Legalize / United Kingdom / Public General Act

Finance Act 2009

Type Public General Act

Publication 2009-07-21

Last updated 2025-09-01

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Schedule 39 contains provision about the treatment of blended oil for the purposes of petroleum revenue tax.

Chargeable gains

86

Schedule 40 contains provision about chargeable gains in oil trades.

Oil assets put to other uses

87

Schedule 41 contains provision about oil production assets put to certain other uses.

Former licensees and former oil fields

88

Schedule 42 contains provision about the treatment of certain former licensees and former oil fields for the purposes of petroleum revenue tax.

Abolition of provisional expenditure allowance

89

Schedule 43 contains provision abolishing provisional expenditure allowance.

Supplementary charge: reduction for certain new oil fields

90

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Miscellaneous amendments

91

Schedule 45 contains miscellaneous amendments relating to oil taxation.

Part 7 — Administration

Standards and values

HMRC Charter

92

(1) In CRCA 2005, after section 16 insert—

(16A) (1) The Commissioners must prepare a Charter. (2) The Charter must include standards of behaviour and values to which Her Majesty's Revenue and Customs will aspire when dealing with people in the exercise of their functions. (3) The Commissioners must— (a) regularly review the Charter, and (b) publish revisions, or revised versions, of it when they consider it appropriate to do so. (4) The Commissioners must, at least once every year, make a report reviewing the extent to which Her Majesty's Revenue and Customs have demonstrated the standards of behaviour and values included in the Charter.

(2) The duty imposed by section 16A(1) of CRCA 2005 must be complied with before the end of 2009.

Duties of senior accounting officers of qualifying companies

93

(1) Schedule 46 contains provision about the duties of senior accounting officers of qualifying companies.

(2) That Schedule has effect in relation to financial years (within the meaning of the Companies Act 2006) beginning on or after the day on which this Act is passed.

Publishing details of deliberate tax defaulters

94

(1) The Commissioners may publish information about any person if—

(a) in consequence of an investigation conducted by the Commissioners, one or more relevant tax penalties is found to have been incurred by the person, and

(b) the potential lost revenue in relation to the penalty (or the aggregate of the potential lost revenue in relation to each of the penalties) exceeds £25,000.

(2) A “relevant tax penalty” is—

(a) a penalty under paragraph 1 of Schedule 24 to FA 2007 (inaccuracy in taxpayer's document) in respect of a deliberate inaccuracy on the part of the person,

(b) a penalty under paragraph 1A of that Schedule (inaccuracy in taxpayer's document attributable to deliberate supply of false information or deliberate withholding of information by person),

(c) a penalty under paragraph 1 of Schedule 41 to FA 2008 (failure to notify) in respect of a deliberate failure on the part of the person, or

(d) a penalty under paragraph 2 (unauthorised VAT invoice), 3 (putting product to use attracting higher duty etc) or 4 (handling goods subject to unpaid excise duty) of that Schedule in respect of deliberate action by the person.

(3) “Potential lost revenue”, in relation to a penalty, has the meaning given by—

(a) paragraphs 5 to 8 of Schedule 24 to FA 2007, or

(b) paragraphs 7 to 11 of Schedule 41 to FA 2008,

in relation to the inaccuracy, failure or action to which the penalty relates.

(4) The information that may be published is—

(a) the person's name (including any trading name, previous name or pseudonym),

(b) the person's address (or registered office),

(d) the amount of the penalty or penalties and the potential lost revenue in relation to the penalty (or the aggregate of the potential lost revenue in relation to each of the penalties),

(e) the periods or times to which the inaccuracy, failure or action giving rise to the penalty (or any of the penalties) relates, and

(f) any such other information as the Commissioners consider it appropriate to publish in order to make clear the person's identity.

(4A) Subsection (4B) applies where a person who is a body corporate or a partnership has incurred—

(a) a penalty under paragraph 1 of Schedule 24 to FA 2007 in respect of a deliberate inaccuracy which involves an offshore matter or an offshore transfer (within the meaning of paragraph 4A of that Schedule), or

(b) a penalty under paragraph 1 of Schedule 41 to FA 2008 in respect of a deliberate failure which involves an offshore matter or an offshore transfer (within the meaning of paragraph 6A of that Schedule).

(4B) The Commissioners may publish the information mentioned in subsection (4) in respect of any individual who—

(a) controls the body corporate or the partnership (within the meaning of section 1124 of CTA 2010), and

(b) has obtained a tax advantage as a result of the inaccuracy or failure.

(4C) Subsection (4D) applies where one or more trustees of a settlement have incurred—

(a) a penalty under paragraph 1 of Schedule 24 to FA 2007 in respect of a deliberate inaccuracy which involves an offshore matter or an offshore transfer (within the meaning of paragraph 4A of that Schedule), or

(b) a penalty under paragraph 1 of Schedule 41 to FA 2008 in respect of a deliberate failure which involves an offshore matter or an offshore transfer (within the meaning of paragraph 6A of that Schedule).

(4D) The Commissioners may publish the information mentioned in subsection (4) in respect of any trustee who is an individual and who has obtained a tax advantage as a result of the inaccuracy or failure.

(5) The information may be published in any manner that the Commissioners consider appropriate.

(6) Before publishing any information about a person under subsection (1), the Commissioners must—

(a) inform the person that they are considering doing so, and

(b) afford the person reasonable opportunity to make representations about whether it should be published.

(6A) Before publishing any information about an individual under subsection (4B) or (4D), the Commissioners—

(a) must inform the individual that they are considering doing so, and

(b) afford the individual reasonable opportunity to make representations about whether it should be published.

(7) No information may be published before the day when the penalty becomes final (or the latest day when any of the penalties becomes final).

(8) No information may be published for the first time after the end of the period of one year beginning with that day (or that latest day).

(9) No information may be published (or continue to be published) after the end of the period of one year beginning with the day on which it is first published.

(10) No information may be published if the amount of the penalty is reduced under—

(a) paragraph 10 of Schedule 24 to FA 2007, ...

(aa) paragraph 10A of that Schedule to the full extent permitted following an unprompted disclosure,

(b) paragraph 13 of Schedule 41 to FA 2008, or

(reductions for disclosure) to the full extent permitted.

(11) For the purposes of this section a penalty becomes final—

(a) if it has been assessed, when the time for any appeal or further appeal relating to it expires or, if later, any appeal or final appeal relating to it is finally determined, or

(b) if a contract is made between the Commissioners and the person under which the Commissioners undertake not to assess the penalty or (if it has been assessed) not to take proceedings to recover it, at the time when the contract is made.

(12) The Treasury may by order vary the amount for the time being specified in subsection (1).

(13) This section comes into force on a day appointed by order made by the Treasury.

(14) Orders under this section are to be made by statutory instrument.

(15) A statutory instrument containing an order under subsection (12) is subject to annulment in pursuance of a resolution of the House of Commons.

(16) In this section—

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

“tax advantage” has the meaning given by section 208 of FA 2013.

Information etc

Amendment of information and inspection powers

95

(1) Schedule 47 contains amendments of Schedule 36 to FA 2008 (information and inspection powers).

(2) The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving which appears appropriate in consequence of, or otherwise in connection with, Schedule 36 to FA 2008 or Schedule 47.

(3) An order under this section may—

(a) make different provision for different purposes, and

(b) make provision amending, repealing or revoking an enactment or instrument (whenever passed or made).

(4) An order under this section is to be made by statutory instrument.

(5) A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Extension of information and inspection powers to further taxes

96

(1) In paragraph 63(1) of Schedule 36 to FA 2008 (information and inspection powers: meaning of “tax”), for paragraph (e) (and the “and” before it) substitute—

(e) insurance premium tax, (f) inheritance tax, (g) stamp duty land tax, (h) stamp duty reserve tax, (i) petroleum revenue tax, (j) aggregates levy, (k) climate change levy, (l) landfill tax, and (m) relevant foreign tax,

(2) Schedule 48 contains further amendments of that Schedule.

(3) The amendments made by this section and Schedule 48 come into force on such day as the Treasury may by order appoint.

(4) An order under subsection (3) may—

(a) appoint different days for different purposes, and

(b) contain transitional provision and savings.

(5) The Treasury may by order make any incidental, supplemental, consequential, transitional or transitory provision or saving which appears appropriate in consequence of, or otherwise in connection with, this section and Schedule 48.

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

(a) make different provision for different purposes, and

(b) make provision amending, repealing or revoking an enactment or instrument (whenever passed or made).

(7) An order under this section is to be made by statutory instrument.

(8) A statutory instrument containing an order under subsection (5) is subject to annulment in pursuance of a resolution of the House of Commons.

Powers to obtain contact details for debtors

97

Schedule 49 contains provision about the powers of officers of Revenue and Customs to obtain contact details of debtors.

Record-keeping

98

(1) Schedule 50 contains provision about obligations to keep records.

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

Assessments, claims etc

Time limits for assessments, claims etc

99

(1) Schedule 51 contains provision about time limits for assessments, claims etc.

(2) The amendments 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 savings.

Recovery of overpaid tax etc

100

(1) Schedule 52 contains provision for and in connection with the recovery of overpaid income tax, capital gains tax and corporation tax.

(2) The amendments made by that Schedule have effect in relation to claims made on or after 1 April 2010.

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

(4) An order under this section may—

(a) make different provision for different purposes, and

(b) make provision modifying an enactment or instrument (whenever passed or made).

(5) “Modifying” includes amending, repealing or revoking.

(6) An order under this section is to be made by statutory instrument.

(7) A statutory instrument containing an order under this section is subject to annulment in pursuance of a resolution of the House of Commons.

Interest

Late payment interest on sums due to HMRC

101

(1) This section applies to any amount that is payable by a person to HMRC under or by virtue of an enactment.

(2) But this section does not apply to—

(a) an amount of corporation tax,

(b) an amount of petroleum revenue tax, or

(3) An amount to which this section applies carries interest at the late payment interest rate from the late payment interest start date until the date of payment.

(4) The late payment interest start date in respect of any amount is the date on which that amount becomes due and payable.

(5) In Schedule 53—

(a) Part 1 makes special provision as to the amount on which late payment interest is calculated,

(b) Part 2 makes special provision as to the late payment interest start date,

(d) Part 4 makes provision about the effect that the giving of a relief has on late payment interest.

(6) Subsection (3) applies even if the late payment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(7) Late payment interest is to be paid without any deduction of income tax.

(8) Late payment interest is not payable on late payment interest.

(9) For the purposes of this section any reference to the payment of an amount to HMRC includes a reference to its being set off against an amount payable by HMRC (and, accordingly, the reference to the date on which an amount is paid includes a reference to the date from which the set-off takes effect).

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

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayment interest on sums to be paid by HMRC

102

(1) This section applies to—

(a) any amount that is payable by HMRC to any person under or by virtue of an enactment, and

(b) a relevant amount paid by a person to HMRC that is repaid by HMRC to that person or to another person.

(2) But this section does not apply to—

(a) an amount constituting a repayment of corporation tax,

(b) an amount constituting a repayment of petroleum revenue tax, or

(3) An amount to which this section applies carries interest at the repayment interest rate from the repayment interest start date until the date on which the payment or repayment is made.

(4) In Schedule 54—

(a) Parts 1 and 2 define the repayment interest start date, ...

(aa) Part 2A makes special provision as to the period for which an amount of VAT credit carries interest, and

(b) Part 3 makes supplementary provision.

(5) Subsection (3) applies even if the repayment interest start date is a non-business day within the meaning of section 92 of the Bills of Exchange Act 1882.

(6) Repayment interest is not payable on an amount payable in consequence of an order or judgment of a court having power to allow interest on the amount.

(7) Repayment interest is not payable on repayment interest.

(8) For the purposes of this section—

(a) “relevant amount” means any sum that was paid in connection with any liability (including any purported or anticipated liability) to make a payment to HMRC under or by virtue of an enactment, and

(b) any reference to the payment or repayment of an amount by HMRC includes a reference to its being set off against an amount owed to HMRC (and, accordingly, the reference to the date on which an amount is paid or repaid by HMRC includes a reference to the date from which the set-off takes effect).

Rates of interest

103

(1) The late payment interest rate is the rate provided for in regulations made by the Treasury under this subsection.

(2) The repayment interest rate is the rate provided for in regulations made by the Treasury under this subsection.

(3) Regulations under subsection (1) or (2)—

(a) may make different provision for different purposes,

(b) may either themselves specify a rate of interest or make provision for such a rate to be determined (and to change from time to time) by reference to such rate, or the average of such rates, as may be referred to in the regulations,

(c) may provide for rates to be reduced below, or increased above, what they otherwise would be by specified amounts or by reference to specified formulae,

(d) may provide for rates arrived at by reference to averages to be rounded up or down,

(e) may provide for circumstances in which alteration of a rate of interest is or is not to be take place, and

(f) may provide that alterations of rates are to have effect for periods beginning on or after a day determined in accordance with the regulations in relation to interest running from before that day as well as from or from after that day.

Supplementary

104

(1) In sections 101 to 103A (and Schedules 53 to 54A) —

“HMRC” means Her Majesty's Revenue and Customs;

“late payment interest” means interest payable under section 101;

“repayment interest” means interest payable under section 102;

“revenue” has the meaning given in section 5(4) of CRCA 2005.

(2) A reference to the date on which an amount becomes due and payable is a reference to the date (however described) on or before which the amount must be paid.

(3) Sections 101 to 103 come into force on such day as the Treasury may by order appoint.

(4) An order under subsection (3)—

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

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

(5) 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, those sections.

(6) An order under subsection (5) 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).

(7) An order under subsection (5) may make different provision for different purposes.

(8) The following are to be made by statutory instrument—

(a) orders under section 101(2) or 102(2),

(b) regulations under section 103(1) or (2), and

(9) A statutory instrument containing—

(a) an order under section 101(2) or 102(2),

(b) regulations under section 103(1) or (2),

is subject to annulment in pursuance of a resolution of the House of Commons.

Miscellaneous amendments

105

(1) Section 239 of ITA 2007 (date from which interest is chargeable when EIS relief is withdrawn or reduced) is amended as follows.

(2) In subsection (1)—

(a) for “in column 1 of the following table” substitute “ in subsection (2) ”,

(b) for “given by the corresponding entry in column 2 of the table” substitute “ 31 January next following the tax year for which the assessment is made ”, and

(3) For subsection (2) substitute—

(2) The provisions are— - section 163, - section 164, - section 173A, - any of sections 181 to 188, - section 209, - section 212(1), - section 213, - section 224, - section 232, and - section 233.

(4) In the following provisions, for the words from “the same rate” to the end substitute “ the rate applicable under section 178 of the Finance Act 1989 ”

(a) section 48(1) of FA 1975 (interest on repayment of estate duty), and

(b) section 235(1) of IHTA 1984 (interest on overpaid inheritance tax).

(5) In section 178(2) of FA 1989 (setting of rates of interest)—

(a) after paragraph (g) insert—

(ga) section 48(1) of the Finance Act 1975,

, and

(b) in paragraph (k), after “sections 233” insert “ , 235(1) ”.

(6) The following provisions (which require HMRC to make an order specifying the new rate of interest when that rate is changed by operation of regulations) are omitted—

(a) section 178(5) of FA 1989, and

(b) section 197(5) of FA 1996.

Penalties

Penalties for failure to make returns etc

106

(1) Schedule 55 contains provision for imposing penalties on persons in respect of failures to make returns and other documents relating to liabilities for tax.

(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 55.

(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) An order under this section is to be made 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 pay tax

107

(1) Schedule 56 contains provision for imposing penalties on persons in respect of failures to comply with obligations to pay tax.

(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 56.

(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) An order under this section is to be made 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.

Suspension of penalties during currency of agreement for deferred payment

108

(1) This section applies if—

(a) a person (“P”) fails to pay an amount of tax falling within the Table in subsection (5) when it becomes due and payable,

(b) P makes a request to an officer of Revenue and Customs that payment of the amount of tax be deferred, and

(c) an officer of Revenue and Customs agrees that payment of that amount may be deferred for a period (“the deferral period”).

(2) P is not liable to a penalty for failing to pay the amount mentioned in subsection (1) if—

(a) the penalty falls within the Table, and

(b) P would (apart from this subsection) become liable to it between the date on which P makes the request and the end of the deferral period.

(3) But if—

(a) P breaks the agreement (see subsection (4)), and

(b) an officer of Revenue and Customs serves on P a notice specifying any penalty to which P would become liable apart from subsection (2),

P becomes liable, at the date of the notice, to that penalty.

(4) P breaks an agreement if—

(a) P fails to pay the amount of tax in question when the deferral period ends, or

(b) the deferral is subject to P complying with a condition (including a condition that part of the amount be paid during the deferral period) and P fails to comply with it.

(5) The taxes and penalties referred to in subsections (1) and (2) are—

Tax	Penalty
. . .	. . .
Value added tax	Surcharge under section 59(4) or 59A(4) of VATA 1994 ...
Aggregates levy	Penalty interest under paragraph 5 of Schedule 5 to FA 2001
Climate change levy	Penalty interest under paragraph 82 of Schedule 6 to FA 2000
Landfill tax	Penalty interest under paragraph 27(2) of Schedule 5 to FA 1996
Insurance premium tax	Penalty under paragraph 15(2) or (3) of Schedule 7 to FA 1994 which is payable by virtue of paragraph 15(1)(a) of that Schedule.
Any duty of excise	Penalty under section 9(2) or (3) of FA 1994 which is imposed for a failure to pay an amount of any duty of excise or an amount payable on account of any such duty.

(6) If the agreement mentioned in subsection (1)(c) is varied at any time by a further agreement between P and an officer of Revenue and Customs, this section applies from that time to the agreement as varied.

(7) The Treasury may by order amend the Table by adding or removing a tax or a penalty.

(8) An order under subsection (7) is to be made by statutory instrument.

(9) A statutory instrument containing an order under subsection (7) is subject to annulment in pursuance of a resolution of the House of Commons.

(10) In this section, except in the entries in the Table, “penalty” includes surcharge and penalty interest.

(11) This section has effect where the agreement mentioned in subsection (1)(c) is made on or after 24 November 2008.

Miscellaneous amendments

109

Schedule 57 contains amendments of Schedule 24 to FA 2007 (penalties for errors), Schedule 41 to FA 2008 (penalties for failure to notify and certain other wrongdoing) and certain other enactments relating to penalties.

Miscellaneous

Recovery of debts using PAYE regulations

110

Schedule 58 contains provision about the recovery of debts by means of deductions from PAYE income in accordance with PAYE regulations.

Managed payment plans

111

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Customs and excise enforcement: movements between member States

112

(1) Section 4 of F(No.2)A 1992 (cases in which customs and excise enforcement powers can be used in relation to movement of persons or things between member States) is amended as follows.

(2) In subsection (1), after “subsection” insert “ (1A) or ”.

(3) After that subsection insert—

(1A) The first case in which a power to which this section applies may be exercised as mentioned in subsection (1) above is where it is necessary to exercise the power in order to ascertain whether the movement in question is or is not in fact between different member States.

(4) In subsection (2), for the words from the beginning to “or that” substitute “ The second case in which a power to which this section applies may be exercised as mentioned in subsection (1) above is where ”.

Part 8 — Miscellaneous

Gambling

VAT exemption for gaming participation fees

113

(1) Group 4 of Schedule 9 to VATA 1994 (exemptions: betting, gaming and lotteries) is amended as follows.

(2) In Note (1), omit paragraph (b) (granting of right to play game of chance not exempted unless within Note (5)).

(3) Omit Notes (5) to (11).

(4) The Value Added Tax (Betting, Gaming and Lotteries) Order 2007 (S.I. 2007/2163) is revoked.

(5) Omit—

(a) in BGDA 1981, sections 19(3)(b) and 26E(2), and

(b) in FA 1997, section 11(9)(a).

(6) The amendments made by this section are treated as having come into force on 27 April 2009.

Gaming duty

114

(1) FA 1997 is amended as follows.

(2) Section 10 (gaming duty) is amended as follows.

(3) For subsection (2) substitute—

(2) Subject as follows, this section applies to— (a) casino games, and (b) equal chance gaming.

(4) In subsection (3)(e), after “Article” insert “ 77, ”.

(5) After subsection (3A) insert—

(3AA) This section does not apply to the playing of a game in respect of which bingo duty or lottery duty is chargeable or would be chargeable but for an express exception.

(6) In subsection (3C)(a), after “in” insert “ organising or ”.

(7) For subsection (4) substitute—

(4) This section does not apply— (a) in Great Britain, to the playing of a game where the provision of facilities for its playing falls within section 269 of the Gambling Act 2005 (equal chance gaming at members' or commercial clubs and miners' welfare institutes), or (b) in Northern Ireland, to the playing of a game to which Article 128 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (certain clubs) applies.

(8) In subsection (5), for “add to the games mentioned in subsection (2) above” substitute “ provide that any specified game is or is not to be a casino game or equal chance gaming for the purposes of this section ”.

(9) In subsection (6), for “this section, or in an order under subsection (5) above,” substitute “ an order under subsection (5) above ”.

(10) Section 14 (subordinate legislation) is amended as follows.

(11) In subsection (2), for “or 11(11) above” substitute “ providing that any game is to be a casino game or equal chance gaming or any order under section 11(11) ”.

(12) Insert at the end—

(4) A statutory instrument containing an order under section 10(5) that does not provide for any game to be a casino game or equal chance gaming is subject to annulment in pursuance of a resolution of the House of Commons.

(13) Section 15(3) (interpretation) is amended as follows.

(14) After the definition of “accounting period” insert—

“casino games” means games of chance which are not equal chance gaming (but subject to any order under section 10(5));

(15) After the definition of “dutiable gaming” insert—

“equal chance gaming”— (a) in Great Britain, means gaming which does not involve playing or staking against a bank (however described, and whether or not controlled or administered by a player) and in which the chances are equally favourable to all participants, and (b) in Northern Ireland, means gaming in respect of which none of the conditions specified in Article 55 of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 is met, (but subject to any order under section 10(5));

(16) In consequence of the preceding provisions, omit—

(a) in FA 2002, section 11, and

(b) in FA 2007, in Schedule 25, paragraph 17(4).

(17) The amendments made by this section are to be treated as having come into force on 27 April 2009.

(18) But those amendments do not give rise to a duty under paragraph 6(3)(a) of Schedule 1 to FA 1997 (requirement to notify premises) before 25 May 2009.

Remote bingo etc

115

(1) BGDA 1981 is amended as follows.

(2) In section 17 (bingo duty), after subsection (2) insert—

(2A) Bingo duty is not charged on the playing of bingo which is not licensed bingo if remote gaming duty is charged on the provision of facilities for playing it.

(3) In section 26H (remote gaming duty: exemptions), after subsection (2) insert—

(2A) Subsection (2) does not prevent remote gaming duty being charged in respect of the provision of facilities for the playing of bingo which is not licensed bingo (as to the meaning of which terms see section 20C).

(4) The amendments made by this section have effect in relation to games of bingo that begin to be played on or after 1 July 2009.

Meaning of “gaming machine” and “gaming”

116

(1) BGDA 1981 is amended as follows.

(2) Section 25 (meaning of “amusement machine”) is amended as follows.

(3) For subsection (1A) substitute—

(1A) In this Act “gaming machine” means a machine which is designed or adapted for use by individuals for gambling (whether or not it can also be used for other purposes). (1B) But a machine is not a gaming machine to the extent that— (a) it is designed or adapted for use to bet on future real events, (b) it is designed or adapted for the playing of bingo and bingo duty is, or but for paragraphs 1 to 5 of Schedule 3 would be, charged under section 17 on the playing of the bingo, or (c) it is designed or adapted for the playing of a real game of chance and the playing of the game is dutiable gaming for the purposes of section 10 of the Finance Act 1997, or would be dutiable gaming but for subsections (3) and (4) of that section.

(4) In subsection (1C), for “constructed” substitute “ designed ”.

(5) Insert at the end—

(5) For the purposes of this section— (a) a reference to gambling is to— (i) gaming, or (ii) betting, (b) “machine” has the same meaning as in the Gambling Act 2005 (see section 235(3)(a)), (c) a reference to a machine being designed or adapted for a purpose includes a reference to a machine to which anything has been done as a result of which it can reasonably be expected to be used for that purpose, (d) a reference to a machine being adapted includes a reference to computer software being installed on it, (e) “real” has the meaning given by section 353(1) of the Gambling Act 2005, (f) “game of chance” has the meaning given by section 6(2) of that Act, and (g) “bingo” includes any version of that game, whatever name it is called. (6) The Treasury may by order amend this section.

(6) In section 33 (interpretation)—

(a) in subsection (1), in the definition of “gaming”, omit “within the meaning of Group 4 of Schedule 9 to the Value Added Tax Act 1994”, and

(b) after that subsection insert—

(1A) In the definition of “gaming” in subsection (1)— (a) “game of chance” has the meaning given by section 6(2) of the Gambling Act 2005, (b) “playing a game of chance” is to be read in accordance with section 6(3) of that Act, and (c) “prize” does not include the opportunity to play the game again.

Climate change levy

Taxable commodities ineligible for reduced-rate supply

117

(1) Schedule 6 to FA 2000 (climate change levy) is amended as follows.

(2) In paragraph 44 (reduced rate for supplies covered by climate change agreement), after sub-paragraph (2) insert—

(2A) The Secretary of State may— (a) give a certificate that includes provision specifying one or more descriptions of taxable commodity as being ineligible for reduced-rate supply, (b) vary a certificate so that it includes provision (or further provision) specifying one or more descriptions of taxable commodity as being ineligible for reduced-rate supply, or (c) vary a certificate so that it ceases to include the provision (or some of the provision) specifying one or more descriptions of taxable commodity as being ineligible for reduced-rate supply. (2B) A taxable supply of a taxable commodity to a facility is not a reduced-rate supply if, at the time of the supply, the commodity falls within a description that is specified (by virtue of sub-paragraph (2A)(a) or (b)) in the certificate relating to the facility. (2C) The Secretary of State may only include provision in a certificate by virtue of sub-paragraph (2A)(a) or (b)— (a) if the Treasury consents in writing to the specification before the specification is made, and (b) if, and for as long as, the result is compatible with the common market by virtue of Commission Regulation (EC) No. 800/2008 of 6 August 2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty establishing the European Community (General block exemption Regulation) (O.J. 2008 No. L214/3). (2D) In sub-paragraphs (2A) to (2C) “certificate” means such a certificate as is mentioned in sub-paragraph (1)(a).

(3) In consequence of subsection (2)—

(a) in paragraph 44(2), after “subject to” insert “ sub-paragraphs (2A) to (2D) and ”, and

(b) in paragraph 147 (general interpretation), in the definition of “reduced-rate supply”, after “subject to” insert “ paragraph 44(2A) to (2D) and ”.

Removal of reduced rate where targets not met

118

(1) Schedule 59 contains provision for removing the reduced rate of climate change levy where the targets set by a climate change agreement have not been met.

(2) The amendments made by that Schedule have effect where the certification period begins on or after 1 April 2009.

Other environmental taxes and duties

Landfill tax: prescribed landfill site activities

119

Schedule 60 contains provision about charging landfill tax on prescribed activities at landfill sites.

Requirement to destroy replaced vehicle registration documents

120

In section 22(1) of VERA 1994 (registration regulations), after paragraph (h) insert—

(ha) require the destruction of a registration document where a new registration document is issued in place of it,

Hydrocarbon oil duties: minor amendments

121

(1) HODA 1979 is amended as follows.

(2) In section 11(1) (rebate on heavy oil), omit “12”.

(3) In section 14D(2) (civil penalty for supplying biodiesel or bioblend intending that it will be put to prohibited use), for “intending” substitute “ having reason to believe ”.

(4) The amendment made by subsection (3) has effect in relation to supplies on or after the day on which this Act is passed.

Other matters

Inheritance tax: agricultural property and woodlands relief for EEA land

122

(1) Part 5 of IHTA 1984 (miscellaneous reliefs) is amended as follows.

(2) In section 115 (agricultural property relief: preliminary), in subsection (3), insert at the end “(or, in the case of property outside the United Kingdom, the Channel Islands and the Isle of Man, if it were subject to provisions equivalent in effect to such a covenant).”

(3) For subsection (5) of that section substitute—

(5) This Chapter applies to agricultural property only if it is in— (a) the United Kingdom, the Channel Islands or the Isle of Man, or (b) a state, other than the United Kingdom, which is an EEA state (within the meaning given by Schedule 1 to the Interpretation Act 1978) at the time of the transfer of value in question.

(4) In section 116 (agricultural property relief: the relief), insert at the end—

(8) In its application to property outside the United Kingdom, the Channel Islands and the Isle of Man, this section has effect as if any reference to a right or obligation under the law of any part of the United Kingdom were a reference to an equivalent right or obligation under the law governing dispositions of that property.

(5) In section 125 (woodlands relief), in paragraph (a) of subsection (1), omit “in the United Kingdom”.

(6) After that subsection insert—

(1A) But this section applies only if the land is in the United Kingdom or another state which is an EEA state (within the meaning given by Schedule 1 to the Interpretation Act 1978) at the time of the person's death.

(7) The amendments made by this section have effect in relation to transfers of value where the tax payable but for this section (or, in the case of tax payable by instalments, the last instalment of that tax)—

(a) would have been due on or after 22 April 2009, or

(b) was paid or due on or after 23 April 2003.

(8) Where tax falling within subsection (7) has been paid, Her Majesty's Revenue and Customs must repay the tax (together with interest under section 235(1) of IHTA 1984) if, but only if, a claim for repayment is made on or before—

(a) the date determined under section 241(1) of that Act as the last date on which the claim may be made, or

(b) 21 April 2010,

whichever is later.

(9) Where, by virtue of the amendments made by subsections (5) and (6), an election is made under section 125 of IHTA 1984, that election must be made on or before—

(a) the date determined under section 125(3) as the last date on which the election may be made, or

(b) 21 April 2010,

whichever is later.

Alternative finance investment bonds

123

Schedule 61 contains provision about the taxation of chargeable gains, stamp duty land tax and capital allowances for and in connection with arrangements to which section 564G of ITA 2007 or section 151N of TCGA 1992 (investment bond arrangements) applies.

Mutual societies: tax consequences of transfers of business etc

124

(1) The Treasury may by regulations make provision for and in connection with—

(a) the tax consequences of a transfer of all or part of the business or engagements of a mutual society,

(b) the tax consequences of an amalgamation of mutual societies, and

(2) “Mutual society” means—

(a) a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986,

(b) a friendly society within the meaning of the Friendly Societies Act 1992, or

(3) Regulations under this section may, in particular, make provision about—

(a) relief from tax in respect of losses,

(b) capital allowances,

(d) the treatment of intangible fixed assets and goodwill,

(e) the treatment of loan relationships (and matters treated as loan relationships),

(f) the treatment of derivative contracts (and contracts treated as derivative contracts),

(g) exemption or other relief from stamp duty, stamp duty reserve tax or stamp duty land tax, and

(h) the treatment of arrangements the purpose, or one of the main purposes, of which is to secure a tax advantage.

(4) Regulations under this section may, in particular—

(a) modify enactments and instruments relating to tax (whenever passed or made),

(b) make different provision for different cases or different purposes, and

(c) make incidental, consequential or transitional provision (including provision modifying enactments and instruments, whenever passed or made).

(5) Regulations under this section may include provision having effect in relation to any time before they are made if the provision does not increase any person's liability to tax.

(6) Regulations under this section are to be made by statutory instrument.

(7) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.

(8) In this section—

“arrangements” includes any arrangements, scheme or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;

“company” means a company formed and registered under the Companies Act 2006 (or treated as formed and registered under that Act);

“derivative contract” has the same meaning as in Part 7 of CTA 2009 (see section 576 of that Act);

“goodwill” and “intangible fixed asset” have the same meaning as in Part 8 of CTA 2009 (see sections 713 and 715 of that Act);

“loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);

“modify” includes amend, repeal or revoke;

“tax” includes stamp duty;

“tax advantage” means—a relief from tax (including a tax credit) or increased relief from tax,a repayment of tax or increased repayment of tax,the avoidance, reduction or delay of a charge to tax or an assessment to tax, orthe avoidance of a possible assessment to tax.

National Savings ordinary accounts: surplus funds

125

(1) As soon as practicable after the passing of this Act—

(a) the Director of Savings and the Commissioners must prepare a statement showing the relevant surplus, and

(b) the Commissioners must pay the relevant surplus into the Consolidated Fund.

(2) The relevant surplus is the amount held by the Commissioners by virtue of section 17 of the 1971 Act (including any such amount held in investments), less the aggregate of—

(a) such sums as the Treasury may determine to be equal to those expended by the Director of Savings in connection with ordinary accounts,

(b) such sums as are necessary to defray the expenses incurred by the Commissioners in connection with ordinary accounts, and

(3) The Commissioners—

(a) must pay into the Consolidated Fund the sums determined in accordance with subsection (2)(a), and

(b) may retain the sums determined in accordance with subsection (2)(b).

(4) As soon as practicable after preparing a statement under subsection (1), the Director of Savings and the Commissioners must transmit the statement to the Comptroller and Auditor General who must—

(a) examine, certify and make a report on it, and

(b) lay copies of the statement, together with copies of that report, before Parliament.

(5) The Treasury may by order repeal or otherwise amend any enactment if the repeal or amendment appears to the Treasury to be necessary or expedient in consequence of—

(a) the closure of ordinary accounts and the transfer of their balances to other accounts (see, in particular, regulations 2B to 2BB of the National Savings Bank Regulations 1972 (S.I. 1972/764)), or

(b) this section.

(6) An order under subsection (5) is to be made by statutory instrument.

(7) No order may be made under subsection (5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

(8) In this section—

(a) a reference to sums expended or expenses incurred in connection with ordinary accounts includes a reference to sums expended or expenses incurred in connection with the holding of amounts by virtue of section 17 of the 1971 Act (including their holding in investments), and

(b) expressions used in this section and in the 1971 Act have the same meaning in this section as in that Act.

(9) In this section—

“the 1971 Act” means the National Savings Bank Act 1971;

“enactment” includes—an enactment contained in the 1971 Act, andsubordinate legislation (which has the same meaning as in the Interpretation Act 1978).

Part 9 — Final provisions

Interpretation

126

(1) In this Act—

“ALDA 1979” means the Alcoholic Liquor Duties Act 1979,

“BGDA 1981” means the Betting and Gaming Duties Act 1981,

“CAA 2001” means the Capital Allowances Act 2001,

“CRCA 2005” means the Commissioners for Revenue and Customs Act 2005,

“CTA 2009” means the Corporation Tax Act 2009,

“CTA 2010” means the Corporation Tax Act 2010,

“FISMA 2000” means the Financial Services and Markets Act 2000,

“HODA 1979” means the Hydrocarbon Oil Duties Act 1979,

“ICTA” means the Income and Corporation Taxes Act 1988,

“IHTA 1984” means the Inheritance Tax Act 1984,

“ITA 2007” means the Income Tax Act 2007,

“ITEPA 2003” means the Income Tax (Earnings and Pensions) Act 2003,

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005,

“OTA 1975” means the Oil Taxation Act 1975,

“OTA 1983” means the Oil Taxation Act 1983,

“PRTA 1980” means the Petroleum Revenue Tax Act 1980,

“TCGA 1992” means the Taxation of Chargeable Gains Act 1992,

“TIOPA 2010” means the Taxation (International and Other Provisions) Act 2010,

“TMA 1970” means the Taxes Management Act 1970,

“TPDA 1979” means the Tobacco Products Duty Act 1979,

“VATA 1994” means the Value Added Tax Act 1994, and

“VERA 1994” means the Vehicle Excise and Registration Act 1994.

(2) In this Act—

“FA”, followed by a year, means the Finance Act of that year, and

“F(No.2)A”, followed by a year, means the Finance (No.2) Act of that year.

(3) In the tables in Part 1 of Schedule 1 to CAA 2001, Part 1 of Schedule 1 to ITEPA 2003 and Part 1 of Schedule 4 to ITTOIA 2005, at the beginning insert—

FA followed by a year	The Finance Act of that year
F(No.2)A followed by a year	The Finance (No.2) Act of that year.

(4) Omit all of the entries in those tables relating to a Finance Act or a Finance (No.2) Act.

(5) In the following provisions, for “the Finance Act” substitute “ FA ”

(a) in CAA 2001, sections 70G(5), 70H(3) (in both places), 70O(4)(b), 105(2A), 186(3) and (5) (as amended by paragraph 5 of Schedule 27 to FA 2008), 257(2)(a), 360B(2)(a) and 360C(2)(b) and paragraph 105(2) of Schedule 3, and

(b) in ITEPA 2003, sections 420(1)(h) and 702(5B), paragraph 78(2)(b) of Schedule 2 and paragraph 54 of Schedule 7.

(6) Accordingly, omit—

(a) in FA 2004, in Schedule 35, paragraphs 49 and 65(2),

(b) in F(No.2)A 2005, section 10(7),

(d) in FA 2008, in Schedule 25, paragraph 6.

Short title

127

This Act may be cited as the Finance Act 2009.

SCHEDULE 1

Introduction

1

Chapter 1 of Part 7 of ICTA (income tax: personal reliefs) is amended as follows.

Abolition of reliefs

2

Omit—

(a) section 256 (general),

(b) section 256A (“adjusted net income”),

(d) section 257 (personal allowance),

(e) sections 257A to 257BB (married couple's allowance etc),

(f) section 257C (indexation),

(g) section 265 (blind person's allowance),

(h) section 273 (payments securing annuities), and

(i) section 278 (non-residents).

Consequential amendments

3

(1) Section 266 (life assurance premiums) is amended as follows.

(2) In subsection (1)—

(a) for “individual” substitute “ eligible individual ”, and

(b) omit “or makes a payment falling within subsection (7) below”.

(3) After that subsection insert—

(1A) For the purposes of subsection (1) above an individual is an eligible individual if the individual— (a) is resident in the United Kingdom, or (b) meets the conditions in section 56(3) of ITA 2007.

(4) In subsection (3), omit “(7),”.

(5) In subsection (4), for “subsections (7) and” substitute “ subsection ”.

(6) Omit subsection (7).

(7) In subsection (8), for “and is entitled to relief by virtue of section 278(2) or (2ZA)” substitute “ (but is entitled to relief by virtue of subsection (1A)(b)) ”.

4

(1) Section 274 (limits on relief under sections 266 and 273) is amended as follows.

(2) In subsection (1), omit “or other sums”.

(3) In subsection (2)—

(a) for “sections 266 and 273” substitute “ section 266 ”, and

(b) omit “or sums”, and

(4) Omit subsection (3).

(5) In subsection (4), omit “or other sum” (in both places).

(6) In the heading, for “sections 266 and 273” substitute “ section 266 ”.

5

In paragraph 6(1) of Schedule 14 (provisions ancillary to section 266), omit “, otherwise than in accordance with subsection (7) of that section,”.

Repeals

6

Omit—

(a) in TMA 1970—

(i) in section 36(3A), “section 257BA of the principal Act or”,

(ii) in section 37A, “section 257BB or 265 of the principal Act or”, and

(iii) in section 43A(2A)(a), “section 257BA of the principal Act or”,

(b) in FA 1988, section 33 and, in Schedule 3, paragraphs 8 and 10,

(d) in F(No.2)A 1992, in Schedule 5, paragraphs 2, 8(4) and 9(3),

(e) in FA 1993, section 107(3)(a),

(f) in FA 1994, section 77(1) and (2),

(g) in FA 1996, in Schedule 20, paragraph 14(3) and, in Schedule 21, paragraphs 4 to 6,

(h) in FA 1997, section 56(2),

(i) in FA 1998, section 27(1)(a) and, in Schedule 3, paragraph 10,

(j) in FA 1999, sections 25(3), 31 and 32,

(k) in FA 2000, section 39(8) and (9),

(l) in ITEPA 2003, in Schedule 6, paragraph 35,

(m) in FA 2004, in Schedule 35, paragraph 12,

(n) in ITTOIA 2005, in Schedule 1, paragraph 124,

(o) in ITA 2007—

(i) in section 23, in Step 3, “or section 257 or 265 of ICTA”,

(ii) in sections 26(1)(a) and 27(5), “or section 257A, 257AB, 257BA or 257BB of ICTA”,

(iii) in section 423(5), “or section 257 or 265 of ICTA”, “or section 257A, 257AB, 257BA or 257BB of ICTA”, “or section 266(7) of ICTA” and “or section 273 of ICTA”,

(iv) in section 811, in subsection (5), “or section 278(2) of ICTA” and, in subsection (6), “or section 257 or 265 of ICTA”, “or section 257A, 257AB, 257BA or 257BB of ICTA” and “or section 273 of ICTA”,

(v) in section 833(5), “or section 278 of ICTA”,

(vi) in Schedule 1, paragraphs 27 to 35, 36(5) and (6), 37 and 232(2), and

(vii) in Schedule 2, Part 4,

(p) in FA 2008—

(i) in section 2(1) and (2), paragraph (b) and the “and” before it,

(ii) in section 3, in subsection (1), “and section 257(2) of ICTA” and “and section 257(3) of ICTA” and, in subsection (2), paragraph (b) and the “and” before it, and

(iii) in Schedule 39, paragraphs 18 to 20, and

(q) in this Act, in section 3(1) and (2), paragraph (b) and the “and” before it.

Commencement

7

The amendments made by this Schedule have effect for the tax year 2010-11 and subsequent tax years.

SCHEDULE 2

Part 1 — Amendments of ITA 2007

1

ITA 2007 is amended as follows.

2

(1) Section 6 (rates of income tax) is amended as follows.

(2) In subsection (2), for “and higher rate” substitute “ , higher rate and additional rate ”.

(3) In the heading, for “and higher rate” substitute “ , higher rate and additional rate ”.

3

(1) Section 8 (dividend ordinary rate and dividend upper rate) is amended as follows.

(2) Insert at the end—

(3) The dividend additional rate is 42.5%.

(3) In the heading, for “and dividend upper rate” substitute “ , dividend upper rate and dividend additional rate ”.

4

(1) Section 10 (income charged at basic and higher rates: individuals) is amended as follows.

(2) In subsection (3), insert at the end “and up to the higher rate limit.”

(3) After that subsection insert—

(3A) Income tax is charged at the additional rate on an individual's income above the higher rate limit.

(4) After subsection (5) insert—

(5A) The higher rate limit is £150,000.

(5) In subsection (6), for “is” substitute “ and higher rate limit are ”.

(6) In the heading, for “and higher” substitute “ , higher and additional ”.

5

(1) Section 13 (income charged at dividend ordinary and dividend upper rates: individuals) is amended as follows.

(2) After subsection (2) insert—

(2A) Income tax is charged at the dividend additional rate on an individual's income which— (a) is dividend income, (b) would otherwise be charged at the additional rate, and (c) is not relevant foreign income charged in accordance with section 832 of ITTOIA 2005.

(3) In subsection (3), for “and (2)” substitute “ to (2A) ”.

(4) In subsection (4), for “or higher” substitute “ , higher or additional ”.

(5) In the heading, for “and dividend upper” substitute “ , dividend upper and dividend additional ”.

6

In section 414(2)(b) (relief for gifts to charity), after “limit” insert “ and the higher rate limit ”.

7

In section 515(a) (rate of tax in respect of heritage maintenance settlements), for “higher rate” substitute “ additional rate ”.

8

(1) Section 989 (definitions) is amended as follows.

(2) After the definition of “Act” insert—

“additional rate” means the rate of income tax determined in pursuance of section 6(2),

(3) After the definition of “distribution” insert—

“dividend additional rate” means the rate of income tax specified in section 8(3),

(4) After the definition of “higher rate” insert—

“higher rate limit” has the meaning given by section 10,

9

(1) Schedule 4 (index of defined expressions) is amended as follows.

(2) After the entry relating to “Act” insert—

additional rate	section 6(2) (as applied by section 989).

(3) In the entry relating to “basic rate limit”, for “20(2)” substitute “ 10 ”.

(4) After the entry relating to “dividends (in Chapter 1 of Part 13)” insert—

dividend additional rate	section 8(3) (as applied by section 989).

(5) After the entry relating to “higher rate” insert—

higher rate limit	section 10 (as applied by section 989).

Part 2 — Amendments of other Acts

FA 2004

10

Part 4 of FA 2004 (pension schemes etc) is amended as follows.

11

In section 192 (relief for pension contributions at source), for subsection (4) substitute—

(4) If (apart from this section) income tax at the higher rate or the additional rate is chargeable in respect of any part of the individual's total income for the tax year, on the making of a claim the basic rate limit and the higher rate limit for the tax year in the individual's case are increased by the amount of the contribution.

12

In section 208 (unauthorised payments charge), for subsection (6) substitute—

(6) The Treasury may by order amend subsection (5) so as to vary the rate of the unauthorised payments charge. (6A) An order under subsection (6) may make provision for there to be different rates in different circumstances.

13

In section 209 (unauthorised payments surcharge), for subsection (7) substitute—

(7) The Treasury may by order amend subsection (6) so as to vary the rate of the unauthorised payments surcharge. (8) An order under subsection (7) may make provision for there to be different rates in different circumstances.

14

In section 215 (amount of lifetime allowance charge), after subsection (2) insert—

(2A) The Treasury may by order amend subsection (2) so as to vary the rates of the lifetime allowance charge. (2B) An order under subsection (2A) may make provision for there to be different rates in different circumstances.

15

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

16

In section 240 (amount of scheme sanction charge), after subsection (3) insert—

(3A) The Treasury— (a) may by order amend subsection (1) so as to vary the rate of the scheme sanction charge, and (b) may by order amend subsection (3)(a) so as to vary the percentage mentioned there. (3B) An order under subsection (3A) may make provision for there to be different rates or percentages in different circumstances.

17

In section 242 (de-registration charge), insert at the end—

(5) The Treasury may by order amend subsection (4) so as to vary the rate of the de-registration charge. (6) An order under subsection (5) may make provision for there to be different rates in different circumstances.

18

(1) Section 282 (orders and regulations) is amended as follows.

(2) After subsection (1) insert—

(1A) No order may be made under section 208(6), 209(7), 215(2A), 227(5A), 240(3A) or 242(5) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.

(3) In subsection (2), after “Part” insert “ , if made without a draft having been approved by a resolution of the House of Commons, ”.

ITTOIA 2005

19

ITTOIA 2005 is amended as follows.

20

In section 640(6)(b) (grossing-up of deemed income)—

(a) omit the “and” at the end of sub-paragraph (i), and

(b) insert at the end

up to and including the year 2009-2010, and (iii) 50%, if the relevant tax year is the year 2010-2011 or any subsequent tax year.

21

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

22

In section 685A(3) (settlor-interested settlements), for “higher rate” substitute “ additional rate ”.

23

(1) Part 2 of Schedule 4 (index of defined expressions) is amended as follows.

(2) After the entry relating to “acquisition expenditure (in Chapter 9 of Part 2)” insert—

additional rate	section 6(2) of ITA 2007 (as applied by section 989 of that Act).

(3) After the entry relating to “distribution” insert—

the dividend additional rate	section 8(3) of ITA 2007 (as applied by section 989 of that Act).

F(No.2)A 2005

24

In section 7(5) of F(No.2)A 2005 (charge to income tax on social security pension lump sum)—

(a) in paragraph (d), after “basic rate limit for that year” insert “ but does not exceed the higher rate limit for that year ”, and

(b) after that paragraph insert—

(e) if P's Step 3 income for that year of assessment exceeds the higher rate limit for that year, the additional rate for that year.

Part 3 — Commencement

25

(1) The powers conferred by the amendments made by this Schedule may be exercised at any time on or after the day on which this Act is passed but not so as to make provision having effect before the tax year 2010-11.

(2) Subject to that, the amendments made by this Schedule have effect for the tax year 2010-11 and subsequent tax years.

SCHEDULE 3

Part 1 — Supplementary charge to VAT

The charge

1

(1) There is a supplementary charge on a supply of goods or services that is treated as taking place on or after 25 November 2008 if—

(a) the supply spans the date of the VAT change,

(b) it is subject to VAT at the rate in force under section 2 of VATA 1994,

(c) the person to whom the supply is made is not entitled under VATA 1994 to credit for, or the repayment or refund of, all of the VAT on the supply, and

(d) a relevant condition is met.

(2) In this Schedule “the date of the VAT change” means 1 January 2010.

(3) For the cases in which a supply, other than the grant of a right to goods or services, spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 2.

(4) For the cases in which a supply consisting of the grant of a right to goods or services spans the date of the VAT change and the relevant conditions in relation to such a supply, see paragraph 3.

(5) Sub-paragraph (1) has effect subject to the exceptions made by or under Part 2 of this Schedule.

(6) In this Schedule—

Part 3 contains provision about liability for, and the amount of, a supplementary charge under this Schedule,

Part 4 contains special provision about listed supplies, and

Part 5 contains provision about administration and interpretation.

(7) A supplementary charge under this Schedule is to be treated for all purposes as if it were value added tax charged in accordance with VATA 1994.

Supply spanning the date of the VAT change

2

(1) For the purposes of this Schedule a supply of goods or services spans the date of the VAT change where—

(a) by virtue of the issue of a VAT invoice or the receipt of a payment by the person making the supply (“the supplier”), the supply is treated as taking place before the date of the VAT change, but

(b) the basic time of supply (see paragraph 4) is on or after the date of the VAT change.

(2) The relevant conditions are—

(a) in relation to a supply that is within sub-paragraph (1)(a) by virtue of the issue of a VAT invoice, conditions A to D, and

(b) in relation to a supply that is within sub-paragraph (1)(a) by virtue of the receipt of a payment, conditions A to C.

(3) Condition A is that the supplier and the person to whom the supply is made are connected with each other at any time in the period—

(a) beginning with the day on which the supply is treated as taking place, and

(b) ending on the date of the VAT change.

(4) Paragraph 5 modifies condition A in cases involving a series of supplies.

(5) Condition B is that the aggregate of the following is more than £100,000—

(a) the relevant consideration for the supply, and

(b) the relevant consideration for every related supply of goods or services (including every related grant of a right to goods or services) that spans the date of the VAT change (see paragraph 6).

(6) Condition C is that a prepayment in respect of the supply is financed by the supplier or a person connected with the supplier (see paragraph 7).

(7) In sub-paragraph (6) “prepayment”, in respect of a supply, means a payment that is received by the supplier before the basic time of supply.

(8) Condition D is that full payment of the amount shown on the VAT invoice referred to in sub-paragraph (1)(a) is not due before the end of the period of 6 months beginning with the date on which the invoice is issued.

(9) This paragraph does not apply in relation to a supply consisting of the grant of a right to goods or services (see paragraph 3).

Grant of right spanning the date of the VAT change

3

(1) For the purposes of this Schedule a supply consisting of the grant by a person (“the grantor”) of a right to goods or services spans the date of the VAT change where—

(a) that supply is treated as taking place before the date of the VAT change,

(b) the goods or services are to be supplied at a discount or free of charge, and

(c) the basic time of supply for the supply of some or all of the goods or services (see paragraph 4) is on or after the date of the VAT change.

(2) In relation to the grant of the right, the relevant conditions are conditions A to C.

(3) Condition A is that the grantor and the person to whom the right is granted are connected with each other at any time in the period—

(a) beginning with the day on which the supply consisting of the grant of the right is treated as taking place, and

(b) ending on the date of the VAT change or, if the right is exercised (entirely or partly) on a later date, that date (or, if more than one, the first of those dates).

(4) Paragraph 5 modifies condition A in cases involving a series of supplies.

(5) Condition B is that the aggregate of the following is more than £100,000—

(a) the relevant consideration for the grant of the right, and

(b) the relevant consideration for every related supply of goods or services (including every related grant of a right to goods or services) that spans the date of the VAT change (see paragraph 6).

(6) Condition C is that the payment made in respect of the grant of the right is financed by the grantor or a person connected with the grantor (see paragraph 7).

(7) In this Schedule references to a right to goods or services include—

(a) any right or option with respect to such goods or services, and

(b) any interest deriving from such a right or option.

“Basic time of supply”

4

(1) In this Schedule the “basic time of supply” is the time given by subsection (2) or (3) of section 6 of VATA 1994 (disregarding subsections (4) to (14) of that section).

(2) Sub-paragraph (1) does not apply in relation to listed supplies (see Part 4 of this Schedule).

Series of supplies

5

(1) This paragraph applies where—

(a) the supply or grant of a right referred to in paragraph 2 or 3 (“the affected supply or grant”) is one of a series of supplies of, or grants of a right to, the same or substantially the same goods or services, and

(b) each of the supplies, and the grants of a right, in the series was or will be made in the expectation that the affected supply or grant would or will take place.

(2) In condition A in paragraphs 2 and 3 the references to the supplier and the grantor include any person who makes one of the supplies or grants one of the rights in the series.

6

(1) This paragraph applies for the purposes of condition B in paragraphs 2 and 3.

(2) “Relevant consideration” means—

(a) in relation to a supply that is within paragraph 2(1) by virtue of the issue of a VAT invoice, the amount shown on that invoice,

(b) in relation to a supply that is within paragraph 2(1) by virtue of the receipt of a payment, the amount of that payment, and

(c) in relation to a grant of a right to goods or services within paragraph 3(1), the consideration for the grant of the right,

but does not include any amount in respect of VAT.

(3) A supply within paragraph 2(1), or a grant of a right within paragraph 3(1), is related to another such supply or grant if they are both made as part of the same scheme.

(4) “Scheme” includes any arrangements, transaction or series of transactions.

Financing

7

(1) This paragraph applies for the purposes of condition C in paragraphs 2 and 3.

(2) A payment is financed by a person if, directly or indirectly, the person—

(a) provides funds to enable the person to whom the supply is made to make the whole or part of the payment (whether the funds are provided before or after the payment is made),

(b) procures the provision of such funds by another person,

(c) provides funds for discharging (in whole or in part) any liability that has been or may be incurred by any person for or in connection with raising funds to enable the person to whom the supply is made to make the payment, or

(d) procures that any such liability is or will be discharged (in whole or in part) by another person.

(3) In sub-paragraph (2) the references to providing funds for a purpose are to—

(a) making a loan of funds that are or are to be used for that purpose,

(b) providing a guarantee or other security in relation to such a loan,

(d) providing consideration for the acquisition by any person of any such shares or securities, or

(e) any other transfer of assets or value as a consequence of which any of those funds are made available for that purpose.

Connected persons

8

Section 1122 of CTA 2010 (connected persons) applies for the purposes of this Schedule.

Receipt of payments

9

In this Schedule a reference to receipt of a payment by the person making a supply or granting a right (however expressed) includes a reference to receipt by a person to whom a right to receive it has been assigned.

Power to change relevant conditions

10

(1) The Treasury may by order amend this Part of this Schedule by adding, modifying or omitting relevant conditions.

(2) An order under this paragraph—

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

(b) may make incidental or consequential amendments of this Schedule.

Supplies treated as taking place before 31 March 2009

11

In relation to supplies treated as taking place before 31 March 2009, this Schedule has effect as if—

(a) paragraphs 2(5), 3(5) and 6 (condition B) and all references to condition B were omitted,

(b) in paragraph 2(6) (condition C), the words “or a person connected with the supplier” were omitted, and

Part 2 — Exceptions

Letting etc of assets

12

(1) This paragraph applies in relation to a supply within paragraph 2 which arises from the letting, hiring or rental of assets.

(2) There is no supplementary charge under this Schedule if—

(a) the period to which the VAT invoice or payment referred to in paragraph 2(1) relates does not exceed 12 months, and

(b) the VAT invoice is issued, or the payment is received, in accordance with normal commercial practice in relation to the letting, hiring or rental of such assets.

Condition B cases involving normal commercial practice

13

There is no supplementary charge under this Schedule on a supply of goods or services within paragraph 2 or a grant of a right to goods or services within paragraph 3 if—

(a) the only relevant condition met is condition B, and

(b) the supply is made, or the right is granted, in accordance with normal commercial practice in relation to the supply of, or the grant of a right to, such goods or services.

Normal commercial practice

14

In this Part of this Schedule “normal commercial practice” means normal commercial practice at a time when an increase in the rate of VAT in force under section 2 of VATA 1994 is not expected.

Further exceptions

15

(1) The Treasury may by order provide that there is no supplementary charge under this Schedule on supplies (including grants of rights to goods or services) of a description specified in the order.

(2) An order under this paragraph may make provision having effect in relation to supplies of goods or services that are treated as taking place on or after 25 November 2008 or a later date.

Part 3 — Liability and amount

Liability

16

(1) A supplementary charge under this Schedule on a supply within paragraph 2—

(a) is a liability of the supplier (subject to sub-paragraph (3)), and

(b) becomes due on the date of the VAT change (rather than at the time of supply).

(2) A supplementary charge under this Schedule on a supply consisting of the grant of a right to goods or services within paragraph 3—

(a) is a liability of the grantor (subject to sub-paragraph (3)), and

(b) becomes due on the first occasion on or after the date of the VAT change on which the right is exercised (rather than at the time the right is granted).

(3) If, on the date on which the supplementary charge becomes due, the person who would be liable to pay the charge under sub-paragraph (1) or (2)—

(a) is not a taxable person, but

(b) is treated as a member of a group under sections 43A to 43D of VATA 1994,

the supplementary charge is a liability of the representative member of the group.

Amount

17

(1) The amount of the supplementary charge on a supply within paragraph 2 is equal to the difference between—

(a) the amount of VAT chargeable on the supply apart from this Schedule, and

(b) the amount of VAT that would be chargeable on the supply if it were subject to VAT at the rate of 17.5%.

(2) The amount of the supplementary charge on a grant of a right to goods or services within paragraph 3 is equal to the difference between—

(a) the amount of VAT chargeable on the grant of the right apart from this Schedule, and

(b) the amount of VAT that would be chargeable on the grant of the right if it were subject to VAT at the rate of 17.5%,

(but see sub-paragraph (3)).

(3) If the basic time of supply for some of those goods and services is before the date of the VAT change, sub-paragraph (2) has effect as if the references to the amount of VAT chargeable and to the amount of VAT that would be chargeable were references to the relevant proportion of each of those amounts.

(4) “The relevant proportion” is—

$$PW$where—P is so much of the consideration for the grant of the right as is attributable on a just and reasonable basis to a right to the goods and services for which the basic time of supply is on or after the date of the VAT change, andW is the whole of the consideration for the grant of the right.$

Part 4 — Listed supplies

“Listed supply”

18

(1) In this Schedule “listed supply” means a supply falling within sub-paragraph (2)—

(a) which is made for a consideration the whole or part of which is determined or payable periodically or from time to time, and

(b) which is treated as taking place by virtue of the issue of a VAT invoice or the receipt of a payment by the person making the supply.

(2) The following supplies fall within this sub-paragraph—

(a) a supply of services,

(b) a supply arising from the grant of a major interest in land,

(i) distilled water, deionised water or water of similar purity, or

(ii) bottled water,

(d) a supply of—

(i) coal gas, water gas, producer gases or similar gases, or

(ii) petroleum gases, or other gaseous hydrocarbons, in a gaseous state,

(e) a supply of power, heat, refrigeration or ventilation, and

(f) a supply of goods together with services in the course of the construction, alteration, demolition, repair or maintenance of a building or civil engineering work.

(3) The Treasury may by order amend sub-paragraph (2) by—

(a) adding or omitting any description of supply, or

(b) varying any description of supply for the time being listed in that sub-paragraph.

“Basic time of supply”: listed supplies

19

(1) For the purposes of this Schedule, in relation to a listed supply, “the basic time of supply” is the end of the period to which the VAT invoice or payment mentioned in paragraph 18(1) relates, except as provided in sub-paragraphs (2) and (4).

(2) Where the person making the supply issues an invoice—

(a) in respect of part of the listed supply to which the VAT invoice or payment mentioned in paragraph 18(1) relates, and

(b) for a period (a “billing period”) ending before the end of the period to which that VAT invoice or payment relates,

“the basic time of supply”, in relation to that part of the supply, is the end of the billing period.

(3) For the purposes of sub-paragraph (2) the listed supply (and the consideration for the supply) must be apportioned between periods on a just and reasonable basis.

(4) Where a listed supply is treated as taking place by virtue of—

(a) the issue by the person making the supply of a VAT invoice relating to a premium for the grant of a tenancy or lease, or

(b) the receipt by the person making the supply of such a premium,

“the basic time of supply” is the date of the grant of the tenancy or lease.

Part 5 — Administration and interpretation

Person ceasing to be taxable person before supplementary charge due

20

(1) This paragraph applies if, on the date on which a supplementary charge under this Schedule becomes due (“the due date”), the person who is liable to pay the charge under paragraph 16 is not a taxable person.

(2) The supplementary charge must be accounted for by that person in accordance with VATA 1994 (and regulations made under that Act) as if it were VAT due in the last period for which the person was required to make a return by or under VATA 1994.

(3) If an amount assessed as due by way of supplementary charge under this Schedule would (in the absence of this sub-paragraph) carry interest from a date earlier than the due date, it is to be treated as only carrying interest from the due date.

Adjustment of contracts following the VAT change

21

(1) This paragraph applies where—

(a) a contract for the supply of goods or services is made before the date of the VAT change, and

(b) there is a supplementary charge under this Schedule on the supply.

(2) The consideration for the supply is to be increased by an amount equal to the supplementary charge, unless the contract provides otherwise.

Invoices

22

Regulations under paragraph 2A of Schedule 11 to VATA 1994 (VAT invoices) may make provision about the provision, replacement or correction of invoices in connection with a supplementary charge under this Schedule.

Orders under this Schedule

23

(1) An order under this Schedule is to be made by statutory instrument.

(2) A statutory instrument containing an order under this Schedule is subject to annulment in pursuance of a resolution of the House of Commons, unless it is an instrument to which sub-paragraph (4) applies.

(3) Sub-paragraph (4) applies to a statutory instrument containing an order made under paragraph 10 (or under that paragraph and under other provisions) which extends the supplies that are subject to a supplementary charge under this Schedule.

(4) An instrument to which this sub-paragraph applies—

(a) must be laid before the House of Commons, and

(b) ceases to have effect at the end of the period of 28 days beginning with the day on which it was made unless it is approved during that period by a resolution of the House of Commons.

(5) In reckoning the period of 28 days no account is to be taken of any time during which Parliament is dissolved or prorogued or during which the House of Commons is adjourned for more than 4 days.

(6) The order ceasing to have effect does not affect—

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