Finance Act 1988

Finance Act 1988

1988 c. 39

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Finance Act 1988

1988c. 39

ARRANGEMENT OF CLAUSES

Part I
Customs and Excise
Duties of excise: rates
1.	Beer, wine, made-wine and cider.
2.	Tobacco products.
3.	Hydrocarbon oil.
4.	Vehicles excise duty.

Duties of excise: other provisions
5.	Relief from excise duty on goods imported for testing etc.
6.	Remission of duty in respect of spirits used for medical or scientific purposes.
7.	Meaning of "sparkling" in relation to wine and made-wine.

Management
8.	Disclosure of information as to imports.
9.	Approval and regulation of warehouses.
10.	Power to search persons.
11.	Time limits for arrest and proceedings.
12.	Punishment of offences.

Part II
Value Added Tax
Exemptions
13.	Medical services and goods.

Administration
14.	Registration.
15.	Assessment of tax due.

Civil penalties
16.	Serious misdeclaration or neglect resulting in understatements or overclaims.
17.	Persistent misdeclaration resulting in understatements or overclaims.
18.	Failures to notify and unauthorised issue of invoices.
19.	Breaches of regulatory provisions.

Miscellaneous
20.	Repayment supplement.
21.	Set-off of credits.
22.	Invoices provided by recipients of goods or services.

Part III
Income Tax, Corporation Tax and Capital Gains Tax
Chapter I
General
Tax rates and personal reliefs
23.	Charge and basic rate of income tax for 1988-89.
24.	Higher and additional rates of income tax.
25.	Personal reliefs.
26.	Charge and rate of corporation tax for financial year 1988.
27.	Corporation tax: small companies.
28.	Deduction rate for sub-contractors in construction industry.
29.	Life assurance premium relief.
30.	Additional relief in respect of children.
31.	Non-residents' personal reliefs.

Married couples
32.	Abolition of aggregation of income.
33.	Personal allowance and married couple's allowance.
34.	Jointly held property.
35.	Minor and consequential provisions.

Annual payments
36.	Annual payments.
37.	Maintenance payments under existing obligations: 1988-89.
38.	Maintenance payments under existing obligations: 1989-90 onwards.
39.	Maintenance payments under existing obligations: election for new rules.
40.	Provisions supplementary to sections 37 to 39.

Relief for interest
41.	Qualifying maximum for loans.
42.	Home loans: restriction of relief.
43.	Home improvement loans.
44.	Loans for residence of dependent relative etc.

Benefits in kind
45.	Car benefits.
46.	Car parking facilities.
47.	Entertainment: non-cash vouchers.
48.	Entertainment: credit tokens.
49.	Entertainment of directors and higher-paid employees.

Business expansion scheme
50.	Private rented housing.
51.	Restriction of relief.
52.	Valuation of interests in land.
53.	Approved investment funds.

Pensions etc.
54.	Personal pension schemes: commencement.
55.	Personal pension schemes: other amendments.
56.	Occupational pension schemes.
57.	Lump sum benefits paid otherwise than on retirement.

Underwriters
58.	Assessment and collection.
59.	Reinsurance: general.
60.	Reinsurance to close.
61.	Minor and consequential amendments.

Oil licences
62.	Disposals of oil licences relating to undeveloped areas.
63.	Allowance of certain drilling expenditure etc. in determining chargeable gains.
64.	Interpretation of sections 62 and 63.

Miscellaneous
65.	Commercial woodlands.
66.	Company residence.
67.	Seafarers: foreign earnings.
68.	Priority share allocations for employees etc.
69.	Share options: loans.
70.	Charities: payroll deduction scheme.
71.	Unit trusts: relief on certain payments.
72.	Entertainment of overseas customers.
73.	Consideration for certain restrictive undertakings.
74.	Payments on termination of office or employment etc.
75.	Premiums for leases etc.
76.	Foreign dividends etc., quoted Eurobonds and recognised clearing systems.

Chapter II
Unapproved Employee Share Schemes
Preliminary
77.	Scope of Chapter.

Charges to tax
78.	Charge where restrictions removed etc.
79.	Charge for shares in dependent subsidiaries.
80.	Charge on special benefits.

Miscellaneous
81.	Changes in interest.
82.	Company reorganisations etc.
83.	Connected persons etc.
84.	Capital gains tax.
85.	Information.

Supplementary
86.	Meaning of "dependent subsidiary".
87.	Other interpretation provisions.
88.	Transitional provisions.
89.	Consequential amendments.

Chapter III
Capital Allowances
90.	Buildings or structures sold by exempt bodies.
91.	Sales without change of control.
92.	Successions to trades between connected persons.
93.	Safety at sports grounds.
94.	Quarantine premises.
95.	Dwelling-houses let on assured tenancies.

Chapter IV
Capital Gains
Re-basing to 1982
96.	Assets held on 31st March 1982.
97.	Deferred charges on gains before 31st March 1982.

Unification of rates of tax on income and capital gains
98.	Rates of capital gains tax.
99.	Husband and wife.
100.	Accumulation and discretionary settlements.
101.	Underwriters.
102.	Other special cases.
103.	Commencement of sections 98 to 102.

Married couples
104.	Married couples.

Company migration
105.	Deemed disposal of assets on company ceasing to be resident in U.K.
106.	Deemed disposal of assets on company ceasing to be liable to U.K. tax.
107.	Postponement of charge on deemed disposal.

Miscellaneous
108.	Annual exempt amount for 1988-89.
109.	Gains arising from certain settled property.
110.	Retirement relief.
111.	Dependent relative's residence.
112.	Roll-over relief.
113.	Indexation: building societies etc.
114.	Indexation: groups and associated companies.
115.	Transfers within a group.
116.	Personal equity plans.
117.	Definition of "investment trust".
118.	Amendments of Finance Act 1985 s. 68.

Chapter V
Management
Assessment
119.	Current year assessments.

Returns of income and gains
120.	Notice of liability to income tax.
121.	Notice of liability to corporation tax.
122.	Notice of liability to capital gains tax.

Other returns and information
123.	Three year time limit.
124.	Returns of fees, commissions etc.
125.	Other payments and licences etc.

Production of accounts, books etc.
126.	Production of documents relating to a person's tax liability.
127.	Production of computer records etc.

Interest and penalties
128.	Interest on overdue or overpaid PAYE.
129.	Two or more tax-geared penalties in respect of same tax.

Company migration
130.	Provisions for securing payment by company of outstanding tax.
131.	Penalties for failure to comply with section 130.
132.	Liability of other persons for unpaid tax.

Appeals etc.
133.	Jurisdiction of General Commissioners.
134.	General Commissioners for Northern Ireland.
135.	Cases stated in Northern Ireland.

Part IV
Miscellaneous and General
Inheritance tax
136.	Reduction of rates.
137.	Gifts to political parties.

Petroleum revenue tax
138.	Reduced oil allowance for certain Southern Basin and onshore fields.
139.	Assets generating tariff receipts: extension of allowable expenditure.

Stamp duty and stamp duty reserve tax
140.	Abolition of stamp duty under the heading "Unit Trust Instrument".
141.	Abolition of stamp duty on documents relating to transactions of capital companies.
142.	Stamp duty: housing action trusts.
143.	Stamp duty: paired shares.
144.	Stamp duty reserve tax: paired shares etc.

Miscellaneous
145.	Building societies: change of status.
146.	Post-consolidation amendments.
147.	Interpretation etc.
148.	Repeals.
149.	Short title.