Finance Act 2000

Exemption of payments under New Deal 50plus.

Exemption of payments under Employment Zones programme.

Payments by trustees to non-resident companies.

Rates: duty on lease chargeable by reference to rent.

Approved profit sharing schemes: restriction on type of shares.

Further provisions about share options.

Tax treatment of acquisition, disposal or revaluation of certain rights.

Disposal of interest in settled property: deemed disposal of underlying assets.

Loan capital where return bears inverse relationship to results.

Transfers between depositary receipt systems and clearance systems.

Notional transfers within groups of companies.

Grant of leases etc between associated companies.

UK public revenue dividends: deduction of tax.

Company acquisition reliefs: redeemable shares.

Abolition of duty on instruments relating to intellectual property.

Abolition of duty on instruments relating to intellectual property.

Power to vary stamp duties.

Transfer of property between associated companies: Northern Ireland.

Loan capital where return bears inverse relationship to results.

Future issues of stock.

Surrender of leases.

International exchange of information: inheritance tax.

Debt Management Account.

Treatment of employee share ownership trusts.

Operating expenditure incurred while safeguard relief applies.

Treatment of mileage allowances

Secondary liability.

Power to provide incentives to use electronic communications.

Withdrawal of deduction under paragraph 112A

Withdrawal of deduction under paragraph 112A

Debt Management Account.

Exemption: supply for use in recycling processes

Withdrawal of deduction under paragraph 112A

Maximum value of options in respect of relevant company’s shares

De-grouping charge: deferral until company leaves new group

Exemption: supply for use in recycling processes

18A

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Exemption: electricity produced in combined heat and power stations

Exemption under paragraph 20A: averaging periods

Invoices incorrectly showing levy due

Deduction for contribution to plan trust

Withdrawal of deduction under paragraph 112A

Treatment of mileage allowances

Maximum value of options in respect of relevant company’s shares

Qualifying expenditure on externally provided workers

8A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Meaning of “externally provided worker”

8B

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Treatment of expenditure where company and staff provider are connected persons

8C

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Election for connected persons treatment

8D

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Treatment of staff provision payment in other cases

8E

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Quantitative restrictions not to apply to ordinary charters

89A

• (1) Paragraphs 94 to 102, and paragraph 89(1) so far as relating to those paragraphs, do not apply in the following cases.

• (2) The first case is where the ship is chartered out by a person who is responsible—

• (a) for the operation of the ship, including the appointment of the master and those members of the crew engaged in navigation, throughout the period of the charter, and

• (b) for defraying all expenses in connection with the ship throughout that period, or substantially all such expenses other than those directly incidental to a particular voyage or to the employment of the ship during that period.

For the purposes of this sub-paragraph a person is “responsible” if he is responsible as principal or if he appoints another person, other than the lessee or a person connected with the lessee, to be responsible in his place.

• (3) The second case is where—

• (a) the ship is chartered out by a person acting in the course of a trade that consists of, or to a significant extent includes, operating ships, and

• (b) the conditions in sub-paragraph (4) are met.

• (4) Those conditions are—

• (a) that the period of the charter does not exceed seven years, and there is no provision or agreement under which it could be extended beyond seven years;

• (b) that the period of the charter, together with any other periods in the same ten years during which the ship is chartered out to the lessee or a person connected with him, does not exceed seven years in total;

• (c) that there are no arrangements under which the lessee or a person connected with him may acquire the ship, whether directly or indirectly, from the lessor.

In paragraph (b) “the same ten years” means any period of ten years that includes the period of the charter mentioned in that paragraph.

• (5) References in this paragraph to the period of a charter are to the term specified in the lease or, if longer, the actual period during which the ship is chartered.

• (6) Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of this paragraph.

De-grouping charge: deferral until company leaves new group

Withdrawal of deduction under paragraph 112A

Treatment of mileage allowances

Maximum value of options in respect of relevant company’s shares

De-grouping charge: deferral until company leaves new group

Exemption under paragraph 20A: averaging period

Exemption: Northern Ireland gas supplies

13A

• (1) The Commissioners may by regulations make provision amending paragraph 13 for the purpose of—

• (a) extending the circumstances in which a supply of a taxable commodity is exempt from the levy, or

• (b) restricting the circumstances in which a supply of a taxable commodity is exempt from the levy.

• (2) Regulations under this paragraph that include provision made for the purpose mentioned in sub-paragraph (1)(a) may provide for the provision to have retrospective effect.

• (3) A statutory instrument that contains (whether alone or with other provisions) regulations under this paragraph made for the purpose mentioned in sub-paragraph (1)(b) shall not be made unless a draft of the instrument has been laid before ... and approved by a resolution of the House of Commons.

The property managing subsidiaries requirement

21A

• (1) The issuing company is not a qualifying issuing company in relation to the relevant shares if, at any time during the qualification period relating to those shares, it has a property managing subsidiary which is not a qualifying 90% subsidiary of the issuing company (see paragraph 23(10) and (11)).

• (2) “Property managing subsidiary” means a qualifying subsidiary of the issuing company whose business consists wholly or mainly in the holding or managing of land or any property deriving its value from land.

• (3) In sub-paragraph (2) “property deriving its value from land” has the meaning given by section 833(2) of CTA 2010

De-grouping charge: deferral until company leaves new group

Withdrawal notices

15A

• (1) A withdrawal notice (see paragraph 13(2A)) may be given—

• (a) in respect of a single company, or

• (b) in respect of a group,

but only if the following conditions are met.

• (2) Condition 1 is that the notice is given during the period—

• (a) beginning with the day on which the Finance Act 2005 is passed, and

• (b) ending with 31st March 2006.

• (3) Condition 2 is that, for the whole of the period of three years ending with the day on which the Finance Act 2005 is passed, a tonnage tax election or a renewal election has been in force in respect of the company or group in respect of which the withdrawal notice is to be given.

• (4) A withdrawal notice must be given to the Inland Revenue—

• (a) in the case of a withdrawal notice in respect of a single company, by that company;

• (b) in the case of a withdrawal notice in respect of a group, jointly by all the qualifying companies in the group.

• (5) A withdrawal notice given in accordance with this paragraph takes effect at the end of the accounting period that precedes the first accounting period of the company to begin after 1st July 2005.

• (6) In the case of a withdrawal notice given in respect of a group, sub-paragraph (5) has effect in relation to each qualifying company in the group by reference to that company's accounting periods.

Power to provide further opportunities for withdrawal

15B

• (1) The Treasury may by order provide for further periods during which withdrawal notices under paragraph 15A may be given.

• (2) Any such order may provide for that paragraph to apply, with such consequential adaptations as appear to the Treasury to be appropriate, in relation to any such further period as it applies in relation to the period specified in sub-paragraph (2) of that paragraph.

• (3) The consequential adaptations that may be made include adaptations of the reference in sub-paragraph (3) of that paragraph to the period of three years ending with the day on which the Finance Act 2005 is passed.

The requirement to prove compliance with safety etc standards

43A

• (1) The Secretary of State may make provision by regulations for or in connection with requiring qualifying companies or qualifying groups to provide evidence of compliance with prescribed standards relating to—

• (a) health and safety in connection with qualifying ships which are not registered in the United Kingdom;

• (b) environmental performance of such ships;

• (c) working conditions on such ships.

• (2) The provision that may be made by regulations under this paragraph includes provision for or in connection with—

• (a) requiring returns to be made at prescribed intervals;

• (b) authorising the Secretary of State to require persons to provide prescribed information in prescribed cases or circumstances;

• (c) enabling audits to be carried out on behalf of the Secretary of State;

• (d) authorising the Secretary of State to issue certificates of non-compliance in prescribed cases or circumstances;

• (e) the effect of such a certificate (including preventing the making of a renewal election when such a certificate is in force);

• (f) enabling persons to apply to the Secretary of State for the cancellation of such a certificate;

• (g) requiring or enabling the Secretary of State to revoke a tonnage tax election after a prescribed period of non-compliance;

• (h) the making of appeals;

• (i) authorising the disclosure of information between the Secretary of State and the Inland Revenue.

• (3) Regulations under this paragraph may create criminal offences in respect of failures to comply with requirements imposed by the regulations.

• (4) Regulations under this paragraph shall be made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons.

• (5) Regulations under this paragraph—

• (a) may make different provision for different cases, and

• (b) may contain such supplementary, incidental and transitional provisions as appear to the Secretary of State to be necessary or expedient.

• (6) In this paragraph “prescribed” means prescribed by regulations under this paragraph.

De-grouping charge: deferral until company leaves new group

Qualifying dredgers and tugs

20A

• (1) This paragraph applies where a company operates a ship in an accounting period and the ship—

• (a) is a qualifying dredger or a tug, and

• (b) would, apart from this paragraph, be a qualifying ship.

• (2) The ship shall not be regarded as a qualifying ship operated by the company in that accounting period unless it is used for one or more of the activities mentioned in paragraph 19(1)(a) to (d) for more than 50% of its operational time.

• (3) In this paragraph “operational time”, in relation to a ship operated by a company in an accounting period, means the time during that accounting period during which the ship is—

• (a) operated by the company, and

• (b) used for any activity.

• (4) For the purposes of sub-paragraph (2) assisting a self-propelled vessel into or out of a port or harbour is not to be regarded as use for an activity mentioned in paragraph 19(1)(c).

• (5) For the purposes of sub-paragraph (3) any waiting time spent by a tug for the purposes of a particular activity is to be treated as time during which the tug is used for that activity.

...

22A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

22B

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...

22C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

22D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

22E

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

...

22F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

De-grouping charge: deferral until company leaves new group

Certification of electricity from fully or partly exempt combined heat and power station

Withdrawal of deduction under paragraph 112A

Treatment of mileage allowances

De-grouping charge: deferral until company leaves new group

Exemption: supplies (other than self-supplies) to combined heat and power stations

Invoices incorrectly showing levy due

De-grouping charge: deferral until company leaves new group

Search warrants: miscellaneous amendments.

Reimbursed expenses

Relevant payments to subjects of clinical trials

6A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Long funding leases: conditions for alternative treatment

91A

• (1) This paragraph applies if the lease would fall to be regarded as a long funding lease for the purposes of Part 2 of the Capital Allowances Act 2001, apart from this paragraph.

• (2) The lease is to be treated for tax purposes as not being a long funding lease at any time when the lease—

• (a) meets the conditions in sub-paragraph (3), or

• (b) is expected to meet those conditions when the ship is first brought into use under the lease,

but this is subject to the qualification in sub-paragraph (4) and the exception in sub-paragraph (5).

• (3) The conditions are—

• (a) that the lease falls within paragraph 91B (lease to tonnage tax company or group),

• (b) that the lease falls within paragraph 91C (tonnage tax company to operate and manage qualifying ship),

• (c) that the lease falls within paragraph 91D (period and rate of sublease of qualifying ship).

• (4) The condition in paragraph (c) of sub-paragraph (3) has to be met, or be expected to be met, only at times when the company within tonnage tax is leasing the ship to a company not within tonnage tax.

• (5) The conditions in paragraphs (b) and (c) of sub-paragraph (3) do not have to be met, or be expected to be met, if the lease was finalised (within the meaning of Part 4 of Schedule 8 to the Finance Act 2006) before 1st April 2006.

• (6) Sub-paragraph (2) is subject to paragraph 91E (anti-avoidance).

Lease to tonnage tax company or group

91B

• (1) A lease falls within this paragraph if—

• (a) it is a lease of a qualifying ship provided directly to a company within tonnage tax, or

• (b) it is a lease of a qualifying ship provided indirectly to a company within tonnage tax (“T”) and sub-paragraph (2) applies.

• (2) This sub-paragraph applies where—

• (a) the owner of the qualifying ship provides it directly to a company (“C”) under a lease,

• (b) C provides the qualifying ship directly to T under a lease, and

• (c) C and T are in the same group.

Tonnage tax company to operate and manage qualifying ship

91C

• (1) A lease of a qualifying ship provided, directly or indirectly, to a company within tonnage tax (“T”) falls within this paragraph if T is responsible—

• (a) for the operation of the ship, including the appointment of the master and those members of the crew engaged in navigation, and

• (b) for defraying all expenses in connection with the ship, or substantially all such expenses other than those directly incidental to a particular voyage or to the employment of the ship during any period for which the ship is leased by T to another person.

• (2) For the purposes of this paragraph, T is “responsible” if—

• (a) he is responsible as principal, or

• (b) he appoints another person (“P”) to be responsible in his place and the condition in sub-paragraph (3) is met.

• (3) The condition is that—

• (a) P is not a person to whom the ship is leased by T and is not connected with such a person, or

• (b) P is a company within tonnage tax.

• (4) Any reference in this paragraph to a lease by T includes a reference to a contract of affreightment entered into by T that provides for the carriage of goods by the qualifying ship.

• (5) Section 1122 of the Corporation Tax Act 2010 (connected persons) applies for the purposes of this paragraph.

Period and rate of sublease of qualifying ship

91D

• (1) A lease of a qualifying ship provided, directly or indirectly, to a company within tonnage tax (“T”) falls within this paragraph if each lease of the ship by T (a “sublease”) to a company not within tonnage tax meets the conditions in sub-paragraph (2).

• (2) The conditions are—

• (a) that the amount payable under the sublease is the market rate, and

• (b) that the period of the sublease does not exceed 7 years.

• (3) For the purposes of this paragraph the market rate is the rate at which the qualifying ship could reasonably be expected to be leased, taking into account all the circumstances of the lease including the period of the lease, the date at which the lease commences and the size and description of the qualifying ship.

• (4) For the purposes of this paragraph the period of a sublease is the period comprising—

• (a) the term specified in the sublease, and

• (b) any subsequent periods which meet the conditions in sub-paragraph (5).

• (5) The conditions are that—

• (a) there is an option to continue the sublease for that period, and

• (b) the amount payable under the sublease for that period is not the market rate applicable at the start of that period.

• (6) Where—

• (a) an option to continue a sublease for a period is exercised, and

• (b) the amount payable under the sublease for that period is the market rate applicable at the start of that period,

the parties to the sublease are to be treated for the purposes of this paragraph as if the sublease had terminated immediately before the commencement of the period and a new sublease had immediately been entered into.

• (7) Where a sublease is for an indefinite period, the period of the sublease is to be taken for the purposes of this paragraph to be a period of more than 7 years, unless the condition in sub-paragraph (8) is met.

• (8) The condition is that—

• (a) the amount payable under the sublease must be reviewed at least once every 7 years, and

• (b) if the amount payable under the sublease is found on such a review not to be the market rate applicable at the time of the review, it must be changed to the market rate applicable at that time.

• (9) Where there is an option to continue a sublease for an indefinite period, the period of the sublease is to be taken for the purposes of this paragraph to be a period of more than 7 years, unless the condition in sub-paragraph (10) is met.

• (10) The condition is that the amount payable under the sublease for any period for which the option may be exercised is the market rate applicable at the start of that period, except that—

• (a) the amount for the time being payable under the sublease may subsequently be changed at any time to the market rate applicable at that time,

• (b) the amount payable under the sublease must be reviewed at least once every 7 years, and

• (c) if the amount payable under the sublease is found on such a review not to be the market rate applicable at the time of the review, it must be changed to the market rate applicable at that time.

• (11) Any reference in this paragraph to a lease by T includes a reference to a contract of affreightment entered into by T that provides for the carriage of goods by the qualifying ship.

Anti-avoidance

91E

Paragraph 91A(2) does not have effect in the case of the lease if the main purpose, or one of the main purposes—

• (a) of the leasing of the ship,

• (b) of a series of transactions of which the leasing of the ship is one, or

• (c) of any of the transactions in such a series,

was to obtain a writing down allowance determined without regard to any of paragraphs 90, 92 and 94 to 102 in respect of expenditure incurred by any person on the provision of the ship.

Consequences of paragraph 91A(2) ceasing to have effect

91F

• (1) This paragraph applies if sub-paragraph (2) of paragraph 91A ceases to have effect in relation to a lease (the “existing lease”) because one or more of the conditions in sub-paragraph (3) of that paragraph cease to be met.

• (2) In any such case it is to be assumed for tax purposes that—

• (a) the existing lease terminates at the time of the cessation;

• (b) another lease (the “new lease”) is entered into immediately after the cessation;

• (c) the term of the new lease is the portion of the term of the existing lease that remains unexpired at the time of the cessation;

• (d) the date on which the cessation occurs is the date of both—

• (i) the inception of the new lease, and

• (ii) the commencement of the term of the new lease.

• (3) Where this paragraph applies, subsection (4) of section 70X of the Capital Allowances Act 2001 (transfers, assignments etc by lessee) does not.

• (4) For the purposes of this paragraph, the following expressions have the meaning given in Chapter 6A of Part 2 of the Capital Allowances Act 2001 (interpretation of provisions about long funding leases)—

• “commencement”, in relation to the term of a lease;

• “inception”, in relation to a lease;

• “term”, in relation to a lease;

• “terminate”.

De-grouping charge: deferral until company leaves new group

Gift aid payments by companies.

Covenanted payments to charities.

Millennium gift aid.

Gifts of shares and securities to charities etc.

Phasing out of relief for payments to trustees of profit sharing schemes.

Limit on amount of group relief in case of consortium claim.

Power to vary stamp duties.

Land transferred etc for other property.

Future issues of stock.

Overseas life assurance business.

Transfers between depositary receipt systems and clearance systems.

Gold: penalty for failure to comply with record-keeping requirements etc.

Rate of duty on seven year leases.

Treatment of employee share ownership trusts.

Power to provide incentives to use electronic communications.

Gold: penalty for failure to comply with record-keeping requirements etc.

Deduction for contribution to plan trust

Operating expenditure incurred while safeguard relief applies.

Secondary liability.

Withdrawal of deduction under paragraph 112A

International exchange of information: general.

Reimbursed expenses

Meaning of “qualifying 90% subsidiary”

23A

• (1) For the purposes of this Schedule, a company (“the subsidiary”) is a qualifying 90% subsidiary of the issuing company if the following conditions are met—

• (a) the issuing company possesses not less than 90% of the issued share capital of, and not less than 90% of the voting power in, the subsidiary;

• (b) the issuing company would—

• (i) in the event of a winding up of the subsidiary, or

• (ii) in any other circumstances,

be beneficially entitled to receive not less than 90% of the assets of the subsidiary which would then be available for distribution to the shareholders of the subsidiary;

• (c) the issuing company is beneficially entitled to not less than 90% of any profits of the subsidiary which are available for distribution to the shareholders of the subsidiary;

• (d) no person other than the issuing company has control of the subsidiary within the meaning of section 1124 of CTA 2010;

• (e) no arrangements are in existence by virtue of which any of the conditions in paragraphs (a) to (d) would cease to be met.

• (2) Paragraph 21(3) and (4) (effect of receivership etc) apply in relation to the conditions in sub-paragraph (1) as they apply in relation to the conditions in paragraph 21(2).

• (3) If—

• (a) arrangements are in existence for the disposal by the issuing company of all its interest in the subsidiary, and

• (b) the disposal is to be for commercial reasons and is not to be part of a scheme or arrangement the main purpose of which, or one of the main purposes of which, is the avoidance of tax,

the subsidiary is not to be regarded as having ceased on that account to be a qualifying 90% subsidiary of the issuing company.

• (4) For the purposes of this Schedule, a company (“company A”) which is a subsidiary of a company that is not the issuing company (“company B”) is a qualifying 90% subsidiary of the issuing company if—

• (a) company A would be a qualifying 90% subsidiary of company B (if company B were the issuing company), and company B is a qualifying 100% subsidiary of the issuing company; or

• (b) company A is a qualifying 100% subsidiary of company B, and company B is a qualifying 90% subsidiary of the issuing company.

• (5) For the purposes of sub-paragraph (4), no account is to be taken of any control the issuing company may have of company A.

• (6) For those purposes, a company (“company X”) is a qualifying 100% subsidiary of another company (“company Y”) at any time when the conditions in sub-paragraph (1) would be met if—

• (a) company X were the subsidiary;

• (b) company Y were the issuing company; and

• (c) in sub-paragraph (1) for “not less than 90%” in each place there were substituted “100%”.

De-grouping charge: deferral until company leaves new group

Surrender of leases.

Abolition of duty on instruments relating to intellectual property.

Transfer of property between associated companies: Northern Ireland.

Land transferred etc for other property.

Company acquisition reliefs: redeemable shares.

Grant of leases etc between associated companies.

Company acquisition reliefs: redeemable shares.

Offence of fraudulent evasion of income tax

International exchange of information: inheritance tax.

Reimbursed expenses

Withdrawal of deduction under paragraph 112A

Treatment of mileage allowances

The number of employees requirement

22A

• (1) If the issuing company is a single company, the full-time equivalent employee number for it must be less than 50 when the relevant shares are issued.

• (2) If the issuing company is a parent company, the sum of—

• (a) the full-time equivalent employee number for it, and

• (b) the full-time equivalent employee numbers for each of its qualifying subsidiaries,

must be less than 50 when the relevant shares are issued.

• (3) The full-time equivalent employee number for a company is calculated as follows—

• Step 1Find the number of full-time employees of the company.

• Step 2Add, for each employee of the company who is not a full-time employee, such fraction as is just and reasonable.

The result is the full-time equivalent employee number.

• (4) In this paragraph references to an employee—

• (a) include a director, but

• (b) do not include—

• (i) an employee on maternity , paternity , shared parental or parental bereavement leave, or

• (ii) a student on vocational training.

Requirement as to maximum amount raised annually through risk capital schemes

35A

• (1) The total amount of relevant investments made in the issuing company in the year ending with the date the relevant shares are issued must not exceed £2 million.

• (2) In sub-paragraph (1), the reference to relevant investments made in the issuing company includes relevant investments made in any company that is, or has at any time in the year mentioned there been, a subsidiary of the issuing company (whether or not it was such a subsidiary when the investment was made).

• (3) A “relevant investment” is made in a company if—

• (a) an investment (of any kind) in the company is made by a VCT, or

• (b) the company issues shares (money having been subscribed for them), and (at any time) the company provides—

• (i) a compliance statement under paragraph 42, or

• (ii) a compliance statement under section 205 of ITA 2007 (enterprise investment scheme),

in respect of the shares.

• (4) An investment within sub-paragraph (3)(b) is regarded as made when the shares are issued.

De-grouping charge: deferral until company leaves new group

Reduced-rate supplies: deemed supply

45A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

De-grouping charge: deferral until company leaves new group

Excluded activities: shipbuilding

30A

In paragraph 26(1)(ha) “shipbuilding” has the same meaning as in the Framework on state aid to shipbuilding (2003/C 317/06), published in the Official Journal on 30 December 2003.

Excluded activities: producing coal

30B

• (1) This paragraph supplements paragraph 26(1)(hb).

• (2) “Coal” has the meaning given by Article 2 of Council Regulation (EC) No. 1407/2002 (state aid to coal industry).

• (3) The production of coal includes the extraction of it.

Excluded activities: producing steel

30C

In paragraph 26(1)(hc) “steel” means any of the steel products listed in Annex 1 to the Guidelines on national regional aid (2006/C 54/08), published in the Official Journal on 4 March 2006.

Land transferred etc for other property.

Rate of duty on seven year leases.

Transfer of property between associated companies: Northern Ireland.

Abolition of duty on instruments relating to intellectual property.

Rate.

Offence of fraudulent evasion of income tax

Rate.

International exchange of information: inheritance tax.

Debt Management Account.

R&D tax relief or tax credit only available where company is a going concern

18A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

De-grouping charge: deferral until company leaves new group

Offer of review

121A

• (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal lies under paragraph 121 in respect of the decision.

• (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P.

• (3) This paragraph does not apply to the notification of the conclusions of a review.

Right to require review

121B

• (1) Any person (other than P) who has the right of appeal under paragraph 121 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal under paragraph 121G.

• (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.

Review by HMRC

121C

• (1) HMRC must review a decision if—

• (a) they have offered a review of the decision under paragraph 121A, and

• (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.

• (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 121G.

• (3) HMRC must review a decision if a person other than P notifies them under paragraph 121B.

• (4) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 121G in respect of the decision.

Extensions of time

121D

• (1) If under paragraph 121A, HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.

• (2) If under paragraph 121B another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended.

• (3) If notice is given the relevant period is extended to the end of 30 days from—

• (a) the date of the notice, or

• (b) any other date set out in the notice or a further notice.

• (4) In this paragraph “relevant period” means—

• (a) the period of 30 days referred to in—

• (i) paragraph 121C(1)(b) (in a case falling within sub-paragraph (1)), or

• (ii) paragraph 121B(2) (in a case falling within sub-paragraph (2)), or

• (b) if notice has been given under sub-paragraph (1) or (2), that period as extended (or as most recently extended) in accordance with sub-paragraph (3).

Review out of time

121E

• (1) This paragraph applies if—

• (a) HMRC have offered a review of a decision under paragraph 121A and P does not accept the offer within the time allowed under paragraph 121C(1)(b) or 121D(3); or

• (b) a person who requires a review under paragraph 121B does not notify HMRC within the time allowed under that paragraph or paragraph 121D(3).

• (2) HMRC must review the decision under paragraph 121C if—

• (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,

• (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and

• (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.

• (3) HMRC shall not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 121G in respect of the decision.

Nature of review etc

121F

• (1) This paragraph applies if HMRC are required to undertake a review under paragraph 121C or 121E.

• (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

• (3) For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

• (a) by HMRC in reaching the decision, and

• (b) by any person in seeking to resolve disagreement about the decision.

• (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.

• (5) The review may conclude that the decision is to be—

• (a) upheld,

• (b) varied, or

• (c) cancelled.

• (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—

• (a) a period of 45 days beginning with the relevant date, or

• (b) such other period as HMRC and P, or the other person, may agree.

• (7) In sub-paragraph (6) “relevant date” means—

• (a) the date HMRC received P’s notification accepting the offer of a review (in a case falling within paragraph 121A), or

• (b) the date HMRC received notification from another person requiring review (in a case falling within paragraph 121B), or

• (c) the date on which HMRC decided to undertake the review (in a case falling within paragraph 121E).

• (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the time period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld.

• (9) If sub-paragraph (8) applies, HMRC must notify P, or the other person of the conclusion which the review is treated as having reached.

Bringing of appeals

121G

• (1) An appeal under paragraph 121 is to be made to the appeal tribunal before—

• (a) the end of the period of 30 days beginning with—

• (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or

• (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or

• (b) if later, the end of the relevant period (within the meaning of paragraph 121D).

• (2) But that is subject to sub-paragraphs (3) to (5).

• (3) In a case where HMRC are required to undertake a review under paragraph 121C—

• (a) an appeal may not be made until the conclusion date, and

• (b) any appeal is to be made within the period of 30 days beginning with the conclusion date.

• (4) In a case where HMRC are requested to undertake a review by virtue of paragraph 121E—

• (a) an appeal may not be made to an appeal tribunal—

• (i) unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and

• (ii) if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;

• (b) any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;

• (c) if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.

• (5) In a case where paragraph 121F(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 121F(6) to the date 30 days after the conclusion date.

• (6) An appeal may be made after the end of the period specified in sub-paragraph (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so.

• (7) In this paragraph “conclusion date” means the date of the document notifying the conclusions of the review.

Deduction for contribution to plan trust

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Deduction for contribution to plan trust

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Increase in general rate.

Climate change levy.

Phasing out of relief for payments to trustees of profit sharing schemes.

Millennium gift aid.

Gifts to charity from certain trusts.

Approved profit sharing scheme: other awards of shares.

Disposal of interest in settled property: deemed disposal of underlying assets.

Transfer of property between associated companies: Northern Ireland.

Surrender of leases.

Treatment of employee share ownership trusts.

Secondary liability.

Removal of reduced rate where targets set by climate change agreement not met

45B

• (1) This paragraph applies where, by virtue of such a certificate as is mentioned in paragraph 44(1), a facility is to be taken as being covered by a climate change agreement for a period specified in that certificate (“the certification period”).

• (2) If it appears to the Administrator that the progress made in the certification period towards meeting targets set for the facility by the agreement has been such as under the provisions of the agreement is unsatisfactory, the Administrator may issue a certificate under this paragraph.

• (3) The certificate must (in addition to specifying the facility, agreement and certification period to which it applies) specify—

• (a) T, that is, the value (expressed in terms of a reduction in tonnes of carbon dioxide equivalent) of achieving the targets set for the facility by the agreement, and

• (b) P, that is, the value (expressed in the same terms) of the progress made by the facility, during the certification period, towards meeting those targets.

• (4) Where a certificate has been issued under this paragraph—

• (a) each taxable supply made to the facility at any time falling within the certification period is to be treated as not being a reduced-rate supply, and

• (b) accordingly, an amount (determined in accordance with sub-paragraph (5)) is payable by way of levy on that taxable supply.

• (5) The amount payable under this paragraph on a taxable supply is—

$$T-PT×0.8R$where—T and P have the values mentioned in sub-paragraph (3), andR is the amount which would have been payable by way of levy on the supply (had it not been a reduced-rate supply) at the time that it was made, in accordance with paragraph 42(1)(a).$

• (6) The Administrator must send the certificate to—

• (a) the Commissioners, and

• (b) the person who is the operator of the facility.

• (7) A certificate under this paragraph may be issued after the certification period ends.

• (8) A person liable to account for levy under this paragraph—

• (a) is liable to account for it otherwise than by reference to an accounting period, and

• (b) must not (by virtue of regulations under paragraph 41) become liable to pay it as from a date before the date on which the certificate under this paragraph is issued.

• (9) Levy due under this paragraph is payable in addition to any levy already payable on any supply made in the certification period.

• (10) In this paragraph—

• “certification period”, in a case where the certificate referred to in sub-paragraph (1) has been varied under paragraph 45, means the period for which that certificate has effect as varied;

• “tonne of carbon dioxide equivalent” has the meaning given in the Climate Change Act 2008.

Treatment of mileage allowances

Benefits in kind: deregulatory amendments.

Secondary liability.

International exchange of information: inheritance tax.

Debt Management Account.

De-grouping charge: deferral until company leaves new group

Approved profit sharing schemes: restriction on type of shares.

Exemption of payments under New Deal 50plus.

Loan capital where return bears inverse relationship to results.

Offence of fraudulent evasion of income tax

Reimbursed expenses

De-grouping charge: deferral until company leaves new group

Transfer of property between associated companies: Northern Ireland.

Treatment of employee share ownership trusts.

Secondary liability.

Debt Management Account.

...

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Supplies for use in scrap metal recycling and reduced-rate supplies: deemed supply

43B

• (1) This paragraph applies where—

• (a) a taxable supply (“the original supply”) has been made to any person (“the recipient”),

• (b) the original supply was made on the basis that it was, to any extent—

• (i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (ii) a reduced-rate supply of electricity, or

• (iii) a reduced-rate supply of any other taxable commodity,

• (c) it is later determined that the original supply was (or was to some extent) a different kind of supply, and

• (d) the amount payable on the supply on the basis mentioned in paragraph (b) is less than the amount payable on the supply on the basis of the later determination.

• (2) For the purposes of this Schedule—

• (a) the recipient is deemed to make a taxable supply to itself of the taxable commodity, and

• (b) the amount payable by way of levy on that deemed supply is—

• (i) the amount payable on the original supply on the basis of the later determination mentioned in sub-paragraph (1)(c), less

• (ii) the amount payable on the original supply on the basis mentioned in sub-paragraph (1)(b).

• (3) This paragraph does not apply where a supply is treated as not being a reduced-rate supply by virtue of paragraph 45B.

The Administrator etc

52A

• (1) In this Part of this Schedule references to “the Administrator” are to the body appointed as such by regulations made by the Secretary of State.

• (2) The body appointed must be a body established by an enactment (as defined in section 97 of the Climate Change Act 2008).

• (3) Different bodies may be appointed in relation to facilities in different parts of the United Kingdom.

52B

• (1) The Administrator is responsible for administering the scheme set out in paragraphs 44 to 52.

• (2) This covers (in particular) the administration of climate change agreements.

• (3) In this Part of this Schedule “administrative function” means—

• (a) the Administrator's function imposed by sub-paragraph (1), or

• (b) any other power or duty of the Administrator conferred or imposed by or under a provision of this Part of this Schedule.

52C

• (1) The Administrator may require persons falling within sub-paragraph (2) to pay to the Administrator such charges as may from time to time be specified to cover any costs incurred by the Administrator in carrying out any administrative function.

• (2) The persons falling within this sub-paragraph are parties or potential or former parties to agreements falling within paragraph 47 or to umbrella or underlying agreements within the meaning of paragraph 48.

• (3) In sub-paragraph (1) “specified” means specified in, or determined in accordance with, a scheme made by the Administrator for the purposes of this paragraph.

• (4) A scheme may provide for the times at which, and the manner in which, charges are to be paid.

• (5) Paragraph 146(7) applies in relation to the Administrator's power to make a scheme under this paragraph as it applies in relation to a power to make regulations under this Schedule.

• (6) A scheme may revoke or vary any previous scheme.

• (7) A scheme may be made only with the consent of the Secretary of State.

• (8) Charges received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.

• (9) Sub-paragraph (8) does not apply if the Administrator is the Environment Agency.

52D

• (1) The Secretary of State may by regulations make provision about the administration of the scheme set out in paragraphs 44 to 52.

• (2) Sub-paragraph (1) covers (in particular)—

• (a) provision about climate change agreements, and

• (b) provision about how the Administrator is to carry out any administrative function.

• (3) Without prejudice to the generality of sub-paragraphs (1) and (2), regulations may contain any provision falling within paragraph 52E or 52F.

• (4) Regulations may—

• (a) require the Administrator to obtain the Secretary of State's consent to any course of action,

• (b) confer or impose other powers or duties on the Secretary of State or the Administrator, or

• (c) confer or impose powers or duties on other persons.

• (5) The Secretary of State may give directions to the Administrator about how the Administrator is to carry out any administrative function (and this power to give directions includes power to vary or revoke directions previously given).

• (6) The Secretary of State may issue guidance to the Administrator about how the Administrator is to carry out any administrative function; and the Administrator must have regard to any guidance issued.

52E

• (1) Regulations may—

• (a) specify terms which must be included in agreements falling within paragraph 47 or in umbrella or underlying agreements within the meaning of paragraph 48, and

• (b) confer power on the Administrator to vary such agreements to take account of any changes in the terms specified under paragraph (a) from time to time.

• (2) The terms which may be specified under sub-paragraph (1)(a) include (in particular) terms falling within paragraph 49(4) under which the absence (or partial absence) of any progress towards meeting any targets for a facility may be made up for by the payment to the Administrator of a sum specified in, or determined in accordance with, the regulations.

• (3) Sums received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.

52F

• (1) Regulations may confer power on the Administrator—

• (a) to impose a financial penalty of a specified amount on a person who, as a representative of a facility to which a climate change agreement applies, contravenes a term of the agreement, and

• (b) to terminate, with effect from a specified date, the agreement so far as it applies to the facility if—

• (i) the financial penalty is not paid to the Administrator within a specified period, or

• (ii) the contravention is not remedied to the Administrator's satisfaction within a specified period.

• (2) Regulations may also confer power on the Administrator to terminate, with effect from a specified date and without first imposing a financial penalty, a climate change agreement so far as it applies to a facility if there is a contravention of the agreement by a person who is a representative of the facility.

• (3) Neither sub-paragraph (1)(a) nor sub-paragraph (2) covers a failure to meet, or to make progress towards meeting, any targets set for a facility under a climate change agreement.

• (4) If regulations falling within sub-paragraph (1) or (2) are made, the regulations must also—

• (a) confer rights of appeal against a decision taken by the Administrator to impose a financial penalty or to terminate a climate change agreement (as the case may be), and

• (b) specify the court, tribunal or person who is to hear and determine the appeal.

• (5) The Secretary of State may be specified for the purposes of sub-paragraph (4)(b).

• (6) Penalties received by the Administrator must be paid to the Secretary of State who must pay them into the Consolidated Fund.

• (7) Regulations may confer power on the Administrator to terminate, with effect from a specified date, a climate change agreement so far as it applies to a facility in specified circumstances not involving a contravention of the agreement.

• (8) In sub-paragraphs (1) to (7)—

• “representative” has the meaning given by paragraph 47(2), and

• “specified” means specified in, or determined in accordance with, the regulations.

• (9) Sub-paragraph (10) or (11) (as the case may be) applies if a climate change agreement is terminated in respect of a facility before the start of, or during, a period specified for the facility in such a certificate as is mentioned in paragraph 44(1).

• (10) If the termination is before the start of the specified period, the Administrator must, in respect of the facility, give a variation certificate within paragraph 45(1)(a) in relation to the specified period.

• (11) If the termination is during the specified period, the Administrator must, in respect of the facility, give a variation certificate within paragraph 45(1)(b) in relation to the specified period specifying the day of the termination.

Deduction for contribution to plan trust

Reimbursed expenses

79A

• (1) This paragraph applies if—

• (a) a balancing charge under this Part of this Schedule arises to the company on the disposal of any plant or machinery, and

• (b) the plant or machinery is taken into account in calculating income that the company is treated as receiving under section 383 or 417 of the Corporation Tax Act 2010 (sales of lessors) as a result of section 394ZA of that Act (company joining tonnage tax group).

• (2) The balancing charge is to be reduced by the relevant part of the sales of lessors expense so far as relief has not previously been given for that expense (whether under this sub-paragraph or otherwise).

• (3) “The sales of lessors expense” means—

• (a) the expense which the company is treated as incurring under section 383 or 417 of the Corporation Tax Act 2010 as a result of section 394ZA of that Act, or

• (b) if section 386 or 419 of that Act applies or has applied, the expense which derives from the expense within paragraph (a).

• (4) If the sales of lessors expense is incurred at a time when the company is in tonnage tax, the “relevant part” of that expense is so much of it as, on a just and reasonable basis, is attributable to the matters set out in paragraph 56(1)(a) or (b).

• (5) If—

• (a) the sales of lessors expense is not incurred at a time when the company is in tonnage tax,

• (b) that expense is taken into account in calculating a loss made by the company in a trade, and

• (c) the loss is one to which paragraph 56 applies,

the “relevant part” of the sales of lessors expense is so much of the apportioned loss as, on a just and reasonable basis, is derived from the sales of lessors expense.

• (6) The reference here to the apportioned loss is to the loss that is attributable to the matters set out in paragraph 56(1)(a) or (b).

De-grouping charge: deferral until company leaves new group

Deemed taxable supply: commodities to be used in producing electricity

24A

• (1) Sub-paragraph (2) applies if—

• (a) a quantity of a carbon price support rate commodity is brought onto, or arrives at, a site in Great Britain at which a generating station is situated,

• (b) that quantity of the commodity is intended to be used for producing electricity in the station,

• (c) the station is neither a fully exempt combined heat and power station nor a partly exempt combined heat and power station, and

• (d) the station is neither a small generating station nor a stand-by generator.

• (2) For the purposes of this Schedule the owner of the station is deemed to make a taxable supply to himself of that quantity of the commodity.

• (3) In sub-paragraph (1)(a) the reference to a commodity being brought onto, or arriving at, a site covers (in particular) gas in a gaseous state arriving at the site through a pipe.

• (4) For the purposes of sub-paragraph (1) it does not matter—

• (a) if the quantity of the commodity is not the subject of an actual supply made to the owner of the station, or

• (b) if the commodity's availability for use in the station is subject to any condition.

Deemed taxable supply: commodities to be used in combined heat and power station

24B

• (1) Sub-paragraph (2) applies if—

• (a) a quantity of a carbon price support rate commodity is brought onto, or arrives at, the CHPQA site of a fully exempt combined heat and power station or a partly exempt combined heat and power station in Great Britain,

• (b) that quantity of the commodity is intended to be used in the station for producing outputs of the station, and

• (c) the station is not a small generating station.

• (2) For the purposes of this Schedule the operator of the station is deemed to make a taxable supply to himself of that quantity of the commodity so far as that quantity is referable to the production of electricity to which sub-paragraph (2A) does not apply.

• (2A) This sub-paragraph applies to electricity so far as—

• (a) it is included in the CHP Qualifying Power Output of the combined heat and power station's CHPQA scheme, and

• (b) either condition A or B is met.

• (2B) Condition A is that the producer of the electricity makes no supply of it to another person, but causes it to be consumed in the United Kingdom.

• (2C) Condition B is that the electricity is supplied (within the meaning of Part 1 of the Electricity Act 1989 (see section 64 of that Act)) by a person who is an exempt unlicensed electricity supplier.

• (3) For the purposes of sub-paragraph (2) the extent to which a quantity of a commodity is referable to the production of electricity to which sub-paragraph (2A) does not apply is to be determined in accordance with regulations under paragraph 24D(1).

• (4) In sub-paragraph (1)(a) the reference to a commodity being brought onto, or arriving at, the CHPQA site of a station covers (in particular) gas in a gaseous state arriving at the CHPQA site through a pipe.

• (5) In sub-paragraph (1)(b) “outputs” has the meaning given by paragraph 148(9).

• (6) For the purposes of sub-paragraph (1) it does not matter—

• (a) if the quantity of the commodity is not the subject of an actual supply made to the operator of the station, or

• (b) if the commodity's availability for use in the station is subject to any condition.

• (7) For the purposes of this paragraph—

• “CHP Qualifying Power Output” has the meaning given by section 4 of the Combined Heat and Power Quality Assurance Standard, Issue 5 (November 2013), prepared by the Department of Energy and Climate Change or, if that issue of the Standard has been replaced by another issue, by the current issue of the Standard (taking account, in either case, of any amendment which has been made to the issue);

• “CHPQA scheme”, in relation to a combined heat and power station, means the scheme in relation to which the station's CHPQA certificate was issued;

• “CHPQA site”, in relation to a fully exempt combined heat and power station or a partly exempt combined heat and power station, means the site of the CHPQA scheme.

24C

• (1) This paragraph applies if—

• (a) a determination (“the initial determination”) is made under regulations falling within paragraph 24B(3) that—

• (i) none of a quantity of a carbon price support rate commodity is, or

• (ii) a proportion of such a quantity is not,

referable to the production of electricity to which paragraph 24B(2A) does not apply,

• (b) as a result of the initial determination, the quantity or proportion of a quantity is determined not to be the subject of a deemed supply under paragraph 24B, and

• (c) it is later determined that, contrary to the initial determination, the quantity or proportion of a quantity—

• (i) was referable to the production of electricity to which paragraph 24B(2A) does not apply, and

• (ii) accordingly, should have been determined to be the subject of a deemed supply under paragraph 24B.

• (2) For the purposes of this Schedule—

• (a) the operator of the station in question is deemed to make a taxable supply to himself of the quantity or proportion of a quantity, and

• (b) the amount payable by way of levy on the deemed supply is the amount which would have been payable in relation to the quantity or proportion of a quantity had it been determined to be the subject of a deemed supply as mentioned in sub-paragraph (1)(c)(ii).

Power to make regulations giving effect to paragraphs 24A to 24C etc

24D

• (1) The Commissioners may by regulations make provision for giving effect to paragraphs 24A to 24C and 42A to 42D.

• (2) Regulations under sub-paragraph (1) may, in particular, include provision—

• (a) for determining whether a deemed supply under paragraph 24A or 24B is made;

• (b) for determining the quantity of any commodity which is the subject of such a deemed supply;

• (c) for determining whether paragraph 42C(2) applies in relation to a deemed supply under paragraph 24A or 24B and, if it does, the reduction in the relevant carbon price support rate.

• (3) Regulations under sub-paragraph (1) may include—

• (a) provision in respect of calculations, measurements, data and procedures to be made or used;