§ Resolved,
That—
- (1)In section 134 of the Income and Corporation Taxes Act 1988, subsection (5)(c) shall cease to have effect.
- (2) In section 559 of the Income and Corporation Taxes Act 1988, in subsection (1), for "subsection (2) below" there shall be substituted "the following provisions of this section"; and after subsection (1) there shall be inserted the following subsection—
§ "(1A) Subsection (1) above shall not apply to any payment made under the contract in question that is chargeable to income tax under Schedule E by virtue of section 134(1)."
§ (3)Paragraphs (1) and (2) above have effect in relation to—
- (a) any payments made on or after 6th April 1998 other than any made in respect of services rendered before that date; and
- (b) any payments made before 6th April 1998 in respect of services to be rendered on or after that date.
§ (4) Subject to paragraph (9) below, paragraph (5) below applies if—
- (a) a construction trade is being carried on by a person ('the) sub-contractor') at the end of the year 1997–98; and
- (b) there are receipts of that trade which, but for section 134(5)(c) of the Income and Corporation Taxes Act 1988, would have fallen to be treated for the year 1997–98 as the emoluments of an office or employment.
§ (5)Where this paragraph applies, then, subject to paragraphs (7) and (8) below—
- (a) the trade shall be deemed to have been permanently discontinued at the end of the year 1997–98; and
- (b) to the extent (if any) that the trade includes activities in
§ addition to the rendering of services falling by virtue of this Resolution to be treated as the duties of an office or employment, a new trade shall be deemed to have been set up and commenced on 6th April 1998.
§ (6) Paragraph (7) below applies if—
- (a) a construction trade ("the old trade") is deemed by virtue of paragraph (5)(a) above to have been permanently discontinued; and
- (b) a construction trade ("the new trade")—
- (i) is deemed by virtue of paragraph (5)(b) above to have been set up and commenced; or
- (ii) (where sub-paragraph (i) above does not apply) is actually set up and commenced in the year 1998–99.
§ (7) Where this paragraph applies then, notwithstanding the deemed discontinuance, the old trade and the new trade shall be treated as the same for the purposes of section 385 of the Income and Corporation Taxes Act 1988.
§ (8) An officer of the Board shall not become entitled by virtue of anything in this Resolution to give a direction under paragraph 3(2) of Schedule 20 to the Finance Act 1994 in the case of a person whose trade is deemed under paragraph (5) above to cease on 5th April 1998.
§ (9) Paragraph (5) above does not apply if the sub-contractor by notice to an officer of the Board otherwise elects.
§ (10) An election under paragraph (9) above—
- (a) if it relates to a trade carried on by an individual, must be included in a return under section 8 of the Taxes Management Act 1970 which is made and delivered in that individual's case on or before the day on which it is required to be made and delivered under that section; and
- (b) if it relates to a trade carried on by persons in partnership, must be included in a return under section 12AA of that Act which is made and delivered in the partners' case,
| TABLE A | |
| Cylinder capacity of car in cubic centimeters | Cash equivalent |
| 1,400 or less … … … … … … … … … | £1,010 |
| More than 1,400 but not more than 2,000 … … | £1,280 |
| More than 2,000 … … … … … … … | £1,890 |
| TABLE AB | |
| Cylinder capacity of car in cubic centimeters | Cash equivalent |
| 2,000 or less … … … … … … … … …> | £1,280 |
| More than 2,000 … … … … … … … … … | £1,890 |
| TABLE B | |
| Description of car | Cash equivalent |
| Any car … … … … … … … … … … | £1,890 |
§ (2) This Resolution shall have effect for the year 1998–99 and subsequent years of assessment.
§ And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.