Office of Public Sector Information
PART 9 continued
(1) In Part 4 of the Taxes Management Act 1970 (assessment and claims), after section 43B insert—
(1) Where—
(a) a return is amended under section 28A(2)(b), 28B(2)(b) or 28B(4), and
(b) the amendment is made for the purpose of making good to the Crown any loss of tax attributable to fraudulent or negligent conduct on the part of the taxpayer or a person acting on his behalf,
sections 36(3) and 43(2) apply in relation to the amendment as they apply in relation to any assessment under section 29.
(2) Where—
(a) a return is amended under section 28A(2)(b), 28B(2)(b) or 28B(4), and
(b) the amendment is not made for the purpose mentioned in subsection (1)(b) above,
sections 43(2), 43A and 43B apply in relation to the amendment as they apply in relation to any assessment under section 29.
(3) References to an assessment in sections 36(3), 43(2), 43A and 43B, as they apply by virtue of subsection (1) or (2) above, shall accordingly be read as references to the amendment of the return.
(4) Where it is necessary to make any adjustment by way of an assessment on any person—
(a) in order to give effect to a consequential claim, or
(b) as a result of allowing a consequential claim,
the assessment is not out of time if it is made within one year of the final determination of the claim.
For this purpose a claim is not taken to be finally determined until it, or the amount to which it relates, can no longer be varied, on appeal or otherwise.
(5) In subsection (4) above “consequential claim” means any claim, supplementary claim, election, application or notice that may be made or given under section 36(3), 43(2) or 43A (as it applies by virtue of subsection (1) or (2) above or otherwise).”.
(2) In section 43A of that Act (further assessments: claims etc), in subsection (2A) (elections to which extension of time limit does not apply) for the words from “an election under” to the end substitute “an election under—
(a) section 257BA of the principal Act (election as to transfer of married couple’s allowance),
(b) Schedule 13B to that Act (elections as to transfer of children’s tax credit), or
(c) section 35(5) of the Taxation of Chargeable Gains Act 1992 (election for assets to be re-based to 1982).”.
(3) So far as it applies in relation to an amendment of a return, this section applies only where the notice of the amendment is issued after the day on which this Act is passed.
(1) The National Savings Bank Act 1971 (c. 29) is amended as follows.
(2) In section 3 (ordinary and investment deposits), after subsection (1) insert—
“(1A) But subsection (1) is subject to any provision made in relation to ordinary accounts or ordinary deposits by regulations under section 2 of this Act made by virtue of section 8(3) of this Act.”.
(3) Section 6 (interest on investment deposits) is amended as follows.
(4) In subsection (2), for “Director of Savings may from time to time determine with the consent of the Treasury” substitute “Treasury may from time to time determine”.
(5) After that subsection insert—
“(2ZA) The Treasury may determine that a rate of interest payable on investment deposits, or investment deposits of a particular description, is to be a rate produced by the operation of a formula involving the movement of an index or indices or any other factor.”.
(6) In subsection (3), after “description” insert “(other than one occasioned by the operation of a formula)”.
(7) After that subsection insert—
“(4) In the case of an alteration in a rate of interest not affecting deposits received before it is made, any notice of the alteration required to be given by subsection (3) above may be given after the alteration is made.”.
(8) Section 8 (regulations as to particular matters) is amended as follows.
(9) In subsection (1), after paragraph (b) insert—
“(ba) for the issuing of cards for use in making investment deposits or in withdrawing cash from investment accounts (or both) and regulating the use of such cards;”.
(10) After subsection (2) insert—
“(3) Regulations under section 2 of this Act may also make provision—
(a) prohibiting the opening of ordinary accounts after a prescribed date;
(b) prohibiting the opening of investment accounts of a prescribed description after a date prescribed in relation to that description of accounts;
(c) prohibiting the making of ordinary deposits after a prescribed date;
(d) prohibiting the making of deposits in investment accounts of a prescribed description after a date prescribed in relation to that description of accounts;
(e) requiring the withdrawal of all of the money deposited in any dormant account of a prescribed description if any of the money deposited in it is withdrawn after a date prescribed in relation to that description of account;
(f) for the transfer to investment accounts of a prescribed description of deposits in dormant accounts of a prescribed description;
(g) for the transfer to a special Director’s account of deposits in dormant accounts of a prescribed description or in accounts to which deposits have been transferred pursuant to provision made by virtue of paragraph (f) above.
(4) In subsection (3) above—
“dormant account” means an account in which deposits may not be made because of provision made by virtue of paragraph (c) or (d) of that subsection; and
“special Director’s account” means an investment account in the name of the Director of Savings in which deposits are held on behalf of the persons entitled to them.”.
(11) After section 9 insert—
(1) Any provision which may be made in relation to investment deposits by regulations under section 2 of this Act may, in the case of deposits in investment accounts of any description first made available after the passing of the Finance Act 2003, be included instead in the terms and conditions of the accounts.
(2) Any provision included in the terms and conditions of investment accounts under subsection (1) above has effect subject to regulations under section 2 of this Act and orders under section 4 of this Act.
(3) In this section “terms and conditions” means terms and conditions set by the Treasury and published by Director of Savings in a manner approved by the Treasury.”.
In section 120 of the Finance Act 1980 (c. 48) (investment deposits with National Savings Bank: accounting provisions etc), omit subsections (4) and (5) (which require the Director of Savings to keep an account of investment deposits etc and transmit annual statements to the Comptroller and Auditor General for examination etc).
(1) Section 15 of the National Loans Act 1968 (c. 13) (payments for service of national debt) is amended as follows.
(2) In subsection (1) (payments to be made out of Consolidated Fund into National Loans Fund), for “charges on the National Loans Fund for the service of national debt over” substitute “payments out of the National Loans Fund—
(a) which represent interest on liabilities of the National Loans Fund, or
(b) which, in the opinion of the Treasury, ought to be treated in the same way as payments which represent such interest,
over”.
(3) Omit subsection (3) (which defines “charges on the National Loans Fund for the service of national debt”).
(4) In paragraph 13 of Schedule 5A to that Act (Debt Management Account: payments to be made out of National Loans Fund into Debt Management Account), omit sub-paragraph (2) (payments to be treated as charges on the National Loans Fund for the service of national debt).
In section 19(4) of the National Loans Act 1968 (c. 13) (which defines as the liabilities of the National Loans Fund the nominal amount of the debt outstanding to it and as its assets its balance and loans etc outstanding to it), for the words from “of the National Loans Fund” onwards substitute “and assets of the National Loans Fund shall be as determined by the Treasury.”.
(1) Section 21 of the National Loans Act 1968 (accounts of Consolidated Fund and National Loans Fund) is amended as follows.
(2) In subsection (1) (annual accounts of payments in and out), for the words from “in such form” onwards substitute “an account relating to the Consolidated Fund, and an account relating to the National Loans Fund, in such form and containing such information as the Treasury consider appropriate.”.
(3) Omit subsection (3) (statements of additional information regarding transactions, assets and liabilities of Consolidated Fund and National Loans Fund).
(4) Subsection (2) has effect for the financial year ending with 31st March 2004 and subsequent financial years.
(5) Subsection (3) has effect for such financial year as the Treasury may by order made by statutory instrument appoint and subsequent financial years.
In Schedule 5A to the National Loans Act 1968 (Debt Management Account), omit paragraph 8 (borrowings otherwise than from National Loans Fund not to exceed total standing to credit of that Account in that Fund and at Bank of England).
In paragraph 11 of Schedule 5A to the National Loans Act 1968 (c. 13) (payments between National Loans Fund and Debt Management Account in respect of difference between assets and liabilities of that Account), insert at the end—
“(4) If any amount paid under sub-paragraph (1A) or (3) above should not have been paid, the Treasury may repay the whole or any part of it.”.
In this Act “the Taxes Act 1988” means the Income and Corporation Taxes Act 1988 (c. 1).
(1) The enactments mentioned in Schedule 43 to this Act (which include provisions that are spent or of no practical utility) are repealed to the extent specified.
(2) The repeals specified in that Schedule have effect subject to the commencement provisions and savings contained or referred to in the notes set out in that Schedule.
This Act may be cited as the Finance Act 2003.
Finance Act 2003