

• (b) in paragraph (a) for “2p” there shall be substituted “ 5p ”;

• (c) in paragraph (b) for the words from the beginning to “5p” there shall be substituted the words “ in a case not falling within paragraph (a) above; ” and

• (d) paragraph (c) shall be omitted.

14

• (1) In section 26 of the 1981 Act, in subsection (2) (interpretation) for the definition of “penny machine” there shall be substituted the following definition:—

“two-penny machine” means a gaming machine which can only be played by the insertion into the machine of a coin or coins of a denomination, or aggregate denomination, not exceeding 2p

.

• (2) At the end of that section there shall be inserted the following subsection:—

(4) Where the game playable by means of a gaming machine can be played more than once for the insertion of a coin or coins of a denomination, or aggregate denomination, exceeding any sum in pence mentioned in section 22(5) or subsection (2) above, the machine is to be treated for the purposes of those provisions as if it can only be played by the insertion into it of a coin of a denomination not exceeding that sum if, in effect, the amount payable to play the game once does not exceed that sum or, where the machine provides differing numbers of games in differing circumstances, cannot exceed that sum.

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17

In paragraph 13 of Schedule 4 to the 1981 Act (regulations as to the marking of gaming machines) for the words from “the higher rate” to “penny machines” there shall be substituted the words “ or the higher rate or, as the case may be, as being two-penny machines ”.

Northern Ireland

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19

• (1) In subsection (2) of section 44 of the 1972 Act (charge to duty) for the words " the higher or the peak rate " there shall be substituted the words " or the higher rate ".

• (2) In subsection (3) of that section (lower rate, higher rate and peak rate machines)—

• (a) in paragraph (a) for " £0.02" there shall be substituted " £005 ";

• (b) in paragraph (b) for the words from " if it can " to the end of the paragraph there shall be substituted the words " in any other case "; and

• (c) paragraph (c) shall be omitted.

• (3) In subsection (4) of that section (rate of duty) for the Table there set out there shall be substituted the following Table—

Description of machines authorised by the licence	Duty on whole-year licence
Chargeable at the lower rate	£300 per machine
Chargeable at the higher rate	£750 per machine

• (4) In subsection (5) of that section (rate of duty for half-year licences) after the word " eleven-twentieths " there shall be inserted the words " , and on a quarter-year licence six-twentieths, ".

• (5) In subsection (6) of that section—

• (a) after the words " a machine ", in the first place where they occur, there shall be inserted the words " other than a twopenny machine ";

• (b) in paragraph (a) for " £0.02" there shall be substituted " £0.05 ";

• (c) paragraph (aa) shall be omitted; and

• (d) in paragraph (b) for the word "peak" there shall be substituted the word " higher ".

20

In section 46 of the 1972 Act (gaming machine licences) at the end of subsection (1) there shall be inserted the words " or the machine is a two-penny machine ".

21

In subsection (4) of section 48 of the 1972 Act (interpretation) after the definition of " coin " there shall be inserted the following definition—

• " two-penny machine " means a gaming machine which can only be played by the insertion into the machine of a coin or coins of a denomination, or aggregate denomination, not exceeeding 2p

.

22

At the end of sub-paragraph (2) of paragraph 9 of Schedule 3 to the 1972 Act (expiry of licences) there shall be added the words " and a quarter-year licence shall expire at the end of 31st March 30th June, 30th September or 31st December, as the case may be, after the date on which it is expressed to take effect ".

23

In paragraph 13 of Schedule 3 to the 1972 Act (regulations as to marking of gaming machines) the words " the peak rate " shall cease to have effect.

24

In paragraph 14(1) of Schedule 3 to the 1972 Act (penalties for knowingly or recklessly contravening section 46) the following sub-paragraphs shall be substituted for sub-paragraphs (i) and (ii)—

(i) on summary conviction to a penalty not exceeding £1,000 or, if greater, of an amount equal to three times the amount of duty payable on a whole-year gaming machine licence for those premises and that machine or, where more than one machine has been provided on those premises in contravention of this section, those machines (whether or not the duty has been paid), or to imprisonment for a term not exceeding 6 months or to both such penalty and imprisonment ; (ii) on conviction on indictment to a penalty of any amount or to imprisonment for a term not exceeding 2 years or to both such penalty and imprisonment.

Schedules 7—10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART I — Relevant Loan Interest

Interpretation

1

In this Schedule—

• " the 1967 Act " means the Housing Subsidies Act 1967 ;

• "the 1972 Schedule" means Schedule 9 to the Finance Act 1972 (relief for interest on loans for purchase or improvement of land etc.);

• " the 1974 Schedule" means Schedule 1 to the Finance Act 1974 (modification of rules for relief for interest) ;

• " the 1981 Order " means the Housing (Northern Ireland) Order 1981 ;

• " notice " means notice in writing ;

• "prescribed", except in Part IV, means prescribed by the Board;

• " the principal section " means section 26 of this Act; and

• " regulations" means regulations made by the Board under section 29 of this Act.

Qualifying conditions

2

• (1) Subject to the following provisions of this Schedule, interest which is paid and payable in the United Kingdom to a qualifying lender and to which sub-paragraph (2) or sub-paragraph (3) below applies is " relevant loan interest",

• (2) This sub-paragraph applies to interest if—

• (a) it is interest falling within paragraph 1 of the 1972 Schedule (interest on loans for purchase or improvement of land) or paragraph 24 of the 1974 Schedule (interest on loans to purchase life annuities) ; and

• (b) apart from subsection (1) or subsection (8) of the principal section and, where applicable, paragraph 5 or paragraph 24(3) of the 1974 Schedule (the tax relief limit) the whole of the interest either would be eligible for relief under section 75 of the Finance Act 1972 or would be taken into account in a computation of profits or gains or losses for the purposes of Case I, Case II or Case VI of Schedule D for any year of assessment; and

• (c) except in the case of interest falling within paragraph 24 of the 1974 Schedule, at the time the interest is paid, the condition in either paragraph 4 or paragraph 4A of the 1974 Schedule is fulfilled with respect to the land, caravan or houseboat to which the loan concerned relates ;

but, unless sub-paragraph (4) or sub-paragraph (5) below applies, this sub-paragraph does not apply to interest which becomes due before 6th April 1983.

• (3) This sub-paragraph applies to interest which becomes due on or after 1st April 1983 and is payable on a loan—

• (a) in respect of which there is in force on 31st March 1983—

• (i) an option notice given under section 24(2) of the 1967 Act (option mortgages), other than one falling within section 27(3)(b) of this Act; or

• (ii) an option notice given under Article 142(2) of the 1981 Order (option mortgages in Northern Ireland), other than one falling within section 27(4)(b) of this Act; and

• (b) which relates to a dwelling in respect of which, at the time the interest is paid, the condition in paragraph 4 of the 1974 Schedule is fulfilled.

• (4) Sub-paragraph (2) above applies to interest which becomes due on or after 1st April 1983 (instead of 6th April 1983) if the qualifying lender to whom it is payable is either a building society, within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967, or a local authority.

• (5) If an application in that behalf is made to the Board by a qualifying lender, sub-paragraph (2) above applies to interest which becomes due on or after such date as may be specified by the Board for the purposes of that sub-paragraph (instead of 6th April 1983).

• (6) The Board shall not under sub-paragraph (5) above specify a date earlier than 1st March 1983 or later than 5th April 1983 and the Board shall notify the qualifying lender concerned of the date specified under that sub-paragraph.

• (7) Sub-paragraph (2) above does not apply to interest payable on a loan the only security for which is a contract of insurance on human life or a contract to pay an annuity on human life.

3

• (1) In determining whether sub-paragraph (2) of paragraph 2 above applies to any interest, paragraph 1 of the 1972 Schedule and paragraph 24 of the 1974 Schedule shall each have effect as if the words " or the Republic of Ireland " were omitted.

• (2) In determining whether sub-paragraph (2)(c) of paragraph 2 above applies to any interest, sub-paragraph (1) of paragraph 4 of the 1974 Schedule (restrictions on reliefs under the 1972 Schedule) shall have effect as if—

• (a) in paragraph (a) after the word " used ", where it first occurs, there were inserted the words " wholly or to a substantial extent "; and

• (b) paragraph (6) (commercial lettings) and the word "or" immediately preceding it were omitted.

• (3) In determining for the purposes of paragraph 2(3)(b) above whether the condition in paragraph 4 of the 1974 Schedule is for the time being fulfilled with respect to any dwelling.—

• (a) sub-paragraph (1) of that paragraph shall have effect as if for the words from " Part I of Schedule 9" to " used " (where it first occurs) there were substituted the words " interest shall not be relevant loan interest for the purposes of section 26 of the Finance Act 1982 unless the dwelling to which the loan relates is at the time the interest is paid used wholly or partly " and paragraph (b) and the word " or " immediately preceding it were omitted ; and

• (b) sub-paragraph (3) of that paragraph shall have effect as if for the words " land, caravan or house-boat" there were substituted the word " dwelling ".

• (4) Where at a time when interest on a loan (in this sub-paragraph referred to as " the first loan ") is relevant loan interest, the borrower raises another loan to defray money to be applied as mentioned in paragraph 1 of the 1972 Schedule with a view—

• (a) to the use of other land or another caravan or house-boat wholly or partly as that person's only or main residence, and

• (b) to the disposal of the land, caravan, house-boat or dwelling to which the first loan relates,

then, in relation to interest payable within twelve months from the making of the other loan, the condition in paragraph 4 of the 1974 Schedule shall be treated as continuing to be fulfilled.

• (5) If in a case falling within sub-paragraph (4) above, the interest on the first loan referred to in that sub-paragraph is interest to which paragraph 2(2) above applies and a direction is given under paragraph 6 of the 1974 Schedule extending the period within which Part I of the 1972 Schedule applies to that first loan, sub-paragraph (4) above shall have effect in relation to that case as if for the reference to twelve months there were substituted a reference to such longer period as is specified in the direction.

• (6) If, in a case falling within sub-paragraph (4) above, the interest on the first loan is interest to which paragraph 2(3) above applies and, having regard to the circumstances of that case, it appears to the Board reasonable to do so, they may direct that, in relation to that case, that sub-paragraph shall have effect as if for the reference to twelve months there were substituted a reference to such longer period as meets the circumstances of that case.

4

• (1) Notwithstanding anything in paragraph 2 above, interest on a home improvement loan is not relevant loan interest unless—

• (a) the qualifying lender to whom the interest is payable is a building society, within the meaning of the Building Societies Act 1962 or the Building Societies Act (Northern Ireland) 1967, or a local authority or the Northern Ireland Housing Executive ; or

• (b) the qualifying lender to whom the interest is payable has given notice to the Board in accordance with regulations that he is prepared to have those home improvement loans in respect of which he is the lender and which were made after such date as he may specify in the notice brought within the tax deduction scheme.

• (2) A qualifying lender may not specify a date in a notice under sub-paragraph (1) above which is earlier than the earliest date on which paragraph 2 above applies to interest on any loan (whether or not a home improvement loan) made by him.

• (3) In this paragraph " home improvement loan" means a loan made to defray money applied wholly in improving or developing land or buildings on land or in paying off another loan which was itself to defray money so applied.

• (4) Paragraphs 3 and 4 of the 1972 Schedule (construction of references to money applied in improving or developing land or buildings) shall apply for the purposes of this paragraph as they apply for the purposes of Part I of that Schedule.

Loans over the tax relief limit

5

• (1) The provisions of this paragraph have effect in relation to a loan where, by virtue of sub-paragraphs (1) and (2) of paragraph 5 or paragraph 24(3) of the 1974 Schedule (the limit on eligibility for tax relief), only part of the interest on the loan would (apart from the principal section) be eligible for relief under section 75 of the Finance Act 1972; and in this paragraph any such loan is referred to as a " limited loan ".

• (2) None of the interest on a limited loan is relevant loan interest unless the qualifying lender to whom the interest is payable has given notice to the Board in accordance with regulations that he is prepared to have limited loans of a description which includes that limited loan brought within the tax deduction scheme.

• (3) If, in a case where sub-paragraph (2) above applies, paragraph 5(2) of the 1974 Schedule requires another loan to be taken into account for the purpose of determining that part of the limited loan interest on which would (apart from the principal section) be eligible for relief as mentioned in sub-paragraph (1) above, none of the interest on the limited loan is relevant loan interest unless that other loan was made by the same qualifying lender as the limited loan.

• (4) Where notice has been given as mentioned in sub-paragraph (2) above and, if sub-paragraph (3) above also applies, the condition in that sub-paragraph is fulfilled only so much of the interest as (apart from the principal section) would be eligible for relief under section 75 of the Finance Act 1972 is relevant loan interest.

Joint borrowers

6

• (1) Where a loan on which interest is payable by the borrower was made jointly to the borrower and another person who is not the borrower's husband or wife, the interest on the loan is not relevant loan interest unless—

• (a) each of the persons to whom the loan was made is a qualifying borrower; and

• (b) in relation to each of them considered separately, the whole of that interest is relevant loan interest, in accordance with the preceding provisions of this Part of this Schedule.

• (2) References in this paragraph to the borrower's husband or wife do not include references to a separated husband or wife, and for this purpose " separated " has the same meaning as in Part II of the 1974 Schedule.

PART II — Application of the Principal Section

7

• (1) The principal section does not apply to any relevant loan interest unless either—

• (a) in the case of a loan of a description specified by regulations for the purposes of this sub-paragraph, the borrower or, in the case of joint borrowers, each of them has given notice to the lender in the prescribed form certifying—

• (i) that he is a qualifying borrower ; and

• (ii) that the interest is relevant loan interest; and

• (iii) such other matters as may be prescribed ; or

• (b) the Board have given notice to the lender and the borrower that the interest may be paid under deduction of tax ; or

• (c) it is interest to which paragraph 2(3) above applies ; or

• (d) the loan to which the interest relates was made, subject to sub-paragraph (4) below, before 1st April 1983 and is of a description specified by regulations for the purposes of this sub-paragraph.

• (2) Where notice has been given as mentioned in paragraph (a) or paragraph (b) of sub-paragraph (1) above, the principal section applies to any relevant loan interest to which the notice relates and which becomes due on or after the relevant date, as denned in sub-paragraph (3) below; and in a case falling within paragraph (c) or paragraph (d) of sub-paragraph (1) above, the principal section applies to the relevant loan interest referred to in that paragraph.