ukpga/1998/36 — Finance Act 1998

Finance Act 1998 1998 c. 36 An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance. [31st July 1998] Most Gracious Sovereign, WE, Your Majesty’s most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty’s public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be enacted, and be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:— Part I Excise Duties Alcoholic liquor duties Rate of duty on beer. 1 1 In section 36(1) of the Alcoholic Liquor Duties Act 1979 (rate of duty on beer), for “£11.14" there shall be substituted “ £11.50 ” . 2 This section shall come into force on 1st January 1999. Adjustment of rates of duty on sparkling liquors. 2 1 The Alcoholic Liquor Duties Act 1979 shall be amended as follows. 2 In Part I of the Table of rates of duty in Schedule 1, in column 2 of the fourth entry (rate of duty per hectolitre on sparkling wine or made-wine of a strength exceeding 5.5 per cent. but less than 8.5 per cent.), for “201.50" there shall be substituted “ 161.20 ” . 3 In section 62(1A)(a) (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent.), for “£37.54" there shall be substituted “ £45.05 ” . 4 This section shall be deemed to have come into force at 6 o’clock in the evening of 17th March 1998. Rates of duty on wine and made-wine. 3 1 For Part I of the Table of rates of duty in Schedule 1 to the Alcoholic Liquor Duties Act 1979 (wine and made-wine of a strength not exceeding 22 per cent.) there shall be substituted— Part I Wine or made-wine of a strength not exceeding 22 per cent. Description of wine or made-wine Rates of duty per hectolitre £ Wine or made-wine of a strength not exceeding 4 per cent. 46.01 Wine or made-wine of a strength exceeding 4 per cent. but not exceeding 5.5 per cent. 63.26 Wine or made-wine of a strength exceeding 5.5 per cent. but not exceeding 15 per cent. and not being sparkling 149.28 Sparkling wine or sparkling made-wine of a strength exceeding 5.5 per cent. but less than 8.5 per cent. 161.20 Sparkling wine or sparkling made-wine of a strength of 8.5 per cent. or of a strength exceeding 8.5 per cent. but not exceeding 15 per cent. 213.27 Wine or made-wine of a strength exceeding 15 per cent. but not exceeding 22 per cent. 199.03 2 This section shall come into force on 1st January 1999. Rates of duty on cider. 4 1 In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (rates of duty on cider), for paragraphs (b) and (c) there shall be substituted the following paragraphs— b £37.92 per hectolitre in the case of cider of a strength exceeding 7.5 per cent. which is not sparkling cider; and c £25.27 per hectolitre in any other case. 2 This section shall come into force on 1st January 1999. Drawback of excise duty on beer. 5 1 Section 42 of the Alcoholic Liquor Duties Act 1979 (drawback on exportation, shipment as stores etc. ) shall cease to have effect. 2 Subsection (1) above shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint. Hydrocarbon oil duties Charge on production without delivery. 6 1 In section 6 of the Hydrocarbon Oil Duties Act 1979 (excise duty on imported hydrocarbon oil and on oil produced and delivered for home use), in subsection (1)— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b the words from “and delivered" to “above" shall be omitted. 2 For subsection (2) of that section there shall be substituted the following subsections— 2 Where— a imported hydrocarbon oil is removed to relevant premises, b the oil undergoes a production process at those premises or any other relevant premises, and c any duty charged on the importation of the oil has not become payable at any time before the production time, the duty charged on importation shall not become payable at any time after the production time. 2AA In subsection (2) above— “ the production time ” means the time at which the oil undergoes the production process; and “ relevant premises ” means— a refinery; other premises used for the production of hydrocarbon oil; or premises of such other description as may be specified in regulations made by the Commissioners. 2AB For the purposes of subsection (2) above, oil undergoes a production process if— a hydrocarbon oil of another description is obtained from it, or b it is subjected to any process of purification or blending. 3 The preceding provisions of this section shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint. Rates of duties and rebates. 7 1 In section 6(1A) of the Hydrocarbon Oil Duties Act 1979 (rates of duty on hydrocarbon oil)— a in paragraph (a) (light oil), for “£0.4510" there shall be substituted “ £0.4926 ” ; b in paragraph (b) (ultra low sulphur diesel), for “£0.3928" there shall be substituted “ £0.4299 ” ; and c in paragraph (c) (heavy oil that is not ultra low sulphur diesel), for “£0.4028" there shall be substituted “ £0.4499 ” . 2 In section 11(1) of that Act (rebate on heavy oil)— a in paragraph (a) (fuel oil), for “£0.0200" there shall be substituted “ £0.0218 ” ; and b in each of paragraphs (b) and (ba) (gas oil which is not ultra low sulphur diesel and ultra low sulphur diesel), for “£0.0258" there shall be substituted “ £0.0282 ” . 3 In section 13A(1A) of that Act (rebate on unleaded petrol)— a in paragraph (a) (higher octane unleaded petrol), for “£0.0150" there shall be substituted “ £0.0050 ” ; and b in paragraph (b) (other unleaded petrol), for “£0.0482" there shall be substituted “ £0.0527 ” . 4 In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0200" there shall be substituted “ £0.0218 ” . 5 This section shall be deemed to have come into force at 6 o’clock in the evening of 17th March 1998. Ultra low sulphur diesel. 8 1 In section 1 of the Hydrocarbon Oil Duties Act 1979, for subsection (6) (meaning of “ultra low sulphur diesel") there shall be substituted the following subsection— 6 “ Ultra low sulphur diesel ” means gas oil— a the sulphur content of which does not exceed 0.005 per cent. by weight or is nil; b the density of which does not exceed 835 kilograms per cubic metre at a temperature of 15° C; and c of which not less than 95 per cent. by volume distils at a temperature not exceeding 345° C. 2 This section shall be deemed to have come into force at 6 o’clock in the evening of 17th March 1998. Mixtures of heavy oils. 9 1 In section 20AAA of the Hydrocarbon Oil Duties Act 1979 (charge to duty on mixtures of oils), after subsection (2) there shall be inserted the following subsection— 2A Where— a a mixture of heavy oils is produced in contravention of Part IIA of Schedule 2A to this Act, and b the mixture is not produced as a result of approved mixing, a duty of excise shall be charged on the mixture. 2 In subsection (3) of that section, after “subsection (1)" there shall be inserted “ or (2A) ” . 3 In section 20AAB of that Act (supplementary provisions about mixing of oils), in subsection (1), after “section 20AAA(1)" there shall be inserted “ or (2A) ” . 4 In Schedule 2A to that Act (mixtures of oils to which duty applies), after paragraph 7 there shall be inserted the following— Part IIA Unrebated heavy oil 7A A mixture of heavy oils is produced in contravention of this paragraph if such a mixture is produced by mixing— a ultra low sulphur diesel in respect of which, on its delivery for home use, a declaration was made that it was intended for use as fuel for a road vehicle; and b heavy oil of any other description in respect of which, on its delivery for home use, such a declaration was made. 5 In paragraph 9 of that Schedule (rate of duty for mixtures of heavy oil), after sub-paragraph (1) there shall be inserted the following sub-paragraph— 1A Subject to paragraph 10 below, duty charged under subsection (2A) of section 20AAA of this Act shall be charged at the rate for heavy oil in force at the time when the mixture is produced. 6 This section shall be deemed to have come into force at 6 o’clock in the evening of 17th March 1998. Tobacco products duty Rates of tobacco products duty. 10 1 For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted— TABLE 1. Cigarettes An amount equal to 22 per cent. of the retail price plus £77.09 per thousand cigarettes. 2. Cigars £114.79 per kilogram. 3. Hand-rolling tobacco £87.74 per kilogram. 4. Other smoking tobacco and chewing tobacco £50.47 per kilogram. 2 This section shall come into force on 1st December 1998. Gaming duty Rates of gaming duty. 11 1 For the Table in section 11(2) of the Finance Act 1997 (rates of gaming duty) there shall be substituted the following table— Table Part of gross gaming yield Rate The first £450,000 2½ per cent. The next £1,000,000 12½ per cent. The next £1,000,000 20 per cent. The next £1,750,000 30 per cent. The remainder 40 per cent. 2 In section 11(3) of that Act (rate of duty for unregistered gaming), for “ 131/3per cent." there shall be substituted “ 40 per cent. ” 3 This section has effect in relation to accounting periods beginning on or after 1st April 1998. Amusement machine licence duty Rates of amusement machine licence duty. 12 1 In section 23 of the Betting and Gaming Duties Act 1981 (rates of amusement machine licence duty), for the Table in subsection (2) there shall be substituted the following Table— TABLE (1) (2) (3) (4) Period (in months) for which licence granted Machines that are not gaming machines Gaming machines that are small-prize machines or are five-penny machines without being small-prize machines Other machines £ £ £ 1 30 80 220 2 50 150 425 3 75 220 615 4 95 285 800 5 120 345 970 6 140 400 1,125 7 160 450 1,270 8 185 500 1,405 9 205 540 1,525 10 225 580 1,635 11 240 615 1,730 12 250 645 1,815 2 This section shall apply in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 17th March 1998. Further exception for thirty-five-penny machines. 13 1 In section 21(3A) of the Betting and Gaming Duties Act 1981 (excepted machines), for paragraphs (b) and (c) there shall be substituted the following paragraphs— b a five-penny machine which is a small prize machine; or c a thirty-five-penny machine which is not a prize machine or which, if it is a prize machine, is not a gaming machine. 2 This section has effect in relation to the provision of an amusement machine at any time on or after 1st April 1998. Video machines. 14 1 In section 21(3A) of the Betting and Gaming Duties Act 1981 (excepted machines), after paragraph (c) there shall be inserted ; or d an excepted video machine. 2 After subsection (3A) of that section there shall be inserted the following subsections— 3B For the purposes of this section an amusement machine is an excepted video machine if— a it is a video machine which is not a prize machine; b it is a machine on which a game can be played solo; c the price for a solo game on the machine does not exceed 35p; and d the price to participate in a game on the machine for two or more players does not exceed 50p. 3C For the purposes of this section the price for a solo game on a machine does not exceed 35p if the denomination or aggregate denomination of the coin or coins that must be inserted into the machine to play the game solo does not or, where the machine provides differing numbers of games in different circumstances, cannot exceed 35p for each time the game is played. 3D For the purposes of this section the price to participate in a game on the machine for two or more players does not exceed 50p if the denomination or aggregate denomination of the coin or coins that must be inserted into the machine to play the game simultaneously with more than one player does not exceed or, where the machine provides differing numbers of games in different circumstances, cannot exceed 50p per player for each time the game is played. 3E For the purposes of this section a game is played solo if it is played by one person at a time (whether or not against a previous player). 3 Accordingly, in section 25 of that Act— a in subsection (4) (no account to be taken of the fact that a machine may be played by more than one person at a time), after “description" there shall be inserted “ other than an excepted video machine falling within section 21(3A)(d) above ” ; and b in subsection (6) (excepted machine not to be treated as a number of machines), for the words “in the case of any machine" onwards there shall be substituted “ for the purpose of determining whether a machine is an excepted video machine falling within section 21(3A)(d) above, or in the case of a pinball machine or a machine that is an excepted machine ” . 4 This section has effect in relation to the provision of an amusement machine at any time on or after the day on which this Act is passed. Air passenger duty Fiscal representatives. 15 1 After section 34 of the Finance Act 1994 (fiscal representatives) there shall be inserted the following section— Administrative representatives. 34A 1 Subject to the following provisions of this section, where— a the appointment of any person to be the fiscal representative of an aircraft operator contains a statement that the appointment is made for administrative purposes only, b the operator has complied with any obligations for the provision of security imposed, in relation to appointments containing such statements, by any general directions given by the Commissioners, and c the operator is not for the time being in contravention of any requirement to provide any security that he is required to provide under section 36 below, that appointment shall have effect in accordance with subsection (2) below. 2 Where the appointment of any person as a fiscal representative has effect in accordance with this subsection section 34(4)(b) and (c) above shall be taken, in the case of that person— a not to impose any requirement on the representative to secure the payment of amounts of duty which are or may become due from his principal, and b not to make him personally liable either to pay any such amounts or in respect of any failure by his principal to pay them. 3 The security that may be required by general directions given by the Commissioners for the purposes of this section is any such security for the payment of amounts of duty which are or may become due from the person providing the security as may be determined in accordance with the directions. 4 The power of the Commissioners under section 36 below to require the provision of security shall not include any power to require a fiscal representative of an aircraft operator whose appointment has effect in accordance with subsection (2) above to provide any security for the payment of amounts of duty which are or may become due from his principal. 5 In this section references to an amount of duty include references to any penalty or interest that is recoverable as if it were an amount of duty, but only in so far as the penalty or interest is in respect of a failure by an aircraft operator to pay an amount of duty, or to pay such an amount before a certain time. 2 In section 34(4) of that Act (effect of appointment of fiscal representative), after “subsection (5)" there shall be inserted “ and section 34A ” . Vehicle excise duty Rates of duty where pollution reduced. 16 Schedule 1 to this Act (which makes provision for reduced rates of vehicle excise duty to be applicable to certain vehicles adapted so as to reduce pollution) shall have effect. Restriction of exemption for old vehicles. 17 In paragraph 1A(1) of Schedule 2 to the Vehicle Excise and Registration Act 1994 (exemption for vehicles more than 25 years old), for the words “more than 25 years before the beginning of the year in which that time falls" there shall be substituted “ before 1st January 1973. ” Regulations relating to nil licences. 18 In section 22(2A) of the Vehicle Excise and Registration Act 1994 (provisions that may be made about nil licences), after paragraph (b) there shall be inserted the following paragraphs— c make provision (including provision requiring the payment of a fee) for cases where a nil licence is or may be lost, stolen, destroyed or damaged or contains particulars which have become illegible or inaccurate, d require a person issued with a nil licence which ceases to be in force in circumstances prescribed by the regulations to furnish to the Secretary of State such particulars and make such declarations as may be so prescribed, and to do so at such times and in such manner as may be so prescribed. Failure to pay amount required in respect of void licence. 19 1 In subsection (1) of section 35A of the Vehicle Excise and Registration Act 1994 (offence of failing to return void licence)— a in paragraph (a), for the words from “requires" to “the notice" there shall be substituted “ contains a relevant requirement ” ; and b in paragraph (b), for “within that period" there shall be substituted “ contained in the notice ” . 2 After subsection (2) of that section there shall be inserted the following subsections— 3 For the purposes of subsection (1)(a), a relevant requirement is— a a requirement to deliver up the licence within such reasonable period as is specified in the notice; or b a requirement to deliver up the licence within such reasonable period as is so specified and, on doing so, to pay the amount specified in subsection (4). 4 The amount referred to in subsection (3)(b) is an amount equal to one-twelfth of the appropriate annual rate of vehicle excise duty for each month, or part of a month, in the relevant period. 5 The reference in subsection (4) to the appropriate annual rate of vehicle excise duty is a reference to the annual rate which at the beginning of the relevant period— a in the case of a vehicle licence, was applicable to a vehicle of the description specified in the application, or b in the case of a trade licence, was applicable to a vehicle falling within paragraph 1 of Schedule 1 (or to a vehicle falling within sub-paragraph (1)(c) of paragraph 2 of that Schedule if the licence was to be used only for vehicles to which that paragraph applies). 6 For the purposes of subsection (4) the relevant period is the period— a beginning with the first day of the period for which the licence was applied for or, if later, the day on which the licence first was to have effect, and b ending with whichever is the earliest of the times specified in subsection (7). 7 In a case where the requirement is a requirement to deliver up a vehicle licence, those times are— a the end of the month during which the licence was required to be delivered up, b the end of the month during which the licence was actually delivered up, c the date on which the licence was due to expire, and d the end of the month preceding that in which there first had effect a new vehicle licence for the vehicle in question; and, in a case where the requirement is a requirement to deliver up a trade licence, those times are the times specified in paragraphs (a) to (c). 3 In section 36 of that Act (additional liability to be imposed on persons convicted of offences under section 35A), for subsection (4) of that section there shall be substituted the following subsections— 4 For the purposes of this section the relevant period is the period— a beginning with the first day of the period for which the licence was applied for or, if later, the day on which the licence first was to have effect, and b ending with whichever is the earliest of the times specified in subsection (4A). 4A the case of a vehicle licence those times are— a the end of the month in which the order is made, b the date on which the licence was due to expire, c the end of the month during which the licence was delivered up, and d the end of the month preceding that in which there first had effect a new licence for the vehicle in question; and, in the case of a trade licence, those times are the times specified in paragraphs (a) to (c). 4 After subsection (5) of that section there shall be inserted the following subsection— 6 Where— a a person has been convicted of an offence under section 35A in relation to a vehicle licence or a trade licence, and b a requirement to pay an amount with respect to that licence has been imposed on that person by virtue of section 35A(3)(b), the order to pay an amount under this section shall have effect instead of that requirement and the amount to be paid under the order shall be reduced by any amount actually paid in pursuance of the requirement. 5 The preceding provisions of this section apply to notices sent and orders made on or after the day on which this Act is passed. Assessments Assessments for excise duty purposes. 20 Schedule 2 to this Act (assessments for excise duty purposes) shall have effect. Part II Value Added Tax Deemed supplies. 21 1 Paragraph 5 of Schedule 4 to the Value Added Tax Act 1994 (disposal of business assets) shall be amended as follows. 2 In sub-paragraph (2)(a) (exception for gifts of small value), for “is" there shall be substituted “ of acquiring or, as the case may be, producing the goods was ” . 3 After sub-paragraph (2) there shall be inserted the following sub-paragraph— 2A For the purposes of determining the cost to the donor of acquiring or producing goods of which he has made a gift, where— a the acquisition by the donor of the goods, or anything comprised in the goods, was by means of a transfer of a business, or a part of a business, as a going concern, b the assets transferred by that transfer included those goods or that thing, and c the transfer of those assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services, the donor and his predecessor or, as the case may be, all of his predecessors shall be treated as if they were the same person. 4 In sub-paragraph (5) (transactions without consideration to be treated as supplies under paragraph 5 only where the supplier is a person entitled to credit for input tax), for “is" there shall be substituted “ or any of his predecessors is a person who (disregarding this paragraph) has or will become ” . 5 After that sub-paragraph there shall be inserted the following sub-paragraph— 5A In relation to any goods or anything comprised in any goods, a person is the predecessor of another for the purposes of this paragraph if— a that other person is a person to whom he has transferred assets of his business by a transfer of that business, or a part of it, as a going concern; b those assets consisted of or included those goods or that thing; and c the transfer of the assets is one falling by virtue of an order under section 5(3) (or under an enactment re-enacted in section 5(3)) to be treated as neither a supply of goods nor a supply of services; and references in this paragraph to a person’s predecessors include references to the predecessors of his predecessors through any number of transfers. 6 The preceding provisions of this section apply to any case where the time when the goods are transferred or disposed of or, as the case may be, put to use, used or made available for use is on or after 17th March 1998. Changes of place of supply: transitional. 22 1 In the Value Added Tax Act 1994 the following section shall be inserted after section 97 (orders, rules and regulations)— Place of supply orders: transitional provision. 97A 1 This section shall have effect for the purpose of giving effect to any order made on or after 17th March 1998 under section 7(11), if— a the order provides for services of a description specified in the order to be treated as supplied in the United Kingdom; b the services would not have fallen to be so treated apart from the order; c the services are not services that would have fallen to be so treated under any provision re-enacted in the order; and d the order is expressed to come into force in relation to services supplied on or after a date specified in the order (“the commencement date"). 2 Invoices and other documents provided to any person before the commencement date shall be disregarded in determining the time of the supply of any services which, if their time of supply were on or after the commencement date, would be treated by virtue of the order as supplied in the United Kingdom. 3 If there is a payment in respect of any services of the specified description that was received by the supplier before the commencement date, so much (if any) of that payment as relates to times on or after that date shall be treated as if it were a payment received on the commencement date. 4 If there is a payment in respect of services of the specified description that is or has been received by the supplier on or after the commencement date, so much (if any) of that payment as relates to times before that date shall be treated as if it were a payment received before that date. 5 Subject to subsection (6) below, a payment in respect of any services shall be taken for the purposes of this section to relate to the time of the performance of those services. 6 Where a payment is received in respect of any services the performance of which takes place over a period a part of which falls before the commencement date and a part of which does not— a an apportionment shall be made, on a just and reasonable basis, of the extent to which the payment is attributable to so much of the performance of those services as took place before that date; b the payment shall, to that extent, be taken for the purposes of this section to relate to a time before that date; and c the remainder, if any, of the payment shall be taken for those purposes to relate to times on or after that date. 2 In section 6 of the Value Added Tax Act 1994 (time of supply), after subsection (14) there shall be inserted the following subsection— 14A In relation to any services of a description specified in an order under section 7(11), this section and any regulations under this section or section 8(4) shall have effect subject to section 97A. 3 This section shall be deemed to have come into force on 17th March 1998. Bad debt relief. 23 1 In subsection (1)(a) of section 36 of the Value Added Tax Act 1994 (bad debts), the words “for a consideration in money" shall be omitted. 2 In subsection (3) of that section— a in paragraph (a), for “payment by way" there shall be substituted “ part ” ; and b in paragraph (b), for “a payment or payments by way" there shall be substituted “ any part ” and for “the payment (or the aggregate of the payments)" there shall be substituted “ that part ” . 3 After that subsection there shall be inserted the following subsection— 3A For the purposes of this section, where the whole or any part of the consideration for the supply does not consist of money, the amount in money that shall be taken to represent any non-monetary part of the consideration shall be so much of the amount made up of— a the value of the supply, and b the VAT charged on the supply, as is attributable to the non-monetary consideration in question. 4 In subsection (5) of that section— a in paragraph (c), for “subsequent payments" there shall be substituted “ anything subsequently received ” ; and b in paragraph (e), for “payment (or further payment) by way" there shall be substituted “ part (or further part) ” . 5 In subsection (6) of that section, in paragraphs (b) and (c) for “a payment" there shall in each place be substituted “ anything received ” . 6 In subsection (7) of that section, for “part payment" there shall be substituted “ receipt of part of the consideration ” . 7 Subsections (1) to (3) above have effect in relation to claims made on or after the day on which this Act is passed. Long leases in Scotland. 24 In section 96(1) of the Value Added Tax Act 1994, in paragraph (b) of the definition of “major interest" (land in Scotland not held on feudal tenure: lessee’s interest must be for a period exceeding 21 years), for “exceeding 21 years" there shall be substituted “ of not less than 20 years ” . Part III Income Tax, Corporation Tax and Capital Gains Tax Chapter I Income Tax and Corporation Tax Income tax charge, rates and reliefs Charge and rates for 1998-99. 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Married couple’s allowance etc. in and after 1999-00. 27 1 The Taxes Act 1988 shall have effect for the year 1999-00 and subsequent years of assessment with the following amendments— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 For the purposes only of applying section 257C of the Taxes Act 1988 (indexation) for the year 1999-00, the amounts specified for the year 1998-99 in subsections (2) and (3) of section 257A of that Act (married couple’s allowance for persons of 65 or more) shall be taken to have been £4,965 and £5,025, respectively. Corporation tax charge and rates Charge and rates for financial year 1998. 28 1 Corporation tax shall be charged for the financial year 1998 at the rate of 31 per cent. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charge and rates for financial year 1999. 29 1 Corporation tax shall be charged for the financial year 1999 at the rate of 30 per cent. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporation tax: periodic payments etc Corporation tax: due and payable date. 30 1 After section 59DA of the Taxes Management Act 1970 there shall be inserted— Further provision as to when corporation tax is due and payable. 59E 1 The Treasury may by regulations make provision, in relation to companies of such descriptions as may be prescribed, for or in connection with treating amounts of corporation tax for an accounting period as becoming due and payable on dates which fall on or before the date on which corporation tax for that period would become due and payable apart from this section. 2 Without prejudice to the generality of subsection (1) above, regulations under this section may make provision— a for or in connection with the determination of amounts of corporation tax which are treated as becoming due and payable under the regulations; b for or in connection with the determination of the dates on which amounts of corporation tax are treated as becoming due and payable under the regulations; c for or in connection with the making of payments to the Board in respect of amounts of corporation tax which are treated as becoming due and payable under the regulations; d for or in connection with the determination of the amount of any such payments as are mentioned in paragraph (c) above; e for or in connection with the determination of the dates on which any such payments as are mentioned in paragraph (c) above become due and payable; f for or in connection with any assumptions which are to be made for any purposes of the regulations; g for or in connection with the payment to the Board of interest on amounts of corporation tax which are treated as becoming due and payable under the regulations; h for or in connection with the repayment of amounts paid under the regulations; i for or in connection with the payment of interest by the Board on amounts paid or repaid under the regulations; j with respect to the furnishing of information to the Board; k with respect to the keeping, production or inspection of any books, documents or other records; l for or in connection with the imposition of such requirements as the Treasury think necessary or expedient for any purposes of the regulations; m for or in connection with appeals in relation to questions arising under the regulations. 3 Regulations under this section may make provision— a for amounts of corporation tax for an accounting period to be treated as becoming due and payable on dates which fall within the accounting period; b for payments in respect of any such amounts of corporation tax for an accounting period as are mentioned in paragraph (a) above to become due and payable on dates which fall within the accounting period. 4 Where interest is charged by virtue of regulations under this section on any amounts of corporation tax for an accounting period which are treated as becoming due and payable under the regulations, the company shall, in such circumstances as may be prescribed, be liable to a penalty not exceeding twice the amount of that interest. 5 Regulations under this section— a may make such modifications of any provisions of the Taxes Acts, or b may apply such provisions of the Taxes Acts, as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section. 6 Regulations under this section which apply any provisions of the Taxes Acts may apply those provisions either without modifications or with such modifications as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section. 7 Regulations under this section— a may make different provision for different purposes, cases or circumstances; b may make different provision in relation to companies or accounting periods of different descriptions; c may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient. 8 Subject to subsection (9) below, regulations under this section may make provision in relation to accounting periods beginning before (as well as accounting periods beginning on or after) the date on which the regulations are made. 9 Regulations under this section may not make provision in relation to accounting periods ending before the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment). 10 In this section— “ modifications ” includes amendments, additions and omissions; “ prescribed ” means prescribed by regulations made under this section. 11 Any reference in this section to corporation tax includes a reference— a to any amount due from a company under section 419 of the principal Act (loans to participators etc) as if it were an amount of corporation tax chargeable on the company; b to any sum chargeable on a company under section 747(4)(a) of the principal Act (controlled foreign companies) as if it were an amount of corporation tax. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Abolition of advance corporation tax. 31 1 No company resident in the United Kingdom shall be liable to pay advance corporation tax in respect of any qualifying distribution made on or after 6th April 1999. 2 For the purposes of the Tax Acts, no distribution made on or after 6th April 1999 shall be treated as giving rise to the making of a franked payment. 3 No franked investment income which is attributable to a distribution made on or after 6th April 1999 shall be used to frank any distributions of a company. 4 Section 238(3) of the Taxes Act 1988 shall apply for the purposes of subsection (3) above as it applies for the purposes of Chapter V of Part VI of that Act. 5 Schedule 3 to this Act (which makes provision for and in connection with the abolition of advance corporation tax) shall have effect. Unrelieved surplus advance corporation tax. 32 1 The Treasury may by regulations make provision for or in connection with enabling unrelieved surplus advance corporation tax to be set against liability to corporation tax on profits charged to corporation tax for accounting periods ending on or after 6th April 1999 (and thus to discharge a corresponding amount of any such liability). 2 Without prejudice to the generality of subsection (1) above, regulations under this section may make provision— a for or in connection with imposing a limit or limits on the amount of unrelieved surplus advance corporation tax which may be set against liability to corporation tax on profits charged to corporation tax for an accounting period; b for or in connection with the carrying forward of unrelieved surplus advance corporation tax from earlier accounting periods to later accounting periods; c for or in connection with the recovery of corporation tax from companies in prescribed circumstances where any such liability as is mentioned in paragraph (a) above is or has been discharged by the set-off of unrelieved surplus advance corporation tax; d for or in connection with the reduction or extinguishment of unrelieved surplus advance corporation tax; e for or in connection with treating notional amounts of advance corporation tax (“shadow ACT") as paid by companies in respect of distributions made on or after 6th April 1999; f for or in connection with the determination of amounts of shadow ACT which are treated as paid by companies in respect of distributions made on or after 6th April 1999; g in relation to the treatment of shadow ACT; h in relation to the treatment of companies which have prescribed relationships or connections with each other; i in relation to the treatment of prescribed events, arrangements or transactions involving companies with unrelieved surplus advance corporation tax. 3 The provision which may be made by regulations under this section includes provision— a for or in connection with treating shadow ACT as reducing any limit or limits on the amount of unrelieved surplus advance corporation tax which may be set against any such liability as is mentioned in subsection (2)(a) above; b for or in connection with the carrying forward of shadow ACT from earlier accounting periods to later accounting periods; c for or in connection with the carrying back of shadow ACT from later accounting periods to earlier accounting periods; d for or in connection with the transfer of shadow ACT between companies; e for or in connection with the reduction or extinguishment of shadow ACT. 4 The provision which may be made by virtue of subsection (2)(c) above includes provision for or in connection with the recovery of corporation tax from a company which has a prescribed relationship or connection with a company whose liability to corporation tax is or has been discharged by the set-off of unrelieved surplus advance corporation tax. 5 The provision which may be made by regulations under this section includes provision for or in connection with enabling unrelieved surplus advance corporation tax to be set against liability to a sum charged at step 5 in section 371BC(1) of the Taxation (International and Other Provisions) Act 2010 (controlled foreign companies) as if it were an amount of corporation tax for an accounting period. 6 In this section “ unrelieved surplus advance corporation tax ” means the advance corporation tax (if any) which, apart from sub-paragraph (3) of paragraph 12 of Schedule 3 to this Act but otherwise in accordance with that paragraph, would be treated by virtue of section 239(4) of the Taxes Act 1988 as paid in respect of distributions made by a company in the first accounting period of the company to begin on or after 6th April 1999. 7 The reference in subsection (6) above to an accounting period beginning on or after 6th April 1999 includes a reference to a separate accounting period mentioned in section 245(2) of the Taxes Act 1988 which begins on 6th April 1999. 8 Regulations under this section— a may make such modifications of any provisions of the Tax Acts, or b may apply such provisions of the Tax Acts, as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section. 9 Regulations under this section which apply any provisions of the Tax Acts may apply those provisions either without modifications or with such modifications as the Treasury think necessary or expedient for or in connection with giving effect to the provisions of this section. 10 Regulations under this section— a may make different provision for different purposes, cases or circumstances; b may make different provision in relation to companies or accounting periods of different descriptions; c may make such supplementary, incidental, consequential or transitional provision as appears to the Treasury to be necessary or expedient. 11 Regulations under this section may make provision in relation to accounting periods beginning before (as well as accounting periods beginning on or after) the date on which the regulations are made. 12 In this section— “ modifications ” includes amendments, additions and omissions; “ prescribed ” means prescribed by regulations made under this section. Relief for interest payable under the Tax Acts. 33 1 Section 90 of the Taxes Management Act 1970 (interest on overdue tax to be paid without deduction of income tax and not to be allowed as a deduction in computing income, profits or losses) shall be amended as follows. 2 At the beginning there shall be inserted “(1)" and in the subsection (1) so formed— a after “Interest payable under this Part of this Act" there shall be inserted “ (a) ” ; ... b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charge to tax on interest payable under the Tax Acts. 34 1 Section 826 of the Taxes Act 1988 (interest on tax overpaid) shall be amended as follows. 2 In subsection (5) (interest on overpaid tax to be paid without deduction of income tax and not to be brought into account in computing profits or income)— a after “Interest paid under this section" there shall be inserted “ (a) ” ; and b after “and" there shall be inserted “ (b) ” . 3 At the beginning of the paragraph (b) formed by subsection (2)(b) above (interest not to be brought into account in computing profits or income) there shall be inserted “subject to subsection (5A) below,". 4 After subsection (5) there shall be inserted— 5A Paragraph (b) of subsection (5) above does not apply in relation to interest payable to a company within the charge to corporation tax. 5 The amendments made by subsections (3) and (4) above have effect in relation to interest payable by virtue of any paragraph of section 826(1) of the Taxes Act 1988 if the accounting period mentioned in that paragraph is one which ends on or after the day appointed under section 199 of the Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (corporation tax self-assessment). Further provision about interest payable under the Tax Acts. 35 Schedule 4 to this Act (which makes further amendments relating to interest payable under the Tax Acts by or to companies) shall have effect. Arrangements with respect to payment of corporation tax. 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gilt-edged securities Abolition of periodic accounting. 37 1 Section 51B of the Taxes Act 1988 (which enables provision to be made requiring tax on interest on gilt-edged securities to be accounted for periodically) shall cease to have effect. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The preceding provisions of this section have effect in relation only to payments of interest falling due on or after such day as the Treasury may by order appoint. Rents and other receipts from land Taxation of rents and other receipts from land. 38 1 The provisions of Schedule 5 to this Act have effect with respect to tax on rents and other receipts from land. Part I contains amendments relating to the charge to tax under Schedule A or Case V of Schedule D on rents and other receipts from land. Part II contains amendments about relief for losses incurred in a Schedule A business or overseas property business, and the relationship between such relief and other reliefs. Part III contains minor and consequential amendments. 2 So far as relating to income tax, the provisions of Parts I to III of that Schedule have effect for the year 1998-99 and subsequent years of assessment. 3 So far as relating to corporation tax, the provisions of Parts I to III of that Schedule come into force on 1st April 1998, subject to the transitional provisions in Part IV of the Schedule. Land managed as one estate and maintenance funds for historic buildings. 39 Sections 26 and 27 of the Taxes Act 1988 (deductions from rent: land managed as one estate and maintenance funds for historic buildings) shall cease to have effect— a for income tax purposes, on and after 6th April 2001; b for corporation tax purposes, for accounting periods beginning on or after 1st April 2001. Treatment of premiums as rent. 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tied premises: receipts and expenses treated as those of trade. 41 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 In section 156 of the Taxation of Chargeable Gains Act 1992 (replacement of business assets: buildings and land), for subsection (4) substitute— 4 Where section 98 of the Taxes Act applies (tied premises: receipts and expenses treated as those of trade), the trader shall be treated, to the extent that the conditions in subsection (1) of that section are met in relation to premises, as occupying as well as using the premises for the purposes of the trade. . 3 The above amendments have effect on and after 17th March 1998, subject to the following transitional provisions. In those provisions— “ before commencement ” and “ after commencement ” mean, respectively, before 17th March 1998 and on or after that date; and “ the new section 98 ” means the section as substituted by subsection (1) above. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Computation of profits of trade, profession or vocation Computation of profits of trade, profession or vocation. 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Barristers and advocates in early years of practice. 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Minor and consequential provisions about computations. 46 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 In the provisions of the Tax Acts which refer to the subject of the charge under Case I or II of Schedule D as “ profits or gains ” or “profits and gains" of a trade, profession or vocation— a for “profits or gains" or “profits and gains", wherever occurring, substitute “ profits ” , and b for “arising or accruing", in reference to such profits or gains, substitute “ arising ” . The provisions affected are listed in Schedule 7 to this Act. Gifts to charities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Gifts of money for relief in poor countries. 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employee share incentives Employee share options. 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conditional acquisition of shares. 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Convertible shares provided to directors and employees. 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Information powers. 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision supplemental to sections 50 to 52. 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendments consequential on sections 50 to 53. 54 1 The Taxation of Chargeable Gains Act 1992 shall be amended as follows. 2 After subsection (5) of section 120 (increase of expenditure by reference to tax charged in relation to shares) there shall be inserted the following subsections— 5A Where an amount is chargeable to tax under section 140A of the Taxes Act in respect of— a the acquisition or disposal of any interest in shares, or b any interest in shares ceasing to be only conditional, the relevant amount is a sum equal to the amount so chargeable. 5B Where an amount is chargeable to tax under section 140D of the Taxes Act in respect of the conversion of shares, the relevant amount is a sum equal to the amount so chargeable. 3 In subsection (7) of that section— a after “(5)," there shall be inserted “ , (5A), (5B) ” ; and b after “138" there shall be inserted “ , 140A, 140D ” . 4 After that subsection there shall be inserted the following subsection— 8 For the purposes of subsection (5A) above this section shall have effect as if references in this section to shares included anything referred to as shares in section 140A of the Taxes Act. 5 After section 149A there shall be inserted the following section— Employee incentive schemes: conditional interests in shares. 149B 1 Where— a an individual has acquired an interest in any shares or securities which is only conditional, b that interest is one which for the purposes of section 140A of the Taxes Act is taken to have been acquired by him as a director or employee of a company, and c by virtue of section 17(1)(b) the acquisition of that interest would, apart from this section, be an acquisition for a consideration equal to the market value of the interest, section 17 shall not apply for calculating the consideration. 2 Instead, the consideration for the acquisition shall be taken (subject to section 120) to be equal to the actual amount or value of the consideration given for that interest as computed in accordance with section 140B of the Taxes Act. 3 This section shall apply in relation only to the individual making the acquisition and, accordingly, shall be disregarded in calculating the consideration received by the person from whom the interest is acquired. 4 Expressions used in this section and in section 140A of the Taxes Act have the same meanings in this section as in that section. 6 This section has effect in relation to disposals on or after 17th March 1998 of interests and shares acquired on or after that date. Construction industry workers Construction workers supplied by agencies. 55 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Subsections (1) and (2) above have effect in relation to— a any payments made on or after 6th April 1998 other than any made in respect of services rendered before that date; and b any payments made before 6th April 1998 in respect of services to be rendered on or after that date. Transitional provisions in connection with section 55. 56 1 Subject to subsection (6) below, subsection (2) below applies if— a a construction trade is being carried on by a person (“the sub-contractor") at the end of the year 1997-98; and b there are receipts of that trade which, but for section 134(5)(c) of the Taxes Act 1988, would have fallen to be treated for the year 1997-98 as the emoluments of an office or employment. 2 Where this subsection applies, then, subject to subsections (4) and (5) below— a the trade shall be deemed to have been permanently discontinued at the end of the year 1997-98; and b to the extent (if any) that the trade includes activities in addition to the rendering of services falling by virtue of section 55 to be treated as the duties of an office or employment, a new trade shall be deemed to have been set up and commenced on 6th April 1998. 3 Subsection (4) below applies if— a a construction trade (“ the old trade ”) is deemed by virtue of subsection (2)(a) above to have been permanently discontinued; and b a construction trade (“the new trade")— i is deemed by virtue of subsection (2)(b) above to have been set up and commenced; or ii (where sub-paragraph (i) above does not apply) is actually set up and commenced in the year 1998-99. 4 Where this subsection applies then, notwithstanding the deemed discontinuance, the old trade and the new trade shall be treated as the same for the purposes of section 83 of the Income Tax Act 2007 (carry-forward of losses against subsequent profits). 5 An officer of the Board shall not become entitled by virtue of anything in this section to give a direction under paragraph 3(2) of Schedule 20 to the Finance Act 1994 (power to revise assessment so that made on the actual basis) in the case of a person whose trade is deemed under subsection (2) above to cease on 5th April 1998. 6 Subsection (2) above does not apply if the sub-contractor by notice to an officer of the Board otherwise elects. 7 An election under subsection (6) above— a if it relates to a trade carried on by an individual, must be included in a return under section 8 of the Taxes Management Act 1970 which is made and delivered in that individual’s case on or before the day on which it is required to be made and delivered under that section; and b if it relates to a trade carried on by persons in partnership, must be included in a return under section 12AA of that Act which is made and delivered in the partners’ case, or in the case of any one or more of them, on or before the day specified in relation to that return under subsection (2) or (3) of that section. 8 In this section “ construction trade ” means a trade consisting in or including the rendering of services under contracts relating to construction operations (within the meaning of section 74 of the Finance Act 2004 ). 9 Where at any time on or after 17th March 1998 and before the day on which this Act is passed any election corresponding to an election under subsection (6) above has been made under a resolution of the House of Commons having effect in accordance with the provisions of the Provisional Collection of Taxes Act 1968, this section has effect, on and after the day on which this Act is passed, as if that election were an election under subsection (6) above. Sub-contractors in the construction industry. 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payments and other benefits in connection with termination of employment etc. Payments and other benefits in connection with termination of employment, etc. 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Benefits in kind Car fuel. 59 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— TABLE A Cylinder capacity of car in cubic centimetres Cash equivalent 1,400 or less £1,010 More than 1,400 but not more than 2,000 £1,280 More than 2,000 £1,890 TABLE AB Cylinder capacity of car in cubic centimetres Cash equivalent 2,000 or less £1,280 More than 2,000 £1,890 TABLE B Description of car Cash equivalent Any car £1,890 2 This section shall have effect for the year 1998-99 and subsequent years of assessment. Reductions for road fuel gas cars. 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Travelling expenses. 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Profit-related pay Provision preventing manipulation of profit periods. 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Foreign earnings deduction Withdrawal except in relation to seafarers. 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . PAYE : non-cash benefits etc. Transitory provision relating to tradeable assets. 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Payment in the form of a readily convertible asset. 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Enhancing the value of an asset. 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gains from share options etc. 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vouchers and credit-tokens. 68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Intermediaries, non-UK employers, agencies etc. 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The enterprise investment scheme and venture capital trusts Qualifying trades for EIS and VCTs. 70 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pre-arranged exits from EIS. 71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Qualifying holdings for VCTs after 2nd July 1997. 72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other changes to requirements for VCTs. 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Other changes to EIS etc. 74 1 Schedule 13 to this Act, which amends the provisions mentioned in subsection (2) below, shall have effect. 2 The provisions are— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b sections 150A and 150B of the Taxation of Chargeable Gains Act 1992 (EIS relief in respect of chargeable gains); c Schedule 5B to that Act (EIS deferral of chargeable gains); and d that Chapter as it has effect in relation to shares issued before 1st January 1994 (BES income tax relief) and section 150 of that Act (BES relief in respect of chargeable gains). 3 Unless the contrary intention appears, the amendments made by that Schedule have effect in relation to shares issued on or after 6th April 1998. Individual savings accounts etc. Use of PEPs powers to provide for accounts. 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tax credits for accounts and for PEPs. 76 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The insurance element etc. 77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Phasing out of TESSAs. 78 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Relief for interest and losses etc. Relief for loan to acquire interest in a close compa