Finance Act - legislation

1 Finance Act 1986 CHAPTER 41 ARRANGEMENT OF SECTIONS PART I CUSTOMS AND EXCISE AND VALUE ADDED TAX CHAPTER I CUSTOMS AND EXCISE The rates of duty Section 1. Tobacco products. 2. Hydrocarbon oil. 3. Vehicles excise duty. Other provisions 4. Beer duty: minor amendments. 5. Warehousing regulations. 6. Betting duties and bingo duty in Northern Ireland. 7. Betting and gaming duties: evidence by certificate, etc. 8. Licences under the customs and excise Acts. CHAPTER 11 VALUE ADDED TAX 9. Fuel for private use. 10. Registration of two or more persons as one taxable person. 11. Long-stay accommodation. 12. Conditions for zero-rating of goods exported etc.

2 13. Transfer of import relief. 14. Penalty for tax evasion: liability of directors etc. 15. Breaches of Treasury orders etc. A ii c. 41 Finance Act 1986 PART II INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX CHAPTER I GENERAL Tax rates and main reliefs Section 16. Charge of income tax for 1986-87. 17. Rate of advance corporation tax. 18. Corporation tax: small companies. 19. Personal reliefs: operative date for PAYE. 20. Relief for interest. 21. Deduction rate for sub-contractors in construction industry. Employee shareholding 22. Employee share schemes: shares subject to restrictions. 23. Employee share schemes: general amendments.

3 24. Approved profit sharing schemes: workers' co-operatives. 25. Savings-related share option schemes. 26. Shares and rights to acquire shares obtained by directors and employees. Charities 27. Relief for donations under payroll deduction scheme. 28. Payroll deduction scheme: further provisions. 29. Donations by companies to charities etc. 30. Certain payments to charities. 31. Charities: restriction of tax exemptions. 32. Higher rate relief for covenanted payments. 33. Disclosure of information to Charity Commissioners. Foreign element: expenses 34. Expenses connected with work abroad. 35. Expenses connected with foreign trades etc.

4 36. Travel between trades etc. 37. Travelling expenses of employees not domiciled in UK. 38. Section 37: commencement. Miscellaneous 39. Personal equity plans. 40. Business expansion scheme. 41. Enterprise allowance. 42. Company reconstructions: restriction of relief. 43. Loans to participators. Finance Act 1986 c. 41 Section 44. Entertainers and sportsmen. 45. Payments on retirement or removal from office or employment etc. 46. Pension scheme surpluses. 47. Building societies. 48. Foreign dividends in recognised clearing system. 49. Double taxation relief: advance corporation tax. 50. Offshore funds: conditions for certification.

5 51. Pensions paid to victims of National-Socialist persecution. 52. Temporary disregard of increases in certain pensions and allowances. 53. Tax treatment of VAT penalties etc. and repayment supplement. 54. Associated companies: oil and gas industry. CHAPTER II CAPITAL ALLOWANCES 55. New code of allowances for capital expenditure on mineral extraction. 56. Agricultural land and buildings. 57. New expenditure on leased assets etc. CHAPTER III CAPITAL GAINS 58. Gifts into dual resident trusts. 59. Disposals of options and contracts for gilt-edged securities etc. 60. Small part disposals. CHAPTER IV SECURITIES 61.

6 Stock lending. 62. Amendments of Finance Act 1985. 63. Other provisions. PART III STAMP DUTY Securities 64. Stock or marketable securities: reduction of rate. 65. Bearers: consequential provisions etc, 66. Company's purchase of own shares. 111 A2 iv c. 41 Finance Act 1986 Depositary receipts Section 67. Depositary receipts. 68. Depositary receipts: notification. 69. Depositary receipts: supplementary. Clearance services 70. Clearance services. 71. Clearance services: notification. 72. Clearance services: supplementary. Reconstructions and acquisitions 73. Reconstructions etc: amendments. 74. Reconstructions etc: repeals.

7 75. Acquisitions: reliefs. 76. Acquisitions: further provisions about reliefs. 77. Acquisition of target company's share capital. Loan capital, letters of allotment etc. 78. Loan capital. 79. Loan capital: new provisions. 80. Bearer letters of allotment etc. Changes in financial institutions 81. Sales to market makers. 82. Borrowing of stock by market makers. 83. Composition agreements. 84. Miscellaneous exemptions. 85. Supplementary. PART IV STAMP DUTY RESERVE TAX Introduction 86. The tax: introduction. The principal charge 87. The principal charge. 88. Section 87: special cases. 89. Section 87: exceptions for market makers etc.

8 90. Section 87: other exceptions. 91. Liability to tax. 92. Repayment or cancellation of tax. Finance Act 1986 c. 41 v Other charges Section 93. Depositary receipts. 94. Depositary receipts: supplementary. 95. Depositary receipts: exceptions. 96. Clearance services. 97. Clearance services: exceptions. General 98. Administration etc. 99. Interpretation. PART V INHERITANCE TAX 100. Capital transfer tax to be known as inheritance tax. 101. Lifetime transfers potentially exempt etc. 102. Gifts with reservation. 103. Treatment of certain debts and incumbrances. 104. Regulations for avoiding double charges etc. 105. Application of business and agricultural relief where transfer partly exempt.

9 106. Changes in financial institutions: business property. 107. Changes in financial institutions: interest. PART VI OIL TAXATION 108. The on-shore/off-shore boundary. 109. Alternative valuation of light gases. 110. Attribution of certain receipts and expenditure between oil fields. PART VII MISCELLANEOUS AND SUPPLEMENTARY 111. Broadcasting: additional payments by programme contractors. 112. Limit for local loans. 113. "Securities" for purposes of Exchange Equalisation Account Act 1979. 114. Short title, interpretation, construction and repeals. A3 vi c. 41 Finance Act 1986 SCHEDULES: Schedule 1-Vehicles excise duty: hackney carriages and farmers' goods vehicles.

10 Schedule 2-Vehicles excise duty: miscellaneous amendments. Schedule 3-Warehousing regulations. Schedule 4-Extension to Northern Ireland of pro- visions of Betting and Gaming Duties Act 1981 . Schedule 5-Licences under the customs and excise Acts. Schedule 6-Consideration for fuel supplied for priv ate use. Schedule 7-Charities: qualifying expenditure, invest- ments and loans. Schedule 8-Personal equity plans. Schedule 9-Business expansion scheme. Schedule 10-Company reconstructions. Schedule 11-Entertainers and sportsmen. Schedule 12-Pension scheme surpluses. Schedule 13-Mineral extraction: the new code of reliefs.