Statute Law Repeals - Law Commission - Ministry of Justice

Finance Act 1991
10.56 Section 27 of the Finance Act 1991 (c.31) (“FA 1991”) dealt with abolition of
higher rate relief on certain mortgage and loan interest payments. Section 27(6)
and Schedule 6 amended provisions on taxation of beneficial loan arrangements
in ICTA 1988 26 and rates of capital gains tax in FA 1988. 27 The provisions
amended in ICTA 1988 were subsequently repealed by ITEPA 2003, ss 722, 723,
724(1), Sch 6 paras 1, 24 and 111 and Sch 8 Pt 1 for the tax year 2003-04
onwards and accounting periods ending after 5 April 2003. The amending
provisions in FA 1991 Sch 6 had been partially repealed, 28 leaving in place the
remaining section 27(6) and Schedule 6 paragraph 4. These provisions can also
now be repealed.
10.57 Section 46 of FA 1991 set out a tax dispensation for UK individuals who were
working in Kuwait at the time of its invasion in August 1990 by Iraq (leading to the
Anglo-American intervention). Foreign earnings were ordinarily governed by ICTA
1988, s 193 and Sch 12. Earnings attributable to work abroad could be deducted
so long as the period an individual was not working abroad did not exceed 62
days in any period of one year. This arrangement was adjusted for workers who
were obliged to leave the Gulf through the outbreak of hostilities, 29 and lasted
until the end of the tax year 1992-93. The amended Schedule 12 paragraph
3(2A) was repealed by the Finance Act 1998 (c.36) (“FA 1998”), ss 63, 165 and
Sch 27 Pt 3(11), and Schedule 12 as a whole was repealed by ITEPA 2003, s
724 and Sch 8 Pt 1 with effect from the tax year 2003-04 onwards, and for
accounting periods ending after 5 April 2003. The original amending provision in
FA 1991, s 46, which became spent after 1992-93, still stands and can now be
repealed.
10.58 Section 66 of FA 1991 amended section 497 of ICTA 1988 in connection with the
taxation of the oil industry and, more particularly, the restricting of the setting-off
of advance corporation tax against liability to corporation tax on profits arising
from oil extraction activities. The amendment was to apply to company
distributions made after 1 May 1991.
10.59 Sections 497 to 499 were repealed by FA 1998, ss 31(5), 165 and Sch 3 para 29
and Sch 27 Pt 3(2) for accounting periods from 6 April 1999 onwards. The
amending provision in section 66 was not repealed, however. It is now
superfluous and can be repealed.
10.60 Section 75 of FA 1991 amended ICTA 1988 by inserting a new section 482A into
the statute. This section empowered the Board of Inland Revenue to make
regulations excluding certain building societies and deposit-takers from particular
audit powers when handling non-UK residents’ investments. Section 482A was
subsequently repealed by the Finance Act 2000 (c.17) (“FA 2000”), ss 145(10),
(11), 156 and Sch 40 Pt 5 from 6 April 2001. The amending provision - section 75
- was not repealed. It has been superseded and it can now go.
26 The provisions were ICTA 1988, ss 160, 167 and Sch 7.
27 FA 1988, s 102.
28 Schedule 6 paragraph 6 had been repealed by TCGA 1992, s 290 and Sch 12. Schedule 6
paragraphs 2 and 5 had been repealed by FA 1994, ss 81(6), 88(5), (6), 258 and Sch 26
Pt 5(2). Schedule 6 paragraphs 1 and 3 were repealed by ITEPA 2003, Sch 8 Pt 1.
29 The first Gulf War was waged from 2 August 1990 to 28 February 1991.
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