Office of Public Sector Information
PART II continued CHAPTER I continued
(2) For the purposes of sections 710 to 728 of the Taxes Act 1988 (accrued income scheme) the security—
(a) except in a case falling within paragraph (b) of subsection (1) above, shall be treated as transferred by the resident company with accrued interest on the relevant day;
(b) in a case falling within that paragraph where the resident company was the holder of the security on the day immediately preceding the relevant day, shall be treated as transferred by that company with accrued interest on that preceding day; and
(c) in a case falling within paragraph (c) of that subsection where the security is not a variable interest rate security, shall cease to be treated as such a security as from the end of the relevant day;
and, in relation to such a transfer, the settlement day is the day of the transfer (notwithstanding section 712).
(3) Subsection (4) below applies where the debt on an accrued income security—
(a) is a qualifying debt at the beginning of the commencement date;
(b) becomes such a debt on any day after that date;
(c) ceases to be such a debt on any such day; or
(d) is such a debt at the beginning of the first day of any accounting period of the resident company beginning after that date;
and in that subsection “the relevant day” means the day mentioned in whichever of paragraphs (a) to (d) above is applicable.
(4) For the purposes of sections 710 to 728 the security—
(a) except in a case falling within paragraph (c) of subsection (3) above, shall be treated as transferred to the resident company with accrued interest on the relevant day;
(b) in a case falling within that paragraph where the resident company is the holder of the security on the day immediately following the relevant day, shall be treated as transferred to that company with accrued interest on that following day; and
(c) in a case falling within paragraph (a) or (b) of that subsection where the security is not a variable interest rate security, shall be treated as such a security as from the beginning of the relevant day;
and, in relation to such a transfer, the settlement day is the day of the transfer (notwithstanding section 712).
(5) Any income which, apart from this subsection, would be treated as arising on any day by virtue of subsection (1)(a) or (b) above shall be treated as not arising until whichever of the following is the earliest, namely—
(a) the earliest day on which, under the terms on which the security is issued, the resident company is entitled to require it to be redeemed;
(b) the day on which the security is redeemed; and
(c) the day (if any) on which it is transferred by the resident company.
(6) Subsection (7) below applies where, in the case of a debt which is not a debt on a security, the terms of the debt are such that, if it were such a debt, the security would be an accrued income security.
(7) For the purposes of this section and sections 710 to 728, at any time when the debt is a qualifying debt—
(a) an accrued income security incorporating the terms of the debt shall be deemed to be held by the resident company, and
(b) the debt shall be deemed to be a debt on that security.
(8) Subsections (9) and (10) below shall apply where an accrued income security (including one deemed to be held by virtue of subsection (7) above) is treated by virtue of subsection (1)(c) or (d) above as transferred on any day by the resident company.
(9) In subsection (10) below “straddling period” means a period which would (by virtue of section 711(3) and (4) and apart from subsection (10) below) be in relation to the security an interest period beginning on or before and ending after the day of the transfer.
(10) For the purposes of sections 710 to 728 a straddling period is not an interest period but—
(a) the period beginning with the day on which the straddling period begins and ending with the day of the transfer is an interest period; and
(b) the period beginning with the day immediately following the day of the transfer and ending with the day on which the straddling period ends is an interest period.
(11) In this section—
“accrued income security” has the same meaning as “security” has for the purposes of sections 710 to 728;
“variable interest rate security” means a security to which section 717 (variable interest rate) applies;
and other expressions to which meanings are assigned for the purposes of those sections have the same meanings as in sections 710 to 728.
(12) In this section and sections 64 and 65 below “the commencement date” means 1st April 1993.
(1) Subsection (2) below applies where the debt on a deep discount security—
(a) is a qualifying debt at the end of the day immediately preceding the commencement date;
(b) becomes such a debt at any time after that date;
(c) ceases to be such a debt at any such time; or
(d) is such a debt at the end of the last day of any accounting period of the resident company ending after that date;
and in that subsection “the relevant time” means the time mentioned in whichever of paragraphs (a) to (d) above is applicable.
(2) For the purposes of Schedule 4 to the Taxes Act 1988 (deep discount securities) the resident company shall be deemed—
(a) except in a case falling within paragraph (b) of subsection (1) above, to dispose of the security at the relevant time; and
(b) in a case falling within that paragraph where that company was the holder of the security at a time immediately preceding the relevant time, to dispose of the security at that preceding time.
(3) Subsection (4) below applies where the debt on a deep discount security—
(a) is a qualifying debt at the beginning of the commencement date;
(b) becomes such a debt at any time after that date;
(c) ceases to be such a debt at any such time; or
(d) is such a debt at the beginning of the first day of any accounting period of the resident company beginning after that date;
and in that subsection “the relevant time” means the time mentioned in whichever of paragraphs (a) to (d) above is applicable.
(4) For the purposes of Schedule 4 the resident company shall be deemed—
(a) except in a case falling within paragraph (c) of subsection (3) above, to acquire the security at the relevant time; and
(b) in a case falling within that paragraph where that company is the holder of the security at a time immediately following the relevant time, to acquire the security at that following time.
(5) Any income which, apart from this subsection, would be treated as arising at any time by virtue of subsection (1)(a) or (b) above shall be treated as not arising until whichever of the following is the earliest, namely—
(a) the earliest time at which, under the terms on which the security is issued, the resident company is entitled to require it to be redeemed;
(b) the time at which the security is redeemed; and
(c) the time (if any) at which it is transferred by the resident company.
(6) Subsection (7) below applies where, in the case of a debt which is not a debt on a security, the terms of the debt are such that, if it were such a debt, the security would be a deep discount security.
(7) For the purposes of this section and Schedule 4, at any time when the debt is a qualifying debt—
(a) a deep discount security incorporating the terms of the debt shall be deemed to be held by the resident company, and
(b) the debt shall be deemed to be a debt on that security.
(8) In this section expressions to which meanings are assigned for the purposes of Schedule 4 have the same meanings as in that Schedule.
(1) Subsection (2) below applies where the debt on a deep gain security—
(a) is a qualifying debt at the end of the day immediately preceding the commencement date;
(b) becomes such a debt on any day after that date;
(c) ceases to be such a debt on any such day; or
(d) is such a debt at the end of the last day of any accounting period of the resident company ending after that date;
and in that subsection “the relevant day” means the day mentioned in whichever of paragraphs (a) to (d) above is applicable.
(2) For the purposes of Schedule 11 to the [1989 c. 26.] Finance Act 1989 (deep gain securities) the resident company shall be treated—
(a) except in a case falling within paragraph (b) of subsection (1) above, as transferring the security on the relevant day;
(b) in a case falling within that paragraph where the resident company was the holder of the security on the day immediately preceding the relevant day, as transferring the security on that preceding day; and
(c) (in either case) as obtaining in respect of the transfer an amount equal to the market value of the security at the time of the transfer.
(3) Subsection (4) below applies where the debt on a deep gain security—
(a) is a qualifying debt at the beginning of the commencement date;
(b) becomes such a debt on any day after that date;
(c) ceases to be such a debt on any such day; or
(d) is such a debt at the beginning of the first day of any accounting period of the resident company beginning after that date;
and in that subsection “the relevant day” means the day mentioned in whichever of paragraphs (a) to (d) above is applicable.
(4) For the purposes of Schedule 11 the resident company shall be treated—
(a) except in a case falling within paragraph (c) of subsection (3) above, as acquiring the security on the relevant day;
(b) in a case falling within that paragraph where the resident company is the holder of the security on the day immediately following the relevant day, as acquiring the security on that following day; and
(c) (in either case) as paying in respect of the acquisition an amount equal to the market value of the security at the time of the acquisition.
(5) Any income which, apart from this subsection, would be treated as arising on any day by virtue of subsection (1)(a) or (b) above shall be treated as not arising until whichever of the following is the earliest, namely—
(a) the earliest day on which, under the terms on which the security is issued, the resident company is entitled to require it to be redeemed;
(b) the day on which the security is redeemed; and
(c) the day (if any) on which it is transferred by the resident company.
(6) Subsection (7) below applies where, in the case of a debt which is not a debt on a security, the terms of the debt are such that, if it were such a debt, the security would be a deep gain security.
(7) For the purposes of this section and Schedule 11, at any time when the debt is a qualifying debt—
(a) a deep gain security incorporating the terms of the debt shall be deemed to be held by the resident company, and
(b) the debt shall be deemed to be a debt on that security.
(8) Any reference in this section to Schedule 11 is a reference to that Schedule as it would have effect if paragraphs 1(4)(c) and 22 (exclusion of qualifying indexed securities and special rules for such securities) were omitted; but no income accruing before the commencement date in respect of the debt on a qualifying indexed security shall be chargeable to tax by virtue of this section.
(9) In this section expressions to which meanings are assigned for the purposes of Schedule 11 have the same meanings as in that Schedule.
(1) In any case where—
(a) by virtue of sections 63(2) and 65(2) above, a single security is treated as transferred both for the purposes of sections 710 to 728 of the Taxes Act 1988 and for the purposes of Schedule 11 to the [1989 c. 26.] Finance Act 1989; and
(b) the transfer for the purposes of that Schedule is one to which paragraph 5 of that Schedule applies,
the resident company shall not be chargeable to tax in respect of any income treated as arising by virtue of the transfer for the purposes of sections 710 to 728.
(2) In any case where, by virtue of sections 63(7) and 65(7) above, the same qualifying debt is deemed to be a debt on two separate securities, those securities shall be treated as a single security for the purposes of subsection (1) above.
(3) In any case where, by virtue of subsection (7) of section 63, 64 or 65 above, a qualifying debt is deemed to be a debt on a security, any income which is chargeable to tax as income treated as arising to the resident company by virtue of that section shall not also be chargeable to tax as income actually arising.
(1) In section 339 of the Taxes Act 1988 (charges on income: donations to charity) in subsection (3A) (payment by close company not a qualifying donation if less than £400 after deducting income tax) for “£400” there shall be substituted “£250”.
(2) In section 25 of the [1990 c. 29.] Finance Act 1990 (donations to charity by individuals) in subsection (2)(g) (gift must be not less than £400 to be a qualifying donation) for “£400” there shall be substituted “£250”.
(3) Subsection (1) above shall apply in relation to payments made on or after 16th March 1993.
(4) Subsection (2) above shall apply in relation to gifts made on or after 16th March 1993.
(1) In section 202(7) of the Taxes Act 1988 (which limits to £600 the deductions attracting relief) for “£600” there shall be substituted “£900”.
(2) This section shall have effect for the year 1993-94 and subsequent years of assessment.
The following section shall be inserted after section 86 of the Taxes Act 1988—
(1) This section applies where—
(a) a person (the employer) is liable to make to any individual payments from which income tax falls to be deducted by virtue of section 203 and regulations under that section, and
(b) the employer withholds sums from those payments in accordance with a scheme falling within subsection (3) of section 202 and pays the sums to an agent (within the meaning of subsection (4)(a) of that section).
(2) Any relevant expenditure incurred by the employer on or after 16th March 1993—
(a) shall be deducted in computing for the purposes of Schedule D the profits or gains of a trade, profession or vocation carried on by the employer, or
(b) if the employer is an investment company or a company in the case of which section 75 applies by virtue of section 76, shall be treated as expenses of management.
(3) Relevant expenditure is expenditure incurred in making to the agent any payment in respect of expenses which have been or are to be incurred by the agent in connection with his functions under the scheme.”
(1) In Schedule 6 to the Taxes Act 1988 (taxation of directors and others in respect of cars) for Part I (tables of flat rate cash equivalents) there shall be substituted—
| Cylinder capacity of car in cubic centimetres | Age of car at end of relevant year of assessment | |
|---|---|---|
| Under 4 years | 4 years or more | |
| 1,400 or less | £2,310 | £1,580 |
| More than 1,400 but not more than 2,000 | £2,990 | £2,030 |
| More than 2,000 | £4,800 | £3,220 |
| Original market value of car | Age of car at end of relevant year of assessment | |
|---|---|---|
| Under 4 years | 4 years or more | |
| Less than £6,000 | £2,310 | £1,580 |
| £6,000 or more but less than £8,500 | £2,990 | £2,030 |
| £8,500 or more but not more than £19,250 | £4,800 | £3,220 |
| Original market value of car | Age of car at end of relevant year of assessment | |
|---|---|---|
| Under 4 years | 4 years or more | |
| More than £19,250 but not more than £29,000 | £6,210 | £4,180 |
| More than £29,000 | £10,040 | £6,660” |
(2) This section shall have effect for the year 1993-94.
(1) In section 158 of the Taxes Act 1988 (car fuel) for the Tables in subsection (2) (tables of cash equivalents) there shall be substituted—
| Cylinder capacity of car in cubic centimetres | Cash equivalent |
|---|---|
| 1,400 or less | £600 |
| More than 1,400 but not more than 2,000 | £760 |
| More than 2,000 | £1,130 |
| Cylinder capacity of car in cubic centimetres | Cash equivalent |
|---|---|
| 2,000 or less | £550 |
| More than 2,000 | £710 |
| Original market value of car | Cash equivalent |
|---|---|
| Less than £6,000 | £600 |
| £6,000 or more but less than £8,500 | £760 |
| £8,500 or more | £1,130” |
(2) In subsection (5) of that section (reductions in cash equivalents) the words “or 3” shall be omitted.
(3) This section shall have effect for the year 1993-94.
Schedule 3 to this Act (which contains provisions, having effect for the year 1994-95 and subsequent years of assessment, about cars available for private use and car fuel) shall have effect.
Schedule 4 to this Act (which contains provisions about vans available for private use) shall have effect.
(1) In the Taxes Act 1988, after section 159AB (inserted by Schedule 4 to this Act) there shall be inserted the following section—
(1) This section applies where in any year—
(a) a heavier commercial vehicle is made available to an employee in circumstances such that, had that vehicle been a van, the benefit so provided would have been chargeable to tax under section 159AA, and
(b) the employee’s use of the vehicle is not wholly or mainly private use.
(2) Section 154 shall not apply to—
(a) the benefit so provided, or
(b) any benefit in connection with the vehicle other than a benefit in connection with the provision of a driver for the vehicle.
(3) The employee shall not be taxable—
(a) under Schedule E in respect of the discharge of any liability of his in connection with the vehicle;
(b) under section 141 or 142 in respect of any non-cash voucher or credit-token to the extent that it is used by him—
(i) for obtaining money which is spent on goods or services in connection with the vehicle, or
(ii) for obtaining such goods or services;
(c) under section 153 in respect of any payment made to him in respect of expenses incurred by him in connection with the vehicle.
(4) In this section “heavier commercial vehicle” means a mechanically propelled road vehicle which is—
(a) of a construction primarily suited for the conveyance of goods or burden of any description, and
(b) of a design weight exceeding 3,500 kilograms;
and “design weight” here means the weight which the vehicle is designed or adapted not to exceed when in normal use and travelling on a road laden.
(5) In this section—
(a) “private use”, in relation to a vehicle made available to an employee, means any use other than for his business travel, and
(b) “business travel” means travelling which the employee is necessarily obliged to do in the performance of the duties of his employment.”
(2) In section 159A of that Act (mobile telephones) in subsection (8)(a) (meaning of “mobile telephone”), as amended by Schedule 4 to this Act—
(a) the word “but” at the end of sub-paragraph (i) shall be omitted,
(b) after that sub-paragraph there shall be inserted the following sub-paragraph—
“(i) includes any such apparatus provided in connection with a heavier commercial vehicle (within the meaning given by section 159AC) notwithstanding that the vehicle is made available as mentioned in that section;”, and
(c) at the end of sub-paragraph (ii) there shall be inserted “or heavier commercial vehicle”.
(3) This section shall have effect for the year 1993-94 and subsequent years of assessment.
(1) After section 197F of the Taxes Act 1988 there shall be inserted the following section—
(1) No charge to tax under Schedule E shall arise in respect of the provision to any person in employment with any employer, or to any member of the family or household of such a person, of—
(a) any benefit to which this section applies; or
(b) any non-cash voucher which is capable of being exchanged only for a benefit to which this section applies.
(2) This section applies, subject to subsections (3) to (5) below, to any benefit consisting in, or in a right or opportunity to make use of, any sporting or other recreational facilities provided so as to be available generally to, or for use by, the employees of the employer in question.
(3) Except in such cases as may be prescribed, this section does not apply to any benefit consisting in—
(a) an interest in, or the use of, any mechanically propelled vehicle;
(b) an interest in, or the use of, any holiday or other overnight accommodation or any facilities which include, or are provided in association with, a right or opportunity to make use of any such accommodation;
(c) a facility provided on domestic premises;
(d) a facility provided so as to be available to, or for use by, members of the public generally;
(e) a facility which is used neither wholly nor mainly by persons whose right or opportunity to use it derives from employment (whether with the same employer or with different employers); or
(f) a right or opportunity to make use of any facility falling within any of the preceding paragraphs.
(4) For the purposes of subsection (3)(e) above a person’s right or opportunity to use any facility shall be taken to derive from employment if, and only if—
(a) it derives from his being or having been an employee of a particular employer or a member of the family or household of a person who is or has been such an employee; and
(b) the facility is one which is provided so as to be available generally to the employees of that employer.
(5) The Treasury may by regulations provide—
(a) that such benefits as may be prescribed shall not be benefits to which this section applies; and
(b) that such other benefits as may be prescribed shall be benefits to which this section applies only where such conditions as may be prescribed are satisfied in relation to the terms on which, and the persons to whom, they are provided.
(6) In this section—
“domestic premises” means any premises used wholly or mainly as a private dwelling or any land or other premises belonging to, or enjoyed with, any premises so used;
“non-cash voucher” has the same meaning as in section 141;
“prescribed” means prescribed by regulations made by the Treasury;
“vehicle” includes any ship, boat or other vessel, any aircraft and any hovercraft;
and section 168(2) and (4) shall apply for the purposes of this section as it applies for the purposes of Chapter II of this Part.”
(2) This section shall apply for the year 1993-94 and subsequent years of assessment.
Schedule 5 to this Act (which relates to the payment of expenses, and the provision of benefits, in respect of removals) shall have effect.
(1) In Chapter I of Part VI of the Taxes Act 1988 (taxation of company distributions), before section 208 there shall be inserted the following section—
(1) Subject to section 686, so much of any person’s total income in any year of assessment as—
(a) comprises income which is chargeable under Schedule F; and
(b) in the case of an individual, is not income falling within section 1(2)(b),
shall by virtue of this section be charged for that year at the lower rate, instead of at the rate otherwise applicable to it in accordance with section 1(2)(aa) and (a).
Finance Act 1993