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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

(2) For the purposes of this paragraph—

(a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside the person's control,

(b) where the person relies on any other person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure, and

(c) where the person had a reasonable excuse for the failure but the excuse has ceased, the person is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Assessment of penalties

9

(1) Where a senior accounting officer or a qualifying company becomes liable for a penalty under this Schedule—

(a) HMRC may assess the penalty, and

(b) if they do so, they must notify the officer or company liable for the penalty.

(2) An assessment of a penalty under this Schedule for a failure in respect of a financial year, or an inaccuracy in a certificate for a financial year, may not be made—

(a) more than 6 months after the failure or inaccuracy first comes to the attention of an officer of Revenue and Customs, or

(b) more than 6 years after the end of the period for filing the company's accounts for the financial year.

(3) HMRC may not assess a person who is the senior accounting officer of a company (“C”) as liable to a penalty under paragraph 4 or 5 for a financial year (“the relevant financial year”) if—

(a) at any time in the relevant financial year the person was the senior accounting officer of another company that was a member of the same group as C, and

(b) HMRC has assessed the person as liable, as the senior accounting officer of the other company, to a penalty under that paragraph for a financial year that ends on a day in the relevant financial year.

(4) HMRC may not assess a company (“C”) as liable to a penalty under paragraph 7 for a financial year (“the relevant financial year”) if—

(a) C was a member of a group at the end of that year, and

(b) HMRC has assessed another company that was a member of the same group as C at that time as liable to a penalty under that paragraph—

(i) for its financial year ending on the same day as the relevant financial year, or

(ii) if its financial year does not end on that day, for its financial year ending last before that day.

Appeal

10

(1) A person may appeal against a decision of HMRC that a penalty is payable by that person.

(2) Notice of an appeal must be given—

(a) in writing,

(b) before the end of the period of 30 days beginning with the date on which the notification under paragraph 9 was issued, and

(3) Notice of an appeal must state the grounds of appeal.

(4) On an appeal that is notified to the tribunal, the tribunal may confirm or cancel the decision.

(5) Subject to this paragraph and paragraph 11, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to appeals under this Schedule as they have effect in relation to an appeal against an assessment to income tax.

Enforcement of penalties

11

(1) A penalty under this Schedule must be paid—

(a) before the end of the period of 30 days beginning with the date on which the notification under paragraph 9 was issued, or

(b) if a notice of appeal against the penalty is given, before the end of the period of 30 days beginning with the date on which the appeal is determined or withdrawn.

(2) A penalty under this Schedule may be enforced as if it were income tax charged in an assessment and due and payable.

Power to change amount of penalties

12

(1) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums for the time being specified in paragraphs 4, 5 and 7 such other sums as appear to them to be justified by the change.

(2) In sub-paragraph (1), in relation to a specified sum, “relevant date” means—

(a) the date on which this Act is passed, and

(b) in relation to that sum, each date on which the power conferred by that sub-paragraph has been exercised.

(3) Regulations under this paragraph do not apply to—

(a) a failure that occurs in respect of a financial year of a company that begins before the date on which they come into force, or

(b) an inaccuracy in a certificate that was provided to HMRC in respect of such a financial year.

Application of provisions of TMA 1970

13

Subject to the provisions of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Schedule as they apply for the purposes of the Taxes Acts—

(a) section 108 (responsibility of company officers),

(b) section 114 (want of form), and

Meaning of “appropriate tax accounting arrangements”

14

(1) “Appropriate tax accounting arrangements” means accounting arrangements that enable the company's relevant liabilities to be calculated accurately in all material respects.

(2) “Accounting arrangements” includes arrangements for keeping accounting records.

(3) “Relevant liabilities”, in relation to a company, means liabilities in respect of—

(a) corporation tax (including any amount assessable or chargeable as if it were corporation tax),

(b) value added tax,

(d) insurance premium tax,

(e) stamp duty land tax,

(f) stamp duty reserve tax,

(g) petroleum revenue tax,

(h) customs duties, and

(i) excise duties.

Meaning of “qualifying company”

15

(1) A company is a qualifying company in relation to a financial year if the qualification test was satisfied in the previous financial year (subject to any regulations under sub-paragraph (8)).

(2) The qualification test is that the company satisfied either or both of the following requirements—

1. Relevant turnover	More than £200 million
2. Relevant balance sheet total	More than £2 billion.

(3) If the company was not a member of a group at the end of the previous financial year—

(a) “relevant turnover” means the company's turnover, and

(b) “relevant balance sheet total” means the company's balance sheet total.

(4) If the company was a member of a group at the end of the previous financial year—

(a) “relevant turnover” means the aggregate turnover of the company (“C”) and any other company that was a member of the same group as C at the end of C's previous financial year, and

(b) “relevant balance sheet total” means the aggregate balance sheet totals of C and any such company.

(5) If the financial year of a company that was a member of the same group as C does not end on the same day as C's previous financial year, the figures for that company that are to be included in the aggregate figures are the figures for that company's financial year ending last before the end of C's previous financial year.

(6) “Turnover”, in relation to a company, has the same meaning as in Part 15 of the Companies Act 2006 (see section 474 of that Act).

(7) “Balance sheet total”, in relation to a company and a financial year, means the aggregate of the amounts shown as assets in the company's balance sheet as at the end of the financial year.

(8) The Treasury may by regulations provide that a company of a description specified in the regulations is not a qualifying company for the purposes of this Schedule.

Meaning of “senior accounting officer”

16

(1) “Senior accounting officer”, in relation to a company that is not a member of a group, means the director or officer who, in the company's reasonable opinion, has overall responsibility for the company's financial accounting arrangements.

(2) “Senior accounting officer”, in relation to a company that is a member of a group, means the group director or officer who, in the company's reasonable opinion, has overall responsibility for the company's financial accounting arrangements.

(3) “Group director or officer”, in relation to a company, means a director or officer of the company or of a relevant body that is a member of the same group as the company.

(4) A person may be the senior accounting officer of more than one company.

Regulations

17

(1) Regulations under this Schedule are to be made by statutory instrument.

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

Other definitions

18

(1) In this Schedule—

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

“company” has the same meaning as in the Companies Acts (see section 1(1) of the Companies Act 2006) but does not include a company that is an open-ended investment company (within the meaning of section 613 of CTA 2010) or an investment trust (within the meaning of section 1158 of CTA 2010);

“financial year”, in relation to a company, has the same meaning as in the Companies Act 2006 (see section 390 of that Act);

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

“period for filing”, in relation to accounts, has the same meaning as in the Companies Acts (see section 442 of the Companies Act 2006);

“relevant body” means a company or other body corporate but does not include a limited liability partnership;

“tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

(2) For the purposes of this Schedule—

(a) a relevant body is a member of a group if—

(i) another relevant body is its 51 per cent subsidiary, or

(ii) it is a 51 per cent subsidiary of another relevant body, and

(b) two relevant bodies are members of the same group if—

(i) one is a 51 per cent subsidiary of the other, or

(ii) both are 51 per cent subsidiaries of a third relevant body.

(3) Chapter 3 of Part 24 of CTA 2010 (meaning of “51 per cent subsidiary”) applies for the purposes of this Schedule as it applies for the purposes of the Corporation Tax Acts (subject to the modification in sub-paragraph (4)).

(4) It applies as if references in that Chapter to a body corporate were to a relevant body.

SCHEDULE 47

1

Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.

2

(1) Paragraph 3 (approval etc of taxpayer notices and third party notices) is amended as follows.

(2) After sub-paragraph (2) insert—

(2A) An application for approval under this paragraph may be made without notice (except as required under sub-paragraph (3)).

(3) In sub-paragraph (3)(c), after “is” insert “ to be ”.

3

(1) Paragraph 5 (power to obtain information and documents about persons whose identity is not known) is amended as follows.

(2) After sub-paragraph (3) insert—

(3A) An application for approval under this paragraph may be made without notice.

(3) In sub-paragraph (4), for “give its approval for the purpose of” substitute “ approve the giving of a notice under ”.

4

In paragraph 6 (notices), insert at the end—

(4) A decision of the tribunal under paragraph 3, 4 or 5 is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

5

(1) Paragraph 10 (power to inspect business premises etc) is amended as follows.

(2) In sub-paragraph (3), in the definition of “business assets”, for “, excluding documents” substitute “ (but see sub-paragraph (4)) ”.

(3) After that sub-paragraph insert—

(4) For the purposes of this Schedule, “business assets” does not include documents, other than— (a) documents that are trading stock for the purposes of Chapter 11A of Part 2 of ITTOIA 2005 (see section 172A of that Act), and (b) documents that are plant for the purposes of Part 2 of CAA 2001.

6

(1) Paragraph 11 (power to inspect premises used in connection with taxable supplies etc) is amended as follows.

(2) In sub-paragraph (1)—

(a) in paragraph (a), after “supplied” insert “ or documents relating to such goods ”,

(b) in paragraph (b), after “acquired” insert “ or documents relating to such goods ”, and

(3) In sub-paragraph (2)(c), for “such goods” substitute “ the supply of goods under taxable supplies, the acquisition of goods from other member States under taxable acquisitions or fiscal warehousing ”.

(4) In sub-paragraph (4)—

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

(b) for “in that sub-paragraph” substitute “ here ”.

7

In paragraph 12(5) (carrying out inspections)—

(a) for “with the approval of” substitute “ in respect of an inspection approved by ”, and

(b) for “it is given with that approval” substitute “ the inspection has been so approved ”.

8

(1) Paragraph 13 (approval of inspections) is amended as follows.

(2) After sub-paragraph (1) insert—

(1A) An application for approval under this paragraph may be made without notice.

(3) Insert at the end—

(3) A decision of the tribunal under this paragraph is final (despite the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007).

9

(1) Paragraph 21 (taxpayer notices) is amended as follows.

(2) In sub-paragraph (6), after “that” (in the first place) insert “ , as regards the person, ”.

(3) In sub-paragraph (7), for “that” (in the third place) substitute “ the ”.

(4) In sub-paragraph (8)—

(a) after “repayments” insert “ of tax or withholding of income ”, and

(b) after “64(2)” insert “ or (2A) ”.

(5) After sub-paragraph (8) insert—

(9) In this paragraph references to the person who made the return are only to that person in the capacity in which the return was made.

10

(1) Paragraph 35 (special cases: groups of undertakings) is amended as follows.

(2) In sub-paragraph (2)—

(a) for “paragraph 2” substitute

— (a) paragraph 2(2)

, and

(b) insert at the end

, and (b) the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the parent undertaking.

(3) For sub-paragraph (4) substitute—

(4) Where a third party notice is given to the parent undertaking for the purpose of checking the tax position of more than one subsidiary undertaking— (a) paragraph 2(2) only requires the notice to state this, and (b) the references in paragraph 3(5) to naming the taxpayer are to making that statement. (4A) In relation to such a notice— (a) in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply, (b) paragraph 4(1) (copying third party notices to taxpayer) does not apply, (c) paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made return) applies as if the notice was a taxpayer notice or taxpayer notices given to each subsidiary undertaking (or, if the notice names the subsidiary undertakings to which it relates, to each of those undertakings), (d) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and (e) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to the parent undertaking or any of its subsidiary undertakings.

(4) In sub-paragraph (5), for the words after “the notice” substitute

— (a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and (b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the parent undertaking may not appeal against a requirement in the notice to produce any document that forms part of the statutory records of the parent undertaking or any of its subsidiary undertakings.

(5) Omit sub-paragraph (6).

11

(1) Paragraph 37 (special cases: partnerships) is amended as follows.

(2) For sub-paragraph (2) substitute—

(2) Where, in respect of a chargeable period, any of the partners has— (a) made a tax return under section 12AA of TMA 1970 (partnership returns), or (b) made a claim or election in accordance with section 42(6)(b) of TMA 1970 (partnership claims and elections), paragraph 21 (restrictions where taxpayer has made tax return) has effect as if that return, claim or election had been made by each of the partners.

(3) In sub-paragraph (3)—

(a) omit “to any person (other than one of the partners)”,

(b) for “paragraph 2” substitute

— (a) paragraph 2(2)

, and

, and (b) the references in paragraph 3(5) to naming the taxpayer are to making that statement and naming the partnership.

(4) In sub-paragraph (4)—

(a) after “notice” insert “ given to a person other than one of the partners ”, and

(b) in paragraph (b), for “each of the partners” substitute “ any of the partners in the partnership ”.

(5) For sub-paragraph (5) substitute—

(5) In relation to a third party notice given to one of the partners for the purpose of checking the tax position of one or more of the other partners (in their capacity as such)— (a) in paragraph 3 (approval etc of notices), sub-paragraphs (1) and (3)(e) do not apply, (b) paragraph 4(1) (copying third party notices to taxpayer) does not apply, (c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds, and (d) in paragraph 30(2) (no appeal in relation to taxpayer's statutory records), the reference to the taxpayer has effect as if it were a reference to any of the partners in the partnership.

(6) In sub-paragraph (6), for the words after “the notice” substitute

— (a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, the officer to obtain the approval of the tribunal, and (b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds, but the partner to whom the notice is given may not appeal against a requirement in the notice to produce any document that forms part of that partner's statutory records.

(7) Omit sub-paragraph (7).

12

After paragraph 37 insert—

(37A) (1) This paragraph applies to a taxpayer notice given to a person carrying on a trade in relation to which a herd basis election is made if the notice refers only to information or documents that relate to— (a) the animals kept for the purposes of the trade, or (b) the products of those animals. (2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice. (3) “Herd basis election” means an election under Chapter 8 of Part 2 of ITTOIA 2005 or Chapter 8 of Part 3 of CTA 2009. (37B) (1) This paragraph applies to a taxpayer notice given to a person if— (a) it appears to an officer of Revenue and Customs that a counteraction provision may apply to the person by reason of one or more transactions, and (b) the notice refers only to information or documents relating to the transaction (or, if there are two or more transactions, any of them). (2) Paragraph 21 (restrictions on giving taxpayer notice where taxpayer has made tax return) does not apply in relation to the notice. (3) “Counteraction provision” means— (a) section 703 of ICTA (company liable to counteraction of corporation tax advantage), or (b) section 684 of ITA 2007 (person liable to counteraction of income tax advantage).

13

(1) Paragraph 39 (standard penalties) is amended as follows.

(2) In sub-paragraph (2), for “A person to whom this paragraph applies” substitute “ The person ”.

(3) In the heading—

(a) omit “Standard”, and

(b) insert at the end “for failure to comply or obstruction”.

14

In the heading before paragraph 40 (daily default penalties), insert at the end “ ;for failure to comply or obstruction ”

15

After that paragraph insert—

(40A) (1) This paragraph applies if— (a) in complying with an information notice, a person provides inaccurate information or produces a document that contains an inaccuracy, and (b) condition A or B is met. (2) Condition A is that the inaccuracy is careless or deliberate. (3) An inaccuracy is careless if it is due to a failure by the person to take reasonable care. (4) Condition B is that the person— (a) discovers the inaccuracy some time later, and (b) fails to take reasonable steps to inform HMRC. (5) The person is liable to a penalty not exceeding £3,000. (6) Where the information or document contains more than one inaccuracy, a penalty is payable for each inaccuracy.

16

(1) Paragraph 41 (power to change amount of penalties) is amended as follows.

(2) In sub-paragraph (1), for “and 40(2)” substitute “ , 40(2) and 40A(5) ”.

(3) In sub-paragraph (2)—

(a) after “(1)” insert “ , in relation to a specified sum, ”, and

(b) in paragraph (b), insert at the end “in relation to that sum”.

(4) In sub-paragraph (3)—

(a) after “to” insert

— (a)

, and

(b) insert at the end

, or (b) an inaccuracy in any information or document provided to HMRC before that date.

(5) Accordingly, in the heading omit “standard and daily default”.

17

(1) Paragraph 46 (assessment of penalty) is amended as follows.

(2) In sub-paragraph (1)—

(a) for “or 40” substitute “ , 40 or 40A ”,

(b) omit “HMRC may”,

(d) at the beginning of paragraph (b), insert “ if they do so, they must ”.

(3) In sub-paragraph (2), for “within 12 months of the relevant date” substitute “ within the period of 12 months beginning with the date on which the person became liable to the penalty, subject to sub-paragraph (3) ”.

(4) For sub-paragraph (3) substitute—

(3) In a case involving an information notice against which a person may appeal, an assessment of a penalty under paragraph 39 or 40 must be made within the period of 12 months beginning with the latest of the following— (a) the date on which the person became liable to the penalty, (b) the end of the period in which notice of an appeal against the information notice could have been given, and (c) if notice of such an appeal is given, the date on which the appeal is determined or withdrawn. (4) An assessment of a penalty under paragraph 40A must be made— (a) within the period of 12 months beginning with the date on which the inaccuracy first came to the attention of an officer of Revenue and Customs, and (b) within the period of 6 years beginning with the date on which the person became liable to the penalty.

(5) Accordingly, in the heading omit “standard penalty or daily default”.

18

(1) Paragraph 47 (right to appeal) is amended as follows.

(2) In paragraph (a), for “or 40” substitute “ , 40 or 40A ”.

(3) Accordingly, in the heading, omit “standard penalty or daily default”.

19

In the heading before paragraph 48 (procedure on appeal), omit “standard penalty or daily default”.

20

(1) Paragraph 49 (enforcement) is amended as follows.

(2) In sub-paragraph (1), for “or 40” substitute “ , 40 or 40A ”.

(3) In sub-paragraph (2), for “or 40” substitute “ , 40 or 40A ”.

(4) Accordingly, in the heading, omit “standard penalty or daily default”.

21

(1) Paragraph 63 (tax) is amended as follows.

(2) In sub-paragraph (3)—

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

(b) for the words following paragraph (b) substitute

, and (c) amounts listed in sub-paragraph (3A).

(3) After that sub-paragraph insert—

(3A) Those amounts are— (a) any amount that is recoverable under paragraph 5(2) of Schedule 11 to VATA 1994 (amounts shown on invoices as VAT), and (b) any amount that is treated as VAT by virtue of regulations under section 54 of VATA 1994 (farmers etc).

22

(1) Paragraph 64 (tax position) is amended as follows.

(2) In sub-paragraph (1)(c), after “with” insert “ the person's liability to pay ”.

(3) After sub-paragraph (2) insert—

(2A) References in this Schedule to a person's tax position also include, where appropriate, a reference to the person's position as regards the withholding by the person of another person's PAYE income (as defined in section 683 of ITEPA 2003).

SCHEDULE 48

1

Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.

2

In paragraph 5(4)(b) (power to obtain information and documents about persons whose identity is not known), for the words from “, VATA 1994” to the end substitute “ or any other enactment relating to UK tax ”.

3

After paragraph 10 insert—

(10A) (1) An officer of Revenue and Customs may enter business premises of an involved third party (see paragraph 61A) and inspect— (a) the premises, (b) business assets that are on the premises, and (c) relevant documents that are on the premises, if the inspection is reasonably required by the officer for the purpose of checking the position of any person or class of persons as regards a relevant tax. (2) The powers under this paragraph may be exercised whether or not the identity of that person is, or the individual identities of those persons are, known to the officer. (3) The powers under this paragraph do not include power to enter or inspect any part of the premises that is used solely as a dwelling. (4) In relation to an involved third party, “relevant documents” and “relevant tax” are defined in paragraph 61A.

4

(1) Paragraph 12 (carrying out inspections) is amended as follows.

(2) In sub-paragraph (1), for “this Part of this Schedule” substitute “ paragraph 10, 10A or 11 ”.

(3) Accordingly, in the heading, insert at the end “under paragraph 10, 10A or 11”.

5

After that paragraph insert—

(12A) (1) An officer of Revenue and Customs may enter and inspect premises for the purpose of valuing the premises if the valuation is reasonably required for the purpose of checking any person's position as regards income tax or corporation tax. (2) An officer of Revenue and Customs may enter premises and inspect— (a) the premises, and (b) any other property on the premises, for the purpose of valuing, measuring or determining the character of the premises or property. (3) Sub-paragraph (2) only applies if the valuation, measurement or determination is reasonably required for the purpose of checking any person's position as regards— (a) capital gains tax, (b) corporation tax in respect of chargeable gains, (c) inheritance tax, (d) stamp duty land tax, or (e) stamp duty reserve tax. (4) A person who the officer considers is needed to assist with the valuation, measurement or determination may enter and inspect the premises or property with the officer. (12B) (1) An inspection under paragraph 12A may be carried out only if condition A or B is satisfied. (2) Condition A is that— (a) the inspection is carried out at a time agreed to by a relevant person, and (b) the relevant person has been given notice in writing of the agreed time of the inspection. (3) “Relevant person” means— (a) the occupier of the premises, or (b) if the occupier cannot be identified or the premises are vacant, a person who controls the premises. (4) Condition B is that— (a) the inspection has been approved by the tribunal, and (b) any relevant person specified by the tribunal has been given at least 7 days' notice in writing of the time of the inspection. (5) A notice under sub-paragraph (4)(b) must state the possible consequences of obstructing the officer in the exercise of the power. (6) If a notice is given under this paragraph in respect of an inspection approved by the tribunal (see paragraph 13), it must state that the inspection has been so approved. (7) An officer of Revenue and Customs seeking to carry out an inspection under paragraph 12A must produce evidence of authority to carry out the inspection if asked to do so by— (a) the occupier of the premises, or (b) any other person who appears to the officer to be in charge of the premises or property.

6

(1) Paragraph 13 (approval of tribunal) is amended as follows.

(2) In sub-paragraph (1), insert at the end “(and for the effect of obtaining such approval see paragraph 39 (penalties))”.

(3) In sub-paragraph (1A) (inserted by Schedule 47), insert at the end “ (except as required under sub-paragraph (2A)) ”.

(4) In sub-paragraph (2), after “an inspection” insert “ under paragraph 10, 10A or 11 ”.

(5) After that sub-paragraph insert—

(2A) The tribunal may not approve an inspection under paragraph 12A unless— (a) an application for approval is made by, or with the agreement of, an authorised officer of Revenue and Customs, (b) the person whose tax position is the subject of the proposed inspection has been given a reasonable opportunity to make representations to the officer of Revenue and Customs about that inspection, (c) the occupier of the premises has been given a reasonable opportunity to make such representations, (d) the tribunal has been given a summary of any representations made, and (e) the tribunal is satisfied that, in the circumstances, the inspection is justified. (2B) Paragraph (c) of sub-paragraph (2A) does not apply if the tribunal is satisfied that the occupier of the premises cannot be identified.

7

In paragraph 17(b) (power to record information), after “premises,” insert “ property, goods, ”.

8

(1) Paragraph 21 (restrictions on giving taxpayer notices) is amended as follows.

(2) In sub-paragraph (7), for “VAT position” substitute “ position as regards any tax other than income tax, capital gains tax or corporation tax ”.

(3) In the heading, insert at the end “following tax return”.

9

After that paragraph insert—

(21A) (1) Where a person has delivered a land transaction return under section 76 of FA 2003 (returns for purposes of stamp duty land tax) in respect of a transaction, a taxpayer notice may not be given for the purpose of checking that person's stamp duty land tax position in relation to that transaction. (2) Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to C is met. (3) Condition A is that a notice of enquiry has been given in respect of— (a) the return, or (b) a claim (or an amendment of a claim) made by the person in connection with the transaction, and the enquiry has not been completed. (4) In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 12 of Schedule 10, or paragraph 7 of Schedule 11A, to FA 2003. (5) Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that— (a) an amount that ought to have been assessed to stamp duty land tax in respect of the transaction may not have been assessed, (b) an assessment to stamp duty land tax in respect of the transaction may be or have become insufficient, or (c) relief from stamp duty land tax in respect of the transaction may be or have become excessive. (6) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than stamp duty land tax.

10

In paragraph 28 (restrictions on inspection of business documents), and in the heading before that paragraph, omit “business”.

11

After paragraph 34 insert—

(34A) (1) This paragraph applies to a third party notice or a notice under paragraph 5 if— (a) it is given to an involved third party (see paragraph 61A), (b) it is given for the purpose of checking the position of a person, or a class of persons, as regards the relevant tax, and (c) it refers only to relevant information or relevant documents. (2) In relation to such a third party notice— (a) paragraph 3(1) (approval etc of third party notices) does not apply, (b) paragraph 4(1) (copying third party notices to taxpayer) does not apply, and (c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds. (3) In relation to such a notice under paragraph 5— (a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, an authorised officer of Revenue and Customs to obtain the approval of the tribunal, and (b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds. (4) The involved third party may not appeal against a requirement in the notice to provide any information, or produce any document, that forms part of the involved third party's statutory records. (5) In relation to an involved third party, “relevant documents”, “relevant information” and “relevant tax” are defined in paragraph 61A. (34B) (1) This paragraph applies to a third party notice or a notice under paragraph 5 if it refers only to information or documents that relate to any pensions matter. (2) “Pensions matter” means any matter relating to— (a) a registered pension scheme, (b) an annuity purchased with sums or assets held for the purposes of a registered pension scheme or a pre-2006 pension scheme, or (c) an employer-financed retirement benefits scheme. (3) In relation to such a third party notice— (a) paragraph 3(1) (approval etc of third party notices) does not apply, (b) paragraph 4(1) (copying third party notices to taxpayer) does not apply, and (c) paragraph 30(1) (appeal) has effect as if it permitted an appeal on any grounds. (4) In relation to such a notice under paragraph 5— (a) sub-paragraphs (3) and (4) of that paragraph (approval of tribunal) have effect as if they permitted, but did not require, an authorised officer of Revenue and Customs to obtain the approval of the tribunal, and (b) paragraph 31 (appeal) has effect as if it permitted an appeal on any grounds. (5) A person may not appeal against a requirement in the notice to provide any information, or produce any document, that forms part of any person's statutory records. (6) Where the notice relates to a matter within sub-paragraph (2)(a) or (b), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the scheme administrator in relation to the pension scheme. (7) Where the notice relates to a matter within sub-paragraph (2)(c), the officer of Revenue and Customs who gives the notice must give a copy of the notice to the responsible person in relation to the employer-financed retirement benefits scheme. (8) Sub-paragraphs (6) and (7) do not apply if the notice is given to a person who, in relation to the scheme or annuity to which the notice relates, is a prescribed description of person. (34C) In paragraph 34B— - “employer-financed retirement benefits scheme” has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see sections 393A and 393B of that Act); - “pension scheme” has the same meaning as in Part 4 of FA 2004; - “pre-2006 pension scheme” means a scheme that, at or in respect of any time before 6 April 2006, was— 1. a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA, 2. a former approved superannuation fund (as defined in paragraph 1(3) of Schedule 36 to FA 2004), 3. a relevant statutory scheme (as defined in section 611A of ICTA) or a pension scheme treated as if it were such a scheme, or 4. a personal pension scheme approved under Chapter 4 of Part 14 of ICTA; - “prescribed” means prescribed by regulations made by the Commissioners; - “registered pension scheme” means a pension scheme that is or has been a registered pension scheme within the meaning of Part 4 of FA 2004 or in relation to which an application for registration under that Part of that Act has been made; - “responsible person”, in relation to an employer-financed retirement benefits scheme, has the same meaning as in Chapter 2 of Part 6 of ITEPA 2003 (see section 399A of that Act); - “scheme administrator”, in relation to a pension scheme, has the same meaning as in Part 4 of FA 2004 (see section 270 of that Act).

12

In paragraph 35 (special cases: groups of undertakings), in sub-paragraph (4A)(c) (inserted by Schedule 47)—

(a) for “paragraph 21” substitute “ paragraphs 21 and 21A ”, and

(b) for “applies” substitute “ apply ”.

13

In paragraph 37 (special cases: partnerships), after sub-paragraph (2) insert—

(2A) Where, in respect of a transaction entered into as purchaser by or on behalf of the members of the partnership, any of the partners has— (a) delivered a land transaction return under Part 4 of FA 2003 (stamp duty land tax), or (b) made a claim under that Part of that Act, paragraph 21A (restrictions where taxpayer has delivered land transaction return) has effect as if that return had been delivered, or that claim had been made, by each of the partners.

14

After paragraph 61 insert—

(61A) (1) In this Schedule “involved third party” means a person described in the first column of the Table below. (2) In this Schedule, in relation to an involved third party, “relevant information”, “relevant document” and “relevant tax” have the meaning given in the corresponding entries in that Table.

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

15

(1) Paragraph 62 (meaning of “statutory records”) is amended as follows.

(2) In sub-paragraph (1), for paragraph (b) substitute—

(b) any other enactment relating to a tax,

(3) In sub-paragraph (2)(b), for “VATA 1994 or any other enactment relating to value added tax” substitute “ any other enactment relating to a tax ”.

SCHEDULE 49

Requirement for contact details for debtor

1

(1) This Schedule applies where—

(a) a sum is payable by a person (“the debtor”) to the Commissioners under or by virtue of an enactment or under a contract settlement,

(b) an officer of Revenue and Customs reasonably requires contact details for the debtor for the purpose of collecting that sum,

(d) the condition in sub-paragraph (2) is met.

(2) That condition is that—

(a) the third party is a company, a local authority or a local authority association, or

(b) the officer has reasonable grounds to believe that the third party obtained the details in the course of carrying on a business.

(3) This Schedule does not apply if—

(a) the third party is a charity and obtained the details in the course of providing services free of charge, or

(b) the third party is not a charity but obtained the details in the course of providing services on behalf of a charity that are free of charge to the recipient of the service.

Power to obtain details

2

(1) An officer of Revenue and Customs may by notice in writing require the third party to provide the details.

(2) The notice must name the debtor.

Complying with notices

3

If a notice is given to the third party under this Schedule, the third party must provide the details—

(a) within such period, and

(b) at such time, by such means and in such form (if any),

as is reasonably specified or described in the notice.

Right to appeal

4

(1) The third party may appeal against the notice or any requirement in the notice on the ground that it would be unduly onerous to comply with the notice or requirement.

(2) Paragraph 32 of Schedule 36 to FA 2008 (procedure on appeal to tribunal) applies to an appeal under this paragraph as it applies to an appeal relating to a notice under that Schedule.

Penalty

5

(1) This paragraph applies if the third party fails to comply with the notice.

(2) The third party is liable to a penalty of £300.

(3) Paragraphs 44 to 49 and 52 of Schedule 36 to FA 2008 (assessment and enforcement of penalties etc) apply in relation to a penalty under this paragraph as they apply in relation to a penalty under paragraph 39(1)(a) of that Schedule (and references in those provisions to an information notice include a notice under this Schedule).

Power to change amount of penalty

6

(1) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sum for the time being specified in paragraph 5 such other sum as appears to them to be justified by the change.

(2) In sub-paragraph (1) “relevant date” means—

(a) the date on which this Act is passed, and

(b) each date on which the power conferred by that sub-paragraph has been exercised.

(3) Regulations under this paragraph do not apply to any failure which began before the date on which they come into force.

(4) Regulations made by the Treasury under this paragraph are to be made by statutory instrument.

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

Application of provisions of TMA 1970

7

Subject to the provisions of this Schedule, the following provisions of TMA 1970 apply for the purposes of this Schedule as they apply for the purposes of the Taxes Acts—

(a) section 108 (responsibility of company officers),

(b) section 114 (want of form), and

General interpretation

8

In this Schedule—

“business” includes—a profession, anda property business;

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

“contact details”, in relation to a person, means the person's address and any other information about how the person may be contacted;

“contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners under or by virtue of an enactment;

“enactment” includes subordinate legislation (within the meaning of the Interpretation Act 1978);

“local authority” has the meaning given in section 999 of ITA 2007;

“local authority association” has the meaning given in section 1000 of that Act;

“property business” has the same meaning as in ITTOIA 2005 (see section 263(6) of that Act).

SCHEDULE 50

Insurance premium tax

1

(1) Paragraph 1 of Schedule 7 to FA 1994 (insurance premium tax: records) is amended as follows.

(2) In sub-paragraph (3)—

(a) after “may” insert

— (a)

, and

(b) insert at the end—

(b) authorise the Commissioners to direct that any such records need only be preserved for a shorter period than that specified in the regulations, and (c) authorise a direction to be made so as to apply generally or in such cases as the Commissioners may stipulate.

(3) For sub-paragraphs (4) to (6) substitute—

(4) A duty under the regulations to preserve records may be discharged— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners.

2

In consequence of the amendment made by paragraph 1(3), in the Criminal Procedure (Consequential Provisions) (Scotland) Act 1995, in Schedule 4, omit paragraph 89(4)(a).

Stamp duty land tax

3

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

4

Schedule 10 (stamp duty land tax: returns, enquiries, assessments and appeals) is amended in accordance with paragraphs 5 to 7.

5

(1) Paragraph 9 (duty to keep and preserve records) is amended as follows.

(2) In sub-paragraph (2), for “for six years after the effective date of the transaction and until any later” substitute “ until the end of the later of the relevant day and the ”.

(3) After that sub-paragraph insert—

(2A) “The relevant day” means— (a) the sixth anniversary of the effective date of the transaction, or (b) such earlier day as may be specified in writing by the Commissioners for Her Majesty's Revenue and Customs (and different days may be specified for different cases).

(4) After sub-paragraph (3) insert—

(4) The Commissioners for Her Majesty's Revenue and Customs may by regulations— (a) provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified in the regulations, and (b) provide that those records include supporting documents so specified. (5) Regulations under this paragraph may make provision by reference to things specified in a notice published by the Commissioners for Her Majesty's Revenue and Customs in accordance with the regulations (and not withdrawn by a subsequent notice). (6) “Supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

6

For paragraph 10 (preservation of information instead of original records) substitute—

(10) The duty under paragraph 9 to preserve records may be satisfied— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

7

Accordingly, in the heading before paragraph 10, for “instead of original records” substitute “ etc ”.

8

Schedule 11 (record-keeping where transaction is not notifiable) is amended in accordance with paragraphs 9 to 11.

9

(1) Paragraph 4 (duty to keep and preserve records) is amended as follows.

(2) In sub-paragraph (2), for “for six years after the effective date of the transaction” substitute

until the end of— (a) the sixth anniversary of the effective date of the transaction, or (b) such earlier day as may be specified in writing by the Commissioners for Her Majesty's Revenue and Customs (and different days may be specified for different cases).

(3) After sub-paragraph (3) insert—

(4) The Commissioners for Her Majesty's Revenue and Customs may by regulations— (a) provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified in the regulations, and (b) provide that those records include supporting documents so specified. (5) Regulations under this paragraph may make provision by reference to things specified in a notice published by the Commissioners for Her Majesty's Revenue and Customs in accordance with the regulations (and not withdrawn by a subsequent notice). (6) “Supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

10

For paragraph 5 (preservation of information instead of original records) substitute—

(5) The duty under paragraph 4 to preserve records may be satisfied— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

11

Accordingly, in the heading before paragraph 5, for “instead of original records” substitute “ etc ”.

12

Schedule 11A (claims not included in returns) is amended in accordance with paragraphs 13 and 14.

13

(1) Paragraph 3 (duty to keep and preserve records) is amended as follows.

(2) Omit sub-paragraphs (3) and (4).

(3) After sub-paragraph (4) insert—

(4A) The Commissioners for Her Majesty's Revenue and Customs may by regulations— (a) provide that the records required to be kept and preserved under this paragraph include, or do not include, records specified in the regulations, and (b) provide that those records include supporting documents so specified. (4B) Regulations under this paragraph may make provision by reference to things specified in a notice published by the Commissioners for Her Majesty's Revenue and Customs in accordance with the regulations (and not withdrawn by a subsequent notice). (4C) “Supporting documents” includes accounts, books, deeds, contracts, vouchers and receipts.

14

After that paragraph insert—

(3A) The duty under paragraph 3 to preserve records may be satisfied— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.

Aggregates levy

15

Schedule 7 to FA 2001 (aggregates levy: information and evidence etc) is amended as follows.

16

(1) Paragraph 2 (records) is amended as follows.

(2) For sub-paragraphs (4) and (5) substitute—

(4) A duty under regulations under this paragraph to preserve records may be discharged— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners.

(3) In sub-paragraph (9), omit “approval or” and “given or”.

17

Omit paragraph 3 (evidence of records that are required to be preserved).

Climate change levy

18

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

19

(1) Paragraph 125 (records) is amended as follows.

(2) For sub-paragraphs (4) and (5) substitute—

(4) A duty under regulations under this paragraph to preserve records may be discharged— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners.

(3) In sub-paragraph (9), omit “approval or” and “given or”.

20

Omit paragraph 126 (evidence of records that are required to be preserved).

Landfill tax

21

In paragraph 2 of Schedule 5 to FA 1996 (landfill tax: records), for sub-paragraphs (4) to (7) substitute—

(4) A duty under regulations under this paragraph to preserve records may be discharged— (a) by preserving them in any form and by any means, or (b) by preserving the information contained in them in any form and by any means, subject to any conditions or exceptions specified in writing by the Commissioners.

SCHEDULE 51

Insurance premium tax

1

Schedule 7 to FA 1994 (insurance premium tax) is amended as follows.

2

In paragraph 8(4) (recovery of overpaid tax), for “three years” substitute “ 4 years ”.

3

In paragraph 22(9) (interest payable by Commissioners), for “three years” substitute “ 4 years ”.

4

(1) Paragraph 26 (assessments: time limits) is amended as follows.

(2) In sub-paragraph (1), for the words from “three years after”, in the first place, to the end substitute “ 4 years after the relevant event ”.

(3) After that sub-paragraph insert—

(1A) In this paragraph “the relevant event”, in relation to an assessment, means— (a) the end of the accounting period concerned, or (b) in the case of an assessment under paragraph 25 of an amount due by way of a penalty other than a penalty referred to in paragraph 25(2), the event giving rise to the penalty.

(4) In sub-paragraph (3), for “sub-paragraph (1)” substitute “ sub-paragraph (1A) ”.

(5) For sub-paragraph (4) substitute—

(4) An assessment of an amount due from a person in a case involving a loss of tax— (a) brought about deliberately by the person (or by another person acting on that person's behalf), or (b) attributable to a failure by the person to comply with an obligation under section 53(1) or (2) or 53AA(1) or (3), may be made at any time not more than 20 years after the relevant event. (5) In sub-paragraph (4)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

Inheritance tax

5

IHTA 1984 is amended as follows.

6

In section 131 (transfers within 7 years before death: the relief), after subsection (2) insert—

(2ZA) A claim under subsection (2)(b) must be made not more than 4 years after the transferor's death.

7

In section 146(2)(a) (Inheritance (Provision for Family and Dependants) Act 1975), after “claim for the purpose” insert “ not more than 4 years after the date on which the order is made ”.

8

In section 150 (voidable transfers), insert at the end—

(3) A claim under this section must be made not more than 4 years after the claimant knew, or ought reasonably to have known, that the relevant transfer has been set aside.

9

In section 179 (sale of shares etc from deceased's estate: the relief), after subsection (2) insert—

(2A) A claim under this Chapter must be made not more than 4 years after the end of the period mentioned in subsection (1)(a).

10

In section 191 (sale of land from deceased's estate: the relief), after subsection (1) insert—

(1A) A claim under this Chapter must be made not more than 4 years after the end of the period mentioned in subsection (1)(a).

11

(1) Section 240 (underpayments) is amended as follows.

(2) In subsection (2), for “six years” substitute “ 4 years ”.

(3) For subsection (3) substitute—

(3) Subsection (2) has effect subject to subsections (4) and (5). (4) Proceedings in a case involving a loss of tax brought about carelessly by a person liable for the tax (or a person acting on behalf of such a person) may be brought at any time not more than 6 years after the later of the dates in subsection (2)(a) and (b). (5) Proceedings in a case involving a loss of tax brought about deliberately by a person liable for the tax (or a person acting on behalf of such a person) may be brought at any time not more than 20 years after the later of those dates. (6) Subsection (7) applies to any case not falling within subsection (2) where too little tax has been paid in respect of a chargeable transfer, provided that the case does not involve a loss of tax brought about deliberately by a person liable for the tax (or a person acting on behalf of such a person). (7) Where this subsection applies— (a) no proceedings are to be brought for the recovery of the tax after the end of the period of 20 years beginning with the date on which the chargeable transfer was made, and (b) at the end of that period any liability for the tax and any Inland Revenue charge for that tax is extinguished. (8) In relation to cases of tax chargeable under Chapter 3 of Part 3 of this Act (apart from section 79), the references in subsections (4), (5) and (6) to a person liable for the tax are to be treated as including references to a person who is the settlor in relation to the settlement.

12

After that section insert—

(240A) (1) This section applies for the purposes of section 240. (2) A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss. (3) Where— (a) information is provided to Her Majesty's Revenue and Customs, (b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and (c) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs, any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person. (4) References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

13

In section 241(1) (overpayments), for “six years” substitute “ 4 years ”.

Stamp duty land tax

14

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

15

(1) Schedule 10 (returns, enquiries, assessments and appeals) is amended as follows.

(2) In paragraph 25(3) (determination of tax chargeable if no return delivered), for “six years” substitute “ 4 years ”.

(3) In paragraph 27(2)(a) (determination superseded by actual self-assessment), for “six years” substitute “ 4 years ”.

(4) Paragraph 31 (time limit for assessment) is amended in accordance with sub-paragraphs (5) to (8).

(5) In sub-paragraph (1), for “six years” substitute “ 4 years ”.

(6) For sub-paragraph (2) substitute—

(2) An assessment of a person to tax in a case involving a loss of tax brought about carelessly by the purchaser or a related person may be made at any time not more than 6 years after the effective date of the transaction to which it relates (subject to sub-paragraph (2A)). (2A) An assessment of a person to tax in a case involving a loss of tax— (a) brought about deliberately by the purchaser or a related person, (b) attributable to a failure by the person to comply with an obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A, or (c) attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs), may be made at any time not more than 20 years after the effective date of the transaction to which it relates.

(7) In sub-paragraph (4)(a), for “three years” substitute “ 4 years ”.

(8) After sub-paragraph (5) insert—

(6) In this paragraph “related person”, in relation to a purchaser, means— (a) a person acting on behalf of the purchaser, or (b) a person who was a partner of the purchaser at the relevant time.

(9) After paragraph 31 insert—

(31A) (1) This paragraph applies for the purposes of paragraph 31. (2) A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss. (3) Where— (a) information is provided to Her Majesty's Revenue and Customs, (b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and (c) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs, any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person. (4) References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

(10) In paragraph 34(2) (relief in case of mistake in return), for “six years” substitute “ 4 years ”.

16

(1) Paragraph 8 of Schedule 14 (time limit for determination of penalties) is amended as follows.

(2) In sub-paragraph (2)—

(a) for “six years” substitute “ 4 years ”, and

(b) after “began to be incurred” insert “ (“the relevant date”) ”.

(3) In sub-paragraph (3), insert at the end “(subject to any of the following provisions of this paragraph allowing a longer period)”.

(4) After sub-paragraph (4) insert—

(4A) Where a person is liable to a penalty in a case involving a loss of tax brought about carelessly by the person (or by another person acting on that person's behalf), the penalty may be determined, or the proceedings may be brought, at any time not more than 6 years after the relevant date (subject to sub-paragraphs (4B) and (5)). (4B) Where a person is liable to a penalty in a case involving a loss of tax— (a) brought about deliberately by the person (or by another person acting on that person's behalf), (b) attributable to a failure by the person to comply with an obligation under section 76(1) or paragraph 3(3)(a), 4(3)(a) or 8(3)(a) of Schedule 17A, or (c) attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of the Finance Act 2004 (obligation of parties to tax avoidance schemes to provide information to Her Majesty's Revenue and Customs), the penalty may be determined, or the proceedings may be brought, at any time not more than 20 years after the relevant date. (4C) Paragraph 31A of Schedule 10 (losses brought about carelessly or deliberately) applies for the purpose of this paragraph.

Petroleum revenue tax

17

OTA 1975 is amended as follows.

18

(1) The Table in paragraph 1(1) of Schedule 2 (applying provisions of TMA 1970 in relation to management and collection of petroleum revenue tax) is amended as follows.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Omit the entries relating to sections 34 and 36 of TMA 1970.

19

In paragraph 10 of Schedule 2 (assessments to tax and determinations of loss etc), after sub-paragraph (1) insert—

(1A) An assessment under sub-paragraph (1) may be made at any time not more than 4 years after the end of the chargeable period to which it relates (subject to paragraphs 12A and 12B).

20

(1) Paragraph 12 of Schedule 2 (further assessments and determinations) is amended as follows.

(2) After sub-paragraph (1) insert—

(1A) An assessment (or an amendment of an assessment) under sub-paragraph (1) may be made at any time not more than 4 years after the end of the chargeable period to which the assessment relates (subject to sub-paragraph (1B) and paragraphs 12A and 12B). (1B) The time limits in sub-paragraph (1A) and paragraphs 12A and 12B do not apply to an amendment of an assessment where the amendment is made in consequence (directly or indirectly) of— (a) the granting of relief under section 7(2) or (3) to any participator for allowable losses accruing in any chargeable period, or (b) a notice of variation served under paragraph 9 of Schedule 5 on any responsible person in respect of a claim for any claim period.

(3) In sub-paragraph (2)—

(a) omit “(notwithstanding anything in section 34 of the Taxes Management Act 1970 (ordinary time limit for assessment))”,

(b) for “six years” substitute “ 4 years ”, and

21

In paragraph 12A(1) of Schedule 2 (time limit for assessment following extension of time for delivery of return), for “five years” substitute “ 4 years ”.

22

In that Schedule, after paragraph 12A insert—

(12B) (1) In a case involving a relevant situation brought about carelessly by a participator (or a person acting on behalf of a participator), an assessment (or an amendment of an assessment) under this Schedule on the participator may be made at any time not more than 6 years after the end of the relevant chargeable period (subject to sub-paragraph (2)). (2) In a case involving a relevant situation brought about deliberately by a participator (or a person acting on behalf of a participator), an assessment (or an amendment of an assessment) on the participator may be made at any time not more than 20 years after the end of the relevant chargeable period. (3) “Relevant situation” means a situation in which— (a) there is a loss of tax, (b) the assessable profit charged to tax by or stated in an assessment for a chargeable period ought to be or to have been larger, (c) the allowable loss stated in an assessment or a determination of loss for a chargeable period ought to be or to have been smaller, or (d) an assessment to tax should have been made for a chargeable period but was not made. (4) “Relevant chargeable period” means— (a) in the case of a further assessment under paragraph 12(2), the chargeable period in which the excessive allowable loss accrued, and (b) in any other case, the chargeable period to which the assessment relates. (5) Where the participator carried on a trade or business with one or more other persons at any time in the chargeable period for which the assessment under sub-paragraph (1) or (2) is made, an assessment to tax in respect of the profits of that trade or business may also be made on any of the participator's partners. (6) In determining the amount of the tax to be charged on a person for a chargeable period in an assessment in a case mentioned in sub-paragraph (1) or (2) (including an assessment under sub-paragraph (5)), effect must be given to any relief or allowance to which that person would have been entitled for that period if a valid claim or application had been made. (7) Sub-paragraph (6) only applies if the person on whom the assessment is made so requires. (8) Subsections (5) to (7) of section 118 of the Taxes Management Act 1970 (losses and situations brought about carelessly or deliberately) apply for the purposes of this paragraph as they apply for the purposes of that Act. (9) In subsection (6)(b) of that section (as it applies for the purposes of this paragraph), the reference to the person who provides the information has effect as if it included any person who becomes the responsible person for the oil field after the information is provided.

23

(1) Paragraph 2 of Schedule 5 (allowance of expenditure other than abortive exploration expenditure: claim period) is amended as follows.

(2) In sub-paragraph (1), for “six years” substitute “ 4 years ”.

(3) In sub-paragraph (7)—

(a) in paragraph (c), for “four years” substitute “ 2 years ”, and

(b) in the words after that paragraph, for “six years” substitute “ 4 years ”.

24

(1) Paragraph 9 of Schedule 5 (allowance of expenditure other than abortive exploration expenditure: notice of variation) is amended as follows.

(2) In sub-paragraph (1)—

(a) omit the words from “, within” to “field,”,

(b) for “in the notice” substitute “ in a notice of a decision under paragraph 3 above given to the responsible person for an oil field ”, and

(3) Omit sub-paragraphs (1A) to (1C) and (2A).

(4) After sub-paragraph (2A) insert—

(2B) In this paragraph “permitted period” means the period of 4 years beginning with the date on which the notice of the decision under paragraph 3 was given (but see sub-paragraph (2C)). (2C) Where the relevant amount was overstated in the notice of decision as a result of an inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) in connection with the claim— (a) if the inaccuracy was careless, the permitted period is extended to 6 years, and (b) if the inaccuracy was deliberate, the permitted period is extended to 20 years.

(5) Omit sub-paragraph (11).

(6) Insert at the end—

(12) For the purposes of this section, an inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) is careless if it is due to a failure by the person to take reasonable care. (13) An inaccuracy in a statement or declaration made by the responsible person (or a person acting on behalf of the responsible person) is to be treated as careless if— (a) the responsible person, the person who acted on behalf of the responsible person or any person who becomes the responsible person for the oil field after the statement or declaration is made discovers the inaccuracy some time after it is made, and (b) that person fails to take reasonable steps to inform Her Majesty's Revenue and Customs.

25

(1) Schedule 6 (allowance of expenditure (other than abortive exploration expenditure) on claim by participator) is amended as follows.

(2) In paragraph 1(2) (claim period), for “six years” substitute “ 4 years ”.

(3) In paragraph 2 (applying provisions of Schedule 5), in the Table, in the entry relating to paragraph 9 of Schedule 5, omit the words in the second column.

26

In paragraph 1(3) of Schedule 7 (allowance of abortive exploration expenditure), in the Table, in the entry relating to paragraph 9 of Schedule 5, in the second column omit—

(a) the words “In sub-paragraph (1C) omit paragraph (c)” and “omit sub-paragraph (2A)”, and

(b) the words from “and in sub-paragraph (11)” to the end.

Aggregates levy

27

Part 2 of FA 2001 (aggregates levy) is amended as follows.

28

In section 32(1) (repayments of overpaid aggregates levy), for “three years” substitute “ 4 years ”.

29

(1) Paragraph 4 of Schedule 5 (time limits for assessments) is amended as follows.

(2) In sub-paragraph (1)(b), for “three years” substitute “ 4 years ”.

(3) For sub-paragraph (3) substitute—

(3) An assessment of an amount due from a person in a case involving a loss of aggregates levy— (a) brought about deliberately by the person (or by another person acting on that person's behalf), or (b) attributable to a failure by the person to comply with an obligation under section 24(2) or paragraph 1 of Schedule 4, may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to sub-paragraph (4)). (3A) In sub-paragraph (3)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

(4) In sub-paragraph (4)—

(a) in paragraph (a), for “three years” substitute “ 4 years ”, and

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

30

In paragraph 2(10) of Schedule 8 (interest payable by Commissioners), for “three years” substitute “ 4 years ”.

31

(1) Paragraph 4 of Schedule 10 (time limits on penalty assessments) is amended as follows.

(2) In sub-paragraph (1), for “three years” substitute “ 4 years ”.

(3) For sub-paragraph (2) substitute—

(2) An assessment of a person to a civil penalty in a case involving a loss of aggregates levy— (a) brought about deliberately by the person (or by another person acting on that person's behalf), or (b) attributable to a failure by the person to comply with an obligation under section 24(2) or paragraph 1 of Schedule 4, may be made at any time not more than 20 years after the conduct to which the penalty relates (subject to sub-paragraph (3)). (2A) In sub-paragraph (2)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

(4) In sub-paragraph (3)—

(a) in paragraph (a), for “three years” substitute “ 4 years ”, and

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

Climate change levy

32

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

33

In paragraph 64(1) (repayments of overpaid climate change levy), for “three years” substitute “ 4 years ”.

34

In paragraph 66(10) (interest payable by the Commissioners), for “three years” substitute “ 4 years ”.

35

(1) Paragraph 80 (time limits for assessments) is amended as follows.

(2) In sub-paragraph (1)(b), for “three years” substitute “ 4 years ”.

(3) For sub-paragraph (3) substitute—

(3) An assessment of an amount due from a person in a case involving a loss of levy— (a) brought about deliberately by the person (or by another person acting on that person's behalf), or (b) attributable to a failure by the person to comply with an obligation under paragraph 53 or 55, may be made at any time not more than 20 years after the end of the accounting period to which it relates (subject to sub-paragraph (4)). (3A) In sub-paragraph (3)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

(4) In sub-paragraph (4)—

(a) in paragraph (a), for “three years” substitute “ 4 years ”, and

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

36

(1) Paragraph 108 (time limits on penalty assessments) is amended as follows.

(2) In sub-paragraph (1), for “three years” substitute “ 4 years ”.

(3) For sub-paragraph (2) substitute—

(2) An assessment of a person to a penalty in a case involving a loss of levy— (a) brought about deliberately by the person (or by another person acting on that person's behalf), or (b) attributable to a failure by the person to comply with an obligation under paragraph 53 or 55, may be made at any time not more than 20 years after the conduct to which the penalty relates (subject to sub-paragraph (3)). (2A) In sub-paragraph (2)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

(4) In sub-paragraph (3)—

(a) in paragraph (a), for “three years” substitute “ 4 years ”, and

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

Landfill tax

37

Schedule 5 to FA 1996 (landfill tax) is amended as follows.

38

In paragraph 14(4) (recovery of overpaid tax), for “three years” substitute “ 4 years ”.

39

In paragraph 29(8) (interest payable by Commissioners), for “three years” substitute “ 4 years ”.

40

(1) Paragraph 33 (assessments: time limits) is amended as follows.

(2) In sub-paragraph (1)—

(a) for “three years” (in the first place) substitute “ 4 years ”, and

(b) for the words from “the end of” to the end substitute “ the relevant event ”.

(3) After that sub-paragraph insert—

(1A) In this paragraph “the relevant event”, in relation to an assessment, means— (a) the end of the accounting period concerned, or (b) in the case of an assessment under paragraph 32 of an amount due by way of a penalty other than a penalty referred to in paragraph 32(2), the event giving rise to the penalty.

(4) In sub-paragraph (3), for “sub-paragraph (1)” substitute “ sub-paragraph (1A) ”.

(5) For sub-paragraph (4) substitute—

(4) An assessment of an amount due from a person in a case involving a loss of tax— (a) brought about deliberately by the person (or by another person acting on that person's behalf), or (b) attributable to a failure by the person to comply with an obligation under section 47(2) or (3), may be made at any time not more than 20 years after the relevant event (subject to sub-paragraph (5)). (4A) In sub-paragraph (4)(a) the reference to a loss brought about deliberately by the person includes a loss brought about as a result of a deliberate inaccuracy in a document given to Her Majesty's Revenue and Customs by or on behalf of that person.

(6) In sub-paragraph (5)—

(a) in paragraph (a), for “three years” substitute “ 4 years ”, and

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

Minor and consequential provision

41

In section 36 of TMA 1970 (loss of tax brought about carelessly or deliberately etc), in subsections (2) and (3), for “for the purpose” substitute “ in a case ”.

42

In Schedule 39 to FA 2008, omit paragraph 66 (saving for provisions of TMA 1970 as applied by OTA 1975).

43

In consequence of the amendments made by this Schedule, omit—

(a) in FA 1990, section 122, and

(b) in FA 1997, in Schedule 5, paragraph 6(2)(b) and (c).

SCHEDULE 52

Part 1 — Income tax and capital gains tax

Claims for recovery of overpaid tax etc

1

In TMA 1970, for sections 33 and 33A substitute—

(33) Schedule 1AB contains provision for and in connection with claims for the recovery of overpaid income tax and capital gains tax.

2

After Schedule 1AA to that Act insert—

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