Finance Act, 1990

In short

This law, the Finance Act, 1990, primarily deals with various aspects of taxation, including income tax, corporation tax, capital gains tax, customs and excise duties, and value-added tax. It introduces amendments to existing tax provisions and establishes new rules for financial matters.

What it regulates

• Income Tax, Corporation Tax, and Capital Gains Tax
• Customs and Excise duties on specific goods like hydrocarbons, televisions, and tobacco products
• Value-Added Tax (VAT) on the supply of goods and services
• Capital allowances for machinery, plant, and industrial buildings

Who it concerns

• Individuals and companies subject to income tax, corporation tax, or capital gains tax
• Businesses involved in the import or supply of goods and services subject to customs, excise, or VAT
• Local authorities and certain financial institutions like building societies and trustee savings banks

Key points

• It amends provisions related to exemption from income tax and alters income tax rates.
• It changes the basis of assessment for various income tax cases and introduces transitional provisions for capital allowances.
• It sets out rules for the tax treatment of profits, losses, and capital gains from activities of a grouping (EEIG) and restricts certain tax reliefs.
• It includes specific amendments concerning the taxation of building societies, trustee savings banks, and offshore funds.