UK Act of Parliament
1996
United Kingdom
Finance Act 1996
At a glance
Enforced by
What's here
30 compliance obligations, 1 practical guide · 3 statutory instruments
Penalty landscape
3 of 30 obligations carry imprisonment (7 years). 4 carry different penalties and 23 have no criminal penalty — flagged in the list below.
Who this Act binds
Business-side actors with duties under this Act, ranked by how often they appear.
- Any Person 16
- Trader 4
- Operator 2
- Applicant 1
- Manufacturer 1
- Occupier 1
Plus 5 non-business duties on Crown ministers, regulators, local authorities or tribunals — shown collapsed under each section below.
Relevant guidance
Practical guides for businesses affected by this Act, ordered by how closely they engage with it.
Supporting — topic alignment
1 guidesOther Acts binding the same actors
For each actor bound by this Act, the other UK Acts that bind them most often. Useful for understanding the full compliance landscape facing each role.
Any Person also bound by 749 other Acts (top 5 shown)
- Human Medicines Regulations 2012 2012 110 duties
- Licensing Act 2003 2003 105 duties
- Merchant Shipping Act 1995 1995 97 duties
- Road Traffic Act 1988 1988 95 duties
- Air Navigation Order 2016 2016 86 duties
Traders also bound by 219 other Acts (top 5 shown)
- Value Added Tax Regulations 1995 1995 952 duties
- TULRCA 1992 1992 39 duties
- Companies Act 2006 2006 39 duties
- Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 2013 39 duties
- The Customs (Import Duty) (EU Exit) Regulations 2018 2018 33 duties
Operators also bound by 125 other Acts (top 5 shown)
- Space Industry Regulations 2021 2021 71 duties
- Payment Services Regulations 2017 2017 41 duties
- Air Navigation Order 2016 2016 34 duties
- The Quarries Regulations 1999 1999 31 duties
- Reservoirs Act (Northern Ireland) 2015 2015 22 duties
Applicants also bound by 146 other Acts (top 5 shown)
- Insolvency (England and Wales) Rules 2016 2016 22 duties
- Value Added Tax Regulations 1995 1995 20 duties
- Human Medicines Regulations 2012 2012 20 duties
- Space Industry Regulations 2021 2021 12 duties
- Infrastructure Planning (Environmental Impact Assessment) Regulations 2017 2017 10 duties
Manufacturers also bound by 82 other Acts (top 5 shown)
- Toys (Safety) Regulations 2011 2011 27 duties
- Radio Equipment Regulations 2017 2017 25 duties
- Medical Devices Regulations 2002 2002 23 duties
- Lifts Regulations 2016 2016 22 duties
- Electromagnetic Compatibility Regulations 2016 2016 21 duties
Occupiers also bound by 101 other Acts (top 5 shown)
- Regulatory Reform (Fire Safety) Order 2005 (England/Wales comparison) 2005 23 duties
- Fire Safety (Scotland) Regulations 2006 2006 21 duties
- Avian Influenza and Influenza of Avian Origin in Mammals (England) (No. 2) Order 2006 2006 15 duties
- Nitrate Pollution Prevention Regulations 2015 2015 13 duties
- Highways Act 1980 1980 12 duties
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Part I — Excise Duties
No sections of this Part have been ingested yet.
Part II — Value Added Tax
No sections of this Part have been ingested yet.
Part III — Landfill Tax
No sections of this Part have been ingested yet.
Part IV — Income Tax, Corporation Tax and Capital Gains Tax
No sections of this Part have been ingested yet.
Part V — Inheritance tax
No sections of this Part have been ingested yet.
Part VI — Stamp Duty and Stamp Duty Reserve Tax
No sections of this Part have been ingested yet.
Part VII — Miscellaneous and supplemental
No sections of this Part have been ingested yet.
Schedules
Mixing of rebated oil
7 years imprisonment- Produce unauthorized fuel mixtures using rebated oil Any Person
Vehicle licensing and registration
Fine up to £2,500- Make false or misleading vehicle declaration Any Person
- Use or keep an unlicensed vehicle (SORN breach) Any Person
Landfill Tax
- Keep and preserve landfill site records and material information Occupier
Browse 37 other Schedules — structural / supplementary
Value added tax: Fiscal and other warehousing
Value added tax: anti-avoidance provisions
Taxation of savings at the lower rate
Transfer of charge under Schedule C to Schedule D
Loan relationships: claims etc relating to deficits
Loan relationships: special computational provisions
Loan relationships: collective investment schemes
Loan relationships: special provisions for insurers
Discounted securities: income tax provisions
Loan relationships: minor and consequential amendments
Loan relationships: savings and transitional provisions
Share option schemes approved before passing of this Act
Claims for relief involving two or more years
Overdue tax and excessive payments by the Board
Self-assessment: claims and enquiries
Self-assessment: discretions exercisable by the Board etc.
Self-assessment: time limits
Self-assessment: appeals
Self-assessment: Schedules 13 and 16 to the Taxes Act 1988
Self-assessment: accounting periods etc.
Self-assessment: surrenders of advance corporation tax
Damages and compensation for personal injury
Foreign income dividends
FOTRA securities: consequential amendments
Paying and Collecting Agents etc.
Investments in housing
Life assurance business losses
Equalisation reserves
Management expenses of capital redemption business
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Controlled foreign companies
Banks
Quotation or listing of securities
Enactment of Certain Inland Revenue Extra-Statutory Concessions
Gilt stripping: taxation provisions
Repeals
Other sections — not classified into a Part
These sections exist in the Act but the contents-of-Parts walker did not place them under a Part. Likely amendments or sections inserted out of the original Part structure.
Spirits: rate of duty.
- Pay the correct rate of Excise Duty on spirits Trader
Misuse of rebated kerosene.
7 years imprisonment- Misuse of rebated kerosene Any Person
Marked oil used as fuel for road vehicles.
6 months (summary) or 7 years (indictment) imprisonment- Use marked oil as fuel for road vehicles Any Person
- Use marked oil (red diesel) in a road vehicle Any Person
Rates of duty.
- Pay excise duty on tobacco products at the prescribed rates Manufacturer
General betting duty.
- Pay general betting duty at the rate of 6.75% Trader
Pool betting duty.
- Pay pool betting duty at the correct rate Any Person
Penalties for failure to notify.
Unlimited fine- Fail to notify HMRC of Landfill Tax liability Any Person
Landfill tax.
Other duties (1) — Crown / regulator
- HMRC must manage and collect landfill tax Statutory regulator
Liability to pay tax.
- Pay landfill tax for waste disposal Any Person
- Pay Landfill Tax on waste disposals Operator
Mining and quarrying.
- Ensure landfill waste meets tax exemption criteria for mining/quarrying Any Person
- Keep evidence that landfill disposals of mined material are tax‑exempt Trader
Accounting for tax and time for payment.
- Account for tax, file returns and pay on time Any Person
Right to require review
- Request a formal HMRC review of a tax decision Any Person
Review by HMRC
- Accept HMRC review offer within 30 days Any Person
Other duties (1) — Crown / regulator
- HMRC must review a tax decision upon request Statutory regulator
Review out of time
- Send a written request to HMRC for a review out of time Any Person
Other duties (1) — Crown / regulator
- HMRC must review a tax decision if an 'out of time' request is justified Statutory regulator
Nature of review etc
- Submit representations during an HMRC decision review Any Person
Other duties (1) — Crown / regulator
- HMRC must conduct reviews of decisions and notify you of the outcome Statutory regulator
Appeals: further provisions
- Pay disputed tax before appealing a decision Applicant
Qualifying fines: special provisions
- Comply with waste testing and documentation requirements for landfill fines Operator
- Record and test fines you dispose of Any Person
Charge and rate of corporation tax for 1996.
- Pay corporation tax at the 1996 financial year rate Trader
Money debts etc not arising from the lending of money
Amended 24 timesFinancial instruments.
Amended 5 timesDiscounted securities: income tax provisions.
Amended 1 timeInterpretation of Chapter.
Amended 22 timesAmount or value of consideration for option.
Amended 2 timesGrant and exercise of share options.
Amended 1 timeReturns and self assessment.
Amended 1 timeNotional tax deductions and payments.
Amended 2 timesLiability of partners.
Amended 4 timesRetention of original records.
Amended 2 timesDetermination of tax where no return delivered.
Amended 1 timeClaims for reliefs involving two or more years.
Amended 2 timesClaims for medical insurance and vocational training relief.
Amended 5 timesAppeals.
Other duties (1) — Crown / regulator
- HMRC and Tribunals must follow Schedule 22 procedures for self-assessment appeals Statutory regulator
Schedules 13 and 16 to the Taxes Act 1988.
Amended 1 timeSurrenders of advance corporation tax.
Amended 1 timeAnnual payments under certain insurance policies.
Amended 1 timeVocational training.
Amended 1 timePersonal reliefs for non-resident EEA nationals.
Amended 1 timeExemptions for charities.
Amended 1 timeWithdrawal of relief for Class 4 contributions.
Amended 1 timeMis-sold personal pensions etc.
Amended 2 timesAnnual payments in residuary cases.
Amended 1 timeIncome tax exemption for periodical payments of damages and compensation for personal injury.
Amended 1 timeBenefits under pilot schemes.
Amended 1 timeJobfinder’s grant.
Amended 1 timeForeign income dividends.
Amended 1 timeFOTRA securities.
Amended 11 timesDirections for payment without deduction of tax.
Amended 1 timePaying and collecting agents etc.
Amended 1 timeTransfers on death under the accrued income scheme.
Amended 1 timeManufactured payments, repos, etc.
Amended 6 timesInvestments in housing.
Amended 1 timeVenture capital trusts: control of companies etc.
Amended 1 timeLife assurance business losses.
Amended 1 timeLimits on relief for expenses.
Amended 7 timesAnnual payments under insurance policies: deductions.
Amended 2 timesEqualisation reserves.
Amended 1 timeIndustrial assurance business.
Amended 6 timesCapital redemption business.
Amended 3 times. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Amended 1 timeTime for amending and enquiring into returns.
Amended 1 timeLife or endowment business.
Amended 3 timesReturn of contributions on or after death of member.
Amended 1 timeTransactions in certain securities.
Amended 4 timesRetirement relief: age limits.
Amended 1 timeSub-contractors in the construction industry.
Amended 1 time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Amended 1 time. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
Amended 1 timeTransfers of securities to members of electronic transfer systems etc.
Amended 1 timeRemoval of the two month period.
Amended 1 timeStock lending and collateral security arrangements.
Amended 1 timeRates of charge expressed as percentages.
Amended 2 timesSetting of rates of interest.
Amended 25 timesDomicile for tax purposes of overseas electors.
Amended 5 timesModification of the Agriculture Act 1993.
Amended 1 timeBrowse 167 other unclassified sections
Wine and made-wine: rates.
Cider: rate of duty.
Rates of duty and rebate.
Mixing of rebated oil.
Relief for marine voyages.
Licences for machines as well as premises.
Pleasure flights.
Increase in general rate.
Electrically propelled vehicles.
Steam powered vehicles etc.
Vehicles capable of conveying loads.
Old vehicles.
Old vehicles: further provisions.
Exemptions for vehicle testing: general.
Exemptions for vehicle testing in Northern Ireland.
Other provisions relating to Northern Ireland.
Licensing and registration.
Repeal of certain drawbacks and allowances.
EC Second VAT Simplification Directive.
Fiscal and other warehousing.
Value of imported goods.
Adaptation of aircraft and hovercraft.
Work on materials.
Refunds in connection with construction and conversion.
Groups: anti-avoidance.
Supplies of gold etc.
Small gifts.
Method of making payments on account.
Default surcharges.
Repeated misdeclaration penalty.
VAT invoices and accounting.
Charge to tax.
Disposals of material
Amount of tax.
Material removed from water.
Contaminated land.
Contaminated land: certificates.
Site restoration.
Quarries.
Pet cemeteries.
Power to vary.
Registration.
Information required to keep register up to date.
Power to assess: registered persons.
Power to assess: unregistered persons
Credit: general.
Bad debts.
Bodies concerned with the environment.
Appeals
Offer of review
Extensions of time
Bringing of appeals
Appeals: other provisions.
Review and appeal: commencement.
Partnership, bankruptcy, transfer of business, etc.
Groups of companies.
Information, powers, penalties, secondary liability, etc.
Taxable disposals: special provisions.
Taxable disposals: regulations.
Qualifying material: special provisions.
Disposal of material as waste.
Disposal by way of landfill.
Prescribed landfill site activities to be treated as disposals
Landfill sites.
Operators of landfill sites.
Weight of material disposed of.
Taxable activities.
Interpretation: other provisions.
Orders and regulations.
Charge and rates of income tax for 1996-97.
Application of lower rate to income from savings.
Personal allowances for 1996-97.
Blind person’s allowance.
Limit on relief for interest.
Small companies.
Abolition of Schedule C charge etc.
Taxation of loan relationships.
Meaning of “loan relationship” etc.
Method of bringing amounts into account.
Non-trading deficit on loan relationships.
Debits and credits brought into account.
Exchange gains and losses from loan relationships
Computation in accordance with generally accepted accounting practice
Amounts recognised in determining company’s profit or loss
Amounts not fully recognised for accounting purposes
Accounting method where parties have a connection.
Meaning of “control” in section 87
Exemption from section 87 in certain cases.
Accounting method where rate of interest is reset
Inconsistent application of accounting methods.
Changes of accounting method.
Change of accounting basis applicable to assets or liabilities
Payments subject to deduction of tax.
Shares subject to outstanding third party obligations
Non-qualifying shares
Condition 1 for section 91B(6)(b)
Condition 2 for section 91B(6)(b)
Condition 3 for section 91B(6)(b)
Power to add, vary or remove Conditions for section 91B(6)(b)
Shares beginning or ceasing to be subject to section 91A or 91B
Payments in return for capital contribution
Change of partnership shares
Convertible securities etc : creditor relationships
Convertible securities etc: debtor relationships
Relationships linked to the value of chargeable assets.
Relationships linked to the value of chargeable assets: guaranteed returns
Loan relationships ceasing to be within section 93
Creditor relationships and benefit derived by connected persons
Indexed gilt-edged securities.
Loan relationships with embedded derivatives
Loan relationships treated differently by connected debtor and creditor
Gilt strips.
Special rules for certain other gilts.
Manufactured interest.
Collective investment schemes.
Insurance companies.
Minor and consequential amendments.
Commencement and transitional provisions.
Living accommodation provided for employees.
Beneficial loans.
Incidental benefits for holders of certain offices etc.
Charitable donations: payroll deduction schemes.
PAYE settlement agreements.
Release and replacement.
Exercise of rights by employees of non-participating companies.
Requirements to be satisfied by approved schemes.
Transitional provisions.
The release date.
The appropriate percentage.
The appropriate allowance.
Removal of requirement for at least one year’s service.
PAYE regulations.
Repayment postponed pending completion of enquiries.
Procedure for giving notices.
Interest on overdue tax.
Overdue tax and excessive payments by the Board.
Claims and enquiries.
Discretions exercisable by the Board etc.
Time limits for claims etc.
Accounting periods.
Transfer of company’s assets to investment trust.
Roll-over relief.
Premiums for leases.
Stock lending fees.
Qualifying life insurance policies: certification.
Loans to participators etc.
Attribution of gains to participators in non-resident companies.
Reinvestment relief on disposal of qualifying corporate bond.
Overseas petroleum.
Controlled foreign companies.
Rate bands.
Business property relief.
Agricultural property relief.
Territorial scope of the tax.
Transfers to members of electronic transfer systems etc.
Transfers between associated bodies.
Repayment or cancellation of tax.
Depositary receipts.
Regulations concerning administration: sub-delegation to the Board.
Election by operator for alternative system of charge.
Banks.
Quotation or listing of securities.
Enactment of Inland Revenue concessions.
Gilt stripping.
Interpretation.
Repeals.
Short title.
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
HM Revenue & Customs
Tax collection, customs duties, national insurance, tax credits, and enforcement of the National Minimum Wage. Regulates all UK businesses for tax compliance …
Connected legislation
3 statutory instruments
These instruments amend, apply, or refer to this Act. They may not all create direct business obligations.
Secondary legislation (3)
Explore more
Browse legislation
Find other UK business legislation with related guidance.
Regulators
Learn more about the bodies that enforce this legislation.