Finance Act 2008

Small companies' relief: associated companies

Insurance companies etc

Community investment tax relief

Manufactured payments

Thermal insulation of buildings

Manufactured payments

Repeal of obsolete anti-avoidance provisions

Income charged at dividend upper rate

Gas refuelling stations

Inheritance etc of tax-relieved pension savings

Charge where consideration includes rent: 0% band

Inheritance etc of tax-relieved pension savings

Notification and registration of transactions

Notification and registration of transactions

Meaning of “participator”

Returns of relevant sales of oil

Gifts inter vivos

Meaning of “participator”

Capital allowances: abandonment expenditure after ceasing ring fence trade

Record-keeping

Time limits for assessments, claims etc

Penalties for errors

Capital allowances: abandonment expenditure after ceasing ring fence trade

Rebates

VAT: requirement to set-off

Short title

Aviation duty

Aviation duty

EU emissions trading: criminal offences

Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005

Government borrowing: alternative finance arrangements

Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005

Rates for new lower-emission vans

Rebates

Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005

Air passenger duty: class of travel with large seat pitch

Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005

EU emissions trading: criminal offences

40A

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40B

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40C

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40D

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40E

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40F

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40G

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42A

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Financial arrangements avoidance

Double taxation relief

Repeal of obsolete anti-avoidance provisions

Income charged at dividend upper rate

Integral features

Integral features

Main rate of writing down allowance

Small pools

Notification and registration of transactions

Inheritance etc of tax-relieved pension savings

Zero-carbon homes

Charge where consideration includes rent: 0% band

Transfers of interests in property-investment partnerships

Meaning of “participator”

Returns of relevant sales of oil

Ring fence trade: no deduction for expenses of investment management

Abandonment expenditure: former participator reimbursed by defaulter

Returns of relevant sales of oil

Capital allowances: plant and machinery for use in ring fence trade

Capital allowances: abandonment expenditure after ceasing ring fence trade

Ring fence trade: no deduction for expenses of investment management

Computer records etc

Retained funding bonds: tender by Commissioners

Consequential provision and commencement

EU emissions trading: criminal offences

EU emissions trading: criminal offences

Summary warrant: Scotland

Alternative finance arrangements: power to vary Chapter 5 of Part 2 of FA 2005

County court proceedings

Interpretation

Reduced pollution certificates

Climate change levy accounting documents: abolition of self-identification

Power of Treasury to make payments

EU emissions trading: criminal offences

Short title

Information in connection with herd basis election

37A

• (1) This paragraph applies to a taxpayer notice given to a person carrying on a trade in relation to which a herd basis election is made if the notice refers only to information or documents that relate to—

• (a) the animals kept for the purposes of the trade, or

• (b) the products of those animals.

• (2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice.

• (3) “Herd basis election” means an election under Chapter 8 of Part 2 of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009.

Information from persons liable to counteraction of tax advantage

37B

• (1) This paragraph applies to a taxpayer notice given to a person if—

• (a) it appears to an officer of Revenue and Customs that a counteraction provision may apply to the person by reason of one or more transactions, and

• (b) the notice refers only to information or documents relating to the transaction (or, if there are two or more transactions, any of them).

• (2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice.

• (3) “Counteraction provision” means—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) section 684 of ITA 2007 (person liable to counteraction of income tax advantage), or

• (c) section 733 of CTA 2010 (company liable to counteraction of corporation tax advantage).

Penalties for inaccurate information and documents

40A

• (1) This paragraph applies if—

• (a) in complying with an information notice, a person provides inaccurate information or produces a document that contains an inaccuracy, and

• (b) condition A, B or C is met.

• (2) Condition A is that the inaccuracy is careless or deliberate.

• (3) An inaccuracy is careless if it is due to a failure by the person to take reasonable care.

• (3A) Condition B is that the person knows of the inaccuracy at the time the information is provided or the document produced but does not inform HMRC at that time.

• (4) Condition C is that the person—

• (a) discovers the inaccuracy some time later, and

• (b) fails to take reasonable steps to inform HMRC.

• (5) The person is liable to a penalty not exceeding £3,000.

• (6) Where the information or document contains more than one inaccuracy, a penalty is payable for each inaccuracy.

Income charged at dividend upper rate

Income charged at dividend upper rate

Thermal insulation of buildings

Small pools

Notification and registration of transactions

Notification and registration of transactions

Charge where consideration includes rent: 0% band

Withdrawal of group relief

Abandonment expenditure: default by participator met by former participator

Returns of relevant sales of oil

Elections for oil fields to become non-taxable

Losses: set off against profits of earlier accounting periods

Information and inspection powers

Rates for new lower-emission vans

Set-off etc where right to be paid a sum has been transferred

Rebates

Offence of using or keeping unlicensed vehicle

Charge on termination of interest in possession where new interest acquired

Not exhibiting licence: period of grace

Air passenger duty: class of travel with large seat pitch

Aviation duty

Power to inspect business premises etc of involved third parties

10A

• (1) An officer of Revenue and Customs may enter business premises of an involved third party (see paragraph 61A) and inspect—

• (a) the premises,

• (b) business assets that are on the premises, and

• (c) relevant documents that are on the premises,

if the inspection is reasonably required by the officer for the purpose of checking the position of any person or class of persons as regards a relevant tax.

• (2) The powers under this paragraph may be exercised whether or not the identity of that person is, or the individual identities of those persons are, known to the officer.

• (3) The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling.

• (4) In relation to an involved third party, “relevant documents” and “relevant tax” are defined in paragraph 61A.

Powers to inspect property for valuation etc

12A

• (1) An officer of Revenue and Customs may enter and inspect premises for the purpose of valuing the premises if the valuation is reasonably required for the purpose of checking any person's position as regards income tax or corporation tax.

• (2) An officer of Revenue and Customs may enter premises and inspect—

• (a) the premises, and

• (b) any other property on the premises,

for the purpose of valuing, measuring or determining the character of the premises or property.

• (3) Sub-paragraph (2) only applies if the valuation, measurement or determination is reasonably required for the purpose of checking any person's position as regards—

• (a) capital gains tax,

• (b) corporation tax in respect of chargeable gains,

• (c) inheritance tax,

• (d) stamp duty land tax, ...

• (e) stamp duty reserve tax, or

• (f) annual tax on enveloped dwellings.

• (4) A person who the officer considers is needed to assist with the valuation, measurement or determination may enter and inspect the premises or property with the officer.

Carrying out inspections under paragraph 12A

12B

• (1) An inspection under paragraph 12A may be carried out only if condition A or B is satisfied.

• (2) Condition A is that—

• (a) the inspection is carried out at a time agreed to by a relevant person, and

• (b) the relevant person has been given notice in writing of the agreed time of the inspection.

• (3) “Relevant person” means—

• (a) the occupier of the premises, or

• (b) if the occupier cannot be identified or the premises are vacant, a person who controls the premises.

• (4) Condition B is that—

• (a) the inspection has been approved by the tribunal, and

• (b) any relevant person specified by the tribunal has been given at least 7 days' notice in writing of the time of the inspection.

• (5) A notice under sub-paragraph (4)(b) must state the possible consequences of obstructing the officer in the exercise of the power.

• (6) If a notice is given under this paragraph in respect of an inspection approved by the tribunal (see paragraph 13), it must state that the inspection has been so approved.

• (7) An officer of Revenue and Customs seeking to carry out an inspection under paragraph 12A must produce evidence of authority to carry out the inspection if asked to do so by—

• (a) the occupier of the premises, or

• (b) any other person who appears to the officer to be in charge of the premises or property.

Taxpayer notices following land transaction return

21A

• (1) Where a person has delivered a land transaction return under section 76 of FA 2003 (returns for purposes of stamp duty land tax) in respect of a transaction, a taxpayer notice may not be given for the purpose of checking that person's stamp duty land tax position in relation to that transaction.

• (2) Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to D is met.

• (3) Condition A is that a notice of enquiry has been given in respect of—

• (a) the return, or

• (b) a claim (or an amendment of a claim) made by the person in connection with the transaction,

and the enquiry has not been completed.

• (4) In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 12 of Schedule 10, or paragraph 7 of Schedule 11A, to FA 2003.

• (5) Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that—

• (a) an amount that ought to have been assessed to stamp duty land tax in respect of the transaction may not have been assessed,

• (b) an assessment to stamp duty land tax in respect of the transaction may be or have become insufficient, or

• (c) relief from stamp duty land tax in respect of the transaction may be or have become excessive.

• (6) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than stamp duty land tax.

• (7) Condition D is that relief from stamp duty land tax has been given in respect of the transaction and the notice is given for the purpose of checking whether—

• (a) the relief is withdrawn to any extent under a provision mentioned in section 81 or 81ZA of FA 2003, or

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (8) Where condition D is met (and not any of conditions A to C), a taxpayer notice may not be given by virtue of this paragraph after the end of the period of 4 years beginning with the effective date of the transaction (but see sub-paragraph (9) in relation to PAIF seeding relief and COACS seeding relief).

• (9) Where condition D is met because the notice is given for the purpose of checking whether the relief is withdrawn to any extent under a paragraph of Schedule 7A to FA 2003 (PAIF seeding relief and COACS seeding relief), the reference in sub-paragraph (8) to the effective date of the transaction is to be read as a reference to the first day of the control period within the meaning of that Schedule (see paragraph 21 of that Schedule).

• (10) “Effective date” has the same meaning for the purposes of sub-paragraph (8) as for the purposes of Part 4 of FA 2003 (see section 119 of that Act).

Involved third parties

34A

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Registered pension schemes etc

34B

• (1) This paragraph applies to a third party notice or a notice under paragraph 5 if it refers only to information or documents that relate to any pensions matter.

• (2) “Pensions matter” means any matter relating to—

• (a) a registered pension scheme,

• (b) an annuity purchased with sums or assets held for the purposes of a registered pension scheme or a pre-2006 pension scheme, ...

• (c) an employer-financed retirement benefits scheme,

• (d) a QROPS or former QROPS, or

• (e) an annuity purchased with sums or assets held for the purposes of a QROPS or former QROPS.

• (3) In relation to such a third party notice—

• (a) paragraph 3(1) (approval etc of third party notices) does not apply,

• (b) paragraph 4(1) (copying third party notices to taxpayer) does not apply, and

• (c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds.

• (4) In relation to such a notice under paragraph 5—

• (a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, an authorised officer of Revenue and Customs to obtain the approval of the tribunal, and

• (b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds.

• (4A) In relation to a notice to which this paragraph applies that refers only to information or documents relating to a matter within sub-paragraph (2)(d) or (e), paragraph 20 (old documents) has effect as if the reference to 6 years were to 10 years.

• (5) A person may not appeal against a requirement in the notice to provide any information, or produce any document, that forms part of any person's statutory records.

• (6) Where the notice relates to a matter within sub-paragraph (2)(a) or (b), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme administrator in relation to the pension scheme.

• (7) Where the notice relates to a matter within sub-paragraph (2)(c), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the responsible person in relation to the employer-financed retirement benefits scheme.

• (7A) Where the notice relates to a matter within sub-paragraph (2)(d) or (e), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme manager in relation to the pension scheme.

• (8) Sub-paragraphs (6) to (7A) do not apply if the notice is given to a person who, in relation to the scheme or annuity to which the notice relates, is a prescribed description of person.

Registered pension schemes etc: interpretation

34C

In paragraph 34B—

• “employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act);

• “pension scheme” has the same meaning as in Part 4 of FA 2004;

• “pre-2006 pension scheme” means a scheme that, at or in respect of any time before 6 April 2006, was—a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA,a former approved superannuation fund (as defined in paragraph 1(3) of Schedule 36 to FA 2004),a relevant statutory scheme (as defined in section 611A of ICTA) or a pension scheme treated as if it were such a scheme, ora personal pension scheme approved under Chapter 4 of Part 14 of ICTA;

• “prescribed” means prescribed by regulations made by the Commissioners;

• “QROPS” and “former QROPS” have the meanings given by section 169(8) of FA 2004;

• “registered pension scheme” means a pension scheme that is or has been a registered pension scheme within the meaning of Part 4 of FA 2004 or in relation to which an application for registration under that Part of that Act has been made;

• “responsible person”, in relation to an employer-financed retirement benefits scheme, has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see section 399A of that Act);

• “scheme administrator”, in relation to a pension scheme, has the same meaning as in Part 4 of FA 2004 (see section 270 of that Act);

• “scheme manager”, in relation to a pension scheme, has the meaning given by section 169(3) of FA 2004.

Involved third parties

61A

• (1) In this Schedule “involved third party” means a person described in the first column of the Table below.

• (2) In this Schedule, in relation to an involved third party, ... “relevant document” and “relevant tax” have the meaning given in the corresponding entries in that Table.

	Involved third party	Relevant ... documents	Relevant tax
1.	A body approved by an officer of Revenue and Customs for the purpose of paying donations within the meaning of Part 12 of ITEPA 2003 (donations to charity: payroll giving) (see section 714 of that Act)	Documents relating to the donations	Income tax
2.	A plan manager (see section 696 of ITTOIA 2005 (managers of individual investment plans))	Documents relating to the plan, including investments which are or have been held under the plan	Income tax
3.	An account provider in relation to a child trust fund (as defined in section 3 of the Child Trust Funds Act 2004)	Documents relating to the fund, including investments which are or have been held under the fund	Income tax
4.	A person who is or has been registered as a managing agent at Lloyd's in relation to a syndicate of underwriting members of Lloyd's	Documents relating to, and to the activities of, the syndicate	Income taxCapital gains taxCorporation tax
5.	A person involved (in any capacity) in an insurance business (as defined for the purposes of Part 3 of FA 1994)	Documents relating to contracts of insurance entered into in the course of the business	Insurance premium tax
6.	A person who makes arrangements for persons to enter into contracts of insurance	Documents relating to the contracts	Insurance premium tax
7.	A person who—is concerned in a business that is not an insurance business (as defined for the purposes of Part 3 of FA 1994), andhas been involved in the entry into a contract of insurance providing cover for any matter associated with that business	Documents relating to the contracts	Insurance premium tax
8.	A person who, in relation to a charge to stamp duty reserve tax on an agreement, transfer, issue, appropriation or surrender, is an accountable person (as defined in regulation 2 of the Stamp Duty Reserve Tax Regulations S.I. 1986/1711 (as amended from time to time))	Documents relating to the agreement, transfer, issue, appropriation or surrender	Stamp duty reserve tax
9.	A responsible person in relation to an oil field (as defined for the purposes of Part 1 of OTA 1975)	Documents relating to the oil field	Petroleum revenue tax
10.	A person involved (in any capacity) in subjecting aggregate to exploitation in the United Kingdom (as defined for the purposes of Part 2 of FA 2001) or in connected activities	Documents relating to matters in which the person is or has been involved	Aggregates levy
11.	A person involved (in any capacity) in making or receiving supplies of taxable commodities (as defined for the purposes of Schedule 6 to FA 2000) or in connected activities	Documents relating to matters in which the person is or has been involved	Climate change levy
12.	A person involved (in any capacity) with any disposal of material (as defined for the purposes of Part 3 of FA 1996)	Documents relating to the disposal	Landfill tax
13.	A person involved (in any capacity) in the production, or importation to or exportation from the United Kingdom, of packaging components (within the meaning of section 48 of FA 2021) or in connected activities	Documents relating to matters in which the person is or has been involved	Plastic packaging tax
14.	A person involved (in any capacity) in the purchase or sale of plastic packaging components (within the meaning of section 48 of FA 2021) or of goods packaged in such components	Documents relating to matters in which the person is or has been involved	Plastic packaging tax

6A

• (1) A failure is in category 1 if—

• (a) it involves a domestic matter, or

• (b) it involves an offshore matter and—

• (i) the territory in question is a category 1 territory, or

• (ii) the tax at stake is a tax other than income tax or capital gains tax.

• (2) A failure is in category 2 if—

• (a) it involves an offshore matter or an offshore transfer,

• (b) the territory in question is a category 2 territory, and

• (c) the tax at stake is income tax or capital gains tax.

• (3) A failure is in category 3 if—

• (a) it involves an offshore matter or an offshore transfer,

• (b) the territory in question is a category 3 territory, and

• (c) the tax at stake is income tax or capital gains tax.

• (4) A failure “involves an offshore matter” if it results in a potential loss of revenue that is charged on or by reference to—

• (a) income arising from a source in a territory outside the UK,

• (b) assets situated or held in a territory outside the UK,

• (c) activities carried on wholly or mainly in a territory outside the UK, or

• (d) anything having effect as if it were income, assets or activities of a kind described above.

• (4A) A failure “involves an offshore transfer” if—

• (a) it does not involve an offshore matter,

• (b) it is deliberate (whether or not concealed) and results in a potential loss of revenue,

• (c) the tax at stake is income tax or capital gains tax, and

• (d) the applicable condition in paragraph 6AA is satisfied.

• (5) A failure “involves a domestic matter” if it results in a potential loss of revenue and does not involve either an offshore matter or an offshore transfer.

• (6) If a single failure is in more than one category (each referred to as a “relevant category”)—

• (a) it is to be treated for the purposes of this Schedule as if it were separate failures, one in each relevant category according to the matters or transfers that it involves, and

• (b) the potential lost revenue in respect of each separate failure is taken to be such share of the potential lost revenue in respect of the single failure (see paragraphs 7 and 11) as is just and reasonable.

• (7) For the purposes of this Schedule—

• (a) paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but

• (b) an order under that paragraph does not apply to relevant obligations that are to be complied with by a date before the date on which the order comes into force.

• (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (9) In this paragraph and paragraph 6AA—

• “assets” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;

• “UK” means the United Kingdom, including the territorial sea of the United Kingdom.

6B

The penalty payable under any of paragraphs 2, 3(1) and 4 is—

• (a) for a deliberate and concealed act or failure, 100% of the potential lost revenue,

• (b) for a deliberate but not concealed act or failure, 70% of the potential lost revenue, and

• (c) for any other case, 30% of the potential lost revenue.

6C

The penalty payable under paragraph 3(2) is 100% of the potential lost revenue.

6D

Paragraphs 7 to 11 define “potential lost revenue”.

Small pools

Spreading of relief on indirect contributions

Notification and registration of transactions

Charge where consideration includes rent: 0% band

Withdrawal of group relief

Transfers of interests in property-investment partnerships

Meaning of “participator”

Abandonment expenditure: default by participator met by former participator

Losses: set off against profits of earlier accounting periods

Record-keeping

Time limits for assessments, claims etc

Overseas insurers

Summary warrant: Scotland

Rates for new lower-emission vans

Charge on termination of interest in possession where new interest acquired

Tax representatives

Rebates

Climate change levy accounting documents: abolition of self-identification

Reduced pollution certificates

Increased daily default penalty

49A

• (1) This paragraph applies if—

• (a) a penalty under paragraph 40 is assessed under paragraph 46 in respect of a person's failure to comply with a notice under paragraph 5,

• (b) the failure continues for more than 30 days beginning with the date on which notification of that assessment was issued, and

• (c) the person has been told that an application may be made under this paragraph for an increased daily penalty to be assessable.

• (2) If this paragraph applies, an officer of Revenue and Customs may make an application to the tribunal for an increased daily penalty to be assessable on the person.

• (3) If the tribunal decides that an increased daily penalty should be assessable—

• (a) the tribunal must determine the day from which the increased daily penalty is to apply and the maximum amount of that penalty (“the new maximum amount”), and

• (b) from that day, paragraph 40(2) has effect in the person's case as if the new maximum amount were substituted for the amount for the time being specified there.

• (4) The new maximum amount may not be more than £1,000.

• (5) But subject to that, in determining the new maximum amount the tribunal must have regard to—

• (a) the likely cost to the person of complying with the notice,

• (b) any benefits to the person of not complying with it, and

• (c) any benefits to anyone else resulting from the person's non-compliance.

• (6) Paragraph 41 applies in relation to the sum specified in sub-paragraph (4) as it applies in relation to the sums mentioned in paragraph 41(1) but as if the reference in paragraph 41(2)(a) to this Act were to FA 2021.

49B

• (1) If the tribunal makes a determination under paragraph 49A, HMRC must notify the person.

• (2) The notification must specify the new maximum amount and the day from which it applies.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49C

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Not exhibiting licence: period of grace

Employment-related securities: repeal of obsolete provisions

Gift aid: payments to charities

Intangible fixed assets: related parties

Payments on account of income tax

Expenditure on required fire precautions

Small pools

Zero-carbon homes

Charge where consideration includes rent: 0% band

Transfers of interests in property-investment partnerships

Meaning of “participator”

Abandonment expenditure: default by participator met by former participator

Computer records etc

Losses: set off against profits of earlier accounting periods

Information and inspection powers

Record-keeping

Time limits for assessments, claims etc

County court proceedings

Rebates

Fee for payment

Short title

Power to obtain information about persons whose identity can be ascertained

5A

• (1) An authorised officer of Revenue and Customs may by notice in writing require a person to provide relevant information about another person (“the taxpayer”) if conditions A to D are met.

• (2) Condition A is that the information is reasonably required by the officer for the purpose of checking the tax position of the taxpayer or for the purpose of collecting a tax debt of the taxpayer.

• (3) Condition B is that—

• (a) the taxpayer's identity is not known to the officer, but

• (b) the officer holds information from which the taxpayer's identity can be ascertained.

• (4) Condition C is that the officer has reason to believe that—

• (a) the person will be able to ascertain the taxpayer's identity from the information held by the officer, and

• (b) the person obtained relevant information about the taxpayer in the course of carrying on a business.

• (5) Condition D is that the taxpayer's identity cannot readily be ascertained by other means from the information held by the officer.

• (6) “Relevant information” means all or any of the following—

• (a) name,

• (b) last known address, and

• (c) date of birth (in the case of an individual).

• (7) This paragraph applies for the purpose of checking the tax position of , or for the purpose of collecting a tax debt of, a class of persons as for the purpose of checking the tax position of , or for the purpose of collecting a tax debt of, a single person (and references to “the taxpayer” are to be read accordingly).

Main rate of writing down allowance

Gifts inter vivos

Abandonment expenditure: deductions from ring fence income

Capital allowances: plant and machinery for use in ring fence trade

Capital allowances: abandonment expenditure after ceasing ring fence trade

Disclosure of tax avoidance schemes

VAT: time limits for assessments of excess credits etc

Summary warrant: Scotland

Set-off ...

Air passenger duty: class of travel with large seat pitch

Annual tax on enveloped dwellings: taxpayer notices following return

21B

• (1) Where a person has delivered, for a chargeable period with respect to a single-dwelling interest—

• (a) an annual tax on enveloped dwellings return, or

• (b) a return of the adjusted chargeable amount,

a taxpayer notice may not be given for the purpose of checking the person's annual tax on enveloped dwellings position as regards the matters dealt with in that return.

• (2) Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to C is met.

• (3) Condition A is that notice of enquiry has been given in respect of—

• (a) the return, or

• (b) a claim (or an amendment of a claim) made by the person in relation to the chargeable period,

and the enquiry has not been completed.

• (4) In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 8 of Schedule 33 to FA 2013 or paragraph 7 of Schedule 11A to FA 2003 (as applied by paragraphs 28(2) and 31(3) of Schedule 33 to FA 2013).

• (5) Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that—

• (a) an amount that ought to have been assessed to annual tax on enveloped dwellings for the chargeable period may not have been assessed,

• (b) an assessment to annual tax on enveloped dwellings for the chargeable period may be or have become insufficient, or

• (c) relief from annual tax on enveloped dwellings for the chargeable period may be or have become excessive.

• (6) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than annual tax on enveloped dwellings.

• (7) In this Schedule references to a “single-dwelling interest” are to be read in accordance with section 108 of FA 2013.

Application of paragraph 21 in case of returns under Schedule 2 to FA 2019

21ZA

• (1) For the purposes of paragraph 21 any reference to the making by a person of a return under section 8 or 8A of TMA 1970 includes the making by the person of a return under Schedule 2 to FA 2019.

• (2) In the application of paragraph 21 in relation to a return under Schedule 2 to FA 2019, the return is to be treated as if it required a self-assessment of an amount of capital gains tax.

• (3) For the purposes of paragraph 21, the definition of “the notice of enquiry” in its application to a return under Schedule 2 to FA 2019 needs to be read in the light of the provision made by paragraph 20 of that Schedule.

6AA

• (1) This paragraph makes provision in relation to offshore transfers.

• (2) Where the tax at stake is income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—

• (a) is received in a territory outside the UK, or

• (b) is transferred before the calculation date to a territory outside the UK.

• (3) Where the tax at stake is capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—

• (a) are received in a territory outside the UK, or

• (b) are transferred before the calculation date to a territory outside the UK.

• (4) In the case of a transfer falling within sub-paragraph (2)(b) or (3)(b), references to the income or proceeds transferred are to be read as including references to any assets derived from or representing the income or proceeds.

• (5) In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the failure involves an offshore transfer.

• (6) In this paragraph “calculation date” means the date by reference to which the potential lost revenue is to be calculated (see paragraph 7).

6AB

Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.

13A

• (1) If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.

• (2) But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—

• (a) for a prompted disclosure, in column 2 of the Table, and

• (b) for an unprompted disclosure, in column 3 of the Table.

• (3) Where the Table shows a different minimum for case A and case B—

• (a) the case A minimum applies if HMRC becomes aware of the failure less than 12 months after the time when the tax first becomes unpaid by reason of the failure;

• (b) otherwise, the case B minimum applies.

Standard %	Minimum % for prompted disclosure	Minimum % for unprompted disclosure
30%	case A: 10%case B: 20%	case A: 0%case B: 10%
37.5%	case A: 12.5%case B: 25%	case A: 0%case B: 12.5%
45%	case A: 15%case B: 30%	case A: 0%case B:15%
60%	case A: 20%case B: 40%	case A: 0%case B: 20%
70%	45%	30%
87.5%	53.75%	35%
100%	60%	40%
105%	62.5%	40%
125%	72.5%	50%
140%	80%	50%
150%	85%	55%
200%	110%	70%

172

• (1) Sub-paragraph (2) has effect for the purposes of—

• paragraphs 100(1)(b), 101(1)(c) and 102(1)(e),

• paragraph (b) of paragraph 118(3) so far as having effect for the purposes of paragraph 118(1)(d), and

• paragraphs 124(1)(b), 126(7)(b), 127(1)(e) and 151(1)(b).

• (2) An individual not domiciled in the United Kingdom at a time in the tax year 2017-18, or a later tax year, is to be regarded as domiciled in the United Kingdom at that time if—

• (a) the individual was born in the United Kingdom,

• (b) the individual's domicile of origin was in the United Kingdom, and

• (c) the individual is resident in the United Kingdom for the tax year concerned.

Involvement in landfill disposal by unregistered person

3A

A penalty is payable by a person (“P”) where P does an act which enables HMRC to assess an amount as landfill tax due from P under section 50A of FA 1996.

6CA

• (1) The penalty payable under paragraph 3A is—

• (a) for a deliberate and concealed act or failure, 100% of the potential lost revenue, and

• (b) for a deliberate but not concealed act or failure, 70% of the potential lost revenue.

• (2) No penalty is payable under paragraph 3A in any other case.

9A

In the case of the doing of an act which enables HMRC to assess an amount of landfill tax as due under section 50A of FA 1996, the potential lost revenue is the amount of the tax which may be assessed as due.

Government borrowing: alternative finance arrangements

Power to obtain information and documents from financial institutions

4A

• (1) An officer of Revenue and Customs may by notice in writing require a financial institution—

• (a) to provide information, or

• (b) to produce a document,

if conditions A and B are met.

• (2) Condition A is that the information or document is, in the reasonable opinion of the officer giving the notice, of a kind that it would not be onerous for the institution to provide or produce.

• (3) Condition B is that the information or document is reasonably required by the officer—

• (a) for the purpose of checking the tax position of another person whose identity is known to the officer (“the taxpayer”), or

• (b) for the purpose of collecting a tax debt of the taxpayer.

• (4) In this Schedule, “financial institution notice” means a notice under this paragraph.

• (5) A financial institution notice may be given by an officer of Revenue and Customs only if—

• (a) the officer is an authorised officer of Revenue and Customs, or

• (b) an authorised officer of Revenue and Customs has agreed to the giving of the notice.

• (6) A financial institution notice must name the taxpayer to whom it relates.

• (7) An officer of Revenue and Customs—

• (a) must give a copy of a financial institution notice to the taxpayer to whom it relates, and

• (b) must give the taxpayer a summary of the reasons why an officer of Revenue and Customs requires the information and documents.

• (8) An application (without notice) may be made to the tribunal by, or with the agreement of, an authorised officer of Revenue and Customs to disapply any of the requirements under sub-paragraph (6) or (7).

• (9) The tribunal must grant the application to disapply the requirement under sub-paragraph (6) if it is satisfied that the officer has reasonable grounds for believing that naming the taxpayer might seriously prejudice the assessment or collection of tax.

• (10) The tribunal must grant the application to disapply a requirement under sub-paragraph (7) if it is satisfied that complying with the requirement might prejudice the assessment or collection of tax.

Disclosure of third party or financial institution notice

51A

• (1) This paragraph applies if—

• (a) a person (“P”) is given a third party notice or financial institution notice (“the notice”), and

• (b) the tribunal has disapplied the requirement in paragraph 4(1) or 4A(7)(a) (as the case may be) to give a copy of the notice to the taxpayer to whom it relates.

• (2) The notice may include a requirement that P must not disclose the notice, or anything relating to it, to—

• (a) the taxpayer to whom the notice relates, or

• (b) any other person, except for a purpose relating to compliance with the notice.

• (3) A requirement imposed under sub-paragraph (2) has effect for a period of 12 months beginning with the day on which P is given the notice unless, before the end of that period—

• (a) the requirement is withdrawn in accordance with sub-paragraph (4), or

• (b) the period is extended in accordance with sub-paragraph (5).

• (4) An officer of Revenue and Customs may, by notice in writing to P, withdraw a requirement imposed under sub-paragraph (2).

• (5) An officer of Revenue and Customs may—

• (a) by notice in writing to P, extend the period for which a requirement imposed under sub-paragraph (2) has effect for a further period of 12 months (beginning with the day after the last day of the previous period), and

• (b) do so on one or more occasions.

• (6) An officer of Revenue and Customs may act under sub-paragraph (4) or (5) only if—

• (a) the officer is an authorised officer of Revenue and Customs, or

• (b) an authorised officer of Revenue and Customs has agreed to the withdrawal of the requirement or the extension of the period (as the case may be).

• (7) An authorised officer of Revenue and Customs may only extend, or agree to the extension of, a period under sub-paragraph (5) if that officer has reasonable grounds for believing that not doing so might prejudice the assessment or collection of tax.

51B

• (1) A person who breaches a requirement imposed under paragraph 51A (not to disclose a notice or anything relating to it) is liable to a penalty of £1,000.

• (2) If a person becomes liable for a penalty under sub-paragraph (1)—

• (a) HMRC may assess the penalty, and

• (b) if they do so, they must notify the person.

• (3) The assessment must be made within the period of 12 months beginning with the date on which the breach of the requirement first came to the attention of an officer of Revenue and Customs.

• (4) Paragraph 41 applies in relation to the sum specified in sub-paragraph (1) above as it applies in relation to the sums mentioned in paragraph 41(1) but as if—

• (a) the reference in paragraph 41(2)(a) to this Act were to FA 2021, and

• (b) paragraph 41(3) prevented the regulations from applying to any breach committed before the date on which the regulations come into force.

51C

• (1) A person may appeal a decision of an officer of Revenue and Customs that a penalty is payable by the person under paragraph 51B.

• (2) Paragraph 48 (procedure on appeal against penalty) applies in relation to an appeal under this paragraph as it applies in relation to an appeal under paragraph 47(1)(a) but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).

• (3) Paragraph 49 (enforcement of penalty) applies in relation to a penalty under paragraph 51B as it applies in relation to a penalty under paragraph 39 but as if the reference to the notification under paragraph 46 were to the notification under paragraph 51B(2)(b).

Financial institution

61ZA

• (1) In this Schedule “financial institution” means—

• (a) a financial institution under the CRS other than one which is such an institution because (and only because) it is an investment entity within section VIII (A)(6)(b) of the CRS, or

• (b) a person who issues credit cards.

• (2) In this paragraph “the CRS” means the common reporting standard for automatic exchange of financial account information developed by the Organisation for Economic Co-operation and Development, as that standard has effect from time to time.

Tax debts: collection

63A

• (1) In this Schedule a reference to collecting a tax debt of a person is a reference to taking any steps for, or in connection with, the recovery of—

• (a) an amount of tax due from the person, or

• (b) any other amount due from the person in connection with any tax.

• (2) It does not matter whether or not another person is, or has been, at any time liable to pay the tax or other amount.

Tax debts: extended meaning of “relevant foreign tax”

63B

Where this Schedule applies for the purpose of collecting a tax debt of a person, “relevant foreign tax” is to be taken to include (in addition to what is mentioned in paragraph 63(4)) any tax or duty which is covered by the provisions for the exchange of information under Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures (as it had effect immediately before IP completion day).

Specified relevant transfer pricing documents

37C

• (1) This paragraph applies to an information notice given to a relevant person in an MNE Group (“A”) to the extent that the notice refers to specified relevant transfer pricing documents.

• (2) Paragraph 18 (documents not in person’s possession or power) does not apply in relation to a specified relevant transfer pricing document that—

• (a) is not in A’s possession or power, but

• (b) is in the power or possession of another relevant person in the MNE Group concerned (“B”),

(and accordingly the information notice may require A to produce the document).

• (3) For the purposes of this paragraph—

• (a) documents are “specified relevant transfer pricing documents” if—

• (i) they are relevant transfer pricing records specified, or of a description specified, in regulations under section 12B of TMA 1970 or paragraph 21 of Schedule 18 to FA 1998 (duties to keep and preserve records), and

• (ii) A is required to keep and preserve those records under either or both of those provisions;

• (b) “MNE Group” has the same meaning as in the Taxes (Base Erosion and Profit Shifting) (Country-by-Country Reporting) Regulations 2016 (S.I. 2016/237) (see regulation 2(3) of those Regulations);

• (c) “relevant person in an MNE Group” means—

• (i) a company,

• (ii) a trustee of a trust, or

• (iii) a partner in a partnership,

where that company, the trustees or the partnership, together with one or more other enterprises, constitutes an MNE Group.