Legalize / United Kingdom / Public General Act

Finance Act 2008

Type Public General Act

Publication 2008-07-21

Last updated 2025-05-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(2) In relation to a transitional chargeable period, section 102 of CAA 2001 applies as if the percentage figure specified in subsection (1) of that section were x%, where—

$$x=(6×BRDCP)+(10×ARDCP)$Where x would be a figure with more than 2 decimal places, it is to be rounded up to the nearest second decimal place.$

(3) In subsection (2)—

BRD is the number of days in the chargeable period before the relevant date,

ARD is the number of days in the chargeable period on and after the relevant date, and

CP is the number of days in the chargeable period.

(4) Any unrelieved qualifying expenditure in a long-life asset pool at the end of—

(a) a transitional chargeable period, or

(b) a chargeable period which ends immediately before the relevant date,

is to be carried forward to the special rate pool.

(5) In subsequent chargeable periods, expenditure so carried forward is to be treated for the purposes of CAA 2001 as if it were special rate expenditure carried forward in the special rate pool from the chargeable period mentioned in subsection (4).

(6) Any unrelieved qualifying expenditure in a single asset pool at the end of—

(a) a transitional chargeable period, or

(b) a chargeable period which ends immediately before the relevant date,

is in subsequent chargeable periods to be treated for the purposes of CAA 2001 as if it were special rate expenditure carried forward in the single asset pool from that chargeable period.

(7) Where expenditure is treated as special rate expenditure because of this section, for the purposes of section 104E of CAA 2001—

(a) the reference in subsection (1)(a) of that section to section 104D of CAA 2001 includes a reference to section 102 of that Act (writing-down allowances in respect of long-life asset expenditure), and

(b) the allowances that could have been made to the taxpayer in respect of the expenditure include allowances that could have been made under section 102 of that Act for chargeable periods before that in which the expenditure was first treated as special rate expenditure.

(8) A “transitional chargeable period” is one which begins before, and ends on or after, the relevant date.

(9) “The relevant date” means—

(a) for corporation tax purposes, 1 April 2008, and

(b) for income tax purposes, 6 April 2008.

(10) Expressions used in this section and in CAA 2001 have the same meaning in this section as in that Act.

Industrial and agricultural buildings allowances

Abolition of allowances from 2011

84

(1) Parts 3 and 4 of CAA 2001 (industrial buildings allowances and agricultural buildings allowances) do not apply in relation to expenditure incurred on or after the relevant date.

(2) Omit those Parts of that Act.

(3) The amendment made by subsection (2) has effect in relation to chargeable periods beginning on or after the relevant date.

(4) The relevant date is—

(a) for corporation tax purposes, 1 April 2011, and

(b) for income tax purposes, 6 April 2011.

(5) Schedule 27 contains amendments and savings related to this section.

Phasing out of allowances before abolition

85

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Qualifying enterprise zone expenditure: transitional provision

86

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Phasing out of industrial buildings allowance: anti-avoidance

87

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Supplementary provision

Power to make consequential and transitional provision

88

(1) The Treasury may by order make such amendments (including repeals and revocations) of enactments or instruments as may appear appropriate in consequence of, or otherwise in connection with, sections 71 to 87.

(2) The Treasury may by order make such transitional or saving provision as may appear appropriate in consequence of, or otherwise in connection with, those sections.

(3) An order under subsection (1) may make transitional provision and savings.

(4) An order under subsection (1) or (2) may—

(a) make different provision for different cases, and

(b) include provision having effect in relation to times before the order is made if that provision does not increase any person's liability to tax.

(5) An order under subsection (1) or (2) is to be made by statutory instrument.

(6) A statutory instrument containing an order under subsection (1) or (2) is subject to annulment in pursuance of a resolution of the House of Commons.

Anti-avoidance

Balancing allowances on transfers of trade

89

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Part 4 — Pensions

Spreading of relief on indirect contributions

90

(1) In Part 4 of FA 2004 (pension schemes etc), after section 199 insert—

(199A) (1) This section applies where an employer (“E”)— (a) pays contributions under a registered pension scheme (“the original scheme”) in a chargeable period, and (b) would (apart from subsection (4)) be entitled in the next chargeable period to an amount of relief in respect of a payment within subsection (2), and the avoidance condition is met. (2) A payment is within this subsection if all or part of the payment is intended to facilitate the payment of pension contributions under the original scheme or a substitute scheme by a person other than E. (3) The avoidance condition is that— (a) section 197 would apply if, in the chargeable period mentioned in subsection (1)(b), E paid pension contributions under the original scheme of the amount of the relevant relief, and (b) the purpose, or one of the purposes, of facilitating the payment of pension contributions by a person other than E is to enable pension contributions to be paid without that section applying. (4) For the purposes of the spreading provisions, the amount of the relevant relief is to be treated as the amount of a pension contribution paid by E under the original scheme in the chargeable period mentioned in subsection (1)(b). (5) The “relevant relief” is the relief to which the employer would (apart from subsection (4)) be entitled in that chargeable period in respect of— (a) the payment within subsection (2), or (b) where only part of the payment is intended to facilitate the payment of pension contributions as mentioned in that subsection, that part of the payment. (6) A “substitute scheme” is any registered pension scheme— (a) to which there is a relevant transfer in the period of 2 years ending with the day on which the payment within subsection (2) is made, or (b) to which it is envisaged that a relevant transfer will or may be made after that day. (7) A relevant transfer is a recognised transfer from the original scheme of more than 30% of the aggregate of— (a) in a case within subsection (6)(a), the amount of the sums and the market value of the assets held for the purposes of, or representing accrued rights under, the original scheme immediately before the transfer, and (b) in a case within subsection (6)(b), the amount of those sums and the market value of those assets on the day on which the payment is made. (8) If there is a transfer from a substitute scheme to another registered pension scheme which would have been a relevant transfer had it been a transfer from the original scheme at the time the relevant transfer was made, that other scheme is also a substitute scheme. (9) In subsection (1)(b) the reference to relief in respect of a payment within subsection (2) includes relief for a liability in respect of the making of the payment by a person other than E. (10) In this section references to E being entitled to an amount of relief are to an amount— (a) being deductible in computing the amount of the profits of E for the purposes of Part 2 of ITTOIA 2005 (trading income) or Case I or II of Schedule D, (b) being expenses of management of E for the purposes of section 75 of ICTA (expenses of management: companies with investment business), or (c) being brought into account at Step 1 in section 76(7) of ICTA (expenses of insurance companies) in respect of E. (11) In this section— - “the spreading provisions” means sections 197 and 198 and this section, and - “chargeable period” has the meaning given by section 197.

(2) The amendment made by this section has effect in relation to payments within section 199A(2) of FA 2004 made on or after 10 October 2007, except for such payments made pursuant to a contract entered into before 9 October 2007.

Inheritance etc of tax-relieved pension savings

91

Schedule 28 contains provision about the inheritance etc of tax-relieved pension savings.

Pension schemes: further provision

92

Schedule 29 contains further provision about pension schemes.

Part 5 — Stamp taxes

Stamp duty land tax

Zero-carbon homes

93

(1) Sections 58B and 58C of FA 2003 (relief from SDLT on first acquisition of zero-carbon homes) are amended as follows.

(2) In section 58B, for subsection (2) substitute—

(2) For the purposes of this section— (a) a building, or a part of a building, is a dwelling if it is constructed for use as a single dwelling, and (b) “first acquisition”, in relation to a dwelling, means its acquisition when it has not previously been occupied.

(3) Section 58C is amended as follows.

(4) In subsection (1), for “building” substitute “ dwelling ”.

(5) In subsection (2), after paragraph (c) insert—

(d) provide for the charging of fees of a reasonable amount in respect of services provided as part of a scheme or process of certification.

(6) In subsection (3)—

(a) for “a building” substitute “ a dwelling ”, and

(b) for “building itself” substitute “ building which, or part of which, constitutes the dwelling ”.

(7) The amendments made by subsections (2), (4) and (6) are treated as always having had effect; and provision included in regulations by virtue of those amendments may be made so as to have effect in relation to acquisitions on or after 1 October 2007.

Notification and registration of transactions

94

(1) Part 4 of FA 2003 (stamp duty land tax) is amended as follows.

(2) For section 77 substitute—

(77) (1) A land transaction is notifiable if it is— (a) an acquisition of a major interest in land that does not fall within one or more of the exceptions in section 77A, (b) an acquisition of a chargeable interest other than a major interest in land where there is chargeable consideration in respect of which tax is chargeable at a rate of 1% or higher or would be so chargeable but for a relief, (c) a land transaction that a person is treated as entering into by virtue of section 44A(3), or (d) a notional land transaction under section 75A. (2) This section has effect subject to— (a) sections 71A(7) and 72A(7), and (b) paragraph 30 of Schedule 15. (3) In this section “relief” does not include an exemption from charge under Schedule 3. (77A) (1) The exceptions referred to in section 77(1)(a) are as follows. (1) An acquisition which is exempt from charge under Schedule 3. (2) An acquisition (other than the grant, assignment or surrender of a lease) where the chargeable consideration for that acquisition, together with the chargeable consideration for any linked transactions, is less than £40,000. (3) The grant of a lease for a term of 7 years or more where— (a) any chargeable consideration other than rent is less than £40,000, and (b) the relevant rent is less than £1,000. (4) The assignment or surrender of a lease where— (a) the lease was originally granted for a term of 7 years or more, and (b) the chargeable consideration for the assignment or surrender is less than £40,000. (5) The grant of a lease for a term of less than 7 years where the chargeable consideration does not exceed the zero rate threshold. (6) The assignment or surrender of a lease where— (a) the lease was originally granted for a term of less than 7 years, and (b) the chargeable consideration for the assignment or surrender does not exceed the zero rate threshold. (2) Chargeable consideration for an acquisition does not exceed the zero rate threshold if it does not consist of or include— (a) any amount in respect of which tax is chargeable at a rate of 1% or higher, or (b) any amount in respect of which tax would be so chargeable but for a relief. (3) In this section— - “annual rent” has the meaning given in paragraph 9A of Schedule 5, - “relevant rent” means— 1. the annual rent, or 2. in the case of the grant of a lease to which paragraph 11 or 19 of Schedule 15 applies, the relevant chargeable proportion of the annual rent (as calculated in accordance with that paragraph), and - “relief” does not include an exemption from charge under Schedule 3.

(3) In section 79(2) (registration of land transactions), after “every” insert “ notifiable ”.

(4) Schedule 30 contains consequential provision.

(5) The amendments made by this section and that Schedule have effect in relation to transactions with an effective date on or after 12 March 2008.

Charge where consideration includes rent: 0% band

95

(1) Schedule 5 to FA 2003 (amount of SDLT chargeable: rent) is amended as follows.

(2) In paragraph 9 (SDLT chargeable in respect of consideration other than rent)—

(a) in sub-paragraph (1), insert at the end “ (but see paragraph 9A) ”, and

(b) omit sub-paragraphs (2), (2A) and (3),

and, accordingly, in the heading before that paragraph, insert at the end “ : general ”.

(3) After that paragraph insert—

(9A) (1) This paragraph applies in the case of a transaction to which this Schedule applies where there is chargeable consideration other than rent. (2) If— (a) the relevant land consists entirely of land that is non-residential property, and (b) the relevant rent is at least £1,000, the 0% band in Table B in section 55(2) does not apply in relation to the consideration other than rent and any case that would have fallen within that band is treated as falling within the 1% band. (3) Sub-paragraphs (4) and (5) apply if— (a) the relevant land is partly residential property and partly non-residential property, and (b) the relevant rent attributable, on a just and reasonable apportionment, to the land that is non-residential property is at least £1,000. (4) For the purpose of determining the amount of tax chargeable under section 55 in relation to the consideration other than rent, the transaction (or, where it is one of a number of linked transactions, that set of transactions) is treated as if it were two separate transactions (or sets of linked transactions), namely— (a) one whose subject-matter consists of all of the interests in land that is residential property, and (b) one whose subject-matter consists of all of the interests in land that is non-residential property. (5) For that purpose, the chargeable consideration attributable to each of those separate transactions (or sets of linked transactions) is the chargeable consideration so attributable on a just and reasonable apportionment. (6) In this paragraph “the relevant rent” means— (a) the annual rent in relation to the transaction in question, or (b) if that transaction is one of a number of linked transactions for which the chargeable consideration consists of or includes rent, the total of the annual rents in relation to all of those transactions. (7) In sub-paragraph (6) the “annual rent” means the average annual rent over the term of the lease or, if— (a) different amounts of rent are payable for different parts of the term, and (b) those amounts (or any of them) are ascertainable at the effective date of the transaction, the average annual rent over the period for which the highest ascertainable rent is payable. (8) In this paragraph “relevant land” has the meaning given in section 55(3) and (4).

(4) Each of the following provisions of Schedule 6 to that Act (SDLT: disadvantaged areas relief) is amended in accordance with subsection (5)—

(a) paragraph 5(4) (residential land wholly situated in disadvantaged area),

(b) paragraph 6(6) (mixed land wholly situated in disadvantaged area),

(d) paragraph 10(6) (mixed land wholly partly situated in disadvantaged area).

(5) In those provisions—

(a) in paragraph (a), omit sub-paragraph (i) (and the “and” after it), and

(b) omit paragraph (b).

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) In Schedule 8 to that Act (SDLT: charities relief), in paragraph 3—

(a) in sub-paragraph (3)(b), for “does not exceed £600” substitute “ is less than £1,000 ”, and

(b) in sub-paragraph (5), for “9(2)” substitute “ 9A ”.

(8) In Schedule 9 to that Act (SDLT: right to buy etc), after paragraph 4A insert—

(4B) (1) For the purpose of determining the rate of tax chargeable on the grant of a shared ownership lease of a dwelling, the grant shall be treated as if it were not linked to— (a) any acquisition of an interest in the dwelling to which paragraph 4A applies, or (b) a transfer of the reversion to the lessee or lessees under the terms of the lease. (2) In this paragraph “shared ownership lease” has the same meaning as in paragraph 4A.

(9) In that Schedule, in paragraphs 10(1) and (2) and 11(b) (shared ownership trusts), omit “additional”.

(10) In that Schedule, insert at the end—

(12) For the purpose of determining the rate of tax chargeable on the declaration of a shared ownership trust, the declaration shall be treated as if it were not linked to— (a) any equity-acquisition payment under the trust or any consequent increase in the purchaser's beneficial interest in the trust property, or (b) a transfer to the purchaser of an interest in the trust property upon the termination of the trust.

(11) In Schedule 15 to that Act (SDLT: partnerships)—

(a) in paragraph 11(2B)(a), for “9(2A)” substitute “ 9A(6) ”,

(b) in paragraph 19(2B), for “9(2A)” substitute “ 9A(6) ”, and

(12) In Schedule 17A to that Act (SDLT: further provisions relating to leases), in paragraph 18A(5)(a)—

(a) for “9(2)” substitute “ 9A ”,

(b) for “the Tables” substitute “ Table B ”, and

(c) for “the relevant rental figure exceeds £600” substitute “ the relevant rent attributable to non-residential property is not less than £1,000 ”.

(13) The amendments made by this section have effect in relation to transactions with an effective date on or after 12 March 2008.

Withdrawal of group relief

96

(1) Part 1 of Schedule 7 to FA 2003 (group relief) is amended as follows.

(2) In paragraph 3(5), for “paragraph 4” substitute “ paragraphs 4 and 4ZA ”.

(3) In paragraph 4 (cases in which group relief not withdrawn)—

(a) omit sub-paragraphs (2) and (3), and

(b) in sub-paragraph (5), for “sub-paragraphs (3) and (4)” substitute “ sub-paragraph (4) ”.

(4) After that paragraph insert—

(4ZA) (1) Group relief is not withdrawn under paragraph 3 where the purchaser ceases to be a member of the same group as the vendor because the vendor leaves the group. (2) The vendor is regarded as leaving the group if the companies cease to be members of the same group by reason of a transaction relating to shares in— (a) the vendor, or (b) another company that— (i) is above the vendor in the group structure, and (ii) as a result of the transaction ceases to be a member of the same group as the purchaser. (3) For the purpose of sub-paragraph (2) a company is “above” the vendor in the group structure if the vendor, or another company that is above the vendor in the group structure, is a 75% subsidiary of the company. (4) But if there is a change in the control of the purchaser after the vendor leaves the group, paragraphs 3, 4(6) and (7), 5 and 6 have effect as if the purchaser had then ceased to be a member of the same group as the vendor (but see sub-paragraph (7)). (5) For the purposes of this paragraph there is a change in the control of the purchaser if— (a) a person who controls the purchaser (alone or with others) ceases to do so, (b) a person obtains control of the purchaser (alone or with others), or (c) the purchaser is wound up. (6) For the purposes of sub-paragraph (5) a person does not control, or obtain control of, the purchaser if that person is under the control of another person or other persons. (7) Sub-paragraph (4) does not apply where— (a) there is a change in the control of the purchaser because a loan creditor (within the meaning of section 417(7) to (9) of the Taxes Act 1988) obtains control of, or ceases to control, the purchaser, and (b) the other persons who controlled the purchaser before that change continue to do so. (8) In this paragraph references to “control” shall be interpreted in accordance with section 416 of the Taxes Act 1988 (subject to sub-paragraph (6)).

(5) In paragraph 4A (withdrawal of group relief in certain cases involving successive transactions)—

(a) in sub-paragraph (1), in the words following paragraph (d), for “and 4” substitute “ , 4 and 4ZA ”,

(b) after that sub-paragraph insert—

(1A) Sub-paragraph (1) has effect subject to sub-paragraph (3A).

(i) for “sub-paragraph (1)(a)” substitute “ this paragraph ”, and

(ii) for “this sub-paragraph” substitute “ this paragraph ”, and

(d) after sub-paragraph (3) insert—

(3A) Sub-paragraph (1) does not apply where— (a) there is a change in the control of the purchaser because a loan creditor (within the meaning of section 417(7) to (9) of the Taxes Act 1988) obtains control of, or ceases to control, the purchaser, and (b) the other persons who controlled the purchaser before that change continue to do so.

(6) The amendments made by this section have effect in relation to transactions with an effective date on or after 13 March 2008.

Transfers of interests in property-investment partnerships

97

(1) Schedule 31 contains provision relating to stamp duty land tax chargeable on transfers to, and of interests in, property-investment partnerships.

(2) Part 1 of that Schedule (transfer of interest in partnership: “relevant partnership property”), and this section so far as relating to that Part—

(a) have effect in respect of transfers occurring on or after 19 July 2007 (subject to subsection (3)), and

(b) are treated as having come into force on that day.

(3) Subsections (14) and (17) of section 72 of FA 2007 (partnerships) apply in relation to the amendments made by Part 1 of that Schedule as they apply in relation to the amendments made by subsections (6) and (10) of that section.

Stamp duty

Exemption from ad valorem stamp duty for low value transactions

98

(1) Paragraph 1 of Schedule 13 to FA 1999 (charge to stamp duty on conveyance or transfer on sale) is amended as follows.

(2) In sub-paragraph (3), for “(4)” substitute “ (3A) ”.

(3) After that sub-paragraph insert—

(3A) Stamp duty is not chargeable under sub-paragraph (1) on a transfer of stock or marketable securities where— (a) the amount or value of the consideration for the sale is £1,000 or under, and (b) the instrument is certified at £1,000.

(4) In paragraph 6(1) (meaning of instrument being certified at an amount), for “paragraph” substitute “ paragraphs 1(3A) and ”.

(5) The amendments made by this section have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.

(6) For the purposes of section 14(4) of the Stamp Act 1891 (c. 39) (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument—

(a) executed on or after 13 March 2008 but before 19 March 2008, and

(b) not stamped before 19 March 2008,

shall be deemed to be the law as varied in accordance with this section.

Abolition of fixed stamp duty on certain instruments

99

(1) Schedule 32 contains provision abolishing fixed stamp duty on certain instruments.

(2) The amendments and saving made by that Schedule have effect in relation to instruments executed on or after 13 March 2008 and not stamped before 19 March 2008.

(3) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of an instrument—

(a) executed on or after 13 March 2008 but before 19 March 2008, and

(b) not stamped before 19 March 2008,

shall be deemed to be the law as varied in accordance with Schedule 32.

Gifts inter vivos

100

(1) In FA 1985, omit section 82(5) and (9) (adjudication of certain gifts inter vivos).

(2) Accordingly, omit paragraph 9 of Schedule 14 to FA 1999.

(3) The amendments made by this section have effect in relation to instruments executed on or after 13 March 2008, other than instruments effecting a land transaction (within the meaning of paragraph 22 of Schedule 32).

(4) For the purposes of section 14(4) of the Stamp Act 1891 (instruments not to be given in evidence etc unless stamped in accordance with the law in force at the time of first execution), the law in force at the time of execution of such an instrument shall be deemed to be the law as varied in accordance with this section.

Loan capital

101

(1) Section 79 of FA 1986 (stamp duty and loan capital) is amended as follows.

(2) In subsection (6), for “subsection (7)” substitute “ subsections (7) to (7B) ”.

(3) After subsection (7A) insert—

(7B) Subsection (4) shall not be prevented from applying to a capital market instrument by virtue of subsection (6)(b) by reason only that the capital market investment concerned carries or has carried a right to interest which ceases or reduces if, or to the extent that, the issuer, after meeting or providing for other obligations specified in the capital market arrangement concerned, has insufficient funds available from that capital market arrangement to pay all or part of the interest otherwise due.

(4) After subsection (12) insert—

(13) In this section— - “capital market instrument” means an instrument transferring a capital market investment issued as part of a capital market arrangement, and - “capital market investment” and “capital market arrangement” have the same meaning as in section 72B of the Insolvency Act 1986 (see paragraphs 1 to 3 of Schedule 2A to that Act).

(5) The amendments made by this section have effect in relation to any instrument executed on or after the day on which this Act is passed.

Part 6 — Oil

Petroleum revenue tax

Meaning of “participator”

102

(1) In section 12 of OTA 1975 (interpretation of Part 1), the definition of “participator” is amended as follows.

(2) In the words before paragraph (a), after “chargeable period” insert “ (“the relevant chargeable period”) ”.

(3) In paragraphs (a), (b) and (c), for “that chargeable period” substitute “ the relevant chargeable period ”.

(4) At the end of paragraph (c) insert

and (d) a former participator to whom an amount is attributed under paragraph 2A(2) of Schedule 5 in respect of a default payment made in relation to the field in the relevant chargeable period; and (e) a former participator to whom an amount was attributed under paragraph 2A(2) of Schedule 5 in respect of a default payment made in relation to the field in either of the two chargeable periods preceding the relevant chargeable period; and (f) a person who— (i) made a default payment in relation to the field (whether the person was then a current participator or former participator), (ii) is not a participator during the relevant chargeable period under any of paragraphs (a) to (e) of this definition, and (iii) receives, in the relevant chargeable period, reimbursement expenditure (within the meaning of section 108(1)(c) of the Finance Act 1991) in respect of the default payment; and (g) a person who— (i) made a default payment in relation to the field (whether the person was then a current participator or former participator), (ii) is not a participator during the relevant chargeable period under any of paragraphs (a) to (f) of this definition, and (iii) received, in either of the two chargeable periods preceding the relevant chargeable period, reimbursement expenditure (within the meaning of section 108(1)(c) of the Finance Act 1991) in respect of the default payment; (and for the purposes of paragraphs (f)(i) and (g)(i), “current participator”, “former participator” and “default payment” have the same meaning as in paragraph 2A of Schedule 5;

(5) The amendments made by this section have effect in relation to expenditure incurred after 30 June 2008.

Abandonment expenditure: default by participator met by former participator

103

(1) In Schedule 5 to OTA 1975 (allowance of expenditure, other than abortive exploration expenditure), for paragraph 2A substitute—

(2A) (1) This paragraph applies if— (a) a current participator (“the defaulter”) has defaulted on a liability under— (i) a relevant agreement, or (ii) an abandonment programme, to make a payment towards abandonment expenditure, and (b) a current or former participator (“the contributing participator”) pays an amount in or towards meeting the whole or part of the default (“a default payment”). (2) If a claim is made under this Schedule for the allowance of the abandonment expenditure, the amount of the default payment is to be attributed to the contributing participator for the purposes of paragraphs 2(4)(b) and 3(1)(c). (3) But the amount attributed under sub-paragraph (2) may not exceed— (a) so much of the sum in default as the contributing participator is required to meet in accordance with— (i) the relevant agreement, or (ii) the abandonment programme, or (b) such other amount as the participator may be required to meet in accordance with a direction given under Part 4 of the Petroleum Act 1998. (4) Sub-paragraph (2) is subject to paragraph 2B. (5) In determining the amount which is to be attributed to the contributing participator under sub-paragraph (2), account shall be taken of the whole of the defaulter's interest in the relevant oil field. (6) But in determining the share of the abandonment expenditure to be attributed to the defaulter under paragraph 2(4)(b), the amount which would be attributed by reference to the defaulter's interest in the relevant oil field is to be reduced or (as the case may be) extinguished by the deduction of the aggregate of— (a) the amount attributed to the contributing participator under sub-paragraph (2), and (b) any other amounts attributed under sub-paragraph (2) to other current or former participators who make default payments in respect of the defaulter's default. (2B) (1) No amount is to be attributed to a contributing participator under paragraph 2A(2) unless the following conditions are all met. (2) The first condition is that the contributing participator is not connected with the defaulter, applying section 839 of the Taxes Act (connected persons) for the purposes of this sub-paragraph. (3) The second condition is that, at the end of the claim period for which the claim is made, the defaulter still has an interest in the relevant oil field which, under paragraph 2(4)(b), falls to be taken into account in determining the shares in the abandonment expenditure. (4) The third condition is that the relevant participators have taken all reasonable steps by way of legal remedy— (a) to secure that the defaulter meets the whole of the liability referred to in paragraph 2A(1)(a), and (b) to enforce any guarantee or other security provided in respect of that liability. (5) In sub-paragraph (4) “relevant participators” means— (a) each current participator (other than the defaulter), and (b) each former participator who makes a default payment in respect of the defaulter's default. (2C) (1) An amount attributed under paragraph 2A(2) is— (a) in the case of a current participator, to be an addition to the share of the abandonment expenditure referable to the current participator's interest in the oil field, or (b) in the case of a former participator, to be the share of the abandonment expenditure referable to the former participator's interest in the oil field. (2) In paragraphs 2A and 2B and this paragraph— - “abandonment expenditure” means expenditure which is allowable for an oil field by virtue of section 3(1)(i) or (j); - “abandonment programme” means an abandonment programme approved under Part 4 of the Petroleum Act 1998 (including any such programme as revised); - “current participator” means a person who is, by virtue of paragraph (a), (b) or (c) of the definition in section 12, a participator in the relevant oil field in the chargeable period in which the abandonment expenditure is incurred; - “former participator” means a person who— 1. is not a current participator, but 2. was, by virtue of paragraph (a), (b) or (c) of the definition in section 12, a participator in the relevant oil field in any chargeable period before the chargeable period in which the abandonment expenditure is incurred; - “relevant agreement” has the meaning given by section 104(5)(a) of the Finance Act 1991; - “relevant oil field” means the oil field to which the abandonment expenditure relates; - “sum in default” means the amount of the payment which the defaulter is liable to make as mentioned in paragraph 2A(1)(a), less the aggregate of— 1. so much of that payment as has been made by the defaulter, and 2. so much of that payment as has been met by virtue of any guarantee or security provided in respect of the defaulter's liability. (3) For the purposes of paragraph 2A, a current participator is to be regarded as defaulting on a liability to make a payment towards abandonment expenditure if the following conditions are met. (4) The first condition is that the current participator has failed to make the payment in full on the due day. (5) The second condition is that— (a) any of the payment remains unpaid on the sixtieth day after the due day, or (b) before that sixtieth day, the current participator's interest in a relevant licence becomes liable under the relevant agreement to be sold or forfeited, in whole or in part, by reason of the failure to meet the liability. (6) In sub-paragraphs (4) and (5) “due day” means the day on which the payment towards abandonment expenditure becomes due under the relevant agreement or the abandonment programme.

(2) The amendment made by subsection (1) has effect in relation to expenditure incurred after 30 June 2008.

Abandonment expenditure: deductions from ring fence income

104

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

Abandonment expenditure: former participator reimbursed by defaulter

105

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

Returns of relevant sales of oil

106

(1) Section 62 of FA 1987 (returns of relevant sales of oil) is amended as follows.

(2) After subsection (3) insert—

(3A) Subsection (4) applies to a participator in an oil field in any case where— (a) paragraph 2 of Schedule 2 to the principal Act requires the participator to make a return for any chargeable period (including cases where the latest time for the delivery of that return is deferred), and (b) there are any relevant sales of Category 2 oil (as defined in subsection (6) below).

(3) In subsection (4), for the words before paragraph (a) substitute—

(4) In such a case, that participator shall also be required, not later than the end of the second month after the end of that chargeable period, to deliver to the Board a return of all relevant sales of Category 2 oil stating—

(4) In subsection (4), in paragraphs (d), (e) and (f), for “oil” (in each place) substitute “ Category 2 oil ”.

(5) In subsection (6)—

(a) in the words before paragraph (a), for “oil”, in each place except in the expression “oil field”, substitute “ Category 2 oil ”,

(b) in paragraph (a), for “subsection (4)” substitute “ subsection (3A) ”,

(d) omit paragraph (d) and the “and” before it.

(6) After subsection (8) insert—

(8A) For provision about the meaning of “Category 2 oil”, see paragraph 2 of Schedule 3 to the principal Act (which applies by virtue of section 72(6) below).

(7) The amendments made by this section have effect in relation to chargeable periods ending on or after 30 June 2008.

Elections for oil fields to become non-taxable

107

(1) Section 185 of FA 1993 is amended as follows.

(2) Before subsection (1) insert—

(A1) In this Part of this Act— - “non-taxable field” means an oil field which meets the conditions in subsection (1), (1ZA) or (1A), and - “taxable field” means an oil field which is not a non-taxable field.

(3) In subsection (1)—

(a) for the words before paragraph (a) substitute—

(1) An oil field meets the conditions in this subsection if it is an oil field—

, and

(b) omit the words after paragraph (b).

(4) After that subsection insert—

(1ZA) An oil field meets the conditions in this subsection if— (a) the field does not meet the conditions in subsection (1), and (b) an election under Schedule 20A that the field is to be non-taxable is in effect.

(5) In subsection (1A), before paragraph (a) insert—

(za) the field does not meet the conditions in subsection (1),

(6) Before Schedule 21 to FA 1993, insert Schedule 20A that is set out in Part 1 of Schedule 33 to this Act.

(7) Part 2 of Schedule 33 contains other amendments relating to the amendments made by this section.

Corporation tax

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

108

(1) In section 52(3) of CAA 2001 (amount of first-year allowances), for the two entries in the table relating to section 45F substitute—

Expenditure qualifying under section 45F (expenditure for use wholly in a ring fence trade)	100%

(2) The amendment made by subsection (1) has effect in relation to expenditure incurred on or after 12 March 2008.

Capital allowances: decommissioning expenditure

109

(1) Section 163 of CAA 2001 (meaning of “abandonment expenditure”) is amended as follows.

(2) For the heading substitute “ Meaning of “general decommissioning expenditure” .

(3) For subsections (1) to (3) substitute—

(1) Expenditure is “general decommissioning expenditure” for the purposes of sections 164 and 165 if the conditions in subsections (3) and (4) are met. (2) But that is subject to subsections (4ZA) to (4ZC). (3) The expenditure must have been incurred on decommissioning plant or machinery— (a) which has been brought into use for the purposes of a ring fence trade, and (b) which— (i) is, or forms part of, an offshore installation or a submarine pipeline, or (ii) when last in use for the purposes of a ring fence trade, was, or formed part of, such an installation or pipeline.

(4) After subsection (4) insert—

(4ZA) An amount of general decommissioning expenditure determined in accordance with subsection (1) is to be reduced under subsection (4ZB) if it appears that the decommissioned plant and machinery— (a) was brought into use partly for the purposes of the ring fence trade and partly for the purposes of another trade, or (b) was brought into use wholly for the purposes of the ring fence trade, but has, at any time since, not been used wholly for those purposes. (4ZB) The amount determined in accordance with subsection (1) is to be reduced to an amount which is just and reasonable having regard to the relevant circumstances. (4ZC) The relevant circumstances include, in particular, the extent to which the decommissioned plant and machinery has not been used for the purposes of the ring fence trade.

(5) In subsection (5)(b), omit “ “abandonment programme”,”.

(6) Schedule 34 contains amendments consequential on this section.

(7) The amendments made by this section and that Schedule have effect in relation to expenditure incurred on or after 12 March 2008.

Capital allowances: abandonment expenditure after ceasing ring fence trade

110

(1) Section 165 of CAA 2001 (abandonment expenditure within 3 years of ceasing ring fence trade) is amended as follows.

(2) In the heading, for “within 3 years of” substitute “ after ”.

(3) For subsection (2) substitute—

(2) “The post-cessation period” means the period that— (a) begins with the day following the last day on which the former trader carried on the ring fence trade, and (b) ends with the day on which condition A and condition B are both met (or, if they are met on different days, the later of those days). (2A) Condition A is met if each approved abandonment programme that relates wholly or partly to relevant plant and machinery has ceased to have effect. (2B) Condition B is met if the Secretary of State is satisfied that no other abandonment programmes that relate wholly or partly to relevant plant and machinery will be approved. (2C) For the purposes of condition A, an approved abandonment programme ceases to have effect if and when— (a) the programme has been carried out to the satisfaction of the Secretary of State, or (b) approval of the programme has been withdrawn.

(4) After subsection (4) insert—

(4A) Abandonment expenditure is to be disregarded for the purposes of this section if the expenditure is incurred in decommissioning plant and machinery at a time— (a) after an abandonment programme relating wholly or partly to the plant and machinery has had its approval withdrawn, and (b) when no other abandonment programme relating wholly or partly to the plant and machinery is approved.

(5) After subsection (5) insert—

(6) For the purposes of this section, it does not matter if approval of an abandonment programme that relates to relevant plant and machinery (including approval of the first such programme) is given before or after the start of the post-cessation period. (7) In this section— - “abandonment programme” means an abandonment programme under Part 4 of the Petroleum Act 1998; - “approved”, in relation to an abandonment programme, means approved or revised under Part 4 of the Petroleum Act 1998 (and “approval” is to be construed accordingly); - “relevant plant and machinery” means plant and machinery— 1. which has been brought into use for the purposes of the ring fence trade that has ceased, and 2. which, when last in use for the purposes of that ring fence trade, was, or formed part of, an offshore installation or submarine pipeline; - “withdrawn”, in relation to approval of an abandonment programme, means withdrawn under Part 4 of the Petroleum Act 1998.

(6) Section 393A of ICTA (losses: set off against profits of the same, or an earlier, accounting period) is amended as follows.

(7) In subsection (11)—

(a) for “In any case where” substitute “ Subsection (11A) applies in any case where ”,

(b) in paragraph (a), for “within 3 years of” substitute “ after ”, and

(8) After that subsection insert—

(11A) In relation to any claim under subsection (1)— (a) to the extent that the claim relates to an increase falling within subsection (11)(a), this section shall have effect as if— (i) in subsection (10), “the relevant period” were substituted for “ the period of two years ”, and (ii) after subsection (10) there were inserted— (10ZA) In subsection (10) “relevant period” means the period calculated by adding two years to the post-cessation period (within the meaning of section 165 of the Capital Allowances Act). (b) to the extent that the claim relates to expenditure falling within subsection (11)(b), subsection (10) shall have effect with the substitution of “ five years ” for “two years”.

(9) The amendments made by this section have effect in relation to ring fence trades that cease to be carried on or after 12 March 2008.

Losses: set off against profits of earlier accounting periods

111

(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Schedule 35 contains minor and consequential amendments relating to the amendments made by this section.

(3) The amendments made by this section and that Schedule have effect in relation to losses incurred in accounting periods beginning on or after 12 March 2008.

Ring fence trade: no deduction for expenses of investment management

112

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

Part 7 — Administration

Chapter 1 — Information etc

New information etc powers

Information and inspection powers

113

(1) Schedule 36 contains provision about the powers of officers of Revenue and Customs to obtain information and to inspect businesses.

(2) That Schedule comes into force on such day as the Treasury may by order made by statutory instrument appoint.

(3) An order under subsection (2) may contain transitional provision and savings.

Computer records etc

114

(1) This section applies to any enactment that, in connection with an HMRC matter—

(a) requires a person to produce a document or cause a document to be produced,

(b) requires a person to permit the Commissioners or an officer of Revenue and Customs—

(i) to inspect a document, or

(ii) to make or take copies of or extracts from or remove a document,

(c) makes provision about penalties or offences in connection with the production or inspection of documents, including in connection with the falsification of or failure to produce or permit the inspection of documents, or

(d) makes any other provision in connection with a requirement mentioned in paragraph (a) or (b).

(2) An enactment to which this section applies has effect as if—

(a) any reference in the enactment to a document were a reference to anything in which information of any description is recorded, and

(b) any reference in the enactment to a copy of a document were a reference to anything onto which information recorded in the document has been copied, by whatever means and whether directly or indirectly.

(3) An authorised person may, at any reasonable time, obtain access to, and inspect and check the operation of, any computer and any associated apparatus or material which is or has been used in connection with a relevant document.

(4) In subsection (3) “relevant document” means a document that a person has been, or may be, required pursuant to an enactment to which this section applies—

(a) to produce or cause to be produced, or

(b) to permit the Commissioners or an officer of Revenue and Customs to inspect, to make or take copies of or extracts from or to remove.

(5) An authorised person may require—

(a) the person by whom or on whose behalf the computer is or has been so used, or

(b) any person having charge of, or otherwise concerned with the operation of, the computer, apparatus or material,

to provide the authorised person with such reasonable assistance as may be required for the purposes of subsection (3).

(6) Any person who—

(a) obstructs the exercise of a power conferred by this section, or

(b) fails to comply within a reasonable time with a requirement under subsection (5),

is liable to a penalty of £300.

(7) Paragraphs 45 to 49 and 52 of Schedule 36 (assessment of and appeals against penalties) apply in relation to a penalty under this section as they apply in relation to a penalty under paragraph 39 of that Schedule.

(8) Omit the following—

(a) section 10 of FA 1985 (production of computer records etc in connection with assigned matters),

(b) section 127 of FA 1988 (production of computer records etc in connection with the Taxes Acts), and

(9) In this section—

“authorised person” means a person who is, or is a member of a class of persons who are, authorised by the Commissioners to exercise the powers under subsection (3),

“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs,

“enactment” includes an enactment contained in subordinate legislation (within the meaning of the Interpretation Act 1978 (c. 30)),

“HMRC matter” means a matter in relation to which the Commissioners, or officers of Revenue and Customs, have a power or duty, and

“produce”, in relation to a document, includes furnish, deliver and any other equivalent expression.

Other measures

Record-keeping

115

(1) Schedule 37 contains provision about the obligations to keep records for the purposes of income tax, capital gains tax, corporation tax and value added tax.

(2) The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.

Disclosure of tax avoidance schemes

116

(1) Schedule 38 contains amendments relating to the disclosure of tax avoidance schemes.

(2) The amendments made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint; and different days may be appointed for different purposes.

Power to open or unpack containers

117

(1) CEMA 1979 is amended as follows.

(2) In section 1(1) (interpretation), in the definition of “container”, after “and any” insert “ baggage, ”.

(3) Section 159 (power to examine and take account of goods) is amended as follows.

(4) In subsection (1)—

(a) after “for that purpose” insert “ open or unpack any container or ”, and

(b) insert at the end “ and search it or anything in it. ”

(5) In subsection (4), insert at the end “ ; but if an officer opens or unpacks any container, or searches it or anything in it, the Commissioners are to bear the expense of doing so. ”

Chapter 2 — Time limits for claims and assessments etc

General

Time limits for assessments, claims etc

118

(1) Schedule 39 contains provision about time limits for assessments, claims etc.

(2) The amendments and saving made by that Schedule come into force on such day as the Treasury may by order made by statutory instrument appoint.

(3) An order under subsection (2)—

(a) may make different provision for different purposes, and

(b) may include transitional provision and further savings.

Income tax and corporation tax

Correction and amendment of tax returns

119

(1) In section 9ZB(1) of TMA 1970 (correction of personal or trustee return by HMRC)—

(a) after “correct” insert

— (a)

, and

(b) insert at the end

, and (b) anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer.

(2) In section 12ABB(1) of that Act (correction of partnership return by HMRC)—

(a) after “correct” insert

— (a)

, and

(b) insert at the end

, and (b) anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer.

(3) Schedule 18 to FA 1998 (company tax returns) is amended as follows.

(4) In paragraph 16(1) (correction of company tax return by HMRC)—

(a) after “correct” insert

— (a)

, and

(b) insert at the end

, and (b) anything else in the return that the officer has reason to believe is incorrect in the light of information available to the officer.

(5) In paragraph 31 (amendment of return by company during enquiry), in sub-paragraph (4), for paragraph (b) substitute—

(b) in any other case, the amendment takes effect as part of the amendments made by the closure notice.

(6) In paragraph 34 (amendment of company tax return after enquiry), for sub-paragraphs (1) and (2) substitute—

(1) This paragraph applies where a closure notice is given to a company by an officer. (2) The closure notice must— (a) state that, in the officer's opinion, no amendment is required of the return that was the subject of the enquiry, or (b) make the amendments of that return that are required— (i) to give effect to the conclusions stated in the notice, and (ii) in the case of a return for the wrong period, to make it a return appropriate to the designated period. (2A) The officer may by further notice to the company make any amendments of other company tax returns delivered by the company that are required to give effect to the conclusions stated in the closure notice.

(7) In sub-paragraph (3) of that paragraph, for “any such amendment of a company's return” substitute “ an amendment of a company's return under sub-paragraph (2) or (2A) ”.

(8) In sub-paragraph (4)(c) of that paragraph, for “notice of amendment” substitute “ closure notice ”.

(9) In paragraph 61(1)(a) and (3)(a) (consequential claims etc), for “34(2)(b)” substitute “ 34(2A) ”.

(10) In paragraph 88 (conclusiveness of amounts stated in return)—

(a) in sub-paragraph (3)(b), omit the words from “and” to the end,

(b) in sub-paragraph (3)(c), for “34(2)” substitute “ 34 ”,

(c) in sub-paragraph (4)(b), for “the end of the period specified in paragraph 34(1)” substitute “ the completion of the enquiry ”, and

(d) in sub-paragraph (4)(c), for “34(2)” substitute “ 34 ”.

(11) In paragraph 93(1)(b) (general jurisdiction of Special or General Commissioners), for “34(2)” substitute “ 34 ”.

(12) In the following provisions, for “34(2)” substitute “ 34 ”

(a) in TMA 1970—

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

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) section 46D(2)(aa) (questions to be determined by Land Tribunal), and

(iv) section 55(1)(a)(ii) (recovery of tax not postponed), and

(b) in ICTA, section 754(2E) (assessment, recovery and postponement of tax).

(13) The amendments made by this section come into force on such day as the Treasury may by order appoint.

VAT

VAT: time limits for assessments of excess credits etc

120

(1) In section 73 of VATA 1994 (assessment of overpaid VAT credits etc), after subsection (6) insert—

(6A) In the case of an assessment under subsection (2), the prescribed accounting period referred to in subsection (6)(a) and in section 77(1)(a) is the prescribed accounting period in which the repayment or refund of VAT, or the VAT credit, was paid or credited.

(2) Section 80 of that Act (credit for, or repayment of, overstated or overpaid VAT) is amended as follows.

(3) After subsection (4A) insert—

(4AA) An assessment under subsection (4A) shall not be made more than 2 years after the later of— (a) the end of the prescribed accounting period in which the amount was credited to the person, and (b) the time when evidence of facts sufficient in the opinion of the Commissioners to justify the making of the assessment comes to the knowledge of the Commissioners.

(4) In subsection (4C), for “(2)” substitute “ (3) ”.

(5) The amendments made by this section are treated as having come into force on 19 March 2008.

Old VAT claims: extended time limits

121

(1) The requirement in section 80(4) of VATA 1994 that a claim under that section be made within 3 years of the relevant date does not apply to a claim in respect of an amount brought into account, or paid, for a prescribed accounting period ending before 4 December 1996 if the claim is made before 1 April 2009.

(2) The requirement in section 25(6) of VATA 1994 that a claim for deduction of input tax be made at such time as may be determined by or under regulations does not apply to a claim for deduction of input tax that became chargeable, and in respect of which the claimant held the required evidence, in a prescribed accounting period ending before 1 May 1997 if the claim is made before 1 April 2009.

(3) In this section—

“input tax” and “prescribed accounting period” have the same meaning as in VATA 1994 (see section 96 of that Act), and

“the required evidence” means the evidence of the charge to value added tax specified in or under regulation 29(2) of the Value Added Tax Regulations 1995 (S.I. 1995/2518).

(4) This section is treated as having come into force on 19 March 2008.

Chapter 3 — Penalties

Penalties for errors

122

(1) Schedule 40 contains provisions amending Schedule 24 to FA 2007 (penalties for errors in returns etc).

(2) That Schedule comes into force on such day as the Treasury may by order appoint.

(3) An order under subsection (2)—

(a) may commence a provision generally or only for specified purposes, and

(b) may appoint different days for different provisions or for different purposes.

(4) The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 24 to FA 2007 or Schedule 40.

(5) An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

(6) An order under subsection (4) may make different provision for different purposes.

(7) The power to make an order under this section is exercisable by statutory instrument.

(8) A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

Penalties for failure to notify etc

123

(1) Schedule 41 contains provisions for imposing penalties on persons in respect of failures to notify HMRC that they are chargeable to tax etc and certain wrongdoings relating to invoices showing VAT and excise duties.

(2) That Schedule comes into force on such day as the Treasury may by order appoint.

(3) An order under subsection (2)—

(a) may commence a provision generally or only for specified purposes, and

(b) may appoint different days for different provisions or for different purposes.

(4) The Treasury may by order make any incidental, supplemental, consequential, transitional, transitory or saving provision which may appear appropriate in consequence of, or otherwise in connection with, Schedule 41.

(5) An order under subsection (4) may include provision amending, repealing or revoking any provision of any Act or subordinate legislation whenever passed or made (including this Act and any Act amended by it).

(6) An order under subsection (4) may make different provision for different purposes.

(7) The power to make an order under this section is exercisable by statutory instrument.

(8) A statutory instrument containing an order under subsection (4) which includes provision amending or repealing any provision of an Act is subject to annulment in pursuance of a resolution of the House of Commons.

Chapter 4 — Appeals etc

Reviews and appeals etc: general

HMRC decisions etc: reviews and appeals

124

(1) The Treasury may by order made by statutory instrument make provision—

(a) for and in connection with reviews by the Commissioners, or by an officer of Revenue and Customs, of HMRC decisions, and

(b) in connection with appeals against HMRC decisions.

(2) An order under subsection (1) may, in particular, contain provision about—

(a) the circumstances in which, or the time within which—

(i) a right to a review may be exercised, or

(ii) an appeal may be made, and

(b) the circumstances in which, or the time at which, an appeal or review is, or may be treated as, concluded.

(3) An order under subsection (1) may, in particular, contain provision about the payment of sums by, or to, the Commissioners in cases where—

(a) a right to a review is exercised, or

(b) an appeal is made or determined.

(4) That includes provision about payment of sums where an appeal has been determined, but a further appeal may be or has been made, including provision—

(a) requiring payments to be made,

(b) enabling payments to be postponed, or

(5) An order under subsection (1) may, in particular, contain provision about interest on any sum that is payable by, or to, the Commissioners in accordance with a decision made on the determination of an appeal.

(6) Provision under subsection (1) may be made by amending, repealing or revoking any provision of any Act or subordinate legislation (whenever passed or made, including this Act and any Act amended by it).

(7) An order under subsection (1) may—

(a) provide that any provision contained in the order comes into force on a day appointed by an order of the Treasury made by statutory instrument (and may provide that different days may be appointed for different purposes),

(b) contain incidental, supplemental, consequential, transitional, transitory and saving provision, and

(8) A statutory instrument containing an order under subsection (1) may not be made unless a draft of it has been laid before and approved by resolution of the House of Commons.

(9) But if the order, or any other order under subsection (1) contained in the statutory instrument, is made in connection with a transfer of functions carried out under the Tribunals, Courts and Enforcement Act 2007 (c. 15), the statutory instrument may only be made if a draft of it has been laid before and approved by resolution of each House of Parliament.

(10) In this section—

(a) references to appeals against HMRC decisions include any other kind of proceedings relating to an HMRC matter, and

(b) references to the making, determination or conclusion of appeals are to be read accordingly.

(11) In this section—

“the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs;

“HMRC decision” means—any decision of the Commissioners relating to an HMRC matter, orany decision of an officer of Revenue and Customs relating to an HMRC matter,and references to an HMRC decision include references to anything done by such a person in connection with making such a decision or in consequence of such a decision;

“HMRC matter” means any matter connected with a function of the Commissioners or an officer of Revenue and Customs.

Customs and excise decisions subject to review and appeal

Alcoholic liquor duties

125

(1) Schedule 42 contains amendments of FA 1994 making certain decisions about alcoholic liquor duties subject to review and appeal.

(2) The amendments made by that Schedule have effect in relation to decisions made on or after the day on which this Act is passed.

Security under CEMA 1979

126

(1) In paragraph 2(1)(s) of Schedule 5 to FA 1994 (decisions under section 157 of CEMA 1979 subject to review and appeal)—

(a) after “any security” insert “ (or further security) ”, and

(b) insert at the end “ , guarantee or other security ”.

(2) The amendments made by subsection (1) have effect in relation to decisions made on or after the day on which this Act is passed.

Chapter 5 — Payment and enforcement

Taking control of goods etc

Enforcement by taking control of goods: England and Wales

127

(1) This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of an enactment or under a contract settlement.

(2) The Commissioners may use the procedure in Schedule 12 to the Tribunals, Courts and Enforcement Act 2007 (c. 15) (taking control of goods) to recover that sum.

(3) This section extends to England and Wales only.

Summary warrant: Scotland

128

(1) This section applies if a person does not pay a sum that is payable by that person to the Commissioners under or by virtue of any enactment or under a contract settlement.

(2) An officer of Revenue and Customs may apply to the sheriff for a summary warrant.

(3) An application under subsection (2) must be accompanied by a certificate which—

(a) complies with subsection (4), and

(b) is signed by the officer.

(4) A certificate complies with this subsection if—

(a) it states that—

(i) none of the persons specified in the application has paid the sum payable by that person,

(ii) the officer has demanded payment from each such person of the sum payable by that person, and

(iii) the period of 14 days beginning with the day on which the demand is made has expired without payment being made, and

(b) it specifies the sum payable by each person specified in the application.

(5) Subsection (4)(a)(iii) does not apply to an application under subsection (2) insofar as it relates to—

(a) sums payable in respect of value added tax,

(b) sums payable in respect of deductions required to be made under section 61 of FA 2004 (sub-contractors in the construction industry), and

(6) The sheriff must, on an application by an officer of Revenue and Customs under subsection (2), grant a summary warrant in, or as nearly as may be in, the form prescribed by Act of Sederunt.

(7) A summary warrant granted under subsection (6) authorises the recovery of the sum payable by—

(a) attachment,

(b) money attachment,

(d) arrestment and action of furthcoming or sale.

(8) Subject to subsection (9) and without prejudice to section 39(1) of the Debt Arrangement and Attachment (Scotland) Act 2002 (asp 17) (expenses of attachment)—

(a) the sheriff officer's fees, and

(b) any outlays necessarily incurred by that officer,

in connection with the execution of a summary warrant are to be chargeable against the person in relation to whom the warrant was granted.

(9) No fees are to be chargeable by the sheriff officer against the person in relation to whom the summary warrant was granted for collecting, and accounting to the Commissioners for, sums paid to that officer by that person in respect of the sum payable.

(10) This section extends to Scotland only.

Consequential provision and commencement

129

(1) Part 1 of Schedule 43 contains provision consequential on section 127.

(2) Part 2 of that Schedule contains provision consequential on section 128.

(3) The extent of the amendments and repeals in Schedule 43 is the same as the provision amended or repealed.

(4) Sections 127 and 128 and Schedule 43 come into force on such day as the Commissioners may by order made by statutory instrument appoint.

(5) An order under subsection (4) may—

(a) make different provision for different purposes, and

(b) contain transitional provision and savings.

Set off

Set-off: England and Wales and Northern Ireland

130

(1) This section applies where there is both a credit and a debit in relation to a person.

(2) The Commissioners may set the credit against the debit (subject to section 131 and any obligation of the Commissioners to set the credit against another sum).

(3) The obligations of the Commissioners and the person concerned are discharged to the extent of any set-off under subsection (2).

(4) “Credit”, in relation to a person, means—

(a) a sum that is payable by the Commissioners to the person under or by virtue of an enactment, or

(b) a relevant sum that may be repaid to the person by the Commissioners.

(5) For the purposes of subsection (4), in relation to a person, “relevant sum” means a sum that was paid in connection with any liability (including any purported or anticipated liability) of that person to make a payment to the Commissioners under or by virtue of an enactment or under a contract settlement.

(6) “Debit”, in relation to a person, means a sum that is payable by the person to the Commissioners under or by virtue of an enactment or under a contract settlement.

(7) In this section references to sums paid, repaid or payable by or to a person (however expressed) include sums that have been or are to be credited by or to a person.

(8) This section has effect without prejudice to any other power of the Commissioners to set off amounts.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

No set-off where insolvency procedure has been applied

131

(1) This section applies where—

(a) an insolvency procedure has been applied to a person, and

(b) there is a post-insolvency credit in relation to that person.

(2) The Commissioners may not use the power under section 130 to set that post-insolvency credit against a pre-insolvency debit in relation to the person.

(3) “Post-insolvency credit” means a credit that—

(a) became due after the insolvency procedure was applied to the person, and

(b) relates to, or to matters occurring at, times after it was so applied.

(4) “Pre-insolvency debit” means a debit that—

(a) arose before the insolvency procedure was applied to the person, or

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