Office of Public Sector Information
PART III continued
(1) Section 824 of the Taxes Act 1988 (repayment supplements for individuals) shall have effect, and be deemed always to have had effect, with the following amendments.
(2) Before subsection (3) insert—
“(2B) Subsection (1) above shall apply to a payment made by the Board under section 375(8) (payment of amount which borrower would have been able to deduct from interest payment under section 369(1)) as if the payment were a repayment falling within that subsection.”
(3) In subsection (3), before paragraph (a) insert—
“(aa) if the repayment is a payment made by the Board under section 375(8), the relevant time is—
(i) if the interest payment was made in the year 1996-97 or a subsequent year of assessment, the 31st January next following that year;
(ii) if the interest payment was made in an earlier year of assessment, the 5th April next following that year;”.
(4) This section shall be deemed to have had effect in relation to provisions corresponding to section 824 of the Taxes Act 1988 directly or indirectly re-enacted in that section as it has effect in relation to that section, subject to subsections (5) and (6) below.
(5) For the purposes of subsection (4) above the references in the amendments of section 824 of the Taxes Act 1988 made by this section to provisions of that Act shall be taken to include references to any corresponding provision contained in the enactments directly or indirectly re-enacted in those provisions.
(6) Subsection (4) above applies only if the payments corresponding to payments under section 375(8) of the Taxes Act 1988 were made in the year 1984-85 or a subsequent year of assessment.
(1) Section 140A of the Taxes Act 1988 (conditional acquisition of shares) is amended as follows.
(2) Omit subsection (2).
(3) In subsection (3), for “In any other case” substitute “If the terms on which the employee acquires the employee’s interest are such that his interest in the shares in question will cease to be only conditional within five years after his acquisition of the interest”.
(4) In subsection (4), for “, in a case falling within subsection (2) or (3) above” substitute “(whether or not subsection (3) above applies)”.
(5) This section applies in relation to shares acquired on or after the day on which this Act is passed.
(1) Section 140C of the Taxes Act 1988 (which describes the cases in which an interest in shares is, or is not, to be treated as only conditional) is amended as follows.
(2) After subsection (1) insert—
“(1A) A person shall not for the purposes of sections 140A and 140B be taken, in relation to any shares in a company or any security, to have an interest which is only conditional by reason only that one or more of subsections (2) to (4) below applies in relation to him.”
(3) In subsections (2), (3) and (4) for the words from the beginning to “by reason only that” substitute “This subsection applies in relation to a person if”.
(4) In subsection (3)—
(a) after “offer the shares for sale” insert “or transfer them”; and
(b) for the words from “if he ceases” to the end substitute “if he ceases to be an officer or employee of the company or of one or more group companies or of any group company.”
(5) After that subsection insert—
“(3A) This subsection applies in relation to a person if he may be required to offer the shares for sale or transfer them, if, as a result of misconduct, he ceases to be an officer or employee of the company or of one or more group companies or of any group company.”
(6) After subsection (5) add—
“(6) For the purposes of this section—
(a) a company is a “group company” in relation to another company if they are members of the same group, and
(b) companies are taken to be members of the same group if, and only if, one is a 51 per cent. subsidiary of the other or both are 51 per cent. subsidiaries of a third company.”
(7) The amendments made by this section shall be deemed always to have had effect.
(1) The following section shall be inserted after section 155 of the Taxes Act 1988 (exception of certain benefits in kind from the general charge to tax)—
(1) Section 154 does not apply where the benefit consists in a mobile telephone being made available (without any transfer of the property in it) to the employee or to a member of his family or household.
(2) In this section “mobile telephone” means wireless telegraphy apparatus designed or adapted for the purpose of transmitting and receiving spoken messages so as to provide a telephone which—
(a) is connected to a public telecommunication system (within the meaning of the [1984 c. 12.] Telecommunications Act 1984); and
(b) is not physically connected to a land-line;
but does not include any cordless telephone or any telepoint telephone.
(3) The mobile telephones to which the exemption provided by this section applies include any mobile telephone provided in connection with a car, van or heavier commercial vehicle, notwithstanding that the vehicle is made available as mentioned in section 157, section 159AA or, as the case may be, section 159AC.
(4) In this section “cordless telephone” means wireless telegraphy apparatus which (whether or not provided in connection with a car, van or heavier commercial vehicle)—
(a) is designed or adapted for the purpose of transmitting and receiving spoken messages so as to provide a wireless extension to a telephone, and
(b) is used only as such an extension to a telephone that is physically connected to a land-line.
(5) In this section “telepoint telephone” means wireless telegraphy apparatus which (whether or not provided in connection with a car, van or heavier commercial vehicle) is used for the purpose of a short-range radio communications service utilising frequencies between 864 and 868 megahertz (inclusive).
(6) In this section “heavier commercial vehicle” has the same meaning as in section 159AC.”
(2) Section 159A of that Act (charge on mobile telephones) shall cease to have effect.
(3) In section 154 of that Act (general charging provision for benefits in kind), in subsection (2)—
(a) in paragraph (b), “159A,” shall be omitted; and
(b) after “sections 155” there shall be inserted “, 155AA”.
(4) In section 168A of that Act (price of a car as regards a year), in subsection (11), for “section 159A(8)(a)” there shall be substituted “section 155AA(2)”.
(5) In section 200AA of that Act (incidental benefits for holders of certain offices etc.), subsection (3) shall cease to have effect.
(6) This section has effect for the year 1999-00 and subsequent years of assessment.
(1) After section 156 of the Taxes Act 1988 there shall be inserted the following section—
(1) This section applies to a benefit consisting in the provision of computer equipment if, in the case of a person (“the employee”) who is in employment to which this Chapter applies—
(a) that equipment is provided by being made available to the employee or to a member of his family or household;
(b) it is so made available without any transfer of property in the equipment to the employee or to a member of his family or household; and
(c) it is so made available in a case in which the arrangements for providing employees of the employer with the benefit of computer equipment comply with subsection (2) below.
(2) The arrangements for providing the employees of the employer with the benefit of computer equipment comply with this subsection unless—
(a) the only arrangements for making computer equipment available to such employees, or to members of their families or households, are arrangements that are confined to cases where the employee in question is a director of a company; or
(b) the arrangements (taking them all together) for making computer equipment available to employees of the employer, or to members of their families or households, are such that it is made available on terms that are more favourable in some or all of the cases where the employee in question is a director of a company than in one or more cases where he is not.
(3) Section 154 applies for any year of assessment to—
(a) the benefits to which this section applies that are provided in that year and consist in the making available to the employee of any equipment, and
(b) the benefits to which this section applies that are provided in that year and consist in the making available to members of his family or household of any equipment,
to the extent only that the amount which (disregarding this section) would be taken to be the aggregate cash equivalent of the benefits falling within paragraphs (a) and (b) above exceeds £500.
(4) For the purposes of this section “computer equipment” includes printers, scanners, modems, discs and other peripheral devices designed to be used by being connected to or inserted in a computer.
(5) In this section references to making computer equipment available—
(a) include references to the provision, together with any computer equipment made available, of a right to use computer software; but
(b) do not include references to the provision of a benefit consisting in access to, or the use of, any public telecommunication system (within the meaning of the [1984 c. 12.] Telecommunications Act 1984).”
(2) In section 154(2) of that Act, for “and 155A” there shall be substituted “, 155A and 156A”.
(3) This section applies for the year 1999-00 and subsequent years of assessment.
(1) An application made at any time on or after 28th July 1998 for the registration of a profit-related pay scheme shall not be required to contain, or to have contained, any such undertaking as is mentioned in section 175(1)(c) of the Taxes Act 1988 (undertaking to satisfy minimum wage legislation without taking account of profit-related pay).
(2) In section 178(1) of the Taxes Act 1988, paragraph (d) (cancellation on grounds of non-compliance with a section 175(1)(c) undertaking) shall be omitted.
(3) Subsection (2) above has effect in relation only to failures to comply taking place on or after 28th July 1998; but it shall be deemed so to have had effect at all times on or after that date.
(1) Schedule 6 to the Taxes Act 1988 (cars available for private use: cash equivalent of car) shall be amended as follows.
(2) In paragraph 2(1) (reduction for business travel: 18,000 miles and above)—
(a) for “in the year concerned” substitute “in a year”, and
(b) for “the amount ascertained under paragraph 1 above, reduced by two thirds” substitute “15 per cent. of the price of the car as regards the year”.
(3) In paragraph 2(2) (reduction for business travel: 2,500 to 18,000 miles)—
(a) for “in the year concerned” substitute “in a year”, and
(b) for “the amount ascertained under paragraph 1 above, reduced by one third” substitute “25 per cent. of the price of the car as regards the year”.
(4) For paragraph 4(a) (two or more cars) substitute—
“(a) paragraph 2(1) above shall have effect as if for “15 per cent.” there were substituted “25 per cent.””
(5) In paragraph 5 (reduction for age of car), for “one third” substitute “one quarter”.
(6) This section has effect for the year 1999-00 and subsequent years of assessment.
(1) In Chapter IV of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: exemptions and deductions), after section 197A insert—
(1) There is no charge to tax under section 154 (taxable benefits: general charging provision) in respect of the provision for employees of a works bus service.
(2) A “works bus service” means a service provided by means of a bus for conveying employees of one or more employers on qualifying journeys.
(3) For the purposes of this section—
“bus” means a road passenger vehicle with a seating capacity of 12 or more; and
“qualifying journey”, in relation to an employee, means a journey—
between his home and workplace, or
between one workplace and another,
in connection with the performance of the duties of the employment.
(4) The exemption conferred by this section is subject to the following conditions—
(a) the service must be available generally to employees of the employer (or each employer) concerned;
(b) the main use of the service must be for qualifying journeys by those employees.
(5) The exemption is also subject to substantial compliance with the condition that the service must be used only by the employees for whom it is provided or their children.
For this purpose “children” includes stepchildren and illegitimate children but does not include children aged 18 or over.
(6) If under this section there is no charge to tax under section 154 (or would be no charge if the employee were in employment to which Chapter II of Part V applies), there is no charge to tax under section 141 (non-cash vouchers) in respect of a voucher evidencing the employee’s entitlement to use the service.
(7) In this section—
“employment” includes an office and related expressions have a corresponding meaning; and
“workplace” means a place at which the employee’s attendance is necessary in the performance of the duties of the employment.
(8) For the purposes of this section the seating capacity of a vehicle is determined in the same way as for the purposes of Part III of Schedule 1 to the [1994 c. 22.] Vehicle Excise and Registration Act 1994 (vehicle excise duty on buses), whether or not the vehicle is a bus within the meaning of that Part.
(1) There is no charge to tax under section 154 (taxable benefits: general charging provision) in respect of financial or other support for a public transport road service used by employees of one or more employers for qualifying journeys.
(2) For this purpose—
“public transport road service” means a public passenger transport service provided by means of a road vehicle; and
“qualifying journey”, in relation to an employee, means a journey—
between his home and workplace, or
between one workplace and another,
in connection with the performance of the duties of the employment.
(3) The exemption conferred by this section is subject to the following conditions—
(a) the terms on which the service is available to the employees referred to in subsection (1) above must not be more favourable than those available to other passengers;
(b) the service must be available generally to employees of the employer (or each employer) concerned.
(4) In this section—
“employment” includes an office and related expressions have a corresponding meaning; and
“workplace” means a place at which the employee’s attendance is necessary in the performance of the duties of the employment.”
(2) This section has effect for the year 1999-00 and subsequent years of assessment.
(1) The provisions listed below (which provide for exemption from tax in relation to the provision of car parking spaces) apply in relation to—
(a) motor cycle parking spaces, and
(b) facilities for parking cycles,
as they apply in relation to car parking spaces.
(2) The provisions referred to above are—
section 141(6A) of the Taxes Act 1988 (use of non-cash voucher to obtain use of parking space);
section 142(3A) of that Act (use of credit-token to obtain use of parking space);
section 155(1A) of that Act (taxable benefits: general charge excluded in relation to provision of parking space); and
section 197A of that Act (charge on emoluments excluded in relation to expenditure in connection with provision of parking space).
(3) In subsection (1) above—
“motor cycle” has the meaning given by section 185(1) of the [1988 c. 52.] Road Traffic Act 1988, and
“cycle” has the meaning given by section 192(1) of that Act.
(4) The provisions of this section have effect for the year 1999-00 and subsequent years of assessment.
(1) In Chapter IV of Part V of the Taxes Act 1988 (provisions relating to the Schedule E charge: exemptions and deductions), after section 197AB (inserted by section 48 above) insert—
(1) There is no charge to tax under section 154 (taxable benefits: general charging provision) in respect of the provision for an employee of—
(a) a cycle, or
(b) cyclist’s safety equipment,
without any transfer of the property in the cycle or equipment.
(2) In this section “cycle” has the meaning given by section 192(1) of the Road Traffic Act 1988, and “cyclist” has a corresponding meaning.
(3) The exemption conferred by subsection (1) above is subject to the condition that the benefit or facility in question must be available generally to employees of the employer concerned.
(4) The exemption is also subject to the condition that the employee must use the cycle or safety equipment mainly for qualifying journeys.
For this purpose “qualifying journey”, in relation to an employee, means a journey—
between his home and workplace, or
between one workplace and another,
in connection with the performance of the duties of the employment.
(5) If under this section there is no charge to tax under section 154 (or would be no charge if the employee were in employment to which Chapter II of Part V applies), there is no charge to tax under section 141 (non-cash vouchers) in respect of a voucher evidencing the employee’s entitlement to use the cycle or safety equipment in question.
(6) In this section—
“employment” includes an office and related expressions shall be construed accordingly; and
“workplace” means a place at which the employee’s attendance is necessary in the performance of the duties of the employment.”
(2) In section 27(2B) of the [1990 c. 1.] Capital Allowances Act 1990 (cases in which expenditure on machinery or plant qualifies for allowances although not “necessarily” provided for use in performance of duties of employment)—
(a) in paragraph (a) after “mechanically propelled road vehicle” insert “or a cycle”; and
(b) after paragraph (b) insert—
“In paragraph (a) “cycle” has the meaning given by section 192(1) of the [1988 c. 52.] Road Traffic Act 1988.”.
(3) The provisions of this section have effect for the year 1999-00 and subsequent years of assessment.
(1) In section 200 of the Taxes Act 1988 (expenses of Members of Parliament), in subsection (2), for the words from “the cost of” to “Strasbourg” substitute “EU travel expenses” and after that subsection insert—
“(3) For the purposes of subsection (2) above “EU travel expenses” are the cost of, and any additional expenses incurred in, travelling between the United Kingdom and—
(a) any European Union institution in Brussels, Luxembourg or Strasbourg, or
(b) the national parliament of another member State.”.
(2) This section has effect in relation to sums paid on or after 1st April 1999.
(1) Schedule 5 to this Act, which makes amendments the effect of which is—
(a) to treat members of the Scottish Parliament, the National Assembly for Wales and the Northern Ireland Assembly in the same way, for tax purposes, as members of Parliament, and
(b) to treat certain office holders under the [1998 c. 46.] Scotland Act 1998, the [1998 c. 38.] Government of Wales Act 1998 and the [1998 c. 47.] Northern Ireland Act 1998 in the same way, for tax purposes, as holders of ministerial and other offices,
shall have effect.
(2) The amendments made by that Schedule have effect for the year 1999-00 and subsequent years of assessment.
(1) Sections 562 to 565 of the Taxes Act 1988 (exemption certificates for the scheme for sub-contractors in the construction industry) shall have effect in relation to any application to which this section applies, and shall be deemed always to have had effect in relation to such an application—
(a) with the substitution of the subsection set out in subsection (2) below for the subsection (2B) inserted in section 562 by paragraph 4(3) of Schedule 27 to the [1995 c. 4.] Finance Act 1995 (which defined the payments to be taken into account in assessing turnover for the purposes of exemption); and
(b) as if paragraphs 3 to 5 of Schedule 8 to the [1998 c. 36.] Finance Act 1998 (which extended the description of payments for certain cases) had not been enacted.
(2) That subsection is as follows—
“(2B) In subsection (2A) above “relevant payments” means payments under contracts relating to, or to the work of individuals participating in the carrying out of, any operations which—
(a) are of a description specified in subsection (2) of section 567; but
(b) are not of a description specified in subsection (3) of that section,
other than so much of the payments as represents the direct cost to the person receiving the payments of materials used or to be used in carrying out the operations in question.”
(3) This section applies to any application for the issue or renewal of a certificate under section 561 of the Taxes Act 1988 which is or has been made with respect to any period beginning on or after 1st August 1999.
(1) Schedule 6 to this Act (tax treatment of receipts by way of reverse premium) has effect.
(2) The provisions of that Schedule apply in relation to a reverse premium (within the meaning of that Schedule) received on or after 9th March 1999, unless it is a payment or other benefit to which the recipient was entitled immediately before that date.
(3) In determining whether a payment or benefit was one to which the recipient was entitled immediately before 9th March 1999, no account shall be taken of any arrangements made on or after that date.
(1) The following section shall be inserted after section 83 of the Taxes Act 1988—
(1) This section applies where a person carrying on a trade, profession or vocation gives an article falling within subsection (2) below to—
(a) a charity within the meaning of section 506, or
(b) a body listed in section 507(1).
(2) An article falls within this subsection if—
(a) it is an article manufactured, or of a class or description sold, by the donor in the course of his trade; or
(b) it is an article used by the donor in the course of his trade, profession or vocation which for the purposes of Part II of the 1990 Act constitutes machinery or plant used by him wholly or partly in the course of that trade, profession or vocation.
(3) Subject to subsection (4) below, where this section applies in the case of the gift of an article—
(a) no amount shall be required, in consequence of the donor’s disposal of that article from trading stock, to be brought into account for the purposes of the Tax Acts as a trading receipt of the donor; and
(b) section 24(6) of the 1990 Act shall not require the donor to bring into account any disposal value in respect of the article for the purposes of that section.
(4) In any case where—
(a) relief is given under subsection (3) above in respect of the gift of an article, and
(b) any benefit received in any chargeable period by the donor or any person connected with him is in any way attributable to the making of that gift,
the donor shall in respect of that chargeable period be charged to tax under Case I or Case II of Schedule D or, if he is not chargeable to tax under either of those Cases for that period, under Case VI of Schedule D on an amount equal to the value of that benefit.
(5) Section 839 applies for the purposes of this section.”
(2) Section 47 of the [1998 c. 36.] Finance Act 1998 (gifts in kind for relief in poor countries) shall cease to have effect.
(3) Subsections (1) and (2) above have effect in relation to gifts made on or after the day on which this Act is passed.
(1) Section 48 of the Finance Act 1998 (gifts of money made for relief in poor countries) shall be amended in accordance with subsections (2) to (4) below.
(2) In subsection (1)—
(a) in paragraph (a), for “the first designation date” there shall be substituted “31st July 1998”;
(b) in paragraph (b), for “one or both” there shall be substituted “one or more”.
(3) In subsection (2)—
(a) in paragraphs (a) and (b) for “designated countries or territories” there shall be substituted “countries or territories designated for the purposes of this paragraph,”; and
(b) at the end of paragraph (b) there shall be inserted “, and
(c) the relief of poverty in the case of persons from any country or territory designated for the purposes of this paragraph who are refugees or who have suffered displacement as a result of organised intimidation or oppression or of war or other armed conflict.”
(4) In subsection (9), for “this section” there shall be substituted “paragraph (a), (b) or (c) of subsection (2) above”.
(5) Any order made before the passing of this Act under subsection (9) of that section (designation of countries or territories in respect of which section 48 has effect) shall have effect as if made for the purposes only of subsection (2)(a) and (b) of that section.
(6) Any notification given for the purposes of that section, in relation to a charity, before the passing of this Act shall be treated as a notification given for the purposes of that section as amended by this section.
(7) This section has effect in relation to gifts made on or after 6th April 1999.
(8) An order made under subsection (9) of that section for the purposes of subsection (2)(c) (as inserted by subsection (3)(b) above) may have effect retrospectively in relation to such times falling on or after that date as may be specified in the order.
Finance Act 1999