ukpga/2002/23 — Finance Act 2002

Finance Act 2002 2002 c. 23 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. [24th July 2002] 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 to 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 1 Excise duties Tobacco products duty Rates of tobacco products duty 1 1 For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 (c. 7) substitute— Table 1. Cigarettes An amount equal to 22 per cent of the retail price plus £94.24 per thousand cigarettes. 2. Cigars £137.26 per kilogram. 3. Hand-rolling tobacco £98.66 per kilogram. 4. Other smoking tobacco and chewing tobacco £60.34 per kilogram. 2 This section shall be deemed to have come into force at 6 o’clock in the evening of 17th April 2002. Alcoholic liquor duties Rates of duty on cider 2 1 In section 62(1A) of the Alcoholic Liquor Duties Act 1979 (c. 4) (rates of duty on cider)— a in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent that is not sparkling cider), for “£39.21” substitute “ £38.43 ” ; b in paragraph (c) (rate of duty per hectolitre in any other case), for “£26.13” substitute “ £25.61 ” . 2 This section shall be deemed to have come into force on 28th April 2002. Duty on beverages made with spirits to be at spirits rate 3 1 Omit section 1(9) of the Alcoholic Liquor Duties Act 1979 (under which alcoholic beverages of a strength between 1.2 and 5.5 per cent made with spirits are treated as not being spirits, unless of a description specified by Treasury order). 2 This section shall be deemed to have come into force on 28th April 2002. Reduced rates of duty on beer from small breweries 4 1 Schedule 1 to this Act (which makes provision for the excise duty on beer to be charged at reduced rates on beer produced in small breweries) has effect. 2 Subject to subsection (3), subsection (1) shall be deemed to have come into force on 1st June 2002. 3 So far as relating to— a the insertion by paragraph 2 of that Schedule of the new section 36H of the Alcoholic Liquor Duties Act 1979, and b paragraph 3 of that Schedule, subsection (1) comes into force on the day on which this Act is passed. Hydrocarbon oil duties Biodiesel 5 1 The Hydrocarbon Oil Duties Act 1979 (c. 5) is amended as follows. 2 After section 2 insert— Biodiesel 2AA 1 In this Act “ biodiesel ” means diesel quality liquid fuel— a that is produced from biomass or waste cooking oil, b the ester content of which is not less than 96.5% by weight, and c the sulphur content of which does not exceed 0.005% by weight or is nil. 2 In subsection (1)— a “ diesel quality ” means capable of being used for the same purposes as heavy oil; b “ liquid ” does not include any substance that is gaseous at a temperature of 15°C and under a pressure of 1013.25 millibars; c “ biomass ” means vegetable and animal substances constituting the biodegradable fraction of— i products, wastes and residues from agriculture, forestry and related activities, or ii industrial and municipal waste. . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 After section 6 (excise duty on hydrocarbon oil) insert— Excise duty on biodiesel 6AA 1 A duty of excise shall be charged on the setting aside for a chargeable use by any person, or (where it has not already been charged under this section) on the chargeable use by any person, of biodiesel. 2 In subsection (1) “ chargeable use ” means use— a as fuel for any engine, motor or other machinery, or b as an additive or extender in any substance so used. 3 The rate of duty under this section shall be £0.2582 a litre. Excise duty on blends of biodiesel and heavy oils 6AB 1 A duty of excise shall be charged on bioblend— a imported into the United Kingdom, or b produced in the United Kingdom and delivered for home use from a refinery or from other premises used for the production of hydrocarbon oil or from any bonded storage for hydrocarbon oil, not being bioblend chargeable with duty under paragraph (a) above. This is subject to subsection (6) below. 2 In this Act “ bioblend ” means any mixture that is produced by mixing— a biodiesel, and b heavy oil not charged with the excise duty on hydrocarbon oil. 3 The rate at which the duty shall be charged on any bioblend shall be a composite rate representing— a in respect of the proportion of the bioblend that is hydrocarbon oil, the rate that would be applicable to the bioblend if it consisted entirely of heavy oil of the description that went into producing the bioblend, and b in respect of the proportion of the bioblend that is biodiesel, the rate that would be applicable to the bioblend if it consisted entirely of biodiesel. 4 The references in subsection (3) above to the proportions of— a hydrocarbon oil, and b biodiesel, are to the proportions by volume to the nearest 0.001%. 5 If the Commissioners are not satisfied as to the proportion of biodiesel in any bioblend, the rate of duty chargeable shall be the rate that would be applicable to the bioblend if it consisted entirely of heavy oil of the description that went into producing the bioblend. 6 Where imported bioblend is removed to a refinery, the duty chargeable under subsection (1) above shall, instead of being charged at the time of the importation of the bioblend, be charged on the delivery of any goods from the refinery for home use and shall be the same as that which would be payable on the importation of like goods. Application to biodiesel and bioblend of provisions relating to hydrocarbon oil 6AC 1 The Commissioners may by regulations provide for— a references in this Act, or specified references in this Act, to hydrocarbon oil to be construed as including references to— i biodiesel; ii bioblend; b references in this Act, or specified references in this Act, to duty on hydrocarbon oil to be construed as including references to duty under— i section 6AA above; ii section 6AB above; c biodiesel, or bioblend, to be treated for the purposes of such of the following provisions of this Act as may be specified as if it fell within a specified description of hydrocarbon oil. 2 Where the effect of provision made under subsection (1) above is to extend any power to make regulations, provision made in exercise of the power as extended may be contained in the same statutory instrument as the provision extending the power. 3 In this section “ specified ” means specified by regulations under this section. 4 Regulations under this section may make different provision for different cases. 5 Paragraph (b) of subsection (1) above shall not be taken as prejudicing the generality of paragraph (a) of that subsection. . 5 Schedule 2 to this Act contains minor and consquential amendments of the Hydrocarbon Oil Duties Act 1979 (c. 5). 6 Subsection (4), and subsection (5) so far as relating to paragraphs 2 and 4(1) of that Schedule, have effect in relation to biodiesel that— a is set aside for chargeable use (as defined in the section 6AA inserted by subsection (4)) after such date as the Commissioners of Customs and Excise may by order made by statutory instrument appoint, or b not having been so set aside, is the subject of such chargeable use after that date, and has not been set aside for chargeable use under section 6A of that Act (fuel substitutes) on or before that date. 7 Subsection (4), and subsection (5) so far as relating to paragraph 2 of that Schedule, have effect in relation to bioblend that— a is imported into the United Kingdom after the date appointed under subsection (6)(a), or b not having been so imported— i is produced in the United Kingdom and delivered for home use after that date, and ii has not been set aside for chargeable use under section 6A of that Act (fuel substitutes) on or before that date. 8 Subsection (5)— a so far as relating to paragraph 3 of that Schedule, comes into force on the day after the date appointed under subsection (6)(a), b so far as relating to paragraph 5 of that Schedule, applies to mixtures produced after the date appointed under subsection (6)(a), and c so far as relating to paragraph 7 of that Schedule, comes into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint. Regulating trade in rebated heavy oil etc 6 1 Schedule 3 to this Act has effect. 2 In that Schedule— Part 1 makes provision for regulating trade in certain heavy oil on which rebate of excise duty has been allowed, and Part 2 amends provisions of the Hydrocarbon Oil Duties Act 1979 relating to rebates. 3 Subject to subsection (4), subsection (1) so far as relating to paragraph 1 of that Schedule shall not come into force until such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument. 4 For the purpose of the exercise of any power to make regulations, subsection (1) so far as relating to that paragraph comes into force on the day on which this Act is passed. Fuel substitutes 7 1 In section 6A of the Hydrocarbon Oil Duties Act 1979 (c. 5) (fuel substitutes)— a in subsection (5) (power to provide that fuel substitute to be treated as if it were a description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ” ; b in subsection (6)(a) (power to be exercised so that fuel substitute charged with duty and otherwise treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (5) above” substitute “ hydrocarbon oil of the description ” . 2 In section 10 of the Finance Act 1993 (c. 34) (mineral oil fuel substitutes)— a in subsection (2) (power to provide that mineral oil fuel substitute to be treated as if it were a particular description of hydrocarbon oil), for the words from “the description of such one or more of the following” to the end substitute “ such description of hydrocarbon oil as may be so specified ” ; b in subsection (3) (power to be exercised so that mineral oil fuel substitute treated as if it were description of hydrocarbon oil to which it is most closely equivalent), for “the substance falling within the descriptions specified in subsection (2) above” substitute “ hydrocarbon oil of the description ” . Betting and gaming duties Amusement machine licences: excepted machines 8 1 Section 21 of the Betting and Gaming Duties Act 1981 (c. 63) (amusement machine licences) is amended as follows. 2 In subsection (3A) (excepted machines), for paragraphs (c) and (d) (certain thirty-five penny machines and video machines) substitute— c a fifty-penny machine that is not a gaming machine. . 3 For subsection (3B) substitute— 3B For the purposes of this section an amusement machine is a fifty-penny machine if, and only if— a where it is a machine on which a game can be played solo, the price for a solo game does not exceed 50p; and b where it is a machine on which a game can be played by more than one person at a time, the price to participate in such a game does not exceed 50p. . 4 In subsection (3C) (definition of the price for a solo game), for “35p”, in both places where it occurs, substitute “ 50p ” . 5 In section 25 of that Act (definition of different types of machine), in subsections (4) and (6) (treatment of machines capable of being played by more than one person at a time), for “an excepted video machine falling within section 21(3A)(d) above” substitute “ a fifty-penny machine within section 21(3B) above ” . 6 This section has effect in relation to the provision of an amusement machine at any time on or after 1st May 2002. Amusement machine licence duty: rates 9 1 In the Table in section 23(2) of the Betting and Gaming Duties Act 1981 (c. 63) (rates of amusement machine licence duty), for column (4) (medium-prize machines other than five-penny machines) and column 6 (machines not in any other category) substitute— (4) (6) Category C Category E £ £ 80 225 160 435 235 630 305 820 370 990 430 1155 485 1300 535 1440 585 1560 625 1675 665 1775 695 1860 2 This section applies in relation to any amusement machine licence for which an application is received by the Commissioners of Customs and Excise after 30th April 2002. Rates of gaming duty 10 1 For the Table in section 11(2) of the Finance Act 1997 (c. 16) (rates of gaming duty) substitute— Table Part of gross gaming yield Rate The first £488,000 2.5 per cent. The next £1,083,500 12.5 per cent. The next £1,083,500 20 per cent. The next £1,897,000 30 per cent. The remainder 40 per cent. 2 This section has effect in relation to accounting periods beginning on or after 1st April 2002. Gaming duty to be chargeable in respect of sic bo and three card poker 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pool betting duty etc 12 1 Schedule 4 to this Act has effect. 2 In that Schedule, Part 1— makes provision about pool betting duty, and provides for coupon betting to cease to be subject to pool betting duty but to be subject to general betting duty instead, and Part 2 contains minor amendments and transitional provisions. 3 The amendments made by paragraph 2 of that Schedule have effect for the purposes of accounting periods beginning on or after 31st March 2002; but this does not apply to the substitution of the new regulation-making provisions. 4 The amendments made by paragraphs 3 and 4 of that Schedule apply to bets made on or after 31st March 2002. 5 Subsections (1) to (4) shall (subject to subsections (6) and (7)) be deemed to have come into force on 31st March 2002. 6 Subsection (1), so far as relating to paragraphs 5, 6(a) and (c), 7 to 9, 10(1), (2), (5) to (11), (13) and (14), 11, 12(1) and (3), 13 and 14 of Schedule 4 to this Act, shall be deemed to have come into force on 24th April 2002. 7 Subsection (1), so far as relating to— a the substitution of the new regulation-making provisions by paragraph 2 of that Schedule, and b paragraphs 10(3), (4) and (12) and 12(2) of that Schedule, comes into force on the day on which this Act is passed; but the powers conferred by the new regulation-making provisions are exercisable only as respects accounting periods beginning after that day. 8 In this section “ the new regulation-making provisions ” means the following new provisions of the Betting and Gaming Duties Act 1981 (c. 63)— section 7D(6) to (8), section 7E(4) and (5), section 7F(6) and (7), section 8(3) and (4), and section 8B(1)(b) and (2). General betting duty: spread bets 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General betting duty: overseas bet-brokers 14 1 In Part 1 of the Betting and Gaming Duties Act 1981 (betting duties), after section 9 (prohibitions for protection of revenue) insert— Further prohibitions for protection of revenue: overseas bet-brokers 9A 1 A person shall be guilty of an offence if— a he knowingly issues, circulates or distributes in the United Kingdom, or has in his possession for that purpose, any advertisement or other document inviting the use of or otherwise relating to bet-broking services, and b any person providing any of the bet-broking services concerned— i is outside the United Kingdom, and ii provides them in the course of a business. 2 In this section “ bet-broking services ” means— a facilities provided by a person that may be used by other persons in making bets with third persons, or b a person’s services of acting as agent for other persons in making bets on their behalf with third parties (whether the persons on whose behalf the bets are made are disclosed principals or undisclosed principals). 3 In subsection (2) “ bet ” means a bet other than one made by way of pool betting. 4 A person who gets or tries to get any advertisement or other document given or sent to him shall not be guilty of an offence by reason of his thereby procuring or inciting some other person to commit, or aiding or abetting the commission of, an offence under this section. . 2 After section 9A of that Act (inserted by subsection (1) above) insert— Offences under sections 9 and 9A: penalties 9B 1 This section applies where a person is guilty of an offence under section 9 or 9A (a “ relevant offence ”). 2 In the case of the person’s first conviction for a relevant offence, he is liable— a on summary conviction to a penalty of the prescribed sum, or b on conviction on indictment to a penalty of any amount. 3 In the case of a second or subsequent conviction of the person for a relevant offence, he is liable— a on summary conviction to a penalty of the prescribed sum or to imprisonment for a term not exceeding three months or to both, or b on conviction on indictment to a penalty of any amount or to imprisonment for a term not exceeding one year or to both. . 3 Omit section 9(4) of that Act (penalties for offences under section 9). 4 In paragraph 5 of Schedule 6 to that Act (convictions under predecessors of section 9 to be treated as convictions under section 9), for “For the purposes of section 9(4)” substitute “ For the purposes of section 9B ” . 5 Subsection (1) comes into force on the day after that on which this Act is passed. 6 The amendments made by subsections (2) to (4) apply for the purposes of punishing offences committed after the day on which this Act is passed. Vehicle excise duty Cars registered on or after 1st March 2001: rates of duty 15 1 For the Table in paragraph 1B of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rates of duty applicable to light passenger vehicles registered on or after 1st March 2001 on basis of certificate specifying CO 2 emissions figure) substitute— CO 2 emissions figure Rate (1) (2) (3) (4) (5) Exceeding Not exceeding Reduced rate Standard Rate Premium rate g/km g/km £ £ £ – 120 60 70 80 120 150 90 100 110 150 165 110 120 130 165 185 130 140 150 185 – 150 155 160 2 This section applies to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002. Vans registered on or after 1st March 2001: rates of duty 16 1 For paragraph 1J of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rate of duty applicable to light goods vehicles first registered on or after 1st March 2001) substitute— 1J The annual rate of vehicle excise duty applicable to a vehicle to which this Part of this Schedule applies is— a if the vehicle is not a lower-emission van, £160; b if the vehicle is a lower-emission van, £105. For the purposes of paragraph 1J, a vehicle to which this Part of this Schedule applies is a “ lower-emission van ” if— 1K a the vehicle is first registered on or after 1st March 2003, and b the limit values given for the vehicle by the Table (which is extracted from the new table inserted in section 5.3.1.4 of Annex I of Council Directive 70/220/ EEC by Directive 98/69/ EC of the European Parliament and of the Council) are not exceeded during a Type I test. Reference mass of vehicle Limit values for types of emissions by reference to vehicle type CO HC NO x HC + NO x PM Exceeding Not exceeding Petrol Diesel Petrol Petrol Diesel Diesel Diesel kg kg g/km g/km g/km g/km g/km g/km g/km – 1,305 1.0 0.5 0.1 0.08 0.25 0.3 0.025 1,305 1760 1.81 0.63 0.13 0.1 0.33 0.39 0.04 1,760 3,500 2.27 0.74 0.16 0.11 0.39 0.46 0.06 1L In paragraph 1K— “ Type I test ” means a test as described in section 5.3 of Annex I to Council Directive 70/220/EEC as amended (test for simulating/verifying the average tailpipe emissions after a cold start and carried out using the procedure described in Annex III of that Directive as amended); “ the reference mass ” of a vehicle means the mass of the vehicle with bodywork and, in the case of a towing vehicle, with coupling device, if fitted by the manufacturer, in running order, or mass of the chassis or chassis with cab, without bodywork and/or coupling device if the manufacturer does not fit the bodywork and/or coupling device (including liquids and tools, and spare wheel if fitted, and with the fuel tank filled to 90% and the other liquid containing systems, except those for used water, to 100% of the capacity specified by the manufacturer), increased by a uniform mass of 100 kilograms; “ CO ” means mass of carbon monoxide; “ HC ” means mass of hydrocarbons; “ NO x ” means mass of oxides of nitrogen; “ PM ” means mass of particulates (for compression ignition engines). . 2 Subsection (1) applies to any licence taken out for a period beginning on or after 1st March 2003. Disclosure of information for vehicle excise duty exemptions 17 In the Vehicle Excise and Registration Act 1994 (c. 22), after section 22 insert— Nil licences for vehicles for disabled persons: information 22ZA 1 This section applies to information that— a is held for the purposes of functions relating to social security or war pensions— i by the Secretary of State, or ii by a person providing services to the Secretary of State, in connection with the provision of those services, and b is of a description prescribed by regulations made by the Secretary of State. 2 Information to which this section applies may, if the consent condition is satisfied, be supplied— a to the Secretary of State, or b to a person providing services to the Secretary of State, for use for the purposes of relevant nil licence functions. 3 The “ consent condition ”, in relation to any information, is that— a if the information was provided by a person other than the person to whom the information relates, the person who provided the information, or b in any other case, the person to whom the information relates, has consented to the supply of the information and has not withdrawn that consent. 4 Information supplied under subsection (2) shall not— a be supplied by the recipient to any other person unless— i it could be supplied to that person under subsection (2), or ii it is supplied for the purposes of any civil or criminal proceedings relating to this Act; b be used otherwise than for the purposes of relevant nil licence functions or any such proceedings. 5 In this section “ relevant nil licence functions ” means functions relating to applications for, and the issue of, nil licences in respect of vehicles that are exempt vehicles under— a paragraph 19 of Schedule 2, or b paragraph 7 of Schedule 4. . Motorcycles (and motorcycle trade licences): rates of duty 18 1 For paragraph 2(1) to (1B) of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (rates of duty applicable to motorcycles not exceeding 450 kilograms in weight unladen) substitute— 2 1 The annual rate of vehicle excise duty applicable to a motorcycle that does not exceed 450 kilograms in weight unladen is— a if the cylinder capacity of the engine does not exceed 150 cubic centimetres, £15; b if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 150 cubic centimetres but does not exceed 400 cubic centimetres, £30; c if the vehicle is a motorbicycle and the cylinder capacity of the engine exceeds 400 cubic centimetres but does not exceed 600 cubic centimetres, £45; d in any other case, £60. . 2 In sections 13(3)(a), 35A(5)(b) and 36(3)(b) of that Act, and in section 13(4)(a) of that Act as substituted under paragraph 8 of Schedule 4 to that Act (references to paragraph 2(1)(c) of Schedule 1 in connection with motorcycle trade licences), for “(1)(c)” substitute “ (1)(d) ” . 3 Subsection (1), and the amendments in section 13 of that Act, apply to any licence taken out on or after 18th April 2002 for a period beginning on or after 1st May 2002. 4 The amendments in sections 35A and 36 of that Act apply where the relevant period begins on or after 1st May 2002. Registered vehicles etc 19 1 Schedule 5 to this Act, which provides— for vehicle excise duty to be charged in respect of vehicles registered under the Vehicle Excise and Registration Act 1994 that are neither used nor kept on a public road, for vehicle excise duty to be charged in respect of things that have been but have ceased to be mechanically propelled vehicles, for supplements to be payable where vehicle licences are renewed late, and for it to be an offence to be the person in whose name an unlicensed vehicle is registered under that Act, has effect. 2 Subject to subsection (3), subsection (1) shall not come into force until such day as the Secretary of State may appoint by order made by statutory instrument; and an order under this subsection may appoint different days for different purposes. 3 For the purpose of the exercise of any power to make regulations, subsection (1) comes into force on the day on which this Act is passed. 4 The Secretary of State may by order made by statutory instrument make— a such transitional provision as he considers necessary or expedient in connection with the coming into force of subsection (1); b such provision consequential upon, or incidental or supplementary to, the amendments made by Schedule 5 to this Act (including provision further amending the Vehicle Excise and Registration Act 1994) as he considers necessary or expedient. 5 A statutory instrument containing an order under subsection (4)(b) is subject to annulment in pursuance of a resolution of either House of Parliament. Calculating cylinder capacity of vehicles 20 1 In paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (c. 22) (annual rates of duty: general), after sub-paragraph (2A) insert— 2B For the purposes of this Schedule the cylinder capacity of an engine shall be calculated in accordance with regulations made by the Secretary of State. . 2 Omit— a paragraph 2(4) of that Schedule (power to make regulations as to calculation of cylinder capacity of motorcycle engines), and b section 57(8) of that Act (regulations under paragraph 2(4) of Schedule 1 not subject to annulment). 3 Any regulations— a made under paragraph 2(4) of that Schedule or having effect as if so made, and b in force or effective immediately before the passing of this Act, shall have effect after the passing of this Act as if made under the paragraph 1(2B) inserted in that Schedule by this section. 4 Subsection (3) has effect in place of section 17(2)(b) of the Interpretation Act 1978 (c. 30) (but is without prejudice to any other provision of that Act) and, in particular, the fact that the instrument containing any such regulations was not subject to annulment in pursuance of a resolution of either House of Parliament shall not prevent them being revoked, amended or re-enacted by regulations under that paragraph 1(2B). General Drawback of excise duty 21 1 In section 133 of the Customs and Excise Management Act 1979 (c. 2) (claims for drawback of excise duty)— a in subsection (2), for “subsections (3) to (6)” substitute “ subsections (4) to (6) ” ; b omit subsection (3) (Commissioners to be satisfied that the duty in question has been duly paid, and not already drawn back, before drawback is payable). 2 In section 14(1) of the Finance Act 1994 (c. 9) (reviewable decisions) after paragraph (bb) insert— bc any decision by the Commissioners as to whether or not any person is entitled to any drawback of excise duty by virtue of regulations under section 2 of the Finance ( No. 2) Act 1992, or the amount of the drawback to which any person is so entitled; . 3 The amendment made by subsection (2) does not apply in relation to decisions made before the day on which this Act comes into force. Part 2 Value added tax Disallowance of input tax where consideration not paid 22 1 In Part 1 of the Value Added Tax Act 1994 (c. 23) (the charge to tax), after section 26 insert— Disallowance of input tax where consideration not paid 26A 1 Where— a a person has become entitled to credit for any input tax, and b the consideration for the supply to which that input tax relates, or any part of it, is unpaid at the end of the period of 6 months following the relevant date, he shall be taken, as from the end of that period, not to have been entitled to credit for input tax in respect of the VAT that is referable to the unpaid consideration or part. 2 For the purposes of subsection (1) above “ the relevant date ”, in relation to any sum representing consideration for a supply, is— a the date of the supply, or b if later, the date on which the sum became payable. 3 Regulations may make such supplementary, incidental, consequential or transitional provisions as appear to the Commissioners to be necessary or expedient for the purposes of this section. 4 Regulations under this section may in particular— a make provision for restoring the whole or any part of an entitlement to credit for input tax where there is a payment after the end of the period mentioned in subsection (1) above; b make rules for ascertaining whether anything paid is to be taken as paid by way of consideration for a particular supply; c make rules dealing with particular cases, such as those involving payment of part of the consideration or mutual debts. 5 Regulations under this section may make different provision for different circumstances. 6 Section 6 shall apply for determining the time when a supply is to be treated as taking place for the purposes of construing this section. . 2 In section 36 of that Act (bad debts), omit subsections (4A) and (5)(ea). 3 This section has effect in relation to supplies made on or after such day as the Commissioners of Customs and Excise may appoint by order made by statutory instrument. Flat-rate scheme 23 1 In Part 1 of the Value Added Tax Act 1994 (c. 23) (the charge to tax), after section 26A (inserted by section 22 above) insert— Flat-rate scheme 26B 1 The Commissioners may by regulations make provision under which, where a taxable person so elects, the amount of his liability to VAT in respect of his relevant supplies in any prescribed accounting period shall be the appropriate percentage of his relevant turnover for that period. A person whose liability to VAT is to any extent determined as mentioned above is referred to in this section as participating in the flat-rate scheme. 2 For the purposes of this section— a a person’s “ relevant supplies ” are all supplies made by him except supplies made at such times or of such descriptions as may be specified in the regulations; b the “ appropriate percentage ” is the percentage so specified for the category of business carried on by the person in question; c a person’s “ relevant turnover ” is the total of— i the value of those of his relevant supplies that are taxable supplies, together with the VAT chargeable on them, and ii the value of those of his relevant supplies that are exempt supplies. 3 The regulations may designate certain categories of business as categories in relation to which the references in subsection (1) above to liability to VAT are to be read as references to entitlement to credit for VAT. 4 The regulations may provide for persons to be eligible to participate in the flat-rate scheme only in such cases and subject to such conditions and exceptions as may be specified in, or determined by or under, the regulations. 5 Subject to such exceptions as the regulations may provide for, a participant in the flat-rate scheme shall not be entitled to credit for input tax. This is without prejudice to subsection (3) above. 6 The regulations may— a provide for the appropriate percentage to be determined by reference to the category of business that a person is expected, on reasonable grounds, to carry on in a particular period; b provide, in such circumstances as may be prescribed, for different percentages to apply in relation to different parts of the same prescribed accounting period; c make provision for determining the category of business to be regarded as carried on by a person carrying on businesses in more than one category. 7 The regulations may provide for the following matters to be determined in accordance with notices published by the Commissioners— a when supplies are to be treated as taking place for the purposes of ascertaining a person’s relevant turnover for a particular period; b the method of calculating any adjustments that fall to be made in accordance with the regulations in a case where a person begins or ceases to participate in the flat-rate scheme. 8 The regulations may make provision enabling the Commissioners— a to authorise a person to participate in the flat-rate scheme with effect from— i a day before the date of his election to participate, or ii a day that is not earlier than that date but is before the date of the authorisation; b to direct that a person shall cease to be a participant in the scheme with effect from a day before the date of the direction. The day mentioned in paragraph (a)(i) above may be a day before the date on which the regulations come into force. 9 Regulations under this section— a may make different provision for different circumstances; b may make such incidental, supplemental, consequential or transitional provision as the Commissioners think fit, including provision disapplying or applying with modifications any provision contained in or made under this Act. . 2 In section 83 of that Act (appeals), after paragraph (f) insert— fza a decision of the Commissioners— i refusing or withdrawing authorisation for a person’s liability to pay VAT (or entitlement to credit for VAT) to be determined as mentioned in subsection (1) of section 26B; ii as to the appropriate percentage or percentages (within the meaning of that section) applicable in a person’s case. . 3 In section 84 of that Act (further provisions relating to appeals), after subsection (4) insert— 4ZA Where an appeal is brought— a against such a decision as is mentioned in section 83(fza), or b to the extent that it is based on such a decision, against an assessment, the tribunal shall not allow the appeal unless it considers that the Commissioners could not reasonably have been satisfied that there were grounds for the decision. . 4 This section shall be deemed to have come into force on 24th April 2002. Invoices 24 1 In the Value Added Tax Act 1994 (c. 23) omit the following (which are superseded by the provision inserted by subsection (2))— a subsection (9) of section 6 (time of supply); b in paragraph 2 (VAT invoices etc) of Schedule 11 (administration, collection and enforcement)— i in the heading, the words “, VAT invoices”; ii in sub-paragraph (1), the words from “and may require” to the end; iii sub-paragraphs (2) and (2A). 2 After paragraph 2 of Schedule 11 to that Act insert— VAT invoices 2A 1 Regulations may require a taxable person supplying goods or services to provide an invoice (a “ VAT invoice ”) to the person supplied. 2 A VAT invoice must give— a such particulars as may be prescribed of the supply, the supplier and the person supplied; b such an indication as may be prescribed of whether VAT is chargeable on the supply under this Act or the law of another member State; c such particulars of any VAT that is so chargeable as may be prescribed. 3 Regulations may confer power on the Commissioners to allow the requirements of any regulations as to the information to be given in a VAT invoice to be relaxed or dispensed with. 4 Regulations may— a provide that the VAT invoice that is required to be provided in connection with a particular description of supply must be provided within a prescribed time after the supply is treated as taking place, or at such time before the supply is treated as taking place as may be prescribed; b allow for the invoice to be issued later than required by the regulations where it is issued in accordance with general or special directions given by the Commissioners. 5 Regulations may— a make provision about the manner in which a VAT invoice may be provided, including provision prescribing conditions that must be complied with in the case of an invoice issued by a third party on behalf of the supplier; b prescribe conditions that must be complied with in the case of a VAT invoice that relates to more than one supply; c make, in relation to a document that refers to a VAT invoice and is intended to amend it, such provision corresponding to that which may be made in relation to a VAT invoice as appears to the Commissioners to be appropriate. 6 Regulations may confer power on the Commissioners to require a person who has received in the United Kingdom a VAT invoice that is (or part of which is) in a language other than English to provide them with an English translation of the invoice (or part). 7 Regulations under this paragraph— a may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions; b may make different provision for different circumstances. Self-billed invoices 2B 1 This paragraph applies where a taxable person provides to himself a document (a “ self-billed invoice ”) that purports to be a VAT invoice in respect of a supply of goods or services to him by another taxable person. 2 Subject to compliance with such conditions as may be— a prescribed, b specified in a notice published by the Commissioners, or c imposed in a particular case in accordance with regulations, a self-billed invoice shall be treated as the VAT invoice required by regulations under paragraph 2A above to be provided by the supplier. 3 For the purposes of section 6(4) (under which the time of supply can be determined by the prior issue of an invoice) a self-billed invoice shall not be treated as issued by the supplier. 4 For the purposes of section 6(5) and (6) (under which the time of supply can be determined by the subsequent issue of an invoice) a self-billed invoice in relation to which the conditions mentioned in sub-paragraph (2) are complied with shall, subject to compliance with such further conditions as may be prescribed, be treated as issued by the supplier. In such a case, any notice of election given or request made for the purposes of section 6(5) or (6) by the person providing the self-billed invoice shall be treated for those purposes as given or made by the supplier. 5 Regulations under this paragraph— a may be framed so as to apply only in prescribed cases or only in relation to supplies made to persons of prescribed descriptions; b may make different provision for different circumstances. . 3 For paragraph 3 of that Schedule substitute— Electronic communication and storage of VAT invoices etc 3 1 Regulations may prescribe, or provide for the Commissioners to impose in a particular case, conditions that must be complied with in relation to— a the provision by electronic means of any item to which this paragraph applies; b the preservation by electronic means of any such item or of information contained in any such item. 2 The items to which this paragraph applies are— a any VAT invoice; b any document that refers to a VAT invoice and is intended to amend it; c any invoice described in regulations made for the purposes of section 6(8)(b) or 12(1)(b). 3 Regulations under this paragraph may make different provision for different circumstances. . 4 The following amendments to the Value Added Tax Act 1994 (c. 23) are consequential on other amendments made by this section— a in section 6(15), for “paragraph 2(1)” substitute “ paragraph 2A ” ; b in section 83 (appeals), for paragraph (z) substitute— z any conditions imposed by the Commissioners in a particular case by virtue of paragraph 2B(2)(c) or 3(1) of Schedule 11 ; c in section 88 (supplies spanning change of rate etc)— i in subsection (5), for “paragraph 2” substitute “ paragraph 2A ” ; ii in subsection (6), for “section 6(9) or paragraph 7 of Schedule 4” substitute “ paragraph 7 of Schedule 4 or paragraph 2B(4) of Schedule 11 ” . 5 This section comes into force on such day as the Treasury may by order made by statutory instrument appoint, and different days may be appointed for different provisions or different purposes. 6 An order under subsection (5) may contain such transitional provisions and savings as appear to the Treasury necessary or expedient in connection with the provisions brought into force. Relief from VAT on acquisition if importation would attract relief 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Part 3 Income tax, corporation tax and capital gains tax Chapter 1 Charge and rate bands Income tax Charge and rates for 2002-03 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Indexed rate bands for 2002-03: PAYE deductions etc 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal allowance for 2003-04 for those aged under 65 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Personal allowances for 2003-04 for those aged 65 or over 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporation tax Charge and main rate for financial year 2003 30 Corporation tax shall be charged for the financial year 2003 at the rate of 30%. Small companies’ rate and fraction for financial year 2002 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Corporation tax starting rate and fraction for financial year 2002 32 For the financial year 2002— a the corporation tax starting rate shall be 0%, and b the fraction mentioned in section 13AA(3) of the Taxes Act 1988 (marginal relief for small companies) shall be 19/400ths. Chapter 2 Other provisions Employment income and related matters Employer-subsidised public transport bus services 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Car fuel: calculation of cash equivalent of benefit 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statutory paternity pay and statutory adoption pay 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exemption of minor benefits: application to non-cash vouchers 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Minor amendments to Schedule E charge 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of services through an intermediary: minor amendments 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Employee share ownership plans: minor amendments 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Treatment of deductions from payments to sub-contractors 40 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 In section 829 of the Taxes Act 1988 (application of Income Tax Acts to public departments), after subsection (2) insert— 2A Subsections (1) and (2) above have effect in relation to Chapter 4 of Part 13 of this Act (sub-contractors in the construction industry) as if the whole of any deduction required to be made under section 559 were in all cases a deduction of income tax. . 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 This section has effect in relation to deductions made under section 559 of the Taxes Act 1988 on or after 6th April 2002. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Parliamentary visits to EU candidate countries: tax treatment of members’ expenses 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Chargeable gains Reallocation within group of gain or loss accruing under section 179 42 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 In Schedule 7B to that Act (modification of Act in relation to overseas life insurance companies), immediately before paragraph 8 insert— 7A In section 179A(12), the words “section 11(2)(b), (c) or (d) of the Taxes Act” shall be treated as substituted for “section 10(3)". . 3 In section 97(1) of the Inheritance Tax Act 1984 (c. 51) (transfers within group, etc)— a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . b in paragraph (aa) for “the deemed transfer” substitute “ the election ” . 4 This section applies— a in relation to a case where a company is treated by virtue of section 179(3) of the Taxation of Chargeable Gains Act 1992 (c. 12) as having sold and immediately reacquired an asset, where the company’s ceasing to be a member of the group in question happens on or after 1st April 2002; b in relation to a case where a company is so treated by virtue of section 179(6) of that Act, where the relevant time (within the meaning of that subsection) is on or after that date. Roll-over of degrouping charge on business assets 43 1 After section 179A of the Taxation of Chargeable Gains Act 1992 (c. 12) (inserted by section 42 above) insert— Roll-over of degrouping charge on business assets 179B 1 Where a company is treated by virtue of section 179(3) or (6) as having sold and immediately reacquired an asset at market value, relief under section 152 or 153 (roll-over relief on replacement of business assets) is available in accordance with this section in relation to any gain accruing to the company on the deemed sale. 2 For this purpose, sections 152 and 153 and the other enactments specified in Schedule 7AB apply with the modifications set out in that Schedule. 3 Where there has been an election under section 179A, any claim for relief available in accordance with this section must be made by company C rather than company A. 4 For this purpose, the enactments modified by Schedule 7AB have effect as if— a references to company A, except those in sections 152(1)(a) and (1B), 153(1B), 153A(5), 159(1), 175 and 198(1), were to company C; b the references to “ that company ” in section 159(1) and “ the company ” in section 185(3)(b) were to company C; c the reference to “ that trade ” in section 198(1) were to a ring fence trade carried on by company C. 5 Where there has been an election under section 179A in respect of part only of the chargeable gain accruing on the deemed sale of an asset, the enactments modified by Schedule 7AB and subsections (3) and (4) above apply as if the deemed sale had been of a separate asset representing a corresponding part of the asset; and any necessary apportionments shall be made accordingly. 6 A reference in this section to company A or to company C is to the company referred to as such in section 179A. . 2 After Schedule 7AA to the 1992 Act insert the Schedule 7AB set out in Schedule 7 to this Act. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 This section applies— a in relation to a case where a company is treated by virtue of section 179(3) of the 1992 Act as having sold and immediately reacquired an asset, where the company’s ceasing to be a member of the group in question happens on or after 1st April 2002; b in relation to a case where a company is so treated by virtue of section 179(6) of that Act, where the relevant time (within the meaning of that subsection) is on or after that date. Exemptions for disposals by companies with substantial shareholding 44 1 In Chapter 1 of Part 6 of the Taxation of Chargeable Gains Act 1992 (c. 12) (provisions relating to chargeable gains of companies), after section 192 insert— Disposals by companies with substantial shareholding Exemptions for gains or losses on disposal of shares etc 192A Schedule 7AC (exemptions for disposal of shares etc by companies with substantial shareholding) has effect. . 2 Schedule 8 to this Act (exemptions for disposals by companies with substantial shareholding) has effect. In that Schedule— Part 1 contains Schedule 7AC to be inserted after Schedule 7AB to the Taxation of Chargeable Gains Act 1992 (c. 12) (inserted by Schedule 7 to this Act); and Part 2 contains consequential amendments. 3 This section and Schedule 8 to this Act apply in relation to disposals on or after 1st April 2002. 4 Paragraph 38 of the Schedule 7AC inserted by that Schedule (degrouping: time when deemed sale and reacquisition treated as taking place) has effect where the time of degrouping or relevant time (as defined for the purposes of that paragraph) is on or after that date. 5 The amendment made by paragraph 2 of Schedule 8 to this Act has effect where the company in question ceases to be a member of the group in question on or after that date. Share exchanges and company reconstructions 45 1 Schedule 9 to this Act (chargeable gains: share exchanges and company reconstructions) has effect. 2 In that Schedule— Part 1 provides for the replacement of sections 135 and 136 of the Taxation of Chargeable Gains Act 1992; Part 2 makes consequential amendments; and Part 3 provides for commencement. Taper relief: holding period for business assets 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Taper relief: minor amendments 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Use of trading losses against chargeable gains 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Election to forgo roll-over relief on transfer of business 49 1 After section 162 of the Taxation of Chargeable Gains Act 1992 (c. 12) (roll-over relief on transfer of business) insert— Election for section 162 not to apply 162A 1 Section 162 shall not apply where the transferor makes an election under this section. 2 An election under this section must be made by a notice given to an officer of the Board no later than the relevant date. 3 Except where subsection (4) below applies, the relevant date is the second anniversary of the 31st January next following the year of assessment in which the transfer of the business took place. 4 Where, by the end of the year of assessment following the one in which the transfer of the business took place, the transferor has disposed of all the new assets, the relevant date is the first anniversary of the 31st January next following the year of assessment in which the transfer of the business took place. 5 For the purposes of subsection (4) above— a a disposal of any of the new assets by the transferor shall be disregarded if it falls within section 58(1) (transfers between husband and wife); but b where a disposal of any assets to a person is disregarded by virtue of paragraph (a) above, a subsequent disposal by that person of any of those assets (other than a disposal to the transferor) shall be regarded as a disposal by the transferor. 6 All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under this section. 7 Where, immediately before it was transferred, the business was owned by two or more persons— a each of them has a separate entitlement to make an election under this section; b an election made by a person by virtue of paragraph (a) above shall apply only to— i the share of the amount of the gain on the old assets, and ii the share of the new assets, that is attributable to that person for the purposes of this Act. 8 The reference in subsection (7) above to ownership by two or more persons includes, in Scotland as well as elsewhere in the United Kingdom, a reference to ownership by a partnership consisting of two or more persons. 9 Expressions used in this section and in section 162 have the same meaning in this section as in that one. But references in this section to new assets also include any shares or debentures that are treated by virtue of one or more applications of section 127 (including that section as applied by virtue of any enactment relating to chargeable gains) as the same asset as the new assets. . 2 This section applies in relation to a transfer of a business on or after 6th April 2002. Shares acquired on same day: election for alternative treatment 50 1 After section 105 of the Taxation of Chargeable Gains Act 1992 (c. 12) (disposal on or before day of acquisition of shares and other unidentified assets) insert— Shares acquired on same day: election for alternative treatment 105A 1 Subsection (2) below applies where an individual— a acquires shares (“ the relevant shares ”) of the same class, on the same day and in the same capacity, and b some of the relevant shares (“ the approved-scheme shares ”) are shares acquired by him as a result of— i the exercise of a qualifying option within the meaning of paragraph 1(1) of Schedule 14 to the Finance Act 2000 (enterprise management incentives) in circumstances where paragraph 44, 45 or 46 of that Schedule (exercise of option to acquire shares) applies, or ii the exercise of an option to which subsection (1) of section 185 of the Taxes Act (approved share option schemes) applies in circumstances where paragraphs (a) and (b) of subsection (3) of that section apply. 2 Where the individual first makes a disposal of any of the relevant shares, he may elect for subsections (3) to (5) below to have effect in relation to that disposal and all subsequent disposals of any of those shares. 3 In circumstances where section 105 applies, that section shall have effect as if— a paragraph (a) of subsection (1) of that section required the approved-scheme shares to be treated as acquired by the individual by a single transaction separate from the remainder of the relevant shares (which shall also be treated by virtue of that paragraph as acquired by the individual by a single transaction), and b subsection (1) of that section required the approved-scheme shares to be treated as disposed of after the remainder of the relevant shares. 4 If the relevant shares include shares to which relief under Chapter 3 of Part 7 of the Taxes Act or deferral relief (within the meaning of Schedule 5B to this Act) is attributable— a paragraph 4(4) of that Schedule has effect as if it required the approved-scheme shares falling within paragraph (a), (b), (c) or (d) of that provision to be treated as disposed of after the remainder of the relevant shares falling within the paragraph in question, and b section 299 of the Taxes Act has effect for the purposes of section 150A(4) below as if it required— i the approved-scheme shares falling within paragraph (a), (b), (c) or (d) of subsection (6A) of section 299 of that Act to be treated as disposed of after the remainder of the relevant shares falling within the paragraph in question, and ii the approved-scheme shares to which subsection (6B) of that section applies to be treated as disposed of after the remainder of the relevant shares to which that subsection applies. 5 Where section 127 applies in relation to any of the relevant shares (“ the reorganisation shares ”), that section shall apply separately to such of those shares as are approved-scheme shares and to the remainder of the reorganisation shares (so that those approved-scheme shares and the remainder of the reorganisation shares are treated as comprised in separate holdings of original shares and identified with separate new holdings). 6 In subsection (5)— a the reference to section 127 includes a reference to that section as it is applied by virtue of any enactment relating to chargeable gains, and b “ original shares ” and “ new holding ” have the same meaning as in section 127 or (as the case may be) that section as applied by virtue of the enactment in question. 7 For the purposes of subsection (1) above— a any shares to which relief under Chapter 3 of Part 7 of the Taxes Act is attributable and which were transferred to an individual as mentioned in section 304 of that Act, and b any shares to which deferral relief (within the meaning of Schedule 5B to this Act), but not relief under that Chapter, is attributable and which were acquired by an individual on a disposal to which section 58 above applies, shall be treated as acquired by the individual on the day on which they were issued. 8 In this section the references to Chapter 3 of Part 7, section 299 and section 304 of the Taxes Act shall be read as references to those provisions as they apply to shares issued after 31st December 1993 (enterprise investment scheme). Provision supplementary to section 105A 105B 1 The provisions of section 105A have effect in the case of any disposal notwithstanding that some or all of the securities disposed of are otherwise identified— a by the disposal, or b by a transfer or delivery giving effect to it. 2 An election must be made, by a notice given to an officer of the Board, on or before the first anniversary of the 31st January next following the year of assessment in which the individual first makes a disposal of any of the relevant shares. 3 Where— a an election is made in respect of the relevant shares, and b any shares (“ the other shares ”) acquired by the individual on the same day and in the same capacity as the relevant shares cease to be treated under section 104(4) as shares of a different class from the relevant shares, the election shall have effect in respect of the other shares from the time they cease to be so treated. 4 In determining for the purposes of section 105A(2) and subsection (2) above whether the individual has made a disposal of any of the relevant shares, sections 122(1) and 128(3) shall be disregarded. 5 No election may be made in respect of ordinary shares in a venture capital trust. For this purpose “ ordinary shares ” has the meaning given in section 151A(7). 6 For the purposes of section 105A, shares in a company shall not be treated as being of the same class unless they are so treated by the practice of a recognised stock exchange, or would be so treated if dealt with on that recognised stock exchange. 7 In section 105A(2) to (5) and subsections (2) to (4) above, any reference to the relevant shares or to the approved-scheme shares includes a reference to the securities (if any) directly or indirectly derived from the shares in question by virtue of one or more applications of section 127 (including that section as applied by virtue of any enactment relating to chargeable gains). 8 In this section— “ the approved-scheme shares ” has the same meaning as in section 105A; “ election ” means an election under that section; “ the relevant shares ” has the same meaning as in that section; and “ securities ” has the meaning given in section 104(3); and in subsection (4) the reference to section 128(3) includes a reference to that provision as it is applied by virtue of any enactment relating to chargeable gains. . 2 The amendment made by subsection (1) has effect in relation to shares acquired by an individual on or after 6th April 2002. 3 For this purpose— a any shares to which relief under Chapter 3 of Part 7 of the Taxes Act 1988 is attributable and which were transferred to an individual as mentioned in section 304 of that Act, and b any shares to which deferral relief (within the meaning of Schedule 5B to the Taxation of Chargeable Gains Act 1992 (c. 12)), but