Citation, commencement and effect

1. This Order may be cited as the Finance Act 2004, Sections 38 to 45 and Schedule 6 (Consequential Amendment of Enactments No. 2) Order 2004, shall come into force on 31st December 2004, and shall have effect in relation to accounting periods beginning on or after 1st April 2004, subject to the transitional provisions in sections 43 and 44 of the Finance Act 2004.

Amendment of section 592 of the Income and Corporation Taxes Act 1988

2. —(1)Section 592 of the Income and Corporation Taxes Act 1988 (exempt approved pension schemes)( 2 ) is amended as follows.

(2) For subsection (4) substitute—

“ (4) Where the employer makes contributions to the pension scheme in respect of any individual, then—

(a) for the purposes of Case I or II of Schedule D the contributions—

(i) are to be treated as not being payments of a capital nature, to the extent that they otherwise would be,

(ii) are allowed as a deduction in computing the amount of the profits for the period of account in which they are paid:

(b) for the purposes of section 75 (expenses of management: companies with investment business) the contributions —

(i) are to be treated as being expenses of management to the extent that they otherwise would not be; and

(ii) are referable to the accounting period in which they are paid;

(c) for the purposes of section 76 (expenses of insurance companies), the contributions—

(i) are to be brought into account at Step 1 in subsection (7) of that section, to the extent that they otherwise would not be; and

(ii) are referable to the accounting period in which they are paid. ” .

Revocation

3. In the Schedule to the Finance Act 2004, Sections 38 to 45 and Schedule 6 (Consequential Amendment of Enactments) Order 2004, paragraph 30(2) is revoked.