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Royal ArmsFinance Act 2005

2005 Chapter 7


 

© Crown Copyright 2005

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The legislation contained on this web site is subject to Crown Copyright protection. It may be reproduced free of charge provided that it is reproduced accurately and that the source and copyright status of the material is made evident to users.

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The text of this Internet version of the Act is published by the Queen's Printer of Acts of Parliament and has been prepared to reflect the text as it received Royal Assent. A print version is also available and is published by The Stationery Office Limited as the Finance Act 2005, ISBN 0 10 540805 0.

 

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Finance Act 2005

2005 Chapter 7

 
 
 
CONTENTS

PART 1
EXCISE DUTIES
Tobacco products duty
Section 
1Rates of tobacco products duty

Alcoholic liquor duties
2Rate of duty on beer
3Rates of duty on wine and made-wine

Hydrocarbon oil etc duties
4Consolidation of current rates of hydrocarbon oil duties etc.
5Rates of hydrocarbon oil duties etc. from 1st September 2005

Gaming duty
6Rates of gaming duty

Vehicle excise duty
7Rates

PART 2
INCOME TAX, CORPORATION TAX AND CAPITAL GAINS TAX
CHAPTER 1
INCOME TAX AND CORPORATION TAX CHARGE AND RATE BANDS
Income tax
8Charge and rates for 2005-06
9Personal allowances for those aged 65 or more

Corporation tax
10Charge and main rate for financial year 2006
11Small companies' rate and fraction for financial year 2005
12Corporation tax starting rate and fraction for financial year 2005
13Non-corporate distribution rate for financial year 2005

Trusts
14Special trust rates not to apply to first slice of trust income

CHAPTER 2
PERSONAL TAXATION
Taxable benefits
15Childcare vouchers: exempt amount
16Extension of exemptions for childcare, workplace parking, cycles etc
17Transfer of previously loaned computer or cycle etc
18Extension of outplacement services etc exemption: part-time employees

Armed forces
19Armed forces pensions and compensation schemes

CHAPTER 3
EMPLOYMENT-RELATED SECURITIES
20Research institution spin-out companies
21Research institution spin-out companies: pre-2nd December 2004 cases
22Capital gains

CHAPTER 4
TRUSTS WITH VULNERABLE BENEFICIARY
Introductory
23Introduction
24Entitlement to make claim for special tax treatment

Income tax
25Qualifying trusts income: special income tax treatment
26Amount of relief
27Trustees' liability: TQTI
28Vulnerable person's liability: VQTI
29Part years

Capital gains tax
30Qualifying trusts gains: special capital gains tax treatment
31UK resident vulnerable persons: section 77 treatment
32Non-UK resident vulnerable persons: amount of relief
33Vulnerable person's liability: VQTG

Qualifying trusts
34Disabled persons
35Relevant minors
36Parts of assets

Vulnerable persons
37Vulnerable person election
38Meaning of "disabled person"
39Meaning of "relevant minor"

Miscellaneous and supplementary
40Power to make enquiries
41Interpretation etc.
42Application in relation to Scotland
43Penalties under TMA 1970
44Consequential amendments
45Commencement

CHAPTER 5
ALTERNATIVE FINANCE ARRANGEMENTS
Introductory
46Alternative finance arrangements

Arrangements giving rise to alternative finance return
47Alternative finance arrangements: alternative finance return
48Arrangements within section 47: foreign currency and non-residents

Arrangements giving rise to profit share return
49Alternative finance arrangements: profit share return

Treatment of alternative finance arrangements
50Treatment of alternative finance arrangements: companies
51Treatment of alternative finance arrangements: persons other than companies
52Provision not at arm's length
53Treatment of section 47 arrangements: sale and purchase of asset
54Section 49 arrangements: profit share return not to be treated as distribution

Supplementary
55Further provisions
56Application of Chapter
57Interpretation of Chapter

CHAPTER 6
FILM RELIEF
Tax relief for limited-budget films
58Relief for production and acquisition expenditure on limited-budget films

Restrictions on relief
59Restrictions on relief for production and acquisition expenditure

Deferred income agreements
60Deferred income agreements which exist when relief claimed
61Meaning of "deferred income agreement in respect of a film"
62Deferred income agreements entered into after relief claimed
63Sections 60 to 62: supplementary
64Transitional provision for years of assessment before the year 2005-06
65Corresponding provision in ITTOIA 2005

Companies benefited by film relief: exit charges
66When a chargeable event occurs
67Consequences of a chargeable event: exit event X or Y
68Exit event Z: a relevant disposal at an undervalue
69Consequences of a chargeable event: exit event Z
70Valuation of the "rights to guaranteed income" and "disposed rights"
71Meaning of "company" and related terms

CHAPTER 7
AVOIDANCE INVOLVING PARTNERSHIP
Partners: restrictions on relief
72Removal of restrictions on interest relief
73Meaning of "contribution to the trade"

Partners: recovery of excess relief
74Recovery of excess relief given under section 380 or 381 of ICTA
75Computing the chargeable amount
76Meaning of "relevant loss"
77Transitional provision for years of assessment before the year 2005-06
78Consequential amendments

Partners benefited by film relief
79Meaning of "capital contribution to the trade"

CHAPTER 8
ACCOUNTING PRACTICE AND RELATED MATTERS
80Accounting practice and related matters
81Computation of profits: change of accounting basis
82Change of accounting practice: deferment of transitional adjustments
83Application of accounting standards to securitisation companies
84Taxation of securitisation companies

CHAPTER 9
INTERNATIONAL MATTERS
Double taxation relief: general
85Dividends by reference to which a deduction is allowed: no underlying tax

Double taxation relief: restrictions
86Limits on credit: income tax and corporation tax: trading profits
87Schemes and arrangements designed to increase relief
88Self-assessment amendments

Controlled foreign companies
89ADP dividends and double taxation relief
90Foreign taxation of group as single entity: exclusion of ADP CFCs

Annual payments and double taxation relief
91Tax avoidance involving annual payments and double taxation relief

CHAPTER 10
MISCELLANEOUS
Capital allowances
92Capital allowances: renovation of business premises in disadvantaged areas

Tonnage tax
93Tonnage tax

PART 3
STAMP TAXES
Stamp duty land tax
94Alternative property finance

Stamp duty land tax and stamp duty
95Raising of thresholds
96Removal of disadvantaged areas relief for non-residential property

Stamp duty and stamp duty reserve tax
97Demutualisation of insurance companies

PART 4
OTHER TAXES
Inheritance tax
98Rates and rate bands for the next three years

Landfill tax
99Rate of landfill tax

Lorry road-user charge
100Lorry road-user charge

PART 5
PENSIONS ETC
101Pension schemes etc.
102Pension Protection Fund etc.

PART 6
MISCELLANEOUS
103Civil partnerships etc

PART 7
SUPPLEMENTARY PROVISIONS
104Repeals
105Interpretation
106Short title
 

 
    Schedule 1-Non-UK resident vulnerable persons: interpretation
    Schedule 2-Alternative finance arrangements: further provisions
    Schedule 3-Films: restrictions on relief for production and acquisition expenditure
    Part 1-Restrictions on circumstances in which relief may be obtained
    Part 2-Restrictions on amount of relief which may be obtained
    Part 3-Minor and consequential amendments
    Part 4-Interpretation
    Schedule 4-Accounting practice and related matters
    Part 1-Bad debts and related matters
    Part 2-Other provisions connected with accounting practice
    Schedule 5-Section 804ZA: prescribed schemes and arrangements
    Schedule 6-Capital allowances: renovation of business premises in disadvantaged areas
    Part 1-New Part 3A of the Capital Allowances Act 2001
    Part 2-Consequential amendments
    Schedule 7-Tonnage tax
    Part 1-Amendments of Schedule 22 to FA 2000
    Part 2-Commencement and transitional provision
    Schedule 8-Stamp duty land tax: alternative property finance
    Schedule 9-Stamp duty land tax and stamp duty: removal of disadvantaged areas relief for non-residential property
    Schedule 10-Pension schemes etc.
    Schedule 11-Repeals
    Part 1-Excise duties
    Part 2-Income tax, corporation tax and capital gains tax
    Part 3-Stamp taxes
    Part 4-Pensions etc
 


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© Crown copyright 2005
Prepared 11 April 2005

Finance Act 2005 is reproduced under the terms of Crown Copyright Policy Guidance issued by HMSO.
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