What is a Finance Act in the UK?

A Finance Act is the primary fiscal legislation enacted annually by the UK Parliament. It contains multiple provisions concerning taxes, duties, exemptions, and reliefs, and crucially, it sets the principal tax rates for each fiscal year.

Who delivers the Budget speech in the UK, and what does it outline?

The Chancellor of the Exchequer delivers the Budget speech on Budget Day. This speech outlines proposed changes in government spending, as well as tax and duty adjustments.

How are changes to tax and duty laws enacted in the UK?

Changes to tax and duty laws are passed into law through the annual Finance Act. Additional Finance Acts may also be introduced if there are changes in governing party due to a general election, if a pressing loophole or defect in the law of taxation is discovered, or if there is a backtrack with regard to government spending or taxation.

Where are the rules governing specific taxation methods found in the UK?

The rules governing various taxation methods are contained within their respective taxation acts. For example, Capital Gains Tax legislation is found in the Taxation of Chargeable Gains Act 1992. The Finance Act then details amendments to be made to each of these specific Acts.

What are excise duties in the UK?

Excise duties are inland duties levied on articles at the time of their manufacture.

What specific types of excise duties are mentioned, and what acts are associated with them?

The text mentions Alcoholic liquor duties (associated with the Alcoholic Liquor Duties Act 1979), Hydrocarbon Oil Duty (Hydrocarbon Oil Duties Act 1979), Tobacco products duty (Tobacco Products Duty Act 1979), Gaming duty (Finance Act 1997), Amusement Machine Licence Duty (Betting and Gaming Duties Act 1981), and Vehicle Excise Duty (Vehicle Excise and Registration Act 1994).

What was the significance of the Finance (1909-10) Act 1910?

The Finance (1909-10) Act 1910 resulted in a significant net increase in taxation. It also mandated a survey of land and property in England and Wales, dubbed "Lloyd George's Domesday land-survey", to facilitate the levying of Increment Value Duty.

What was the purpose of the survey conducted under the Finance Act 1910?

The survey, undertaken as part of the Finance (1909-10) Act 1910, was to value each property and related rights under and over land (hereditament) in England and Wales. This valuation was necessary to levy Increment Value Duty when any property was sold.

How was Increment Value Duty calculated under the Finance Act 1910?

Increment Value Duty was initially set at 20% of the increase in land value between the date of the survey and the date of sale, essentially acting as a tax on capital gains derived from land value appreciation.

What exemptions were provided for Increment Value Duty under the Finance Act 1910?

Exemptions from Increment Value Duty were provided for farmland and for plots of land smaller than 50 acres (approximately 20 hectares).

How was the Increment Value Duty from the Finance Act 1910 later affected?

Section 67 of the Finance Act 1910, which established the Increment Value Duty, was substantively altered by its repeal in the Finance Act 1920.

What practical use do the records from the 1910 land survey serve today?

The records from the 1910 survey, including working maps, valuation maps, valuation books, and field books, are considered extremely useful for local history research.

Where are the records from the 1910 land survey currently held?

The valuation maps and books are kept in local record offices. The field books (in series IR58) and working maps (in series IR121 to IR135) are held at The National Archives in Kew, London.

What key changes did the Finance Act 1920 introduce regarding vehicles and spirits?

The Finance Act 1920 introduced a new "Duty on licences for mechanically propelled vehicles", known as Vehicle Excise Duty, which funded the Road Fund until 1936. It also repealed certain customs duties on motor spirit and introduced provisions regarding the use of spirits for generating mechanical power.

What significant financial institutions or funds were established by the Finance Act 1946?

The Finance Act 1946 established the National Land Fund and also laid the groundwork for much of what became National Savings and Investments.

What unique tax measure was introduced by the Finance Act 1948?

The Finance Act 1948 introduced the "Special Contribution", which was a one-off tax levied on wealth.

Besides Schedule A, what other tax did the Finance Act 1963 abolish?

The Finance Act 1963 also abolished the historical land tax.

What two significant new taxes were introduced by the Finance Act 1965?

The Finance Act 1965 introduced Corporation Tax, which is levied on company profits, and Capital Gains Tax, which is levied on the profit made from selling an asset.

What major indirect tax was introduced by the Finance Act 1972?

The Finance Act 1972 introduced Value Added Tax (VAT) into the United Kingdom. VAT is a consumption tax applied at each stage of the supply chain.

What historical financial obligation did the Finance Act 1977 abolish?

The Finance Act 1977 abolished the last remaining tithes that were payable to the Church of England or the Church in Wales. Tithes were historically a tenth of a farmer's produce or earnings paid to the church.

What specific environmental tax was increased by the Finance Act 2000?

The Finance Act 2000 increased the rate of the Climate Change Levy, which is a tax on energy consumed by businesses and other organisations.

What significant change did the Finance Act 2010 make to the income tax system?

The Finance Act 2010 introduced a new, higher 'additional rate' band for income tax, setting it at 50%. This measure was enacted by the Labour government shortly before the 2010 general election.

How did the Finance Act 2010 affect Inheritance Tax?

The Finance Act 2010 reversed a planned increase in the inheritance tax nil rate band threshold, keeping it lower than initially intended. This action emphasized a degree of wealth redistribution by potentially increasing the tax liability for some estates.

What change did the Finance (No. 2) Act 2010 make to Capital Gains Tax?

The Finance (No. 2) Act 2010, enacted under the Coalition Government, reduced the headline rate of Capital Gains Tax to 18%.

What change did the Finance (No. 2) Act 2010 make to Value Added Tax (VAT)?

The Finance (No. 2) Act 2010 increased the general rate of VAT from 17.5% to 20%. It also reduced the rate for imported goods and materials.

What were some of the key provisions included in the Finance (No. 3) Act 2010?

The Finance (No. 3) Act 2010 included provisions such as extending foster care relief, expanding venture capital schemes, modifying rules for Corporation Tax and Real Estate Investment Trusts (REITs), addressing seafarer's income tax, introducing allowances for zero-emission goods vehicles, adjusting VAT treatment for business assets, amending penalties, and clarifying the tax treatment of asbestos compensation settlements.

What was the purpose of the Finance (No. 2) Act 2017?

The Finance (No. 2) Act 2017 was enacted to implement the tax measures that were laid out in the November 2017 United Kingdom budget.

What new tax was introduced by the Finance Act 2020?

The Finance Act 2020 introduced a Digital Services Tax, which is a tax levied on the revenues of certain large digital companies operating within the UK.

What is the typical structure of the full title and enacting formula for a UK Finance Act?

The full title typically begins with 'An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with finance.' This is followed by the enacting formula, which starts with 'Most Gracious Sovereign...' and concludes with '...and be it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows...'

What is the purpose of the 'See also' section in the context of the Finance Act article?

The 'See also' section provides links to related topics that may offer further context or information, such as the economic history of the UK, the history of the English fiscal system, and lists of legislative short titles.

What is the role of the 'Notes and references' section in the article?

This section contains footnotes (Notes) that provide additional details or clarifications, and References that cite the sources used to compile the information in the article. This ensures factual accuracy and allows readers to verify the information presented.

What does the embossed stamp shown in the image signify?

The embossed stamp shown in the image certifies that a conveyance document has been produced in accordance with the Finance Act 1931. This indicates the stamp's role in verifying compliance with fiscal legislation at that time.

What is the primary function of a Finance Act in the UK's legislative process?

The primary function of a Finance Act is to legally enact the government's budgetary and fiscal decisions for the year. This includes setting tax rates, introducing new taxes, amending existing tax laws, and authorizing government spending.

Why might additional Finance Acts, beyond the main annual one, be enacted?

Additional Finance Acts are typically enacted to address unforeseen circumstances. These can include changes in governing party following a general election, the discovery of significant loopholes or defects in existing tax law, or the need to implement changes in government spending or taxation policies that arise between the main budget cycles.

What is the relationship between a Finance Act and specific tax legislation, like the Taxation of Chargeable Gains Act 1992?

The Finance Act acts as an amending instrument. While specific tax legislation like the Taxation of Chargeable Gains Act 1992 contains the core rules for a particular tax, the Finance Act details the modifications, updates, or changes to those rules for the relevant fiscal year.

What types of duties are levied on manufactured articles in the UK, according to the text?

Inland duties levied on articles at the time of their manufacture are known as excise duties. The text provides examples such as duties on alcoholic liquor, hydrocarbon oil, and tobacco products.

Beyond its fiscal purpose, what value do the records from the 1910 land survey provide?

Beyond their fiscal purpose for levying duty, the records from the 1910 survey, including valuation maps and books, are now considered valuable resources for local history research.

How did the Finance Act 1965 change the way companies were taxed in the UK?

The Finance Act 1965 introduced Corporation Tax, which fundamentally changed the system by imposing a tax specifically on the profits of companies, replacing previous arrangements for taxing corporate income.

What was the impact of the Finance Act 1972 on consumers and businesses in the UK?

The Finance Act 1972 introduced Value Added Tax (VAT), a broad-based consumption tax that affects the price of most goods and services. VAT is collected by businesses and remitted to the government.

What specific type of tax relief was extended by the Finance (No. 3) Act 2010?

The Finance (No. 3) Act 2010 extended foster care relief, providing tax benefits related to income earned from fostering children.

What was the stated aim behind the changes made to the inheritance tax nil rate band by the Finance Act 2010?

The text suggests the aim was a degree of wealth redistribution, as the Act reversed a planned increase in the inheritance tax nil rate band threshold. This kept the threshold lower, potentially increasing the tax collected from larger estates.

What specific measure was introduced by the Finance Act 2020 to address the digital economy?

The Finance Act 2020 introduced a Digital Services Tax. This tax is aimed at the revenues generated by large digital companies operating within the UK.

What is the significance of the 'Royal assent' date mentioned for various Finance Acts?

The Royal assent date signifies the point at which a bill, having successfully passed through both houses of Parliament, officially becomes an Act of Parliament and therefore becomes law.

What does the status 'Amended' or 'Partially repealed' indicate for a Finance Act?

This status indicates that while the Act was once law, its provisions have subsequently been modified by later legislation (Amended), or that some parts of the Act have been formally removed from the statute book (Partially repealed).

What is the purpose of the 'Long title' of an Act of Parliament?

The long title provides a more detailed description of the Act's purpose and scope. It outlines the specific duties it grants or alters, and the laws it amends, giving a clearer indication of its legislative intent.

What is the 'Citation' of an Act of Parliament?

The citation is the official reference number used to identify a specific Act of Parliament. It typically includes the year the Act was passed and its chapter number (e.g., 1972 c. 41).

What does the term 'hereditament' refer to in the context of the Finance Act 1910 survey?

In the context of the Finance Act 1910 survey, a hereditament referred to each property and any rights associated with it, both above and below the land, encompassing the entirety of the property interest being valued.

What was the 'Road Fund' mentioned in relation to the Finance Act 1920?

The Road Fund was a specific fund established, in part, by the Vehicle Excise Duty introduced by the Finance Act 1920. This fund was designated for road-related expenditure and existed until 1936.

What was the 'Special Contribution' introduced by the Finance Act 1948?

The Special Contribution was a one-off wealth tax enacted by the Finance Act 1948. This means it was levied only once on individuals' wealth, rather than being an ongoing annual tax.

Finance Act Wiki: The UK's Fiscal Compass: Navigating the Finance Acts

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Overview

Legislative Foundation

A Finance Act is the primary fiscal legislation enacted annually by the UK Parliament. It consolidates numerous provisions concerning taxes, duties, exemptions, and reliefs, crucially setting the principal tax rates for each fiscal year.

The Budgetary Cycle

The process begins with the Chancellor of the Exchequer delivering the Budget speech on Budget Day. This outlines proposed changes in government spending, taxation, and duties. These proposals are then formalized into law through the respective Finance Act. Additional Finance Acts may be introduced to address specific issues, legislative defects, or policy shifts.

Scope of Taxation

While the Finance Act details amendments to various taxation acts, the core legislation for specific taxes resides in dedicated statutes. For instance, Capital Gains Tax legislation is primarily found in the Taxation of Chargeable Gains Act 1992. The Finance Act then modifies these existing frameworks. Key taxes addressed include Excise Duties, Value Added Tax (VAT), Income Tax, Corporation Tax, and Capital Gains Tax.

Excise Duties

Alcoholic Liquor Duties

Levied on alcoholic beverages at the point of manufacture or import. The primary legislation governing these duties is the Alcoholic Liquor Duties Act 1979.

Hydrocarbon Oil Duty

Taxes applied to fuels such as petrol, diesel, and other hydrocarbon oils. The governing act is the Hydrocarbon Oil Duties Act 1979.

Tobacco Products Duty

Duties imposed on manufactured tobacco products. This is regulated under the Tobacco Products Duty Act 1979.

Gaming Duty

A tax on betting and gaming activities. Specific rates and provisions are often updated within annual Finance Acts, with historical context in the Finance Act 1997.

Vehicle Excise Duty (VED)

Formerly known as the "road tax," this duty is levied on vehicles used or kept on public roads. The Vehicle Excise and Registration Act 1994 is the foundational legislation.

Key Historical Finance Acts

Finance (1909-10) Act 1910

Also known as the "People's Budget," this act significantly increased taxation. It introduced a comprehensive land survey to levy Increment Value Duty on increases in land value, a precursor to modern capital gains taxation.

Citation: 10 Edw. 7. & 1 Geo. 5. c. 8

Key Provisions: Land valuation, Increment Value Duty.

Finance Act 1920

This act introduced new duties on mechanically propelled vehicles (Vehicle Excise Duty), adjusted taxes on motor spirit and alcohol, and included provisions for income tax.

Citation: 10 & 11 Geo. 5. c. 18

Key Provisions: Vehicle Excise Duty, income tax adjustments, alcohol tax provisions.

Finance Act 1946

Established the National Land Fund, a significant fiscal instrument, and laid groundwork for National Savings and Investments initiatives.

Citation: 9 & 10 Geo. 6. c. 64

Key Provisions: National Land Fund, National Savings and Investments.

Finance Act 1948

Introduced the "Special Contribution," a one-off wealth tax designed to address economic conditions post-World War II.

Citation: 11 & 12 Geo. 6. c. 49

Key Provisions: Special Contribution (wealth tax).

Finance Act 1963

Marked a significant shift by abolishing Schedule A income tax, which taxed the imputed rental value of owner-occupied properties, and also repealed the historical land tax.

Citation: 1963 c. 25

Key Provisions: Abolition of Schedule A income tax, abolition of land tax.

Finance Act 1965

A landmark act that introduced two major taxes: Corporation Tax, levied on company profits, and Capital Gains Tax, taxing profits from the sale of assets.

Citation: 1965 c. 25

Key Provisions: Introduction of Corporation Tax and Capital Gains Tax.

Finance Act 1972

This act was pivotal in introducing Value Added Tax (VAT) into the UK's tax system, replacing Purchase Tax and Selective Employment Tax.

Citation: 1972 c. 41

Key Provisions: Introduction of Value Added Tax (VAT).

Finance Act 1977

This act included provisions that abolished the final remaining tithes payable to the Church of England and the Church in Wales.

Citation: 1977 c. 36

Key Provisions: Abolition of remaining Church tithes.

Finance Act 2000

This act saw an increase in the Climate Change Levy, reflecting growing environmental policy considerations within fiscal legislation.

Citation: 2000 c. 17

Key Provisions: Increased Climate Change Levy.

Finance Act 2010

Enacted just before the 2010 general election, this act adjusted tax rates, notably introducing a 50% "additional rate" band for income tax and modifying inheritance tax thresholds.

Citation: 2010 c. 13

Key Provisions: 50% income tax rate, inheritance tax adjustments.

Finance (No. 2) Act 2010

Under the Coalition Government, this act reduced the headline rate of Capital Gains Tax to 18% and increased the standard VAT rate from 17.5% to 20%.

Citation: 2010 c. 31

Key Provisions: CGT reduction to 18%, VAT increase to 20%.

Finance (No. 3) Act 2010

This act addressed various specific areas, including extending foster care relief, modifying venture capital schemes, adjusting tax treatment for seafarers and REITs, and clarifying asbestos compensation tax treatment.

Citation: 2010 c. 33

Key Provisions: Foster care relief, venture capital schemes, REITs, asbestos compensation tax treatment.

Finance (No. 2) Act 2017

Enacted in November 2017, this act implemented tax measures announced in the Autumn Budget, reflecting contemporary fiscal policy adjustments.

Citation: 2017 c. 14

Key Provisions: Implemented November 2017 Budget tax measures.

Finance Act 2020

This act introduced the Digital Services Tax, a measure targeting the revenues of large digital companies operating within the UK.

Citation: 2020 c. 14

Key Provisions: Introduction of Digital Services Tax.

Legislative Preamble

The Enacting Formula

The formal opening of a Finance Act, like other Acts of Parliament, includes a preamble and an enacting formula. This section traditionally sets out the purpose of the legislation and the authority under which it is enacted.

A typical preamble states:

Most Gracious Sovereign,

We, Your Majesty's most dutiful and loyal subjects, the Commons of the United Kingdom in Parliament assembled, towards raising the necessary supplies to defray Your Majesty's public expenses, and making an addition to the public revenue, have freely and voluntarily resolved to give and grant unto Your Majesty the several duties hereinafter mentioned; and do therefore most humbly beseech Your Majesty that it may be it enacted, and be it enacted by the King's Most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows...

This structure underscores the parliamentary process and the monarch's assent in making the legislation law.

Notes

Clarifications

The following notes provide additional context or clarify specific points mentioned in the text:

The Finance Act 2010 was passed on 8 April 2010.
The Coalition Government maintained the inheritance tax rate and threshold adjustments made by the Finance Act 2010 throughout its term (2010-2015).

References

Source Citations

This section lists the sources used in the generation of this content. The specific details and links are managed programmatically.

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References

The Coalition Government maintained this rate and threshold throughout 2010-2015

Finance Act 1977, section 56

UK Legislation Finance Act 2010. Retrieved 2013-07-17

UK Legislation Finance (No. 2) Act 2010. Retrieved 2013-07-17

UK Legislation Finance (No. 3) Act 2010 Retrieved 2013-07-17

UK Legislation, Finance Act 2020, part 2, accessed 29 September 2020

A full list of references for this article are available at the Finance Act Wikipedia page

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Disclaimer

Important Notice

This page was generated by an Artificial Intelligence and is intended for informational and educational purposes only. The content is based on a snapshot of publicly available data from Wikipedia and may not be entirely accurate, complete, or up-to-date.

This is not financial or legal advice. The information provided on this website is not a substitute for professional financial consultation, legal advice, or tax planning. Always consult with qualified professionals for specific financial or legal matters. Never disregard professional advice because of something you have read on this website.

The creators of this page are not responsible for any errors or omissions, or for any actions taken based on the information provided herein.

The UK's Fiscal Compass

💡 Dive in with Flashcard Learning! 💡

Overview ℹ️

🏛️ Legislative Foundation

🗓️ The Budgetary Cycle

⚖️ Scope of Taxation

Excise Duties 🧾

🍺 Alcoholic Liquor Duties

⛽ Hydrocarbon Oil Duty

🚬 Tobacco Products Duty

🎮 Gaming Duty

🚗 Vehicle Excise Duty (VED)

Key Historical Finance Acts 📜

💰 Finance (1909-10) Act 1910

🚗 Finance Act 1920

🏞️ Finance Act 1946

💸 Finance Act 1948

🏠 Finance Act 1963

📈 Finance Act 1965

🛒 Finance Act 1972

⛪ Finance Act 1977

💻 Finance Act 2000

📊 Finance Act 2010

⬆️ Finance (No. 2) Act 2010

💼 Finance (No. 3) Act 2010

📱 Finance (No. 2) Act 2017

🌐 Finance Act 2020

Legislative Preamble ✍️

📜 The Enacting Formula

Related Topics 🔗

📈 Economic History

📜 Fiscal System Evolution

📄 Legislative Titles

Notes 📝

📌 Clarifications

References 📚

📖 Source Citations

Teacher's Corner 🧑‍🏫

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References

📜 References

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Disclaimer ⚠️

📜 Important Notice

Dive in with Flashcard Learning!

Overview

Legislative Foundation

The Budgetary Cycle

Scope of Taxation

Excise Duties

Alcoholic Liquor Duties

Hydrocarbon Oil Duty

Tobacco Products Duty

Gaming Duty

Vehicle Excise Duty (VED)

Key Historical Finance Acts

Finance (1909-10) Act 1910

Finance Act 1920

Finance Act 1946

Finance Act 1948

Finance Act 1963

Finance Act 1965

Finance Act 1972

Finance Act 1977

Finance Act 2000

Finance Act 2010

Finance (No. 2) Act 2010

Finance (No. 3) Act 2010

Finance (No. 2) Act 2017

Finance Act 2020

Legislative Preamble

The Enacting Formula

Related Topics

Economic History

Fiscal System Evolution

Legislative Titles

Notes

Clarifications

References

Source Citations

Teacher's Corner

True or False?

Test Your Knowledge!

Gamer's Corner

Discover other topics to study!

References

Feedback & Support

Disclaimer

Important Notice