Finance Act 1999

• Citation: 1999 c. 16
• Sections: 368

Section 1 Rate of duty on sparkling cider.

(1) In section 62(1A)(a) of the Alcoholic Liquor Duties Act 1979 (rate of duty per hectolitre on sparkling cider of a strength exceeding 5.5 per cent.), for “£45.05” there shall be substituted “ £161.20 ” .

(2) This section shall be deemed to have come into force at 6 o’clock in the evening of 9th March 1999.

Section 2 Rates of duty and rebate on hydrocarbon oil.

(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 “£0.4926” there shall be substituted “ £0.5288 ” ;

(b) in paragraph (b) (ultra low sulphur diesel), for “£0.4299” there shall be substituted “ £0.4721 ” ; and

(c) in paragraph (c) (heavy oil which is not ultra low sulphur diesel), for “£0.4499” there shall be substituted “ £0.5021 ” .

(2) In section 8(3) of that Act (road fuel gas), for “£0.2113” there shall be substituted “ £0.1500 ” .

(3) In section 11(1) of that Act (rebate on heavy oil)—

(a) in paragraph (a) (fuel oil), for “£0.0218” there shall be substituted “ £0.0265 ” ; and

(b) in each of paragraphs (b) and (ba) (gas oil which is not ultra low sulphur diesel and ultra low sulphur diesel), for “£0.0282” there shall be substituted “ £0.0303 ” .

(4) In section 13A(1A) of that Act (rebate on unleaded petrol)—

(a) in paragraph (a) (higher octane unleaded petrol), for “£0.0050” there shall be substituted “ £0.0055 ” ; and

(b) in paragraph (b) (other unleaded petrol), for “£0.0527” there shall be substituted “ £0.0567 ” .

(5) In section 14(1) of that Act (rebate on light oil for use as furnace fuel), for “£0.0218” there shall be substituted “ £0.0265 ” .

(6) This section shall be deemed to have come into force at 6 o’clock in the evening of 9th March 1999.

Section 3 Increased rebate on higher octane unleaded petrol.

(1) In section 13A(1A)(a) of the Hydrocarbon Oil Duties Act 1979 (rebate on higher octane unleaded petrol), for “£0.0055” there shall be substituted “ £0.0367 ” .

(2) This section comes into force on 1st October 1999.

Section 4 Drawback of duty on exportation.

(1) In section 15(1) of the Hydrocarbon Oil Duties Act 1979 (drawback of duty on exportation, shipment as stores or warehousing of hydrocarbon oil and related articles), the word “exportation,” shall be omitted.

(2) This section has effect in relation to any exportation on or after the day on which this Act is passed.

Section 5 Rates of tobacco products duty.

(1) For the Table of rates of duty in Schedule 1 to the Tobacco Products Duty Act 1979 there shall be substituted—

(2) This section shall be deemed to have come into force at 6 o’clock in the evening of 9th March 1999.

Section 6 Rate of pool betting duty.

(1) In section 7(1) of the Betting and Gaming Duties Act 1981 (rate of pool betting duty), for “26.50 per cent.” there shall be substituted “ 17.50 per cent. ”

(2) This section has effect in relation to bets the stake money on which is or has been paid on or after 28th March 1999.

Section 7 Rates of gaming duty.

(1) For the Table in section 11(2) of the Finance Act 1997 (rates of gaming duty) there shall be substituted—

Table

(2) This section has effect in relation to accounting periods beginning on or after 1st April 1999.

Section 8 The general rate of vehicle excise duty.

(1) In sub-paragraph (2) of paragraph 1 of Schedule 1 to the Vehicle Excise and Registration Act 1994 (the general rate), for “£150” there shall be substituted “ £155 ” .

(2) For the word “The” at the beginning of that sub-paragraph there shall be substituted “ Except in the case of a vehicle having an engine with a cylinder capacity not exceeding 1,100 cubic centimetres, the ” .

(3) After that sub-paragraph there shall be inserted the following sub-paragraph—

(2A) In the case of a vehicle having an engine with a cylinder capacity not exceeding 1,100 cubic centimetres, the general rate is £100.

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(5) Subsection (1) above has effect in relation to any licence issued after 9th March 1999; and subsections (2) to (4) above have effect in relation to any licence taken out for a period beginning on or after 1st June 1999.

Section 9 Rates of duty for goods vehicles.

Schedule 1 to this Act (which makes provision for new rates of vehicle excise duty for goods vehicles etc. ) shall have effect.

Section 10 Goods for sale on board ships or aircraft.

(1) For subsection (4) of section 1 of the Customs and Excise Management Act 1979 (goods for sale on board ships or aircraft to be treated as stores) there shall be substituted the following subsections—

(4) Goods for use in a ship or aircraft as merchandise for sale to persons carried in the ship or aircraft shall be treated for the purposes of the customs and excise Acts as stores if, and only if—

(a) the goods are to be sold by retail either—

(i) in the course of a relevant journey, or

(ii) for consumption on board;

and

(b) the goods are not treated as exported by virtue of regulations under section 12 of the Customs and Excise Duties (General Reliefs) Act 1979 (goods for use in naval ships or establishments).

(4A) For the purposes of subsection (4) above a relevant journey is any journey beginning in the United Kingdom and having an immediate destination outside the member States.

(4B) In relation to goods treated as stores by virtue of subsection (4) above, any reference in the customs and excise Acts to the consumption of stores shall be construed as referring to the sale of the goods as mentioned in paragraph (a) of that subsection.

(2) This section shall be deemed to have come into force on 1st July 1999 but shall not have effect in relation to any shipment of goods before that date.

Section 11 Drawback of duty on shipment.

(1) In section 2 of the Finance ( No. 2) Act 1992 (power to provide for drawback of excise duty), in subsection (1), after “provision” there shall be inserted “ (a) ” , and after “Kingdom” there shall be inserted

; and

(b) conferring an entitlement to drawback of duty, in prescribed cases, on the shipment as stores, or warehousing in an excise warehouse for use as stores, of goods chargeable with duty

(2) In subsection (5) of that section, for “ “ goods ” has the same meaning” there shall be substituted “ excise warehouse ”, “ goods ”, “ shipment ”, “ stores ” and “ warehousing ” have the same meanings ” .

(3) Section 132 of the Customs and Excise Management Act 1979 (extension of drawback to shipment, and warehousing for use, as stores) shall cease to have effect.

(4) Subsection (3) above shall come into force on such day as the Commissioners of Customs and Excise may by order made by statutory instrument appoint.

Section 12 Works of art, antiques, etc.

(1) In subsection (4) of section 21 of the Value Added Tax Act 1994 (which treats as reduced for VAT purposes the value of goods falling within subsection (5) of that section and imported from outside the EU )—

(a) at the beginning there shall be inserted “ Subject to subsection (6D) below, ” ; and

(b) for “14.29 per cent.” there shall be substituted “ 28.58 per cent. ”

(2) For subsections (5) and (6) of that section there shall be substituted the following subsections—

(5) The goods that fall within this subsection are—

(a) any work of art;

(b) any antique, not falling within paragraph (a) above or (c) below, that is more than one hundred years old;

(c) any collection or collector’s piece that is of zoological, botanical, mineralogical, anatomical, historical, archaeological, palaeontological, ethnographic, numismatic or philatelic interest.

(6) In this section “ work of art ” means, subject to subsections (6A) and (6B) below—

(a) any mounted or unmounted painting, drawing, collage, decorative plaque or similar picture that was executed by hand;

(b) any original engraving, lithograph or other print which—

(i) was produced from one or more plates executed by hand by an individual who executed them without using any mechanical or photomechanical process; and

(ii) either is the only one produced from the plate or plates or is comprised in a limited edition;

(c) any original sculpture or statuary, in any material;

(d) any sculpture cast which—

(i) was produced by or under the supervision of the individual who made the mould or became entitled to it by succession on the death of that individual; and

(ii) either is the only cast produced from the mould or is comprised in a limited edition;

(e) any tapestry or other hanging which—

(i) was made by hand from an original design; and

(ii) either is the only one made from the design or is comprised in a limited edition;

(f) any ceramic executed by an individual and signed by him;

(g) any enamel on copper which—

(i) was executed by hand;

(ii) is signed either by the person who executed it or by someone on behalf of the studio where it was executed;

(iii) either is the only one made from the design in question or is comprised in a limited edition; and

(iv) is not comprised in an article of jewellery or an article of a kind produced by goldsmiths or silversmiths;

(h) any mounted or unmounted photograph which—

(i) was printed by or under the supervision of the photographer;

(ii) is signed by him; and

(iii) either is the only print made from the exposure in question or is comprised in a limited edition;

(6A) The following do not fall within subsection (5) above by virtue of subsection (6)(a) above, that is to say—

(a) any technical drawing, map or plan;

(b) any picture comprised in a manufactured article that has been hand-decorated; or

(c) anything in the nature of scenery, including a backcloth.

(6B) An item comprised in a limited edition shall be taken to be so comprised for the purposes of subsection (6)(d) to (h) above only if—

(a) in the case of sculpture casts—

(i) the edition is limited so that the number produced from the same mould does not exceed eight; or

(ii) the edition comprises a limited edition of nine or more casts made before 1st January 1989 which the Commissioners have directed should be treated, in the exceptional circumstances of the case, as a limited edition for the purposes of subsection (6)(d) above;

(b) in the case of tapestries and hangings, the edition is limited so that the number produced from the same design does not exceed eight;

(c) in the case of enamels on copper—

(i) the edition is limited so that the number produced from the same design does not exceed eight; and

(ii) each of the enamels in the edition is numbered and is signed as mentioned in subsection (6)(g)(ii) above;

(d) in the case of photographs—

(i) the edition is limited so that the number produced from the same exposure does not exceed thirty; and

(ii) each of the prints in the edition is numbered and is signed as mentioned in subsection (6)(h)(ii) above.

(6C) For the purposes of this section a collector’s piece is of philatelic interest if—

(a) it is a postage or revenue stamp, a postmark, a first-day cover or an item of pre-stamped stationery; and

(b) it is franked or (if unfranked) it is not legal tender and is not intended for use as such.

(6D) Subsection (4) above does not apply in the case of any goods imported from outside the member States if—

(a) the whole of the VAT chargeable on their importation falls to be relieved by virtue of an order under section 37(1); or

(b) they were exported from the United Kingdom during the period of twelve months ending with the date of their importation.

(3) This section has effect in relation to goods imported at any time on or after the day on which this Act is passed.

Section 13 Gold.

(1) Notwithstanding the words preceding paragraph (a) in section 26(3) of the Value Added Tax Act 1994 (input tax allowable against output tax), regulations which—

(a) are made under section 26(3), and

(b) have effect in respect of exempt supplies which relate to gold,

may provide that input tax is allowable, as being attributable to the supplies, only in relation to specified matters.

(2) An order under section 31(2) of that Act (exempt supplies and acquisitions) which provides for certain supplies which relate to gold to be exempt supplies may—

(a) provide that a supply which would be an exempt supply by virtue of the order shall, if the supplier so chooses, be a taxable supply;

(b) make provision by reference to notices to be published by the Commissioners.

(3) An order under section 37(1) of that Act (relief on importation of goods) which gives relief from VAT on certain importations of gold may make provision by reference to notices to be published by the Commissioners.

(4) Provision made by virtue of subsection (2) or (3) above may be expressed—

(a) to apply only in specified circumstances;

(b) to apply subject to compliance with specified conditions (which may include conditions relating to general or specific approval of the Commissioners).

(5) Regulations may—

(a) require specified persons to keep specified records in relation to specified transactions concerning gold;

(b) require specified persons to give specified information to the Commissioners about specified transactions concerning gold;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The provisions of that Act (including, in particular, section 97 and paragraph 6(2) to (4) of Schedule 11) shall apply in relation to regulations under subsection (5) above , and to records kept in pursuance of such regulations, as they apply in relation to regulations under paragraph 6(1) of Schedule 11 to that Act and to records kept in pursuance of that paragraph .

(7) In this section “ the Commissioners ” means the Commissioners of Customs and Excise.

Section 14 Preparations etc. of meat, yeast or egg.

Schedule 8 to the Value Added Tax Act 1994 (zero-rating) shall have effect, and be deemed always to have had effect, as if in Group 1 (food), in Note (6) (which provides that certain items which override the exceptions listed in that Group relate only to item 4 of the excepted items (non-alcoholic beverages)) for “Items 4 to 6” there were substituted “ Items 4 to 7 ” .

Section 15 Assignment of debts.

(1) In section 36 of the Value Added Tax Act 1994 (bad debts), for subsection (3) there shall be substituted—

(3) In subsection (2) above “ the outstanding amount ” means—

(a) if at the time of the claim no part of the consideration written off in the claimant’s accounts as a bad debt has been received, an amount equal to the amount of the consideration so written off;

(b) if at that time any part of the consideration so written off has been received, an amount by which that part is exceeded by the amount of the consideration written off;

and in this subsection “ received ” means received either by the claimant or by a person to whom has been assigned a right to receive the whole or any part of the consideration written off.

(2) In subsection (5)(e) of that section, for the words from “where” to the end of the paragraph there shall be substituted “ where any part (or further part) of the consideration written off in the claimant’s accounts as a bad debt is subsequently received either by the claimant or, except in such circumstances as may be prescribed, by a person to whom has been assigned a right to receive the whole or any part of that consideration; ” .

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(4) Until such day as the Commissioners may specify in regulations made under section 36 of that Act, Part XIX of the Value Added Tax Regulations 1995 (bad debt relief), except regulation 171, shall be read as if a reference to a payment being received by the claimant were a reference to a payment being received either by the claimant or by a person to whom a right to receive it has been assigned.

(5) Subsections (1) and (4) above have effect for the purposes of the making of any refund or repayment after 9th March 1999, but do not have effect in relation to anything received on or before that day.

Section 16 Groups of companies.

Schedule 2 to this Act (which makes changes to provisions about the treatment of bodies corporate as members of a group) shall have effect.

Section 17 Penalties for incorrect certificates.

(1) For subsections (1) and (2) of section 62 of the Value Added Tax Act 1994 (incorrect certificates as to zero-rating etc.) there shall be substituted the following subsections—

(1) Subject to subsections (3) and (4) below, where—

(a) a person to whom one or more supplies are, or are to be, made—

(i) gives to the supplier a certificate that the supply or supplies fall, or will fall, wholly or partly within paragraph 1 of Schedule A1, Group 5 or 6 of Schedule 8 or Group 1 of Schedule 9, or

(ii) gives to the supplier a certificate for the purposes of section 18B(2)(d) or 18C(1)(c),

and

(b) the certificate is incorrect,

the person giving the certificate shall be liable to a penalty.

(1A) Subject to subsections (3) and (4) below, where—

(a) a person who makes, or is to make, an acquisition of goods from another member State prepares a certificate for the purposes of section 18B(1)(d), and

(b) the certificate is incorrect,

the person preparing the certificate shall be liable to a penalty.

(2) The amount of the penalty shall be equal to—

(a) in a case where the penalty is imposed by virtue of subsection (1) above, the difference between—

(i) the amount of the VAT which would have been chargeable on the supply or supplies if the certificate had been correct; and

(ii) the amount of VAT actually chargeable;

(b) in a case where it is imposed by virtue of subsection (1A) above, the amount of VAT actually chargeable on the acquisition.

(2) Subsection (1) above has effect in relation to certificates given or, as the case may be, prepared on or after the day on which this Act is passed.

Section 18 EC sales statements: time limits for assessments to penalties.

(1) For section 77(2) of the Value Added Tax Act 1994 (time limits for assessments under section 76) there shall be substituted the following subsections—

(2) Subject to subsection (5) below, an assessment under section 76 of an amount due by way of any penalty, interest or surcharge referred to in subsection (3) of that section may be made at any time before the expiry of the period of 2 years beginning with the time when the amount of VAT due for the prescribed accounting period concerned has been finally determined.

(2A) Subject to subsection (5) below, an assessment under section 76 of a penalty under section 65 or 66 may be made at any time before the expiry of the period of 2 years beginning with the time when facts sufficient in the opinion of the Commissioners to indicate, as the case may be—

(a) that the statement in question contained a material inaccuracy, or

(b) that there had been a default within the meaning of section 66(1),

came to the Commissioners’ knowledge.

(2) Subsection (1) above has effect in relation to any amount by way of penalty, interest or surcharge which becomes due on or after the day on which this Act is passed.

Section 19 Period before repayment supplement payable.

(1) Section 79 of the Value Added Tax Act 1994 (repayment supplement) shall be amended as follows.

(2) In subsection (2)(b), for “the period of 30 days beginning on the date of the receipt by the Commissioners of that return or claim” there shall be substituted “ the relevant period ” .

(3) After subsection (2) there shall be inserted—

(2A) The relevant period in relation to a return or claim is the period of 30 days beginning with the later of—

(a) the day after the last day of the prescribed accounting period to which the return or claim relates, and

(b) the date of the receipt by the Commissioners of the return or claim.

(4) In subsections (3) and (7), for “subsection (2)(b)” there shall be substituted “ subsection (2A) ” ; and regulations under subsection (3) shall be construed accordingly.

(5) This section has effect in relation to returns and claims received by the Commissioners on or after 9th March 1999.

Section 20 Meaning of “business”.

(1) Section 94(3) of the Value Added Tax Act 1994 (meaning of “ business ”: public organisations) shall cease to have effect.

(2) This section shall come into force in accordance with such provision as the Commissioners of Customs and Excise may make by order made by statutory instrument.

Section 22 Starting rate.

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Section 23 Charge and rates for 1999-00.

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Section 24 Personal allowances for 1999-00 for those aged 65 or more.

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Section 25 Operative date of indexation for PAYE.

(1) The Taxes Act 1988 shall be amended in accordance with subsections (2) and (3) below.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) This section has effect for the year 1999-00 and subsequent years of assessment.

Section 26 Rates of capital gains tax.

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Section 27 Charge and main rate for financial year 2000.

Corporation tax shall be charged for the financial year 2000 at the rate of 30 per cent.

Section 28 Corporation tax starting rate.

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Section 29 Rate and fraction for corporation tax starting rate.

For the financial year 2000—

(a) the corporation tax starting rate shall be 10 per cent.; and

(b) the fraction mentioned in section 13AA(3) of the Taxes Act 1988 shall be one fortieth.

Section 30 Children’s tax credit.

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Section 31 Restriction of MCA to those reaching 65 before 2000-01.

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Section 32 Further provision about married couple’s allowance.

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Section 33 Abolition of existing relief in respect of children.

(1) Sections 259 to 261A of the Taxes Act 1988 (additional relief in respect of children) shall cease to have effect.

(2) This section has effect for the year 2000-01 and subsequent years of assessment.

Section 34 Abolition of widow’s bereavement allowance.

(1) Section 262 of the Taxes Act 1988 (income tax reduction for widow in year of bereavement and following year) shall cease to have effect.

(2) Subsection (1) above has effect in relation to deaths occurring on or after 6th April 2000.

(3) Where a woman is entitled to an income tax reduction for the year 2000-01 by virtue of paragraph (b) of section 262(1) of the Taxes Act 1988, the reference in that paragraph to the amount specified in section 257A(1) for that year shall be read as a reference to the amount specified in section 257A(5A) for that year.

Section 35 Order of income tax reductions etc.

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Section 36 Maintenance payments.

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(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) Sections 347A and 347B of the Taxes Act 1988 shall have effect, notwithstanding anything in subsection (3) of section 36 of the Finance Act 1988 (which provides for the application of those sections), in relation to a payment made in pursuance of an existing obligation (within the meaning of that subsection) as they have effect in relation to a payment made otherwise than in pursuance of such an obligation.

(8) This section has effect in relation to any payment falling due on or after 6th April 2000.

Section 37 Limit on relief for interest.

For the year 1999-00 the qualifying maximum defined in section 367(5) of the Taxes Act 1988 (limit on relief for interest on certain loans) shall be £30,000.

Section 38 Withdrawal of relief for interest on loans to buy land etc.

(1) A payment of interest falling within subsection (3) or (4) below shall not be eligible for relief under section 353 of the Taxes Act 1988 by virtue of section 354 of that Act (interest on loans to buy land etc.).

(2) Section 369(1) of that Act (mortgage interest payable under deduction of tax) shall not apply to any payment of interest falling within subsection (3) or (4) below which (apart from section 353(2) of that Act and subsection (1) above) would be eligible for relief under section 353 of that Act by virtue of section 354 of that Act.

(3) A payment of interest falls within this subsection if it is—

(a) a payment made on or after 6th April 2000 (whenever falling due); or

(b) a payment made before that date, but not before 9th March 1999, of any interest that was not due until on or after 6th April 2000.

(4) A payment of interest falls within this subsection if it is—

(a) made before 6th April 2000 but not before 9th March 1999; and

(b) made under or in accordance with any scheme made for a tax-avoidance purpose on or after 9th March 1999 (whether or not before the making of the payment).

(5) For the purposes of subsection (4) above, a scheme is made for a tax-avoidance purpose if its main purpose, or one of its main purposes, is to secure that a payment of one or more of the following descriptions is a relievable payment, that is to say—

(a) a payment discharging an obligation to make a payment which (but for the scheme) might have been expected to be a non-relievable payment;

(b) a payment made in pursuance of any obligation which has effect, directly or indirectly, in place of an obligation under which a payment which might have been expected to be a non-relievable payment would have become due;

(c) a payment made in pursuance of an obligation which (apart from the purpose of securing that it is a relievable payment) might have been expected to take the form of an obligation—

(i) to make a non-relievable payment, or

(ii) to make two or more payments at least one of which would have been a non-relievable payment.

(6) In subsection (5) above—

“ non-relievable payment ” means a payment falling within subsection (3) above; and

“ relievable payment ” means a payment which—

is eligible for relief under section 353 of the Taxes Act 1988, or

is a payment to which section 369(1) of that Act applies.

(7) The references in this section to a scheme are references to any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable.

(8) Schedule 4 to this Act (which contains amendments consequential on the preceding provisions of this section) shall have effect.

Section 39 Withdrawal of relief for interest on new annuity loans.

(1) In section 365 of the Taxes Act 1988 (relief for interest on loans to buy life annuities), in subsection (1), before paragraph (a) insert—

(aa) that the loan was made before 9th March 1999;

(2) After subsection (1) of that section insert—

(1AA) Where—

(a) a loan made on or after 9th March 1999 was made in pursuance of an offer made by the lender before that date, and

(b) the offer was either in writing or evidenced by a note or memorandum made by the lender before that date,

the loan shall be deemed for the purposes of subsection (1)(aa) above to have been made before that date.

(3) This section has effect for the year 1998-99 and subsequent years of assessment.

Section 40 Annuity loans: residence requirements and re-mortgages.

(1) Section 365 of the Taxes Act 1988 (relief for interest on loans to buy life annuities) is amended as follows.

(2) In subsection (1)(d) (residence requirement for land on which loan is secured), for “uses the land on which it was secured as his only or main residence at the time the interest is paid” substitute “ used the land on which it was secured as his only or main residence immediately before 9th March 1999 ” .

(3) After subsection (1AA) (inserted by section 39 of this Act) insert—

(1AB) Subject to subsection (1AC) below, the conditions in paragraphs (aa) and (a) of subsection (1) above shall be treated as satisfied in relation to a loan (“ the new loan ”) if—

(a) the new loan was made on or after the day on which the Finance Act 1999 was passed;

(b) the new loan was made as part of a scheme (“ the scheme ”) under which the whole or any part of the proceeds of the loan was used to defray money applied in paying off another loan (“ the old loan ”); and

(c) the conditions in subsection (1) above were, or were treated by virtue of this subsection as, satisfied with respect to the old loan.

(1AC) If only part of the proceeds of the new loan was used to defray money applied in paying off the old loan, subsection (1AB) above applies only if, under the scheme, not less than nine-tenths of the remaining part of the proceeds of the new loan was applied to the purchase by the person to whom it was made of an annuity ending with his life or with the life of the survivor of two or more persons who include him.

(1AD) In subsection (1AC) above “ the remaining part ” means the part of the proceeds of the new loan that was not used to defray money applied in paying off the old loan.

(4) For subsection (1A) substitute—

(1A) The condition in subsection (1)(d) above shall be treated as satisfied in relation to a loan if—

(a) the person to whom the loan was made, or any of the annuitants, ceased to use the land as his only or main residence at a time falling within the period of twelve months ending with 8th March 1999, and

(b) the intention at that time of the person to whom the loan was made, or each of the annuitants owning an estate or interest in the land, was to take steps, before the end of the period of twelve months after the day on which the land ceased to be so used, with a view to the disposal of his estate or interest.

(5) This section has effect in relation to any payment of interest (whenever falling due) made on or after the day on which this Act is passed.

Section 41 Repayments attracting repayment supplement.

(1) Section 824 of the Taxes Act 1988 (repayment supplements for individuals) shall have effect, and be deemed always to have had effect, with the following amendments.

(2) Before subsection (3) insert—

(2B) Subsection (1) above shall apply to a payment made by the Board under section 375(8) (payment of amount which borrower would have been able to deduct from interest payment under section 369(1)) as if the payment were a repayment falling within that subsection.

(3) In subsection (3), before paragraph (a) insert—

(aa) if the repayment is a payment made by the Board under section 375(8), the relevant time is—

(i) if the interest payment was made in the year 1996-97 or a subsequent year of assessment, the 31st January next following that year;

(ii) if the interest payment was made in an earlier year of assessment, the 5th April next following that year;

(4) This section shall be deemed to have had effect in relation to provisions corresponding to section 824 of the Taxes Act 1988 directly or indirectly re-enacted in that section as it has effect in relation to that section, subject to subsections (5) and (6) below.

(5) For the purposes of subsection (4) above the references in the amendments of section 824 of the Taxes Act 1988 made by this section to provisions of that Act shall be taken to include references to any corresponding provision contained in the enactments directly or indirectly re-enacted in those provisions.

(6) Subsection (4) above applies only if the payments corresponding to payments under section 375(8) of the Taxes Act 1988 were made in the year 1984-85 or a subsequent year of assessment.

Section 42 Conditional acquisition of shares.

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Section 43 Meaning of conditional interests in shares.

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Section 44 Exemption for mobile telephones.

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Section 45 Limited exemption for computer equipment.

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Section 46 PRP and agricultural pay.

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Section 47 Cars available for private use.

(1) Schedule 6 to the Taxes Act 1988 (cars available for private use: cash equivalent of car) shall be amended as follows.

(2) In paragraph 2(1) (reduction for business travel: 18,000 miles and above)—

(a) for “in the year concerned” substitute “ in a year ” , and

(b) for “the amount ascertained under paragraph 1 above, reduced by two thirds” substitute “ 15 per cent. of the price of the car as regards the year ” .

(3) In paragraph 2(2) (reduction for business travel: 2,500 to 18,000 miles)—

(a) for “in the year concerned” substitute “ in a year ” , and

(b) for “the amount ascertained under paragraph 1 above, reduced by one third” substitute “ 25 per cent. of the price of the car as regards the year ” .

(4) For paragraph 4(a) (two or more cars) substitute—

(a) paragraph 2(1) above shall have effect as if for “15 per cent.” there were substituted “25 per cent.”

(5) In paragraph 5 (reduction for age of car), for “one third” substitute “ one quarter ” .

(6) This section has effect for the year 1999-00 and subsequent years of assessment.

Section 48 Provision and support of bus services.

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Section 49 Provision of motor cycle or cycle parking facilities.

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Section 50 Cycles and cyclist’s safety equipment.

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Section 51 EU travel expenses.

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