LegalizeReform history
Finance Act 2009
76 versions
· 2009-07-21
2025-09-01
Finance Act 2009
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2024-03-01
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2023-09-30
Finance Act 2009
2023-09-14
Finance Act 2009
2023-05-01
Finance Act 2009
2023-04-01
Finance Act 2009
2023-03-15
Finance Act 2009
2023-01-05
Finance Act 2009
2023-01-01
Finance Act 2009
2022-12-06
Finance Act 2009
2022-04-06
Finance Act 2009
2022-04-01
Finance Act 2009
2022-02-24
Finance Act 2009
2022-01-14
Finance Act 2009
2021-06-10
Finance Act 2009
2021-04-06
Finance Act 2009
2020-10-05
Finance Act 2009
2020-07-22
Finance Act 2009
2020-05-26
Finance Act 2009
2019-09-06
Finance Act 2009
2019-07-11
Finance Act 2009
2019-07-05
Finance Act 2009
2019-06-01
Finance Act 2009
2019-04-06
Finance Act 2009
2019-02-12
Finance Act 2009
2018-04-06
Finance Act 2009
2018-01-25
Finance Act 2009
2018-01-01
Finance Act 2009
2017-04-27
Finance Act 2009
2017-04-06
Finance Act 2009
2016-09-15
Finance Act 2009
2016-06-16
Finance Act 2009
2015-11-18
Finance Act 2009
2015-04-01
Finance Act 2009
2015-03-26
Finance Act 2009
2015-03-06
Finance Act 2009
2015-02-17
Finance Act 2009
2015-02-12
Finance Act 2009
2015-01-01
Finance Act 2009
2014-12-31
Finance Act 2009
2014-10-06
Finance Act 2009
2014-09-11
Finance Act 2009
2014-08-01
Finance Act 2009
2014-07-17
Finance Act 2009
2014-05-06
Finance Act 2009
2014-04-06
Finance Act 2009
2014-01-01
Finance Act 2009
2013-10-01
Finance Act 2009
2013-07-17
Finance Act 2009
2013-04-19
Finance Act 2009
2013-04-01
Finance Act 2009
2013-03-17
Finance Act 2009
2013-02-01
Finance Act 2009
2012-07-17
Finance Act 2009
2012-07-01
Finance Act 2009
2012-06-30
Finance Act 2009
2011-10-31
Finance Act 2009
2011-10-06
Finance Act 2009
2011-09-30
Finance Act 2009
2011-07-19
Finance Act 2009
2011-04-22
Finance Act 2009
2011-04-06
Finance Act 2009
2011-04-01
Finance Act 2009
2011-01-25
Finance Act 2009
2010-12-16
Finance Act 2009
2010-12-10
Finance Act 2009
2010-08-31
Finance Act 2009
2010-04-08
Finance Act 2009
2010-04-06
Finance Act 2009
2010-04-01
Finance Act 2009
2010-03-19
Finance Act 2009
2009-08-13
Finance Act 2009
Changes on 2009-08-13
@@ -30,17 +30,17 @@
- (1) For the tax year 2009-10 the amount specified in—
- (a) section 35 of ITA 2007, and
- (b) section 257(1) of ICTA,
- (a) section 35 of ITA 2007, ...
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(personal allowance for those aged under 65) is replaced with “£6,475”.
- (2) Accordingly—
- (a) section 57 of ITA 2007, so far as relating to the amount specified in section 35 of that Act, and
- (b) section 257C of ICTA, so far as relating to the amount specified in section 257(1) of that Act,
- (a) section 57 of ITA 2007, so far as relating to the amount specified in section 35 of that Act, ...
- (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(indexation) do not apply for the tax year 2009-10.
@@ -54,9 +54,9 @@
> (3) If the amount of any allowance that remains after the operation of subsection (2) would otherwise not be a multiple of £1, it is to be rounded up to the nearest amount which is a multiple of £1.
> (4) For the meaning of “adjusted net income” see section 58.
- (2) In sections 36(2)(b) and 37(2)(b) of ITA 2007 (limit on reduction of personal allowances for those aged 65 to 74 or 75 and over), for “the amount of a personal allowance under section 35” substitute “the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year”.
- (3) In section 57(1)(a) and (3)(a) of ITA 2007 (indexation of allowances), for “35” substitute “35(1)”.
- (2) In sections 36(2)(b) and 37(2)(b) of ITA 2007 (limit on reduction of personal allowances for those aged 65 to 74 or 75 and over), for “the amount of a personal allowance under section 35” substitute “ the amount of any allowance to which the individual would be entitled under section 35 if under the age of 65 throughout the tax year ”.
- (3) In section 57(1)(a) and (3)(a) of ITA 2007 (indexation of allowances), for “35” substitute “ 35(1) ”.
- (4) The amendments made by subsections (1) and (2) have effect for the tax year 2010-11 and subsequent tax years.
@@ -79,13 +79,13 @@
> , and
> (d) the additional rate.
- (3) In subsection (3)(b), for “and dividend upper rate” substitute “, dividend upper rate and dividend additional rate”.
- (3) In subsection (3)(b), for “and dividend upper rate” substitute “ , dividend upper rate and dividend additional rate ”.
- (4) In section 9 (trust rate and dividend trust rate)—
- (a) in subsection (1), for “40%” substitute “50%”, and
- (b) in subsection (2), for “32.5%” substitute “42.5%”.
- (a) in subsection (1), for “40%” substitute “ 50% ”, and
- (b) in subsection (2), for “32.5%” substitute “ 42.5% ”.
- (5) Schedule 2 contains provision supplementing this section (including provision about rates under Part 4 of FA 2004).
@@ -105,9 +105,9 @@
- (b) 30% on ring fence profits of companies.
- (3) In subsection (2) “ring fence profits” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A) of that Act).
#### Small companies' rates and fractions for financial year 2009
- (3) In subsection (2) “*ring fence profits*” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A) of that Act).
#### VAT exemption for gaming participation fees
##### 8
@@ -125,7 +125,7 @@
- (3) See section 7(3) of FA 2008 for provision applying section 3(3) to (7) of FA 2007 in relation to profits for an accounting period any part of which falls in the financial year 2009.
- (4) In this section “ring fence profits” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A) of that Act).
- (4) In this section “*ring fence profits*” has the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502(1) and (1A) of that Act).
### Value added tax
@@ -133,7 +133,7 @@
##### 9
- (1) The Value Added Tax (Change of Rate) Order 2008 ([S.I. 2008/3020](https://www.legislation.gov.uk/uksi/2008/3020)) (reducing standard rate of value added tax to 15 per cent) is to cease to be in force on 1 January 2010 (rather than ceasing to be in force on 1 December 2009 in accordance with section 2(2) of VATA 1994).
- (1) The Value Added Tax (Change of Rate) Order 2008 (S.I. 2008/3020) (reducing standard rate of value added tax to 15 per cent) is to cease to be in force on 1 January 2010 (rather than ceasing to be in force on 1 December 2009 in accordance with section 2(2) of VATA 1994).
- (2) Schedule 3 contains—
@@ -149,15 +149,15 @@
- (1) Part 4 of FA 2003 (stamp duty land tax) has effect in relation to transactions with an effective date on or after 22 April 2009 but before 1 January 2010 as if—
- (a) in section 55(2) (amount of tax chargeable: general), in Table A (bands and percentages for residential property), for “£125,000” (in both places) there were substituted “£175,000”, and
- (b) in paragraph 2(3) of Schedule 5 (amount of tax chargeable: rent), in Table A (bands and percentages for residential property), for “£125,000” (in both places) there were substituted “£175,000”.
- (a) in section 55(2) (amount of tax chargeable: general), in Table A (bands and percentages for residential property), for “£125,000” (in both places) there were substituted “ £175,000 ”, and
- (b) in paragraph 2(3) of Schedule 5 (amount of tax chargeable: rent), in Table A (bands and percentages for residential property), for “£125,000” (in both places) there were substituted “ £175,000 ”.
- (2) The following are revoked—
- (a) the Stamp Duty Land Tax (Variation of Part 4 of the Finance Act 2003) Regulations 2008 ([S.I. 2008/2338](https://www.legislation.gov.uk/uksi/2008/2338)), and
- (b) the Stamp Duty Land Tax (Exemption of Certain Acquisitions of Residential Property) Regulations 2008 ([S.I. 2008/2339](https://www.legislation.gov.uk/uksi/2008/2339)).
- (a) the Stamp Duty Land Tax (Variation of Part 4 of the Finance Act 2003) Regulations 2008 (S.I. 2008/2338), and
- (b) the Stamp Duty Land Tax (Exemption of Certain Acquisitions of Residential Property) Regulations 2008 (S.I. 2008/2339).
- (3) The revocations made by subsection (2) have effect in relation to transactions with an effective date on or after 22 April 2009.
@@ -169,23 +169,23 @@
- (1) ALDA 1979 is amended as follows.
- (2) In section 5 (rate of duty on spirits), for “£21.35” substitute “£22.64”.
- (3) In section 36(1AA)(a) (standard rate of duty on beer), for “£14.96” substitute “£16.47”.
- (2) In section 5 (rate of duty on spirits), for “£21.35” substitute “ £22.64 ”.
- (3) In section 36(1AA)(a) (standard rate of duty on beer), for “£14.96” substitute “ £16.47 ”.
- (4) In section 62(1A) (rates of duty on cider)—
- (a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£188.10” substitute “£207.20”,
- (b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£43.37” substitute “£47.77”, and
- (c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£28.90” substitute “£31.83”.
- (a) in paragraph (a) (rate of duty per hectolitre in the case of sparkling cider of a strength exceeding 5.5 per cent), for “£188.10” substitute “ £207.20 ”,
- (b) in paragraph (b) (rate of duty per hectolitre in the case of cider of a strength exceeding 7.5 per cent which is not sparkling cider), for “£43.37” substitute “ £47.77 ”, and
- (c) in paragraph (c) (rate of duty per hectolitre in any other case), for “£28.90” substitute “ £31.83 ”.
- (5) For the table in Schedule 1 substitute—
| Description of wine or made-wine | Rates of duty per hectolitre |
| *Description of wine or made-wine* | *Rates of duty per hectolitre* |
| --- | --- |
| | £ |
| | *£* |
| Wine or made-wine of a strength not exceeding 4 per cent | 65.94 |
| Wine or made-wine of a strength exceeding 4 per cent but not exceeding 5.5 per cent | 90.68 |
| Wine or made-wine of a strength exceeding 5.5 per cent but not exceeding 15 per cent and not being sparkling | 214.02 |
@@ -193,16 +193,16 @@
| Sparkling wine or sparkling made-wine of a strength of 8.5 per cent or of a strength exceeding 8.5 per cent but not exceeding 15 per cent | 274.13 |
| Wine or made-wine of a strength exceeding 15 per cent but not exceeding 22 per cent | 285.33 |
| Description of wine or made-wine | Rates of duty per litre of alcohol in wine or made-wine |
| *Description of wine or made-wine* | *Rates of duty per litre of alcohol in wine or made-wine* |
| --- | --- |
| | £ |
| | *£* |
| Wine or made-wine of a strength exceeding 22 per cent | 22.64. |
- (6) The following are revoked—
- (a) the Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 ([S.I. 2008/3026](https://www.legislation.gov.uk/uksi/2008/3026)), so far as relating to excise duty on alcoholic liquors, and
- (b) the Alcoholic Liquor (Surcharge on Spirits Duty) Order 2008 ([S.I. 2008/3062](https://www.legislation.gov.uk/uksi/2008/3062)).
- (a) the Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 (S.I. 2008/3026), so far as relating to excise duty on alcoholic liquors, and
- (b) the Alcoholic Liquor (Surcharge on Spirits Duty) Order 2008 (S.I. 2008/3062).
- (7) The amendments made by this section are treated as having come into force on 23 April 2009.
@@ -218,7 +218,7 @@
| 3. Hand-rolling tobacco | £124.45 per kilogram |
| 4. Other smoking tobacco and chewing tobacco | £76.12 per kilogram. |
- (2) The Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 ([S.I. 2008/3026](https://www.legislation.gov.uk/uksi/2008/3026)), so far as relating to excise duty on tobacco products, is revoked.
- (2) The Alcoholic Liquor Duties (Surcharges) and Tobacco Products Duty Order 2008 (S.I. 2008/3026), so far as relating to excise duty on tobacco products, is revoked.
- (3) The amendments made by this section are treated as having come into force at 6 pm on 22 April 2009.
@@ -232,31 +232,34 @@
- (2) In paragraph 1 (general)—
- (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£185” substitute “£190”, and
- (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£120” substitute “£125”.
- (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£185” substitute “ £190 ”, and
- (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£120” substitute “ £125 ”.
- (3) In paragraph 1B (graduated rates for light passenger vehicles), for the table substitute—
| CO₂ emissions figure | CO₂ emissions figure | Rate | Rate |
| *CO₂ emissions figure* | *CO₂ emissions figure* | *Rate* | *Rate* |
| --- | --- | --- | --- |
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| The table has effect in relation to vehicles first registered under this Act before 23 March 2006 as if— in column (3), in the last row, “200” were substituted for “390”, and in column (4), in the last row, “215” were substituted for “405”. | The table has effect in relation to vehicles first registered under this Act before 23 March 2006 as if— in column (3), in the last row, “200” were substituted for “390”, and in column (4), in the last row, “215” were substituted for “405”. | The table has effect in relation to vehicles first registered under this Act before 23 March 2006 as if— in column (3), in the last row, “200” were substituted for “390”, and in column (4), in the last row, “215” were substituted for “405”. | The table has effect in relation to vehicles first registered under this Act before 23 March 2006 as if— in column (3), in the last row, “200” were substituted for “390”, and in column (4), in the last row, “215” were substituted for “405”. |
| *(1)* | *(2)* | *(3)* | *(4)* |
| *Exceeding* | *Not exceeding* | *Reduced rate* | *Standard rate* |
| *g/km* | *g/km* | *£* | *£* |
| 100 | 120 | 15 | 35 |
| 120 | 140 | 100 | 120 |
| 140 | 150 | 105 | 125 |
| 150 | 165 | 130 | 150 |
| 165 | 185 | 155 | 175 |
| 185 | 225 | 200 | 215 |
| 225 | — | 390 | 405 |
| 225 | | 390 | 405 |
> The table has effect in relation to vehicles first registered under this Act before 23 March 2006 as if—
> (a) in column (3), in the last row, “200” were substituted for “ 390 ”, and
> (b) in column (4), in the last row, “215” were substituted for “ 405 ”.
- (4) In paragraph 1J (light goods vehicles)—
- (a) in sub-paragraph (a) (vehicle which is not lower-emission van), for “£180” substitute “£185”, and
- (b) in sub-paragraph (b) (lower-emission van), for “£120” substitute “£125”.
- (a) in sub-paragraph (a) (vehicle which is not lower-emission van), for “£180” substitute “ £185 ”, and
- (b) in sub-paragraph (b) (lower-emission van), for “£120” substitute “ £125 ”.
- (5) The amendments made by this section have effect in relation to licences taken out on or after 1 May 2009.
@@ -266,11 +269,11 @@
- (1) Schedule 1 to VERA 1994 (annual rates of duty) is amended as follows.
- (2) In paragraph 1(2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£190” substitute “£205”.
- (2) In paragraph 1(2) (vehicle not covered elsewhere in Schedule otherwise than with engine cylinder capacity not exceeding 1,549cc), for “£190” substitute “ £205 ”.
- (3) Paragraph 1B (graduated rates for light passenger vehicles) is amended as follows.
- (4) For “table” substitute “tables”.
- (4) For “table” substitute “ tables ”.
- (5) Omit the “and” at the end of paragraph (a).
@@ -281,11 +284,11 @@
- (7) For the table substitute—
| CO₂ emissions figure | CO₂ emissions figure | Rate | Rate |
| *CO₂ emissions figure* | *CO₂ emissions figure* | *Rate* | *Rate* |
| --- | --- | --- | --- |
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| *(1)* | *(2)* | *(3)* | *(4)* |
| *Exceeding* | *Not exceeding* | *Reduced rate* | *Standard rate* |
| *g/km* | *g/km* | *£* | *£* |
| 130 | 140 | 100 | 110 |
| 140 | 150 | 115 | 125 |
| 150 | 165 | 145 | 155 |
@@ -294,14 +297,13 @@
| 185 | 200 | 415 | 425 |
| 200 | 225 | 540 | 550 |
| 225 | 255 | 740 | 750 |
| 255 | — | 940 | 950 |
| CO₂ emissions figure | CO₂ emissions figure | Rate | Rate |
| 255 | | 940 | 950 |
| *CO₂ emissions figure* | *CO₂ emissions figure* | *Rate* | *Rate* |
| --- | --- | --- | --- |
| (1) | (2) | (3) | (4) |
| Exceeding | Not exceeding | Reduced rate | Standard rate |
| g/km | g/km | £ | £ |
| Table 2 has effect in relation to vehicles first registered, under this Act or under the law of a country or territory outside the United Kingdom, before 23 March 2006 as if— in column (3), in the last two rows, “235” were substituted for “415” and “425”, and in column (4), in the last two rows, “245” were substituted for “425” and “435”. | Table 2 has effect in relation to vehicles first registered, under this Act or under the law of a country or territory outside the United Kingdom, before 23 March 2006 as if— in column (3), in the last two rows, “235” were substituted for “415” and “425”, and in column (4), in the last two rows, “245” were substituted for “425” and “435”. | Table 2 has effect in relation to vehicles first registered, under this Act or under the law of a country or territory outside the United Kingdom, before 23 March 2006 as if— in column (3), in the last two rows, “235” were substituted for “415” and “425”, and in column (4), in the last two rows, “245” were substituted for “425” and “435”. | Table 2 has effect in relation to vehicles first registered, under this Act or under the law of a country or territory outside the United Kingdom, before 23 March 2006 as if— in column (3), in the last two rows, “235” were substituted for “415” and “425”, and in column (4), in the last two rows, “245” were substituted for “425” and “435”. |
| *(1)* | *(2)* | *(3)* | *(4)* |
| *Exceeding* | *Not exceeding* | *Reduced rate* | *Standard rate* |
| *g/km* | *g/km* | *£* | *£* |
| 100 | 110 | 10 | 20 |
| 110 | 120 | 20 | 30 |
| 120 | 130 | 80 | 90 |
@@ -313,9 +315,13 @@
| 185 | 200 | 225 | 235 |
| 200 | 225 | 235 | 245 |
| 225 | 255 | 415 | 425 |
| 255 | — | 425 | 435 |
- (8) In paragraph 1J(a) (light goods vehicle which is not lower-emission van), for “£185” substitute “£200”.
| 255 | | 425 | 435 |
> Table 2 has effect in relation to vehicles first registered, under this Act or under the law of a country or territory outside the United Kingdom, before 23 March 2006 as if—
> (a) in column (3), in the last two rows, “235” were substituted for “ 415 ” and “425”, and
> (b) in column (4), in the last two rows, “245” were substituted for “ 425 ” and “435”.
- (8) In paragraph 1J(a) (light goods vehicle which is not lower-emission van), for “£185” substitute “ £200 ”.
- (9) Schedule 4 contains further provision about rates of vehicle excise duty etc.
@@ -331,33 +337,33 @@
- (2) In section 6(1A) (main rates)—
- (a) in paragraph (a) (unleaded petrol), for “£0.5235” substitute “£0.5419”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3103” substitute “£0.3334”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6207” substitute “£0.6391”, and
- (d) in paragraph (c) (heavy oil), for “£0.5235” substitute “£0.5419”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3235” substitute “£0.3419”.
- (4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3235” substitute “£0.3419”.
- (a) in paragraph (a) (unleaded petrol), for “£0.5235” substitute “ £0.5419 ”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3103” substitute “ £0.3334 ”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6207” substitute “ £0.6391 ”, and
- (d) in paragraph (c) (heavy oil), for “£0.5235” substitute “ £0.5419 ”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3235” substitute “ £0.3419 ”.
- (4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3235” substitute “ £0.3419 ”.
- (5) In section 8(3) (road fuel gas)—
- (a) in paragraph (a) (natural road fuel gas), for “£0.1660” substitute “£0.1926”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2077” substitute “£0.2482”.
- (a) in paragraph (a) (natural road fuel gas), for “£0.1660” substitute “ £0.1926 ”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2077” substitute “ £0.2482 ”.
- (6) In section 11(1) (rebate on heavy oil)—
- (a) in paragraph (a) (fuel oil), for “£0.0966” substitute “£0.1”, and
- (b) in paragraph (b) (gas oil), for “£0.1007” substitute “£0.1042”.
- (7) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0966” substitute “£0.1”.
- (8) In section 14A(2) (rebate on certain biodiesel), for “£0.1007” substitute “£0.1042”.
- (a) in paragraph (a) (fuel oil), for “£0.0966” substitute “ £0.1 ”, and
- (b) in paragraph (b) (gas oil), for “£0.1007” substitute “ £0.1042 ”.
- (7) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.0966” substitute “ £0.1 ”.
- (8) In section 14A(2) (rebate on certain biodiesel), for “£0.1007” substitute “ £0.1042 ”.
- (9) The amendments made by subsection (2)(b) and (c) are treated as having come into force on 1 May 2009.
@@ -371,33 +377,33 @@
- (2) In section 6(1A) (main rates)—
- (a) in paragraph (a) (unleaded petrol), for “£0.5419” substitute “£0.5619”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3334” substitute “£0.3457”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6391” substitute “£0.6591”, and
- (d) in paragraph (c) (heavy oil), for “£0.5419” substitute “£0.5619”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3419” substitute “£0.3619”.
- (4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3419” substitute “£0.3619”.
- (a) in paragraph (a) (unleaded petrol), for “£0.5419” substitute “ £0.5619 ”,
- (b) in paragraph (aa) (aviation gasoline), for “£0.3334” substitute “ £0.3457 ”,
- (c) in paragraph (b) (light oil other than unleaded petrol or aviation gasoline), for “£0.6391” substitute “ £0.6591 ”, and
- (d) in paragraph (c) (heavy oil), for “£0.5419” substitute “ £0.5619 ”.
- (3) In section 6AA(3) (rate of duty on biodiesel), for “£0.3419” substitute “ £0.3619 ”.
- (4) In section 6AD(3) (rate of duty on bioethanol), for “£0.3419” substitute “ £0.3619 ”.
- (5) In section 8(3) (road fuel gas)—
- (a) in paragraph (a) (natural road fuel gas), for “£0.1926” substitute “£0.2216”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2482” substitute “£0.2767”.
- (a) in paragraph (a) (natural road fuel gas), for “£0.1926” substitute “ £0.2216 ”, and
- (b) in paragraph (b) (other road fuel gas), for “£0.2482” substitute “ £0.2767 ”.
- (6) In section 11(1) (rebate on heavy oil)—
- (a) in paragraph (a) (fuel oil), for “£0.1” substitute “£0.1037”, and
- (b) in paragraph (b) (gas oil), for “£0.1042” substitute “£0.1080”.
- (7) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1” substitute “£0.1037”.
- (8) In section 14A(2) (rebate on certain biodiesel), for “£0.1042” substitute “£0.1080”.
- (a) in paragraph (a) (fuel oil), for “£0.1” substitute “ £0.1037 ”, and
- (b) in paragraph (b) (gas oil), for “£0.1042” substitute “ £0.1080 ”.
- (7) In section 14(1) (rebate on light oil for use as furnace fuel), for “£0.1” substitute “ £0.1037 ”.
- (8) In section 14A(2) (rebate on certain biodiesel), for “£0.1042” substitute “ £0.1080 ”.
- (9) The amendments made by this section come into force on 1 September 2009.
@@ -410,17 +416,17 @@
- (1) In section 30 of FA 1994 (air passenger duty: rates), for subsections (1) to (4) substitute—
> (1) Air passenger duty is chargeable on the carriage of each chargeable passenger at the rate determined as follows.
> (2) If the passenger’s journey ends at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A—
> (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £11, and
> (2) If the passenger's journey ends at a place in the United Kingdom or a territory specified in Part 1 of Schedule 5A—
> (a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is £11, and
> (b) in any other case, the rate is £22.
> (3) If the passenger’s journey ends at a place in a territory specified in Part 2 of Schedule 5A—
> (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £45, and
> (3) If the passenger's journey ends at a place in a territory specified in Part 2 of Schedule 5A—
> (a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is £45, and
> (b) in any other case, the rate is £90.
> (4) If the passenger’s journey ends at a place in a territory specified in Part 3 of Schedule 5A—
> (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £50, and
> (4) If the passenger's journey ends at a place in a territory specified in Part 3 of Schedule 5A—
> (a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is £50, and
> (b) in any other case, the rate is £100.
> (4A) If the passenger’s journey ends at any other place—
> (a) if the passenger’s agreement for carriage provides for standard class travel in relation to every flight on the passenger’s journey, the rate is £55, and
> (4A) If the passenger's journey ends at any other place—
> (a) if the passenger's agreement for carriage provides for standard class travel in relation to every flight on the passenger's journey, the rate is £55, and
> (b) in any other case, the rate is £110.
- (2) Schedule 5 contains further provision about air passenger duty.
@@ -431,7 +437,7 @@
##### 18
- (1) In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£40” substitute “£48”.
- (1) In section 42(1)(a) and (2) of FA 1996 (amount of landfill tax), for “£40” substitute “ £48 ”.
- (2) The amendments made by subsection (1) have effect in relation to disposals made (or treated as made) on or after 1 April 2010.
@@ -443,7 +449,7 @@
- (1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—
| Part of gross gaming yield | Rate |
| *Part of gross gaming yield* | *Rate* |
| --- | --- |
| The first £1,929,000 | 15 per cent |
| The next £1,329,500 | 20 per cent |
@@ -459,9 +465,9 @@
- (1) BGDA 1981 is amended as follows.
- (2) In section 17(1)(b) (bingo duty chargeable at 15 per cent of bingo promotion profits), for “15” substitute “22”.
- (3) In paragraph 5(2)(c) of Schedule 3 (maximum prize for small-scale amusements exemption), for “£50” substitute “£70”.
- (2) In section 17(1)(b) (bingo duty chargeable at 15 per cent of bingo promotion profits), for “15” substitute “ 22 ”.
- (3) In paragraph 5(2)(c) of Schedule 3 (maximum prize for small-scale amusements exemption), for “£50” substitute “ £70 ”.
- (4) The amendment made by subsection (2) has effect in relation to accounting periods beginning on or after 27 April 2009.
@@ -473,9 +479,9 @@
- (1) In section 23(2) of BGDA 1981 (amount of duty payable on amusement machine licence), for the table substitute—
| Months for which licence granted | Category A | Category B1 | Category B2 | Category B3 | Category B4 | Category C |
| *Months for which licence granted* | *Category A* | *Category B1* | *Category B2* | *Category B3* | *Category B4* | *Category C* |
| --- | --- | --- | --- | --- | --- | --- |
| | £ | £ | £ | £ | £ | £ |
| | *£* | *£* | *£* | *£* | *£* | *£* |
| 1 | 500 | 255 | 200 | 200 | 180 | 80 |
| 2 | 985 | 490 | 385 | 385 | 350 | 45 |
| 3 | 1475 | 735 | 585 | 585 | 530 | 220 |
@@ -489,7 +495,7 @@
| 11 | 5410 | 2710 | 2130 | 2130 | 1930 | 795 |
| 12 | 5625 | 2815 | 2215 | 2215 | 2010 | 830. |
- (2) The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty’s Revenue and Customs after 4 pm on 22 April 2009.
- (2) The amendment made by subsection (1) has effect in relation to cases where the application for the amusement machine licence is received by the Commissioners for Her Majesty's Revenue and Customs after 4 pm on 22 April 2009.
#### Provisions affecting amount of amusement machine licence duty
@@ -505,7 +511,7 @@
- (a) in sub-paragraph (i), omit the “and” at the end,
- (b) in sub-paragraph (ii), for “£5” substitute “£15”, and
- (b) in sub-paragraph (ii), for “£5” substitute “ £15 ”, and
- (c) after that sub-paragraph insert—
@@ -530,15 +536,15 @@
> (c) in any other case, the cost that the person providing the machine would incur in obtaining the prize from a person who is not a connected person.
> (7) Section 839 of the Income and Corporation Taxes Act 1988 (connected persons) applies for the purposes of subsection (6).
- (7) In section 22(2) (machine in respect of which benefits for winning single game do not exceed £8 to be “small-prize machine”), for “£8” substitute “£10”.
- (7) In section 22(2) (machine in respect of which benefits for winning single game do not exceed £8 to be “small-prize machine”), for “£8” substitute “ £10 ”.
- (8) Section 23 (amount of duty) is amended as follows.
- (9) In subsection (3) (categories of machines), in the definition of Category C gaming machine, in paragraph (ii)—
- (a) for “50p” substitute “£1”, and
- (b) for “£35” substitute “£70”.
- (a) for “50p” substitute “ £1 ”, and
- (b) for “£35” substitute “ £70 ”.
- (10) Omit subsection (5) (which is superseded by the amendment made by subsection (6)).
@@ -631,9 +637,9 @@
- (4) In this section—
- “relevant enactments” means— the Corporation Tax Acts, and the enactments relating to petroleum revenue tax;
- “tax relief” means— a reduction (by any means) of P’s liability to any tax, or a payable tax credit.
- “*relevant enactments*” means—the Corporation Tax Acts, andthe enactments relating to petroleum revenue tax;
- “*tax relief*” means—a reduction (by any means) of P's liability to any tax, ora payable tax credit.
- (5) This section has effect in relation to arrangements made on or after 22 April 2009; but that does not prevent subsections (1) and (3) from having effect in relation to times before 22 April 2009.
@@ -685,20 +691,16 @@
- (1) Chapter 2 of Part 4 of ITTOIA 2005 (interest) is amended as follows.
- (2) In section 369(2) (list of provisions extending what is treated as interest for certain purposes), after “bonds),” insert—
> - section 380A (FSCS payments representing interest),
.
- (2) In section 369(2) (list of provisions extending what is treated as interest for certain purposes), after “bonds),” insert— “ section 380A (FSCS payments representing interest), ”.
- (3) After section 380 insert—
> (380A)
> (1) Any payment representing interest which is made under the FSCS is treated as interest for the purposes of this Act.
> (2) “Payment representing interest” means a payment calculated in the same way as interest which would have been paid to the recipient but for the circumstances giving rise to the making of payments under the FSCS.
> (2) “*Payment representing interest*” means a payment calculated in the same way as interest which would have been paid to the recipient but for the circumstances giving rise to the making of payments under the FSCS.
> (3) Where a payment representing interest is made net of an amount equal to a sum representing income tax that would have been deducted on the payment of interest, the amount treated as interest by this section is the aggregate of the payment representing interest and that sum.
> (4) This section applies to payments made under the FSCS whether or not they are made (in whole or in part) on behalf of the Treasury or any other person.
> (5) In this section “the FSCS” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000).
> (5) In this section “*the FSCS*” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000).
- (4) In ITA 2007, after section 979 insert—
@@ -706,15 +708,15 @@
> (1) This section applies where a payment is made under the FSCS representing interest net of an amount equal to a sum representing income tax that would have been deducted on the payment of interest but for the circumstances giving rise to the making of payments under the FSCS.
> (2) A payment of the relevant gross amount is treated as having been made under the FSCS after there has been deducted from it a sum representing income tax of that amount.
> (3) That sum is accordingly taken into account under section 59B of TMA 1970 in determining the income tax payable by, or repayable to, the recipient.
> (4) “The relevant gross amount” means the aggregate of the amount of the payment representing interest which is made and that sum.
> (4) “*The relevant gross amount*” means the aggregate of the amount of the payment representing interest which is made and that sum.
> (5) If the recipient requests it in writing, the scheme manager of the FSCS must provide the recipient with a statement showing—
> (a) the relevant gross amount,
> (b) the amount of the sum treated as deducted, and
> (c) the amount of the payment representing interest.
> (6) The duty to comply with a request under subsection (5) is enforceable by the recipient.
> (7) In this section—
> - “the FSCS” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000);
> - “payment representing interest” has the same meaning as in section 380A of ITTOIA 2005.
> - “*the FSCS*” means the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000);
> - “*payment representing interest*” has the same meaning as in section 380A of ITTOIA 2005.
- (5) The amendments made by this section have effect in relation to payments made on or after 6 October 2008.
@@ -760,11 +762,7 @@
- (1) Chapter 2 of Part 4 of ITTOIA 2005 (interest) is amended as follows.
- (2) In section 369(2) (list of provisions extending what is treated as interest for certain purposes), after the entry relating to section 376 insert—
> - section 378A (offshore fund distributions),
.
- (2) In section 369(2) (list of provisions extending what is treated as interest for certain purposes), after the entry relating to section 376 insert— “ section 378A (offshore fund distributions), ”.
- (3) After section 378 insert—
@@ -773,23 +771,23 @@
> (a) a dividend is paid by an offshore fund, and
> (b) the offshore fund fails to meet the qualifying investments test at any time in the relevant period.
> (2) The dividend is treated as interest for income tax purposes.
> (3) For the purposes of this section, an offshore fund fails to meet the qualifying investments test if the market value of the fund’s qualifying investments exceeds 60% of the market value of all of the assets of the fund (excluding cash awaiting investment).
> (4) “The relevant period” means—
> (3) For the purposes of this section, an offshore fund fails to meet the qualifying investments test if the market value of the fund's qualifying investments exceeds 60% of the market value of all of the assets of the fund (excluding cash awaiting investment).
> (4) “*The relevant period*” means—
> (a) the relevant period of account of the offshore fund, or
> (b) if longer, the period of 12 months ending on the last day of that period.
> (5) “The relevant period of account” means—
> (5) “*The relevant period of account*” means—
> (a) the last period of account ending before the dividend is paid, in a case in which the profits available for distribution at the end of that period (and not used since then by distribution or otherwise) equal or exceed the amount of the dividend (aggregated with any other distribution made by the offshore fund at the same time), and
> (b) the period of account in which the dividend is paid, in any other case.
> (6) This section applies to a manufactured overseas dividend if, and only if, it is representative of a distribution to which this section would apply.
> (7) In this section—
> - “dividend” includes any distribution that (but for this section) would be treated as a dividend for income tax purposes;
> - “manufactured overseas dividend” has the same meaning as in Chapter 2 of Part 11 of ITA 2007 (manufactured payments);
> - “offshore fund” has the same meaning as in Chapter 5 of Part 17 of ICTA (see sections 756A to 756C of that Act);
> - “qualifying investments” has the meaning given in section 494 of CTA 2009.
> - “*dividend*” includes any distribution that (but for this section) would be treated as a dividend for income tax purposes;
> - “*manufactured overseas dividend*” has the same meaning as in Chapter 2 of Part 11 of ITA 2007 (manufactured payments);
> - “*offshore fund*” has the same meaning as in Chapter 5 of Part 17 of ICTA (see sections 756A to 756C of that Act);
> - “*qualifying investments*” has the meaning given in section 494 of CTA 2009.
- (4) Accordingly, in section 367 of ITTOIA 2005 (priority between Chapters within Part 4), in subsection (3)—
- (a) in paragraph (a), after “dividends)” insert “, 378A (offshore fund distributions)”, and
- (a) in paragraph (a), after “dividends)” insert “ , 378A (offshore fund distributions) ”, and
- (b) in paragraph (b), insert at the end “or Chapter 4 (or both)”.
@@ -823,11 +821,11 @@
- (a) omit subsection (3), and
- (b) in subsection (6), after “loss”” insert “and “release debit””.
- (b) in subsection (6), after “loss”” insert “ and release debit ”.
- (3) In section 476(1) (definitions for purposes of Parts 5 and 6), after the definition of “profit sharing arrangements” insert—
> “release debit”, in relation to a company, means a debit in respect of a release by the company of a liability under a creditor relationship of the company,
> “*release debit*”, in relation to a company, means a debit in respect of a release by the company of a liability under a creditor relationship of the company,
.
@@ -837,35 +835,35 @@
- (a) omit the “and” at the end of paragraph (b),
- (b) in paragraph (c), after “loss)” insert “or release debit”, and
- (b) in paragraph (c), after “loss)” insert “ or release debit ”, and
- (c) insert at the end
> , and
> (d) a debt in relation to which a relevant deduction has been allowed to the company and which is released.
- (6) In subsection (3), for “(2)” substitute “(2)(c)”.
- (6) In subsection (3), for “(2)” substitute “ (2)(c) ”.
- (7) After that subsection insert—
> (3A) In subsection (2)(d) “relevant deduction” means a deduction allowed in calculating the profits of a trade, UK property business or overseas property business.
> (3A) In subsection (2)(d) “*relevant deduction*” means a deduction allowed in calculating the profits of a trade, UK property business or overseas property business.
- (8) Section 481 (application of Part 5 to relevant non-lending relationships) is amended as follows
- (9) In subsection (3)—
- (a) in paragraph (d), after “loss” insert “or release debit” and for “impairment, and” substitute “impairment or release,”, and
- (a) in paragraph (d), after “loss” insert “ or release debit ” and for “impairment, and” substitute “ impairment or release, ”, and
- (b) insert at the end
> and
> (f) in the case of a debt in relation to which a relevant deduction has been allowed to the company and which is released, the release.
- (10) In subsection (4), for “(3)” substitute “(3)(d) and (e)”.
- (10) In subsection (4), for “(3)” substitute “ (3)(d) and (e) ”.
- (11) After that subsection insert—
> (4A) In subsection (3)(f) “relevant deduction” has the meaning given in section 479(3A).
> (4A) In subsection (3)(f) “*relevant deduction*” has the meaning given in section 479(3A).
- (12) The amendments made by this section are treated as having come into force on 22 April 2009.
@@ -927,15 +925,15 @@
- (6) In this section—
- “company” has the same meaning as in section 842 of ICTA (investment trusts);
- “investment trust” means an investment trust within the meaning of section 842(1) of ICTA;
- “loan relationship” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);
- “prospective investment trust” means a company that— intends to seek approval under section 842 of ICTA (investment trusts), and has a reasonable belief that such approval will be obtained;
- “specified” means specified in regulations under this section.
- “*company*” has the same meaning as in section 842 of ICTA (investment trusts);
- “*investment trust*” means an investment trust within the meaning of section 842(1) of ICTA;
- “*loan relationship*” has the same meaning as in the Corporation Tax Acts (see section 302(1) and (2) of CTA 2009);
- “*prospective investment trust*” means a company that—intends to seek approval under section 842 of ICTA (investment trusts), andhas a reasonable belief that such approval will be obtained;
- “*specified*” means specified in regulations under this section.
### Insurance etc
@@ -949,9 +947,9 @@
##### 47
- (1) The Treasury may by regulations provide for section 444BA of ICTA (equalisation reserves) to have effect, in such cases and subject to such modifications as may be specified in the regulations, in relation to equivalent Lloyd’s reserves as it has effect in relation to equalisation reserves maintained by virtue of equalisation reserves rules.
- (2) For this purpose a reserve is an equivalent Lloyd’s reserve if it is maintained by a corporate or partnership member for purposes, or in a manner, such as to make it equivalent to an equalisation reserve maintained by virtue of equalisation reserves rules.
- (1) The Treasury may by regulations provide for section 444BA of ICTA (equalisation reserves) to have effect, in such cases and subject to such modifications as may be specified in the regulations, in relation to equivalent Lloyd's reserves as it has effect in relation to equalisation reserves maintained by virtue of equalisation reserves rules.
- (2) For this purpose a reserve is an equivalent Lloyd's reserve if it is maintained by a corporate or partnership member for purposes, or in a manner, such as to make it equivalent to an equalisation reserve maintained by virtue of equalisation reserves rules.
- (3) The regulations may include—
@@ -961,13 +959,13 @@
- (4) In this section—
- “corporate member” means a body corporate which is a member of Lloyd's;
- “equalisation reserves rules” has the same meaning as in section 444BA of ICTA (see subsection (11) of that section);
- “member” means underwriting member;
- “partnership member” means a limited partnership formed under the law of Scotland, or a limited liability partnership formed under the law of any part of the United Kingdom, which is a member of Lloyd's.
- “*corporate member*” means a body corporate which is a member of Lloyd's;
- “*equalisation reserves rules*” has the same meaning as in section 444BA of ICTA (see subsection (11) of that section);
- “*member*” means underwriting member;
- “*partnership member*” means a limited partnership formed under the law of Scotland, or a limited liability partnership formed under the law of any part of the United Kingdom, which is a member of Lloyd's.
### Simplification
@@ -1011,29 +1009,29 @@
> (c) conditions A to F in section 828B are met.
> (828B)
> (1) Condition A is that in the tax year the individual has income from an employment the duties of which are performed wholly or partly in the United Kingdom.
> (2) Condition B is that, if the individual’s income for the tax year consists of or includes relevant foreign earnings—
> (2) Condition B is that, if the individual's income for the tax year consists of or includes relevant foreign earnings—
> (a) the amount of the relevant foreign earnings does not exceed £10,000, and
> (b) all of that amount is subject to a foreign tax.
> (3) Condition C is that, if the individual’s income for the tax year consists of or includes income that is relevant foreign income by virtue of section 830(2)(e) of ITTOIA 2005—
> (3) Condition C is that, if the individual's income for the tax year consists of or includes income that is relevant foreign income by virtue of section 830(2)(e) of ITTOIA 2005—
> (a) the amount of that income does not exceed £100, and
> (b) all of that amount is subject to a foreign tax.
> (4) Condition D is that the individual has no other foreign income and gains for the tax year.
> (5) Condition E is that the individual would not for the tax year be liable to income tax at a rate other than the basic rate or the starting rate for savings if this Chapter did not apply to the individual for the tax year.
> (6) Condition F is that the individual does not make a return under section 8 of TMA 1970 for the tax year.
> (828C)
> (1) The exemption is given by deducting the relevant amount from what would otherwise be the amount of the individual’s liability to income tax for the tax year under section 23.
> (2) “The relevant amount” is so much of the amount of the individual’s liability to income tax as is attributable to the individual’s foreign income or gains for the tax year.
> (3) But if for the tax year the individual’s total income is reduced by any deductions which fall to be made at Step 3 of the calculation in section 23 from the individual’s foreign income or gains for the tax year, subsection (2) has effect as if the individual’s foreign income or gains for the tax year were reduced by the amount of the deductions.
> (1) The exemption is given by deducting the relevant amount from what would otherwise be the amount of the individual's liability to income tax for the tax year under section 23.
> (2) “The relevant amount” is so much of the amount of the individual's liability to income tax as is attributable to the individual's foreign income or gains for the tax year.
> (3) But if for the tax year the individual's total income is reduced by any deductions which fall to be made at Step 3 of the calculation in section 23 from the individual's foreign income or gains for the tax year, subsection (2) has effect as if the individual's foreign income or gains for the tax year were reduced by the amount of the deductions.
> (4) And if the individual is entitled under—
> (a) section 788 of ICTA (double taxation arrangements: relief by agreement), or
> (b) section 790(1) of that Act (relief for foreign tax where no double taxation arrangements),
> to a tax reduction in respect of the individual’s foreign income or gains for the tax year, what would otherwise be the relevant amount is reduced by the amount of that reduction.
> to a tax reduction in respect of the individual's foreign income or gains for the tax year, what would otherwise be the relevant amount is reduced by the amount of that reduction.
> (828D)
> (1) This section applies for the purposes of this Chapter.
> (2) “Employed” and “employment” have the same meaning as in the employment income Parts of ITEPA 2003: see Chapter 1 of Part 2 of that Act.
> (3) “Foreign income and gains”, in relation to an individual, means what would be the individual’s foreign income and gains for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(2)).
> (4) “Foreign tax” means any tax chargeable under the law of a territory outside the United Kingdom.
> (5) “Relevant foreign earnings”, in relation to an individual, means what would be the individual’s relevant foreign earnings for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(3)).
> (2) “*Employed*” and “*employment*” have the same meaning as in the employment income Parts of ITEPA 2003: see Chapter 1 of Part 2 of that Act.
> (3) “*Foreign income and gains*”, in relation to an individual, means what would be the individual's foreign income and gains for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(2)).
> (4) “*Foreign tax*” means any tax chargeable under the law of a territory outside the United Kingdom.
> (5) “*Relevant foreign earnings*”, in relation to an individual, means what would be the individual's relevant foreign earnings for the purposes of Chapter A1 of this Part if section 809B applied to the individual (see section 809Z7(3)).
- (2) In section 2(14) of ITA 2007 (overview), after paragraph (a) insert—
@@ -1057,9 +1055,9 @@
- (1) Chapter 6 of Part 3 of ITEPA 2003 (taxable benefits: cars etc) is amended as follows.
- (2) In section 116(3) (meaning of when car is available), after “to section” insert “124A or”.
- (3) In section 121(1) (method of calculating cash equivalent of benefit of car), in step 1, for “124” substitute “124A”.
- (2) In section 116(3) (meaning of when car is available), after “to section” insert “ 124A or ”.
- (3) In section 121(1) (method of calculating cash equivalent of benefit of car), in step 1, for “124” substitute “ 124A ”.
- (4) In section 122 (price of car), the existing provision becomes subsection (1) of that section and after that subsection insert—
@@ -1070,10 +1068,10 @@
> (124A)
> (1) This section applies where—
> (a) a car has automatic transmission (“the automatic car”),
> (b) at any time in the year when the automatic car is available to the employee (“E”), E holds a disabled person’s badge, and
> (c) by reason of E’s disability, E must, in the event of wanting to drive a car, drive a car which has automatic transmission.
> (b) at any time in the year when the automatic car is available to the employee (“E”), E holds a disabled person's badge, and
> (c) by reason of E's disability, E must, in the event of wanting to drive a car, drive a car which has automatic transmission.
> (2) If, under section 122 to 124, the price of the automatic car is more than it would have been if the automatic car had been an equivalent manual car, the price of the automatic car is to be the price of an equivalent manual car.
> (3) In subsection (2) “an equivalent manual car” means a car which—
> (3) In subsection (2) “*an equivalent manual car*” means a car which—
> (a) is first registered at or about the same time as the automatic car, and
> (b) does not have automatic transmission, but otherwise is the closest variant available of the make and model of the automatic car.
> (4) For the purposes of this section a car has automatic transmission if—
@@ -1109,8 +1107,8 @@
> (a) to more than one health-screening assessment provided in a tax year by any one employer or by any of a number of persons who are employers of the employee at the same time, or
> (b) to more than one medical check-up so provided.
> (3) In this section—
> - “health-screening assessment” means an assessment to identify employees who might be at particular risk of ill-health, and
> - “medical check-up” means a physical examination of the employee by a health professional for (and only for) determining the employee’s state of health.
> - “*health-screening assessment*” means an assessment to identify employees who might be at particular risk of ill-health, and
> - “*medical check-up*” means a physical examination of the employee by a health professional for (and only for) determining the employee's state of health.
- (5) The amendments made by this section have effect for the tax year 2009-10 and subsequent tax years.
@@ -1128,7 +1126,7 @@
of the Statute for Members of the European Parliament (2005/684/EC, Euratom) were payable under the law of a territory outside the United Kingdom.
- (2) In section 291(2)(c) of ITEPA 2003 (termination payments under section 3 of European Parliament (Pay and Pensions) Act 1979), insert at the end “or under Article 13 of the Statute for Members of the European Parliament (transitional allowances),”.
- (2) In section 291(2)(c) of ITEPA 2003 (termination payments under section 3 of European Parliament (Pay and Pensions) Act 1979), insert at the end “ or under Article 13 of the Statute for Members of the European Parliament (transitional allowances), ”.
- (3) This section has effect for the tax year 2009-10 and subsequent tax years.
@@ -1138,13 +1136,13 @@
##### 57
- (1) In section 799(1A) of ICTA (computation of foreign tax on dividends), for “in force when the dividend was paid” substitute “applicable to profits of the company by which the dividend is received for the accounting period in which it is received or, where there is more than one such rate, the average rate over the whole of that accounting period”.
- (1) In section 799(1A) of ICTA (computation of foreign tax on dividends), for “in force when the dividend was paid” substitute “ applicable to profits of the company by which the dividend is received for the accounting period in which it is received or, where there is more than one such rate, the average rate over the whole of that accounting period ”.
- (2) Section 801 of ICTA (dividends paid between related companies) is amended as follows.
- (3) In subsection (2), after “had been paid” insert “(at the time when the dividend mentioned in subsection (1) above is received)”.
- (4) In the version of section 799(1A) set out in subsection (2B), for “in force when the dividend was paid” substitute “applicable to profits of the company by which the dividend is received for the accounting period in which it is received or, where there is more than one such rate, the average rate over the whole of that accounting period”.
- (3) In subsection (2), after “had been paid” insert “ (at the time when the dividend mentioned in subsection (1) above is received) ”.
- (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- (5) The amendment made by subsection (3) has effect in relation to dividends paid to a company falling within section 801(1A) of ICTA if they are paid on or after 22 April 2009.
@@ -1175,25 +1173,25 @@
- (4) In subsection (2)—
- (a) after “arrangements” insert “is reduced under section 804G, or”,
- (b) for “to which the adjustment gives rise” substitute “to which the reduction or adjustment gives rise”, and
- (c) for “all such assessments, adjustments” substitute “all such assessments, reductions, adjustments”.
- (a) after “arrangements” insert “ is reduced under section 804G, or ”,
- (b) for “to which the adjustment gives rise” substitute “ to which the reduction or adjustment gives rise ”, and
- (c) for “all such assessments, adjustments” substitute “ all such assessments, reductions, adjustments ”.
- (5) In subsection (3)—
- (a) in paragraph (b), after “subsequently” insert “reduced under section 804G or”, and
- (b) in the words after paragraph (b), after “Board that” insert “a reduction has been made or that”.
- (6) In subsections (4) and (5), for “the adjustment” substitute “the reduction or adjustment”.
- (a) in paragraph (b), after “subsequently” insert “ reduced under section 804G or ”, and
- (b) in the words after paragraph (b), after “Board that” insert “ a reduction has been made or that ”.
- (6) In subsections (4) and (5), for “the adjustment” substitute “ the reduction or adjustment ”.
- (7) In subsection (6)—
- (a) for “any adjustment” substitute “any reduction or adjustment”, and
- (b) after “allowed” insert “has been reduced or”.
- (a) for “any adjustment” substitute “ any reduction or adjustment ”, and
- (b) after “allowed” insert “ has been reduced or ”.
- (8) Section 811 (deduction for foreign tax where no credit allowable) is amended as follows.
@@ -1202,26 +1200,26 @@
> (3A) If—
> (a) income of any person (“P”) is treated under subsection (1) as reduced by a sum paid in respect of tax on that income in the place where the income has arisen (“foreign tax”), and
> (b) a payment is made by a tax authority to P, or any person connected with P, by reference to the foreign tax,
> the amount of P’s income is to be increased by an amount equal to the payment made to P or the connected person.
> the amount of P's income is to be increased by an amount equal to the payment made to P or the connected person.
> (3B) Section 839 applies for the purposes of determining whether or not a person is connected with P.
- (10) In subsection (4)—
- (a) before “nothing” insert “or the amount of P’s income is increased under subsection (3A),”,
- (b) for “adjustment gives rise” substitute “adjustment or increase gives rise”,
- (c) for “all such assessments, adjustments” substitute “all such assessments, adjustments, increases”, and
- (a) before “nothing” insert “ or the amount of P's income is increased under subsection (3A), ”,
- (b) for “adjustment gives rise” substitute “ adjustment or increase gives rise ”,
- (c) for “all such assessments, adjustments” substitute “ all such assessments, adjustments, increases ”, and
- (d) insert at the end “or increase under subsection (3A) falls to be made”.
- (11) In subsection (5)—
- (a) in paragraph (b), after “United Kingdom” insert “or an increase under subsection (3A)”, and
- (b) in the words after paragraph (b), after “adjustment” insert “or increase”.
- (12) In subsections (6), (7) and (8), after “adjustment” insert “or increase”.
- (a) in paragraph (b), after “United Kingdom” insert “ or an increase under subsection (3A) ”, and
- (b) in the words after paragraph (b), after “adjustment” insert “ or increase ”.
- (12) In subsections (6), (7) and (8), after “adjustment” insert “ or increase ”.
- (13) The amendments made by this section have effect in relation to payments made on or after 22 April 2009.
@@ -1238,12 +1236,14 @@
> (b) the amount of the included funding costs is significantly less than the amount of the notional funding costs.
> (3B) The amount of the notional funding costs is to be included in the subsection (3) total, but only to the extent that it exceeds the amount of the included funding costs.
> (3C) In subsections (3A) and (3B) and this subsection—
> - “bank” has the meaning given by section 840A;
> - “connected” has the meaning given by section 839;
> - “included funding costs” means the total of the funding costs that are— incurred by the taxpayer, or any company connected with the taxpayer, in respect of capital used to fund the relevant transaction, and included in the subsection (3) total (before the application of subsection (3B));
> - “notional funding costs” means the funding costs that the relevant bank would incur (on the basis of its average funding costs) in respect of the capital that would be needed to wholly fund the relevant transaction if that transaction were funded in that way (and for this purpose “relevant bank” means the bank that is the taxpayer, or with which the taxpayer is connected);
> - “relevant transaction” means the transaction, arrangement or asset from which the income or gain arises;
> - “subsection (3) total” means the amount to be taken into account under subsection (3) for the purposes of section 797(1).
> - “*bank*” has the meaning given by section 840A;
> - “*connected*” has the meaning given by section 839;
> - “*included funding costs*” means the total of the funding costs that are—
> 1. incurred by the taxpayer, or any company connected with the taxpayer, in respect of capital used to fund the relevant transaction, and
> 2. included in the subsection (3) total (before the application of subsection (3B));
> - “*notional funding costs*” means the funding costs that the relevant bank would incur (on the basis of its average funding costs) in respect of the capital that would be needed to wholly fund the relevant transaction if that transaction were funded in that way (and for this purpose “*relevant bank*” means the bank that is the taxpayer, or with which the taxpayer is connected);
> - “*relevant transaction*” means the transaction, arrangement or asset from which the income or gain arises;
> - “*subsection (3) total*” means the amount to be taken into account under subsection (3) for the purposes of section 797(1).
- (3) Section 798B (section 798A: special cases), after subsection (4) insert—
@@ -1253,9 +1253,11 @@
> (c) a main purpose of the scheme or arrangement is to produce the result that section 798A will not have effect in relation to the income because it is received by D.
> (4B) For the purposes of subsection (4A)(b) it is to be assumed that, in the case of any relevant transaction to which a relevant person is a party, C were that party to that transaction.
> (4C) In subsections (4A) and (4B) and this subsection—
> - “connected person” means a person with whom D is connected (within the meaning of section 839);
> - “relevant person” means— D, or any other connected person who is a party to the scheme or arrangement;
> - “relevant transaction” means any of the transactions giving rise to the income.
> - “*connected person*” means a person with whom D is connected (within the meaning of section 839);
> - “*relevant person*” means—
> 1. D, or
> 2. any other connected person who is a party to the scheme or arrangement;
> - “*relevant transaction*” means any of the transactions giving rise to the income.
- (4) The amendments made by this section have effect in relation to a credit for foreign tax which relates to—
@@ -1279,7 +1281,7 @@
> (2E) But subsection (2A) above does not apply by reason of a company ceasing to carry on a trade if—
> (a) on the company ceasing to carry on the trade, any of the activities of the trade begin to be carried on by a person who is not (or by persons any or all of whom are not) within the charge to corporation tax, and
> (b) the company’s ceasing to carry on the trade is part of a scheme or arrangement the main purpose, or one of the main purposes, of which is to secure that subsection (2A) above applies to a loss by reason of the cessation.
> (b) the company's ceasing to carry on the trade is part of a scheme or arrangement the main purpose, or one of the main purposes, of which is to secure that subsection (2A) above applies to a loss by reason of the cessation.
- (2) The amendment made by subsection (1) has effect in relation to cessations of a trade on or after 21 May 2009.
@@ -1351,7 +1353,7 @@
##### 69
- (1) In section 152(8) of ITA 2007 (losses from miscellaneous transactions: cases that are not “section 1016 income”), after “ICTA” insert “or Chapter 9 of Part 4 of ITTOIA 2005”.
- (1) In section 152(8) of ITA 2007 (losses from miscellaneous transactions: cases that are not “section 1016 income”), after “ICTA” insert “ or Chapter 9 of Part 4 of ITTOIA 2005 ”.
- (2) The amendment made by subsection (1) has effect in relation to losses made in the tax year 2009-10 or a subsequent tax year.
@@ -1361,7 +1363,7 @@
- (b) the policy or contract is varied on or after that date so as to increase the benefits secured (any exercise of rights conferred by the policy or contract being regarded for this purpose as a variation),
- (c) there is an assignment (or assignation) to the person (whether or not for money or money’s worth) on or after that date of the rights, or a share of the rights, conferred by the policy or contract, or
- (c) there is an assignment (or assignation) to the person (whether or not for money or money's worth) on or after that date of the rights, or a share of the rights, conferred by the policy or contract, or
- (d) all or part of the rights conferred by the policy or contract become held on or after that date as a security for a debt of the person.
@@ -1379,7 +1381,7 @@
- (1) Part 8 of CTA 2009 (intangible fixed assets) is amended as follows.
- (2) In section 712(1) (meaning of “intangible asset”), insert at the end “(and includes an internally-generated intangible asset)”.
- (2) In section 712(1) (meaning of “intangible asset”), insert at the end “ (and includes an internally-generated intangible asset) ”.
- (3) In section 715 (application of Part 8 to goodwill)—
@@ -1399,7 +1401,7 @@
- (b) in subsection (2)(a), omit “internally-generated”,
- (c) in subsection (2)(b), for “certain other internally-generated assets” substitute “assets representing non-qualifying expenditure”, and
- (c) in subsection (2)(b), for “certain other internally-generated assets” substitute “ assets representing non-qualifying expenditure ”, and
- (d) in subsection (3), omit “to which this section applies”.
@@ -1429,7 +1431,7 @@
, and
- (c) in the heading, for “**Certain other internally-generated assets**” substitute “**Assets representing non-qualifying expenditure**”.
- (c) in the heading, for “**Certain other internally-generated assets**” substitute “ **Assets representing non-qualifying expenditure** ”.
- (7) The amendments made by this section have effect in relation to accounting periods beginning on or after 22 April 2009 (and, in relation to those accounting periods, are to be treated as always having had effect).
@@ -1443,12 +1445,12 @@
- (2) In section 105 (cash equivalent: cost of accommodation not over £75,000)—
- (a) in subsection (3), after “is” insert “(subject to subsections (4) and (4A))”, and
- (a) in subsection (3), after “is” insert “ (subject to subsections (4) and (4A)) ”, and
- (b) for subsection (4) substitute—
> (4) Subsection (4A) applies where—
> (a) a rental amount is payable by the person (“P”) at whose cost the accommodation is provided in respect of the whole or part of the taxable period (“the relevant period”), and
> (a) a rental amount is payable by the person (“P”) at whose cost the accommodation is provided in respect of the whole or part of the taxable period (“*the relevant period*”), and
> (b) the amount so payable is payable at an annual rate greater than the annual value.
> (4A) Where this subsection applies—
> (a) subsection (3) does not apply to the relevant period, and
@@ -1466,19 +1468,19 @@
> (c) the lease is for a term of 10 years or less, and
> (d) the net amount payable by P in relation to the lease by way of lease premium is greater than zero.
> (2) The amount so attributed is—
> $$AC×C$ where— A is the relevant period (in days), B is the term of the lease (in days), and C is the net amount payable by P in relation to the lease by way of lease premium.$
> $$AC×C$where—A is the relevant period (in days),B is the term of the lease (in days), andC is the net amount payable by P in relation to the lease by way of lease premium.$
> (3) For provision about the application of this section in relation to certain leases with break clauses, see section 105B.
> (4) For the purposes of this section the net amount payable by P in relation to a lease by way of lease premium is—
> (a) the total amount (if any) that has been paid, or is or will become payable, by P in relation to the lease by way of lease premium, less
> (b) any amount within paragraph (a) that has been repaid or is or will become repayable.
> (5) In this section and section 105B “lease premium” means any premium payable—
> (5) In this section and section 105B “*lease premium*” means any premium payable—
> (a) under a lease, or
> (b) otherwise under the terms on which a lease is granted.
> (6) In the application of this section to Scotland “premium” includes a grassum.
> (6) In the application of this section to Scotland “*premium*” includes a grassum.
> (105B)
> (1) This section applies to a lease (“the original lease”) that contains one or more relevant break clauses.
> (2) For the purposes of this section—
> (a) “break clause” means a provision of a lease that gives a person a right to terminate it so that its term is shorter than it otherwise would be, and
> (a) “*break clause*” means a provision of a lease that gives a person a right to terminate it so that its term is shorter than it otherwise would be, and
> (b) a break clause contained in the original lease is “relevant” if the right to terminate the lease that it confers is capable of being exercised in such a way that the term of the original lease is 10 years or less.
> (3) For the purposes of section 105A—
> (a) the term of the original lease, and
@@ -1496,8 +1498,8 @@
> (7) For the purposes of section 105A the net amount payable by P in relation to a notional lease by way of lease premium is, in the case of a notional lease the term of which ends under paragraph (b) of subsection (5), the relevant proportion of—
> (a) the net amount that would be payable by P in relation to the original lease by way of lease premium, on the assumption that no break clause is exercised, less
> (b) any part of that amount that has already been attributed to a period in respect of a lease premium under section 105(4B)(b).
> (8) In subsection (7) “the relevant proportion” means—
> $$DE$ where— D is the term of the notional lease (in days), and E is the sum of— the term of the notional lease (in days), and the number of days by which the term of the original lease would exceed 10 years, on the assumption that no break clause is exercised.$
> (8) In subsection (7) “*the relevant proportion*” means—
> $$DE$where—D is the term of the notional lease (in days), andE is the sum of—(a) the term of the notional lease (in days), and(b) the number of days by which the term of the original lease would exceed 10 years, on the assumption that no break clause is exercised.$
- (4) The amendments made by this section have effect in relation to—
@@ -1511,7 +1513,7 @@
- (b) ignoring any lease premium payable in respect of the unextended term of the lease.
- (6) In this section “lease premium” has the same meaning as in sections 105A and 105B of ITEPA 2003.
- (6) In this section “*lease premium*” has the same meaning as in sections 105A and 105B of ITEPA 2003.
## Part 3 — Pensions
@@ -1531,7 +1533,7 @@
- (b) the application of the relevant taxes in relation to any person in connection with the financial assistance scheme.
- (2) “The financial assistance scheme” means the scheme provided for by regulations under section 286 of the Pensions Act 2004.
- (2) “*The financial assistance scheme*” means the scheme provided for by regulations under section 286 of the Pensions Act 2004.
- (3) The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).
@@ -1561,9 +1563,9 @@
- (b) the receipt of fraud compensation payments (within the meaning of Part 2 of the Pensions Act 2004: see section 182(1) of that Act).
- (7) 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.
- (8) The provision made by regulations under this section may be framed as provision applying with appropriate modifications provisions having effect in relation to registered pension schemes; and for this purpose “registered pension scheme” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.
- (7) 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.
- (8) The provision made by regulations under this section may be framed as provision applying with appropriate modifications provisions having effect in relation to registered pension schemes; and for this purpose “*registered pension scheme*” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.
- (9) Regulations under this section may include—
@@ -1581,7 +1583,7 @@
- (1) The Treasury may by regulations make provision for and in connection with the application of the relevant taxes in relation to circumstances in which there is relevant intervention under the FSCS.
- (2) “Relevant intervention” means—
- (2) “*Relevant intervention*” means—
- (a) anything done under, or while seeking to make, arrangements for securing continuity of insurance in connection with registered pension schemes,
@@ -1589,7 +1591,7 @@
- (c) the payment of compensation in connection with registered pension schemes.
- (3) “The FSCS” means the Financial Services Compensation Scheme (established under Part 15 of FISMA 2000).
- (3) “*The FSCS*” means the Financial Services Compensation Scheme (established under Part 15 of FISMA 2000).
- (4) The provision that may be made by regulations under this section includes provision imposing any of the relevant taxes (as well as provisions for exemptions or reliefs).
@@ -1609,7 +1611,7 @@
- (g) stamp duty reserve tax.
- (6) 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 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.
- (7) The provision made by regulations under this section may be framed as provision modifying, or applying with appropriate modifications, provisions having effect in relation to registered pension schemes.
@@ -1623,7 +1625,7 @@
- (10) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons.
- (11) In this section “registered pension scheme” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.
- (11) In this section “*registered pension scheme*” means a pension scheme within the meaning of Part 4 of FA 2004 which is registered under Chapter 2 of that Part of that Act.
#### Power to make retrospective non-charging provision
@@ -1631,7 +1633,7 @@
- (1) In section 282 of FA 2004 (orders and regulations under Part 4), insert at the beginning—
> (A1) Any order or regulations made by the Treasury or the Commissioners for Her Majesty’s Revenue and Customs under this Part may include provision having effect in relation to times before the order is, or regulations are, made if that provision does not increase any person’s liability to tax.
> (A1) Any order or regulations made by the Treasury or the Commissioners for Her Majesty's Revenue and Customs under this Part may include provision having effect in relation to times before the order is, or regulations are, made if that provision does not increase any person's liability to tax.
> (A2) Subsection (A1) does not limit any specific power to make provision by an order or regulations in relation to times before the order is, or regulations are, made.
- (2) In consequence of the amendment made by subsection (1), omit the following provisions of Part 4 of FA 2004—
@@ -1668,9 +1670,9 @@
- (2) In subsection (3) of section 39 (repayment of VAT to those in business overseas)—
- (a) in the words before paragraph (a), after “such cases” insert “and to such extent”,
- (b) in sub-paragraph (ii) of paragraph (b), after “Act” insert “in respect of such period as may be prescribed” and omit the “and” at the end,
- (a) in the words before paragraph (a), after “such cases” insert “ and to such extent ”,
- (b) in sub-paragraph (ii) of paragraph (b), after “Act” insert “ in respect of such period as may be prescribed ” and omit the “and” at the end,
- (c) after that paragraph insert—
@@ -1678,7 +1680,7 @@
, and
- (d) in paragraph (c), for “methods by which” substitute “time by which and manner in which claims must be made,”.
- (d) in paragraph (c), for “methods by which” substitute “ time by which and manner in which claims must be made, ”.
- (3) After that section insert—
@@ -1698,7 +1700,7 @@
- (1) Paragraph 2 of Schedule 11 to VATA 1994 (accounting for VAT and submission of particulars of transactions etc) is amended as follows.
- (2) In sub-paragraph (3), for “which involve the movement of goods between member States” substitute “to which this sub-paragraph applies”.
- (2) In sub-paragraph (3), for “which involve the movement of goods between member States” substitute “ to which this sub-paragraph applies ”.
- (3) After that paragraph insert—
@@ -1741,17 +1743,17 @@
- (a) omit “In that case,”, and
- (b) for “flats in respect of which the right of collective enfranchisement is being exercised” substitute “qualifying flats contained in the premises”.
- (b) for “flats in respect of which the right of collective enfranchisement is being exercised” substitute “ qualifying flats contained in the premises ”.
- (4) For subsection (4) substitute—
> (4) In this section—
> - “flat” and “qualifying tenant” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised;
> - “qualifying flat” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.
> - “*flat*” and “*qualifying tenant*” have the same meaning as in the Chapter or Part of the Act conferring the right being exercised;
> - “*qualifying flat*” means a flat that is held by a qualifying tenant who is participating in the exercise of the right.
- (5) For the heading substitute “**Exercise of collective rights by tenants of flats**”.
- (6) Accordingly, in section 55(5) of that Act (amount of tax chargeable), for “collective enfranchisement by leaseholders” substitute “exercise of collective rights by tenants of flats”.
- (6) Accordingly, in section 55(5) of that Act (amount of tax chargeable), for “collective enfranchisement by leaseholders” substitute “ exercise of collective rights by tenants of flats ”.
- (7) The amendments made by this section have effect in relation to transactions with an effective date on or after 22 April 2009.
@@ -1767,7 +1769,7 @@
> (A1) A land transaction under which the purchaser is a profit-making registered provider of social housing is exempt from charge if the transaction is funded with the assistance of a public subsidy.
- (4) In subsection (4), for “subsection (1)(c)” substitute “this section”.
- (4) In subsection (4), for “subsection (1)(c)” substitute “ this section ”.
- (5) Schedule 9 (right to buy etc) is amended as follows.
@@ -1792,7 +1794,7 @@
- (b) insert at the end—
> (7) In Condition 2 “qualifying body” means—
> (7) In Condition 2 “*qualifying body*” means—
> (a) a qualifying body within the meaning of paragraph 5(2)(a) to (f), or
> (b) a registered provider of social housing within paragraph 5(2)(g) (subject to sub-paragraph (8)).
> (8) A registered provider of social housing within paragraph 5(2)(g) (“R”) is only a qualifying body in relation to a shared ownership trust if the following has been or is being funded with the assistance of a grant or other financial assistance under section 19 of the Housing and Regeneration Act 2008—
@@ -1810,7 +1812,7 @@
> (13)
> (1) The chargeable consideration for transactions forming part of a rent to shared ownership lease scheme is determined in accordance with this paragraph.
> (2) A “rent to shared ownership lease scheme” means a scheme or arrangement under which a qualifying body—
> (2) A “*rent to shared ownership lease scheme*” means a scheme or arrangement under which a qualifying body—
> (a) grants an assured shorthold tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and
> (b) subsequently grants a shared ownership lease of the dwelling or another dwelling to the tenant or one or more of the tenants.
> (3) The following transactions are to be treated as if they were not linked to each other—
@@ -1819,12 +1821,12 @@
> (c) any other land transaction between the qualifying body and the tenant, or any of the tenants, entered into as part of the scheme.
> (4) For the purpose of determining the effective date of the grant of the shared ownership lease, the possession of the dwelling by the tenant or tenants pursuant to the assured shorthold tenancy is to be disregarded.
> (5) In this paragraph—
> - “assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
> - “qualifying body” has the same meaning as in paragraph 5;
> - “shared ownership lease” has the same meaning as in paragraph 4A.
> - “*assured shorthold tenancy*” has the same meaning as in Part 1 of the Housing Act 1988;
> - “*qualifying body*” has the same meaning as in paragraph 5;
> - “*shared ownership lease*” has the same meaning as in paragraph 4A.
> (14)
> (1) The chargeable consideration for transactions forming part of a rent to shared ownership trust scheme is determined in accordance with this paragraph.
> (2) A “rent to shared ownership trust scheme” means a scheme or arrangement under which—
> (2) A “*rent to shared ownership trust scheme*” means a scheme or arrangement under which—
> (a) a qualifying body grants an assured shorthold tenancy of a dwelling to a person (“the tenant”) or persons (“the tenants”), and
> (b) the tenant, or one or more of tenants, subsequently becomes the purchaser under a shared ownership trust of the dwelling, or another dwelling, under which the qualifying body is the social landlord.
> (3) The following transactions are to be treated as if they were not linked to each other—
@@ -1833,9 +1835,9 @@
> (c) any other land transaction between the qualifying body and the tenant, or any of the tenants, entered into as part of the scheme.
> (4) For the purpose of determining the effective date of the declaration of the shared ownership trust, the possession of the dwelling by the tenant or tenants pursuant to the assured shorthold tenancy is to be disregarded.
> (5) In this paragraph—
> - “assured shorthold tenancy” has the same meaning as in Part 1 of the Housing Act 1988;
> - “qualifying body” has the same meaning as in paragraph 5;
> - “social landlord” and “purchaser”, in relation to a shared ownership trust, have the same meaning as in paragraph 7.
> - “*assured shorthold tenancy*” has the same meaning as in Part 1 of the Housing Act 1988;
> - “*qualifying body*” has the same meaning as in paragraph 5;
> - “social landlord” and “*purchaser*”, in relation to a shared ownership trust, have the same meaning as in paragraph 7.
- (2) The amendment made by subsection (1) has effect in relation to cases in which the effective date of the grant of the shared ownership lease or the declaration of the shared ownership trust is on or after 22 April 2009.
@@ -1925,11 +1927,11 @@
> (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.
> (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.
> (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.
@@ -1953,15 +1955,15 @@
- (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),
- (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—
- (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
@@ -1971,9 +1973,9 @@
- (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),
- (a) the person's name (including any trading name, previous name or pseudonym),
- (b) the person's address (or registered office),
- (c) the nature of any business carried on by the person,
@@ -1981,7 +1983,7 @@
- (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.
- (f) any such other information as the Commissioners consider it appropriate to publish in order to make clear the person's identity.
- (5) The information may be published in any manner that the Commissioners consider appropriate.
@@ -2019,7 +2021,7 @@
- (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.
- (16) In this section “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs.
### Information etc
@@ -2127,7 +2129,7 @@
- (b) make provision modifying an enactment or instrument (whenever passed or made).
- (5) “Modifying” includes amending, repealing or revoking.
- (5) “*Modifying*” includes amending, repealing or revoking.
- (6) An order under this section is to be made by statutory instrument.
@@ -2205,7 +2207,7 @@
- (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
- (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).
@@ -2237,13 +2239,13 @@
- (1) In sections 101 to 103—
- “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.
- “*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.
@@ -2287,9 +2289,9 @@
- (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
- (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
- (c) omit the table.
@@ -2307,7 +2309,7 @@
> - 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”—
- (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
@@ -2321,7 +2323,7 @@
, and
- (b) in paragraph (k), after “sections 233” insert “, 235(1)”.
- (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—
@@ -2413,7 +2415,7 @@
- (5) The taxes and penalties referred to in subsections (1) and (2) are—
| Tax | Penalty |
| *Tax* | *Penalty* |
| --- | --- |
| Income tax or capital gains tax | Surcharge under section 59C(2) or (3) of TMA 1970 |
| Value added tax | Surcharge under section 59(4) or 59A(4) of VATA 1994 |
@@ -2431,7 +2433,7 @@
- (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.
- (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.
@@ -2505,7 +2507,7 @@
- (10) The time value of an instalment is—
$$A×T$ where— A is the amount of the instalment, and T is the number of days before, or after, the due date that the instalment is to be paid.$
$$A×T$where—A is the amount of the instalment, andT is the number of days before, or after, the due date that the instalment is to be paid.$
- (11) The Commissioners may by regulations make provision for the purpose of determining when an amount is approximately equal to another amount.
@@ -2513,9 +2515,9 @@
- (13) In this section—
- “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
- “the due date”, in relation to an amount mentioned in subsection (1), means the date on which it becomes payable.
- “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs;
- “*the due date*”, in relation to an amount mentioned in subsection (1), means the date on which it becomes payable.
- (14) This section has effect where the due date falls after the day on which this Act is passed.
@@ -2525,13 +2527,13 @@
- (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”.
- (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”.
- (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
@@ -2547,7 +2549,7 @@
- (3) Omit Notes (5) to (11).
- (4) The Value Added Tax (Betting, Gaming and Lotteries) Order 2007 ([S.I. 2007/2163](https://www.legislation.gov.uk/uksi/2007/2163)) is revoked.
- (4) The Value Added Tax (Betting, Gaming and Lotteries) Order 2007 (S.I. 2007/2163) is revoked.
- (5) Omit—
@@ -2571,13 +2573,13 @@
> (a) casino games, and
> (b) equal chance gaming.
- (4) In subsection (3)(e), after “Article” insert “77,”.
- (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”.
- (6) In subsection (3C)(a), after “in” insert “ organising or ”.
- (7) For subsection (4) substitute—
@@ -2585,13 +2587,13 @@
> (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”.
- (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)”.
- (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—
@@ -2601,7 +2603,7 @@
- (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));
> “*casino games*” means games of chance which are not equal chance gaming (but subject to any order under section 10(5));
.
@@ -2650,13 +2652,13 @@
- (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).
> (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”.
- (4) In subsection (1C), for “constructed” substitute “ designed ”.
- (5) Insert at the end—
@@ -2664,12 +2666,12 @@
> (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)),
> (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.
> (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)—
@@ -2679,9 +2681,9 @@
- (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.
> (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
@@ -2701,13 +2703,13 @@
> (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](https://www.legislation.gov.uk/european/regulation/2008/0800) 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).
> (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”.
- (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
@@ -2743,7 +2745,7 @@
- (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”.
- (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.
@@ -2771,7 +2773,7 @@
- (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.
> (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)—
@@ -2779,7 +2781,7 @@
- (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—
- (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
@@ -2813,7 +2815,7 @@
- (c) the tax consequences of the conversion of a mutual society into a company.
- (2) “Mutual society” means—
- (2) “*Mutual society*” means—
- (a) a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986,
@@ -2847,7 +2849,7 @@
- (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.
- (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.
@@ -2855,21 +2857,21 @@
- (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, or the avoidance of a possible assessment to tax.
- “*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
@@ -2903,7 +2905,7 @@
- (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](https://www.legislation.gov.uk/uksi/1972/764))), or
- (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.
@@ -2919,9 +2921,9 @@
- (9) In this section—
- “the 1971 Act” means the National Savings Bank Act 1971;
- “enactment” includes— an enactment contained in the 1971 Act, and subordinate legislation (which has the same meaning as in the Interpretation Act 1978).
- “*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
@@ -2931,45 +2933,45 @@
- (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,
- “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,
- “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.
- “*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,
- “*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,
- “*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—
@@ -2985,7 +2987,7 @@
- (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”—
- (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
@@ -3029,11 +3031,11 @@
- (d) section 257 (personal allowance),
- (e) sections 257A to 257BB (married couple’s allowance etc),
- (e) sections 257A to 257BB (married couple's allowance etc),
- (f) section 257C (indexation),
- (g) section 265 (blind person’s allowance),
- (g) section 265 (blind person's allowance),
- (h) section 273 (payments securing annuities), and
@@ -3047,7 +3049,7 @@
- (2) In subsection (1)—
- (a) for “individual” substitute “eligible individual”, and
- (a) for “individual” substitute “ eligible individual ”, and
- (b) omit “or makes a payment falling within subsection (7) below”.
@@ -3059,11 +3061,11 @@
- (4) In subsection (3), omit “(7),”.
- (5) In subsection (4), for “subsections (7) and” substitute “subsection”.
- (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))”.
- (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
@@ -3073,17 +3075,17 @@
- (3) In subsection (2)—
- (a) for “sections 266 and 273” substitute “section 266”, and
- (a) for “sections 266 and 273” substitute “ section 266 ”, and
- (b) omit “or sums”, and
- (c) for “the appropriate rate” substitute “12.5%”.
- (c) for “the appropriate rate” substitute “ 12.5% ”.
- (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**”.
- (6) In the heading, for “**sections 266 and 273**” substitute “ **section 266** ”.
##### 5
@@ -3173,9 +3175,9 @@
- (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**”.
- (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
@@ -3185,7 +3187,7 @@
> (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**”.
- (3) In the heading, for “**and dividend upper rate**” substitute “ **, dividend upper rate and dividend additional rate** ”.
##### 4
@@ -3195,15 +3197,15 @@
- (3) After that subsection insert—
> (3A) Income tax is charged at the additional rate on an individual’s income above the higher rate limit.
> (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) In subsection (6), for “is” substitute “ and higher rate limit are ”.
- (6) In the heading, for “**and higher**” substitute “ **, higher and additional** ”.
##### 5
@@ -3211,24 +3213,24 @@
- (2) After subsection (2) insert—
> (2A) Income tax is charged at the dividend additional rate on an individual’s income which—
> (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**”.
- (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”.
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”.
In section 515(a) (rate of tax in respect of heritage maintenance settlements), for “higher rate” substitute “ additional rate ”.
##### 8
@@ -3236,19 +3238,19 @@
- (2) After the definition of “Act” insert—
> “additional rate” means the rate of income tax determined in pursuance of section 6(2),
> “*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),
> “*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,
> “*higher rate limit*” has the meaning given by section 10,
.
@@ -3261,7 +3263,7 @@
| additional rate | section 6(2) (as applied by section 989). |
| --- | --- |
- (3) In the entry relating to “basic rate limit”, for “20(2)” substitute “10”.
- (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—
@@ -3285,7 +3287,7 @@
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.
> (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
@@ -3339,7 +3341,7 @@
> (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,”.
- (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
@@ -3362,13 +3364,13 @@
In section 669(3) (reduction in residuary income: inheritance tax on accrued income)—
- (a) in paragraph (a), after “charged at” insert “the additional rate or”, and
- (b) in paragraph (b), after “charged at” insert “the dividend additional rate or”.
- (a) in paragraph (a), after “charged at” insert “ the additional rate or ”, and
- (b) in paragraph (b), after “charged at” insert “ the dividend additional rate or ”.
##### 22
In section 685A(3) (settlor-interested settlements), for “higher rate” substitute “additional rate”.
In section 685A(3) (settlor-interested settlements), for “higher rate” substitute “ additional rate ”.
##### 23
@@ -3390,11 +3392,11 @@
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
- (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.
> (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
@@ -3422,7 +3424,7 @@
- (d) a relevant condition is met.
- (2) In this Schedule “the date of the VAT change” means 1 January 2010.
- (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.
@@ -3446,7 +3448,7 @@
- (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
- (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.
@@ -3540,7 +3542,7 @@
- (1) This paragraph applies for the purposes of condition B in paragraphs 2 and 3.
- (2) “Relevant consideration” means—
- (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,
@@ -3552,7 +3554,7 @@
- (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.
- (4) “*Scheme*” includes any arrangements, transaction or series of transactions.
#### Financing
@@ -3646,7 +3648,7 @@
##### 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.
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
@@ -3704,7 +3706,7 @@
- (4) “The relevant proportion” is—
$$PW$ where— P is so much of the consideration for the grant of the right as is attributable on a just and reasonable basis to a right to the goods and services for which the basic time of supply is on or after the date of the VAT change, and W is the whole of the consideration for the grant of the right.$
$$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
@@ -3712,7 +3714,7 @@
##### 18
- (1) In this Schedule “listed supply” means a supply falling within sub-paragraph (2)—
- (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
@@ -3758,7 +3760,7 @@
- (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.
“*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.
@@ -3768,7 +3770,7 @@
- (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.
“the basic time of supply” is the date of the grant of the tenancy or lease.
## Part 5 — Administration and interpretation
@@ -3776,7 +3778,7 @@
##### 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.
- (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.
@@ -3832,7 +3834,7 @@
- (2) In this Schedule—
- (a) “treated as taking place” means treated as taking place for the purposes of the charge to VAT, and
- (a) “*treated as taking place*” means treated as taking place for the purposes of the charge to VAT, and
- (b) references to the person by or to whom a supply is made (however expressed) are to the person by or to whom the supply is treated as being made for the purposes of VATA 1994.
@@ -3842,7 +3844,7 @@
- (1) VATA 1994 is amended as follows.
- (2) In section 2(2) (orders increasing or decreasing rate of VAT), after “such order” insert “that has not previously expired or been revoked”.
- (2) In section 2(2) (orders increasing or decreasing rate of VAT), after “such order” insert “ that has not previously expired or been revoked ”.
- (3) In section 97 (orders, rules and regulations), after subsection (4) insert—
@@ -3858,7 +3860,7 @@
- (1) Section 3 (duration of licences) is amended as follows.
- (2) In subsection (4)(b), for “a licence taken out on the first registration under this Act of” substitute “the first vehicle licence for”.
- (2) In subsection (4)(b), for “a licence taken out on the first registration under this Act of” substitute “ the first vehicle licence for ”.
- (3) Insert at the end—
@@ -3868,7 +3870,7 @@
- (1) Section 19 (rebates) is amended as follows.
- (2) In subsection (1), for “from the Secretary of State the amount specified in subsection (2)” substitute “the relevant amount from the Secretary of State”.
- (2) In subsection (1), for “from the Secretary of State the amount specified in subsection (2)” substitute “ the relevant amount from the Secretary of State ”.
- (3) Omit subsection (2).
@@ -3887,13 +3889,13 @@
- (2) In subsection (1), after the definition of “exempt vehicle” insert—
> “first vehicle licence”, in relation to a vehicle, means (subject to subsections (1B) and (1C)) the vehicle licence for the vehicle on the issue of which the vehicle is first registered under this Act (so that, if the vehicle is first registered on the issue of a nil licence, there is no first vehicle licence in relation to it),
> “*first vehicle licence*”, in relation to a vehicle, means (subject to subsections (1B) and (1C)) the vehicle licence for the vehicle on the issue of which the vehicle is first registered under this Act (so that, if the vehicle is first registered on the issue of a nil licence, there is no first vehicle licence in relation to it),
.
- (3) After subsection (1A) insert—
> (1B) Where a vehicle is first registered under this Act on the issue of a temporary licence, the “first vehicle licence” in relation to the vehicle is the first vehicle licence subsequently issued for it.
> (1B) Where a vehicle is first registered under this Act on the issue of a temporary licence, the “*first vehicle licence*” in relation to the vehicle is the first vehicle licence subsequently issued for it.
> (1C) Where a vehicle—
> (a) has been registered under the law of a country or territory outside the United Kingdom,
> (b) is first registered under this Act more than 6 months after the time when it was first registered as mentioned in paragraph (a), and
@@ -3914,11 +3916,11 @@
- (3) In paragraph 1C (the reduced rate)—
- (a) in sub-paragraph (3)(a), after “registration” insert “, under this Act or under the law of a country or territory outside the United Kingdom,”,
- (b) in sub-paragraph (3)(b), for “its” substitute “that”, and
- (c) in sub-paragraph (4), after “registration” insert “under this Act”.
- (a) in sub-paragraph (3)(a), after “registration” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”,
- (b) in sub-paragraph (3)(b), for “its” substitute “ that ”, and
- (c) in sub-paragraph (4), after “registration” insert “ under this Act ”.
- (4) In paragraph 1H (vehicles to which Part 1B applies)—
@@ -3928,9 +3930,9 @@
insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.
- (5) In paragraph 1K(a) (pre-2007 lower-emission vans), after “registered” insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.
- (6) In paragraph 1M(a) (post-2008 lower-emission vans), after “registered” insert “, under this Act or under the law of a country or territory outside the United Kingdom,”.
- (5) In paragraph 1K(a) (pre-2007 lower-emission vans), after “registered” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”.
- (6) In paragraph 1M(a) (post-2008 lower-emission vans), after “registered” insert “ , under this Act or under the law of a country or territory outside the United Kingdom, ”.
##### 6
@@ -3987,7 +3989,7 @@
##### 4
In section 42(4) (orders), after “chargeable passengers” insert “, or to increase the rate of air passenger duty to be charged on the carriage of any chargeable passengers whose journeys end in any place,”.
In section 42(4) (orders), after “chargeable passengers” insert “ , or to increase the rate of air passenger duty to be charged on the carriage of any chargeable passengers whose journeys end in any place, ”.
##### 5
@@ -4105,7 +4107,7 @@
- (b) where it is a loss made in the tax year 2009-10, for the tax years 2008-09 and 2009-10,
the person’s total income is nil or does not include any income from which a deduction could be made in pursuance of a claim under that section for relief in respect of the section 64 amount.
the person's total income is nil or does not include any income from which a deduction could be made in pursuance of a claim under that section for relief in respect of the section 64 amount.
- (4) The amount of the loss that may be relieved under this paragraph (“the deductible amount”) is—
@@ -4119,45 +4121,65 @@
- (a) where it is a loss made in the tax year 2008-09, in either or both of the following ways—
- (i) in computing the person’s total income for either or both of the tax years 2005-06 and 2006-07 in accordance with section 835 of ICTA, and
- (ii) in calculating the person’s net income for the tax year 2007-08 in accordance with Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act), or
- (i) in computing the person's total income for either or both of the tax years 2005-06 and 2006-07 in accordance with section 835 of ICTA, and
- (ii) in calculating the person's net income for the tax year 2007-08 in accordance with Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act), or
- (b) where it is a loss made in the tax year 2009-10, in either or both of the following ways—
- (i) in computing the person’s total income for the tax year 2006-07 in accordance with section 835 of ICTA, and
- (ii) in calculating the person’s net income for either or both of the tax years 2007-08 and 2008-09 in accordance with Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act).
- (i) in computing the person's total income for the tax year 2006-07 in accordance with section 835 of ICTA, and
- (ii) in calculating the person's net income for either or both of the tax years 2007-08 and 2008-09 in accordance with Step 2 of the calculation in section 23 of ITA 2007 (which applies as if this paragraph were a provision listed in section 24 of that Act).
- (6) A deduction is to be made only from profits of the trade (and accordingly, in relation to the tax years 2007-08 and 2008-09, subsection (2) of section 25 of ITA 2007 has effect as if this sub-paragraph were included in subsection (3) of that section).
- (7) This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2008-09 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2007-08.
- *Step 1* Deduct the deductible amount from the profits of the trade for the tax year 2006-07.
- *Step 2* Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1.
*Step 1*
Deduct the deductible amount from the profits of the trade for the tax year 2006-07.
*Step 2*
Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1.
- (8) This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2008-09.
- *Step 1* Deduct the deductible amount from the profits of the trade for the tax year 2007-08.
- *Step 2* Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.
- *Step 3* Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1 or 2.
*Step 1*
Deduct the deductible amount from the profits of the trade for the tax year 2007-08.
*Step 2*
Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.
*Step 3*
Deduct from the profits of the trade for the tax year 2005-06 so much of the deductible amount as has not been deducted under Step 1 or 2.
- (9) This sub-paragraph explains how the deductions are to be made in a case where the loss is made in the tax year 2009-10 and the person makes a claim under section 64 of ITA 2007 for relief in respect of the section 64 amount for the tax year 2008-09.
- *Step 1* Deduct the deductible amount from the profits of the trade for the tax year 2007-08.
- *Step 2* Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.
*Step 1*
Deduct the deductible amount from the profits of the trade for the tax year 2007-08.
*Step 2*
Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1.
- (10) This sub-paragraph explains how the deductions are to be made in any other case where the loss is made in the tax year 2009-10.
- *Step 1* Deduct the deductible amount from the profits of the trade for the tax year 2008-09.
- *Step 2* Deduct from the profits of the trade for the tax year 2007-08 so much of the deductible amount as has not been deducted under Step 1.
- *Step 3* Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1 or 2.
*Step 1*
Deduct the deductible amount from the profits of the trade for the tax year 2008-09.
*Step 2*
Deduct from the profits of the trade for the tax year 2007-08 so much of the deductible amount as has not been deducted under Step 1.
*Step 3*
Deduct from the profits of the trade for the tax year 2006-07 so much of the deductible amount as has not been deducted under Step 1 or 2.
- (11) The provision made by the preceding provisions means that the following sections of ITA 2007 apply in relation to relief under this paragraph as in relation to relief under section 64 of that Act—
@@ -4195,7 +4217,7 @@
##### 3
- (1) Section 393A of ICTA (losses: set off against profits of same or earlier accounting period) has effect in relation to any loss to which this paragraph applies as if, in subsection (2) of that section, “3 years” were substituted for “twelve months” (but subject as follows).
- (1) Section 393A of ICTA (losses: set off against profits of same or earlier accounting period) has effect in relation to any loss to which this paragraph applies as if, in subsection (2) of that section, “3 years” were substituted for “ twelve months ” (but subject as follows).
- (2) This paragraph applies to any loss incurred by a company in a trade in a relevant accounting period (but subject to sub-paragraph (3)); and a relevant accounting period is one ending after 23 November 2008 and before 24 November 2010.
@@ -4211,7 +4233,7 @@
- (5) “The relevant proportion” is—
$$RAPY$ where— RAP is the number of days in the relevant accounting period, and Y is 365.$
$$RAPY$where—RAP is the number of days in the relevant accounting period, andY is 365.$
- (6) The reference in subsection (2C) of section 393A of ICTA to so much of the loss referred to in that subsection not falling within subsection (2B) of that section as does not exceed the amount of the allowance mentioned in subsection (2C)(b) (“the subsection (2C) loss”) has effect in relation to a relevant accounting period as a reference to so much of the subsection (2C) loss as exceeds that which can be set off under section 393A of ICTA by virtue of this paragraph.
@@ -4225,25 +4247,25 @@
##### 2
In the heading of the Part, after “contaminated” insert “or derelict”.
In the heading of the Part, after “contaminated” insert “ or derelict ”.
##### 3
- (1) Section 1143 (overview of Part) is amended as follows.
- (2) In subsection (1), after “contamination” insert “or dereliction”.
- (3) In subsection (7), after “contaminated” insert “or derelict”.
- (2) In subsection (1), after “contamination” insert “ or dereliction ”.
- (3) In subsection (7), after “contaminated” insert “ or derelict ”.
##### 4
- (1) Section 1144 (“qualifying land remediation expenditure”) is amended as follows.
- (2) In subsection (1), for “E” substitute “F”.
- (2) In subsection (1), for “E” substitute “ F ”.
- (3) In subsection (2), insert at the end “or a derelict state (see section 1145A)”.
- (4) In subsection (3), after “contaminated” insert “or derelict”.
- (4) In subsection (3), after “contaminated” insert “ or derelict ”.
- (5) For subsection (4) substitute—
@@ -4272,7 +4294,7 @@
> (a) living organisms or decaying matter deriving from living organisms, air or water, or
> (b) anything present otherwise than as a result of industrial activity.
> (3) The Treasury may by order specify circumstances in which subsection (2) is not to apply to the extent specified in the order; and an order under this subsection may contain incidental, supplemental, consequential and transitional provision and savings.
> (4) In this section “relevant harm” means—
> (4) In this section “*relevant harm*” means—
> (a) death of living organisms or significant injury or damage to living organisms,
> (b) significant pollution of controlled waters,
> (c) a significant adverse impact on the ecosystem, or
@@ -4282,10 +4304,10 @@
> (b) cannot be put into productive use without the removal of buildings or other structures.
> (1145B)
> (1) A nuclear site is not land in a contaminated state or land in a derelict state for the purposes of this Part.
> (2) “Nuclear site” means—
> (2) “*Nuclear site*” means—
> (a) any site in respect of which a nuclear site licence is for the time being in force, or
> (b) any site in respect of which, after the revocation or surrender of a nuclear site licence, the period of responsibility of the licensee has not yet come to an end.
> (3) In subsection (2) “nuclear site licence”, “licensee” and “period of responsibility” have the same meaning as in the Nuclear Installations Act 1965.
> (3) In subsection (2) “*nuclear site licence*”, “*licensee*” and “*period of responsibility*” have the same meaning as in the Nuclear Installations Act 1965.
##### 6
@@ -4293,13 +4315,13 @@
- (2) In subsection (1)—
- (a) for “land remediation”, in relation to land” substitute “contaminated land remediation”, in relation to land which is in a contaminated state and in which a major interest has been”, and
- (b) for “and B” substitute “to C”.
- (a) for “*land remediation*”, in relation to land” substitute “*contaminated land remediation*”, in relation to land which is in a contaminated state and in which a major interest has been”, and
- (b) for “and B” substitute “ to C ”.
- (3) In subsection (3)—
- (a) in paragraph (a), for “harm, or any pollution of controlled waters,” substitute “relevant harm”, and
- (a) in paragraph (a), for “harm, or any pollution of controlled waters,” substitute “ relevant harm ”, and
- (b) omit paragraph (b) (and the “or” before it).
@@ -4316,30 +4338,30 @@
> (a) significant pollution of those waters is being caused, or
> (b) there is a serious possibility that significant pollution of those waters will be caused.
- (6) In the heading, after “**relevant**” insert “**contaminated**”.
- (6) In the heading, after “**relevant**” insert “ **contaminated** ”.
##### 7
After that section insert—
> (1146A)
> (1) For the purposes of this Part “relevant derelict land remediation”, in relation to land which is in a derelict state and in which a major interest has been acquired by a company, means—
> (1) For the purposes of this Part “*relevant derelict land remediation*”, in relation to land which is in a derelict state and in which a major interest has been acquired by a company, means—
> (a) activities in relation to which conditions A and B are met, and
> (b) if there are such activities, relevant preparatory activity.
> (2) Condition A is that the activities comprise the doing of any works, the carrying out of any operations or the taking of any steps in relation to the land in question.
> (3) Condition B is that the purpose of the activities is a purpose specified by order made by the Treasury.
> (4) An order under subsection (3) may contain incidental, supplemental, consequential and transitional provision and savings.
> (5) For the purposes of subsection (1)(b) “relevant preparatory activity” has the same meaning as for the purposes of subsection (1)(b) of section 1146 (see subsection (4) of that section, but reading the reference to subsection (1)(a) of that section as a reference to subsection (1)(a) of this section).
> (5) For the purposes of subsection (1)(b) “*relevant preparatory activity*” has the same meaning as for the purposes of subsection (1)(b) of section 1146 (see subsection (4) of that section, but reading the reference to subsection (1)(a) of that section as a reference to subsection (1)(a) of this section).
##### 8
In the heading of Chapter 2, after “contaminated” insert “or derelict”.
In the heading of Chapter 2, after “contaminated” insert “ or derelict ”.
##### 9
- (1) Section 1147 (deduction for capital expenditure) is amended as follows.
- (2) In subsection (2), after “that” insert “a major interest in”.
- (2) In subsection (2), after “that” insert “ a major interest in ”.
- (3) For subsection (3) substitute—
@@ -4357,7 +4379,7 @@
- (1) Section 1149 (additional deduction for qualifying land remediation expenditure) is amended as follows.
- (2) In subsection (2), after “that” insert “a major interest in”.
- (2) In subsection (2), after “that” insert “ a major interest in ”.
- (3) For subsection (3) substitute—
@@ -4377,7 +4399,7 @@
- (2) The existing provision becomes subsection (1) of that section.
- (3) In that subsection, for “state if the land is in that” substitute “or derelict state if the land is in a contaminated or derelict”.
- (3) In that subsection, for “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.
- (4) After that subsection insert—
@@ -4394,7 +4416,7 @@
- (1) Section 1161 (relief in respect of I minus E basis: enhanced expenses payable) is amended as follows.
- (2) In subsection (2), after “that” insert “a major interest in”.
- (2) In subsection (2), after “that” insert “ a major interest in ”.
- (3) For subsection (3) substitute—
@@ -4410,7 +4432,7 @@
- (4) In subsection (4)—
- (a) for “Chapter 4” substitute “land remediation”, and
- (a) for “Chapter 4” substitute “ land remediation ”, and
- (b) omit “(see section 1162)”.
@@ -4430,8 +4452,8 @@
> (1) If a company is entitled to relief under section 1161 for an accounting period it is also entitled to relief under this section for the period.
> (2) For the company to obtain the relief it must make a claim.
> (3) The relief is that the company may treat 50% of the qualifying Chapter 4 expenditure as expenses payable which fall to be brought into account at Step 3 in section 76(7) of ICTA (deduction for expenses payable).
> (4) For the purposes of this Chapter “the qualifying Chapter 4 expenditure” means—
> (a) the company’s qualifying land remediation expenditure for the accounting period, less
> (4) For the purposes of this Chapter “*the qualifying Chapter 4 expenditure*” means—
> (a) the company's qualifying land remediation expenditure for the accounting period, less
> (b) the amount (if any) which as a result of paragraph (a) of Step 1 in section 76(7) of ICTA is not to be brought into account at that step as expenses payable for the period.
##### 14
@@ -4442,9 +4464,9 @@
- (3) In that subsection—
- (a) after “1161” insert “or 1162”, and
- (b) for “state if the land is in that” substitute “or derelict state if the land is in a contaminated or derelict”.
- (a) after “1161” insert “ or 1162 ”, and
- (b) for “state if the land is in that” substitute “ or derelict state if the land is in a contaminated or derelict ”.
- (4) After that subsection insert—
@@ -4459,17 +4481,17 @@
##### 15
In section 1165(1)(a) (meaning of “qualifying life assurance business loss”), after “1161” insert “or 1162”.
In section 1165(1)(a) (meaning of “qualifying life assurance business loss”), after “1161” insert “ or 1162 ”.
##### 16
In section 1169(2)(c) and (3)(c) (artificially inflated claims for relief), after “1161” insert “or 1162”.
In section 1169(2)(c) and (3)(c) (artificially inflated claims for relief), after “1161” insert “ or 1162 ”.
##### 17
- (1) Section 1173 (expenditure incurred because of contamination) is amended as follows.
- (2) In subsections (1) and (2), after “contaminated” insert “or derelict”.
- (2) In subsections (1) and (2), after “contaminated” insert “ or derelict ”.
- (3) For subsection (3) substitute—
@@ -4489,15 +4511,15 @@
- (2) After subsection (1) insert—
> (1A) In this section, a “sub-contractor payment” means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor.
- (3) In subsection (2), for “sub-contracted land remediation” substitute “connected sub-contracted land remediation” for the purposes of section 1144(5)”.
> (1A) In this section, a “*sub-contractor payment*” means a payment made by the company to the sub-contractor in respect of relevant land remediation contracted out by the company to the sub-contractor.
- (3) In subsection (2), for “sub-contracted land remediation” substitute “*connected sub-contracted land remediation*” for the purposes of section 1144(5)”.
- (4) In subsection (3)—
- (a) in paragraph (a), after “carrying on” insert “or arranging for carrying on”, and
- (b) in paragraph (c) for “incurred on” substitute “in respect of”.
- (a) in paragraph (a), after “carrying on” insert “ or arranging for carrying on ”, and
- (b) in paragraph (c) for “incurred on” substitute “ in respect of ”.
- (5) For the heading substitute “**Connected sub-contractors**”.
@@ -4509,9 +4531,9 @@
In section 1178 (persons having a “relevant connection” to a company)—
- (a) after “contaminated” insert “or derelict”, and
- (b) in paragraph (b), after “when” insert “a major interest in”.
- (a) after “contaminated” insert “ or derelict ”, and
- (b) in paragraph (b), after “when” insert “ a major interest in ”.
##### 22
@@ -4525,7 +4547,7 @@
> (c) in relation to land in Northern Ireland, to the acquisition of any freehold estate (whether subsisting at law or in equity).
> (3) The reference in subsection (1) to the acquisition of a relevant leasehold interest in land is to the acquisition by grant or assignment (or assignation) of—
> (a) in relation to land in England and Wales, a term of years absolute (whether subsisting at law or in equity),
> (b) in relation to land in Scotland, the tenant’s right over or interest in a property subject to a lease, or
> (b) in relation to land in Scotland, the tenant's right over or interest in a property subject to a lease, or
> (c) in relation to land in Northern Ireland, any leasehold estate (whether subsisting at law or in equity),
> in relation to which the condition in subsection (4) is met.
> (4) That condition is that—
@@ -4544,17 +4566,17 @@
In section 76(7) of ICTA (expenses of insurance companies), in step 3—
- (a) for “1161” substitute “1162”,
- (b) for “150%” substitute “50% additional”, and
- (c) after “contaminated” insert “or derelict”.
- (a) for “1161” substitute “ 1162 ”,
- (b) for “150%” substitute “ 50% additional ”, and
- (c) after “contaminated” insert “ or derelict ”.
#### FA 1998
##### 25
In Schedule 18 to FA 1998 (company tax returns etc), in the heading of Part 9B, after “contaminated” insert “or derelict”.
In Schedule 18 to FA 1998 (company tax returns etc), in the heading of Part 9B, after “contaminated” insert “ or derelict ”.
#### CTA 2009
@@ -4615,7 +4637,7 @@
.
- (3) In the words following the paragraphs, for “conditions in paragraphs (g) and (h) above do” substitute “condition in paragraph (g) above does”.
- (3) In the words following the paragraphs, for “conditions in paragraphs (g) and (h) above do” substitute “ condition in paragraph (g) above does ”.
##### 3
@@ -4625,7 +4647,7 @@
- (a) omit “or (h)”, and
- (b) for “sub-paragraph (4A) below” substitute “section 175(3) of ITA 2007”.
- (b) for “sub-paragraph (4A) below” substitute “ section 175(3) of ITA 2007 ”.
- (3) Omit sub-paragraph (4A).
@@ -4638,7 +4660,7 @@
> (1) This paragraph applies if section 135 or 136 (company reconstructions) applies in relation to shares to which deferral relief, but not relief under Part 5 of ITA 2007 (or Chapter 3 of Part 7 of the Taxes Act), is attributable.
> (1A) Paragraphs 3 and 4 of this Schedule have effect as if section 135 or 136 did not apply in relation to the shares.
- (3) In sub-paragraph (2), for “Sub-paragraph (1) above shall not have effect to disapply section 135 or 136 where” substitute “Sub-paragraph (1A) does not apply if”.
- (3) In sub-paragraph (2), for “Sub-paragraph (1) above shall not have effect to disapply section 135 or 136 where” substitute “ Sub-paragraph (1A) does not apply if ”.
- (4) For sub-paragraph (3) substitute—
@@ -4668,13 +4690,13 @@
> (1) The requirement of this section is that all of the money raised by the issue of the relevant shares (other than any of them which are bonus shares) is, no later than the time mentioned in subsection (3), employed wholly for the purpose of the qualifying business activity for which it was raised.
- (3) In subsection (2), for “requirements in subsection (1)(a) and (b) do” substitute “requirement in subsection (1) does”.
- (3) In subsection (2), for “requirements in subsection (1)(a) and (b) do” substitute “ requirement in subsection (1) does ”.
- (4) In subsection (3)—
- (a) for “subsection (1)(a)” substitute “subsection (1)”, and
- (b) for “12 months” (in both places) substitute “two years”.
- (a) for “subsection (1)(a)” substitute “ subsection (1) ”, and
- (b) for “12 months” (in both places) substitute “ two years ”.
#### Corporate venturing scheme
@@ -4682,13 +4704,13 @@
- (1) Paragraph 36 of Schedule 15 to FA 2000 (corporate venturing scheme: requirement as to money raised) is amended as follows.
- (2) In sub-paragraph (1), for “At least 80%” substitute “All”.
- (2) In sub-paragraph (1), for “At least 80%” substitute “ All ”.
- (3) Omit sub-paragraph (1A).
- (4) In sub-paragraph (1B), for “12 months” (in both places) substitute “two years”.
- (5) In sub-paragraph (1C), for “Sub-paragraphs (1) and (1A) are” substitute “Sub-paragraph (1) is”.
- (4) In sub-paragraph (1B), for “12 months” (in both places) substitute “ two years ”.
- (5) In sub-paragraph (1C), for “Sub-paragraphs (1) and (1A) are” substitute “ Sub-paragraph (1) is ”.
- (6) In sub-paragraph (5) omit “does not apply and the requirement of sub-paragraph (1A)”.
@@ -4756,11 +4778,11 @@
- (1) Paragraph 1 is amended as follows.
- (2) In sub-paragraph (2), for “fixed-rate” substitute “relevant”.
- (2) In sub-paragraph (2), for “fixed-rate” substitute “ relevant ”.
- (3) In sub-paragraph (3)—
- (a) for “fixed-rate” substitute “relevant”,
- (a) for “fixed-rate” substitute “ relevant ”,
- (b) for paragraph (c) substitute—
@@ -4770,7 +4792,7 @@
, and
- (c) in paragraph (d), for “that new consideration” substitute “the new consideration received by the company in respect of the issue of the shares”.
- (c) in paragraph (d), for “that new consideration” substitute “ the new consideration received by the company in respect of the issue of the shares ”.
##### 3
@@ -4795,14 +4817,14 @@
> (a) at the time the dividend is or would be payable, the company is in severe financial difficulties, or
> (b) it does so for the purpose of following a recommendation of a relevant regulatory body.
> (6) The Treasury may by order specify circumstances in which a company is to be treated as in severe financial difficulties for the purposes of sub-paragraph (5)(a).
> (7) In sub-paragraph (5)(b) “relevant regulatory body” means—
> (7) In sub-paragraph (5)(b) “*relevant regulatory body*” means—
> (a) in relation to a dividend paid by a company that is authorised for the purposes of the Financial Services and Markets Act 2000, the Financial Services Authority, and
> (b) in relation to a dividend paid by any other company, a body discharging functions in relation to the company under the law of a country or territory outside the United Kingdom that correspond to functions discharged by the Financial Services Authority in relation to a company authorised as mentioned in paragraph (a).
> (8) In this paragraph “new consideration” has the same meaning as in section 254.
> (8) In this paragraph “*new consideration*” has the same meaning as in section 254.
##### 4
In paragraph 5B(4)(b), for “fixed-rate” substitute “relevant”.
In paragraph 5B(4)(b), for “fixed-rate” substitute “ relevant ”.
#### Commencement
@@ -4848,7 +4870,7 @@
- (1) Paragraph 7 (provision for purposes of condition A in paragraph 6) is amended as follows.
- (2) In sub-paragraph (8)(b), for “acquires any plant or machinery directly or indirectly from a person who is connected with the company” substitute “acquired any plant or machinery in circumstances in which this paragraph applies”.
- (2) In sub-paragraph (8)(b), for “acquires any plant or machinery directly or indirectly from a person who is connected with the company” substitute “ acquired any plant or machinery in circumstances in which this paragraph applies ”.
- (3) For sub-paragraph (9) substitute—
@@ -4867,9 +4889,9 @@
> (1) This paragraph applies if—
> (a) a company (“company A”) is owned by a consortium, and
> (b) a relevant change in the relationship between company A and a principal company of company A occurs on any day,
> but the principal company’s interest in company A remains unchanged.
> but the principal company's interest in company A remains unchanged.
> (2) For the purposes of this Schedule, there is no qualifying change of ownership in relation to company A on that day as a result of that change in that relationship.
> (3) For the purposes of this paragraph the principal company’s interest in company A remains unchanged if the percentage of the ordinary share capital of company A that is beneficially owned directly or indirectly by the principal company is the same at the beginning and end of that day.
> (3) For the purposes of this paragraph the principal company's interest in company A remains unchanged if the percentage of the ordinary share capital of company A that is beneficially owned directly or indirectly by the principal company is the same at the beginning and end of that day.
> (4) Section 838(2) and (4) to (10) of ICTA apply for construing sub-paragraph (3).
#### Paragraph 17
@@ -4878,7 +4900,7 @@
- (1) Paragraph 17 (meaning of “PM” in paragraph 16) is amended as follows.
- (2) In sub-paragraph (7)(b), for “acquires any plant or machinery directly or indirectly from a person who is connected with the company” substitute “acquired any plant or machinery in circumstances in which this paragraph applies”.
- (2) In sub-paragraph (7)(b), for “acquires any plant or machinery directly or indirectly from a person who is connected with the company” substitute “ acquired any plant or machinery in circumstances in which this paragraph applies ”.
- (3) For sub-paragraph (8) substitute—
@@ -4891,7 +4913,7 @@
##### 5
In paragraph 23 (leasing business carried on by company in partnership: change in company’s interest in business), for sub-paragraph (6) substitute—
In paragraph 23 (leasing business carried on by company in partnership: change in company's interest in business), for sub-paragraph (6) substitute—
> (6) This paragraph is subject to paragraph 23A and is supplemented by paragraph 24.
@@ -4915,14 +4937,14 @@
- (2) In sub-paragraph (1)—
- (a) in sub-paragraph (c), for “increases at any time on” substitute “is greater at the end of that day than at the start of”, and
- (a) in sub-paragraph (c), for “increases at any time on” substitute “ is greater at the end of that day than at the start of ”, and
- (b) in sub-paragraph (d), omit “at that time” (in both places).
- (3) For sub-paragraph (3) substitute—
> (3) The appropriate percentage is—
> $$OCIPCD$ where— OCI is the increase in the other company’s percentage share in the profits or losses of the business which is wholly attributable to the change in the partner company’s interest in the business, and PCD is the decrease in the partner company’s percentage share in the profits or losses of the business.$
> $$OCIPCD$where—OCI is the increase in the other company's percentage share in the profits or losses of the business which is wholly attributable to the change in the partner company's interest in the business, andPCD is the decrease in the partner company's percentage share in the profits or losses of the business.$
#### Paragraph 39
@@ -4934,15 +4956,15 @@
- (a) in paragraph (c), insert at the end “or a later accounting period,”,
- (b) in paragraph (d), after “company” insert “after the accounting period in which the loss is made”, and
- (c) in paragraph (e), for “12 months beginning with” substitute “5 years beginning immediately after”.
- (b) in paragraph (d), after “company” insert “ after the accounting period in which the loss is made ”, and
- (c) in paragraph (e), for “12 months beginning with” substitute “ 5 years beginning immediately after ”.
- (3) In subsection (1A)—
- (a) in paragraph (b), for “, and” substitute “or a later accounting period,”,
- (b) in paragraph (c), after “company” insert “after the accounting period in which the loss is made”, and
- (a) in paragraph (b), for “, and” substitute “ or a later accounting period, ”,
- (b) in paragraph (c), after “company” insert “ after the accounting period in which the loss is made ”, and
- (c) after that paragraph insert
@@ -4951,22 +4973,22 @@
- (4) In sub-paragraph (2)—
- (a) after “33” insert “or this sub-paragraph”, and
- (b) for “an expense” substitute “giving rise to an expense of the relevant amount”.
- (a) after “33” insert “ or this sub-paragraph ”, and
- (b) for “an expense” substitute “ giving rise to an expense of the relevant amount ”.
- (5) After that sub-paragraph insert—
> (2A) The relevant amount is the amount of the loss treated as an expense increased by—
> $$D365×R$ where— D is the number of days in the accounting period in which the loss is made, and R is the percentage rate applicable to section 826 of ICTA under section 178 of FA 1989.$
- (6) In sub-paragraph (3), after “The” insert “amount of the”.
> $$D365×R$where—D is the number of days in the accounting period in which the loss is made, andR is the percentage rate applicable to section 826 of ICTA under section 178 of FA 1989.$
- (6) In sub-paragraph (3), after “The” insert “ amount of the ”.
- (7) In sub-paragraph (4)—
- (a) after “33” insert “or this paragraph”, and
- (b) for “the expense under that paragraph” substitute “that expense”.
- (a) after “33” insert “ or this paragraph ”, and
- (b) for “the expense under that paragraph” substitute “ that expense ”.
#### Commencement
@@ -4988,11 +5010,11 @@
##### 2
In section 38B (general exclusions from AIA qualifying expenditure), in general exclusion 2, for “81” substitute “268A”.
In section 38B (general exclusions from AIA qualifying expenditure), in general exclusion 2, for “81” substitute “ 268A ”.
##### 3
In section 46(2) (general exclusions from first year allowances), in general exclusion 2, for “81” substitute “268A”.
In section 46(2) (general exclusions from first year allowances), in general exclusion 2, for “81” substitute “ 268A ”.
##### 4
@@ -5004,7 +5026,7 @@
##### 6
In section 84 (cases in which short-life asset treatment is ruled out), in the Table, in item 3, in the first column, for “81” substitute “268A”.
In section 84 (cases in which short-life asset treatment is ruled out), in the Table, in item 3, in the first column, for “81” substitute “ 268A ”.
##### 7
@@ -5012,7 +5034,7 @@
- (2) In subsection (1)—
- (a) in paragraph (a), after “the” insert “first”,
- (a) in paragraph (a), after “the” insert “ first ”,
- (b) omit “and” at the end of paragraph (c), and
@@ -5021,7 +5043,7 @@
> , and
> (e) expenditure incurred on or after the second relevant date on the provision of a car that is not a main rate car.
- (3) In subsection (2), after “The” insert “first”.
- (3) In subsection (2), after “The” insert “ first ”.
- (4) After that subsection insert—
@@ -5029,15 +5051,15 @@
> (a) for corporation tax purposes, 1 April 2009, and
> (b) for income tax purposes, 6 April 2009.
> (4) In this section—
> - “car” has the meaning given in section 268A;
> - “main rate car” has the meaning given in section 104AA.
> - “*car*” has the meaning given in section 268A;
> - “*main rate car*” has the meaning given in section 104AA.
##### 8
After that section insert—
> (104AA)
> (1) “Main rate car” means—
> (1) “*Main rate car*” means—
> (a) a car that is first registered before 1 March 2001,
> (b) a car that has low CO₂ emissions, or
> (c) a car that is electrically-propelled.
@@ -5048,8 +5070,8 @@
> (6) An order under subsection (5) may contain transitional provision and savings.
> (7) In this section—
> - “applicable CO₂ emissions figure” and “qualifying emissions certificate” have the meanings given in section 268C;
> - “car” has the meaning given in section 268A;
> - “electrically-propelled” has the meaning given in section 268B.
> - “*car*” has the meaning given in section 268A;
> - “*electrically-propelled*” has the meaning given in section 268B.
##### 9
@@ -5061,24 +5083,28 @@
> (b) the qualifying activity carried on by the taxpayer is permanently discontinued, and
> (c) conditions A, B and C are met.
> (2) Condition A is that the qualifying activity carried on by the taxpayer consisted of or included (other than incidentally) making cars available to other persons.
> (3) Condition B is that, at any time in the 6 months after the taxpayer’s qualifying activity is permanently discontinued, the qualifying activity of a group relief company consists of or includes (other than incidentally) making cars available to other persons.
> (3) Condition B is that, at any time in the 6 months after the taxpayer's qualifying activity is permanently discontinued, the qualifying activity of a group relief company consists of or includes (other than incidentally) making cars available to other persons.
> (4) Condition C is that the balancing allowance (“SBA”) to which the taxpayer would be entitled (but for this section) in respect of the special rate pool is greater than—
> $$BC-OBA$ where— BC is the total of the balancing charges (if any) to which the taxpayer is liable for the final chargeable period in respect of any pool, and OBA is the total of the balancing allowances to which the taxpayer is entitled for that period in respect of any pool other than the special rate pool.$
> For the purposes of this section if BC − OBA is a negative amount it is to be treated as if it were nil.
> $$BC–OBA$where—BC is the total of the balancing charges (if any) to which the taxpayer is liable for the final chargeable period in respect of any pool, andOBA is the total of the balancing allowances to which the taxpayer is entitled for that period in respect of any pool other than the special rate pool.$
> For the purposes of this section if BC – OBA is a negative amount it is to be treated as if it were nil.
> (5) The balancing allowance to which the taxpayer is entitled in respect of the special rate pool is reduced to an amount equal to BC — OBA.
> (6) The relevant company is to be treated as having incurred qualifying expenditure within section 104A(1)(e) (“notional expenditure”), whether or not the relevant company owns cars previously owned by the taxpayer.
> (7) The amount of the notional expenditure is an amount equal to the amount by which SBA exceeds BC — OBA.
> (8) The relevant company is to be treated as having incurred the notional expenditure on the day after the end of the taxpayer’s final chargeable period.
> (9) If part of the chargeable period in which the relevant company is treated as incurring expenditure under this section (“the acquisition period”) overlaps with the taxpayer’s penultimate chargeable period—
> (a) the part of the expenditure which is proportional to that part of the acquisition period is not to be taken into account in determining the relevant company’s available qualifying expenditure for the acquisition period, but
> (b) this does not prevent that part of the expenditure being taken into account in determining the relevant company’s available qualifying expenditure for any subsequent chargeable period.
> (8) The relevant company is to be treated as having incurred the notional expenditure on the day after the end of the taxpayer's final chargeable period.
> (9) If part of the chargeable period in which the relevant company is treated as incurring expenditure under this section (“the acquisition period”) overlaps with the taxpayer's penultimate chargeable period—
> (a) the part of the expenditure which is proportional to that part of the acquisition period is not to be taken into account in determining the relevant company's available qualifying expenditure for the acquisition period, but
> (b) this does not prevent that part of the expenditure being taken into account in determining the relevant company's available qualifying expenditure for any subsequent chargeable period.
> (10) In this section—
> - “car” has the meaning given in section 268A;
> - “company” means any body corporate;
> - “group relief company” means— a company to which group relief under Chapter 4 of Part 10 of ICTA would be available (on the making of a claim) in respect of balancing allowances surrendered by the taxpayer in the taxpayer’s final chargeable period, and a company to which such relief would be available (on the making of a claim) in respect of balancing allowances surrendered by a company within paragraph (a);
> - “main rate car” has the meaning given in section 104AA;
> - “penultimate chargeable period” means the chargeable period preceding the final chargeable period;
> - “the relevant company” means the group relief company mentioned in subsection (3) or, if there is more than one, the one— nominated by the taxpayer not more than 6 months after the end of the taxpayer’s final chargeable period, or in the absence of such a nomination, nominated by Her Majesty’s Revenue and Customs.
> - “*car*” has the meaning given in section 268A;
> - “*company*” means any body corporate;
> - “*group relief company*” means—
> 1. a company to which group relief under Chapter 4 of Part 10 of ICTA would be available (on the making of a claim) in respect of balancing allowances surrendered by the taxpayer in the taxpayer's final chargeable period, and
> 2. a company to which such relief would be available (on the making of a claim) in respect of balancing allowances surrendered by a company within paragraph (a);
> - “*main rate car*” has the meaning given in section 104AA;
> - “*penultimate chargeable period*” means the chargeable period preceding the final chargeable period;
> - “*the relevant company*” means the group relief company mentioned in subsection (3) or, if there is more than one, the one—
> 1. nominated by the taxpayer not more than 6 months after the end of the taxpayer's final chargeable period, or
> 2. in the absence of such a nomination, nominated by Her Majesty's Revenue and Customs.
##### 10
@@ -5088,31 +5114,31 @@
> (1) This section applies if—
> (a) a disposal value is required to be brought into account under section 61,
> (b) the disposal event is that the person ceases to own a section 206 car because of a sale or the performance of a contract, and
> (c) allowances under this Part in respect of the person’s expenditure under that transaction are restricted under section 217 or 218 (anti-avoidance).
> (c) allowances under this Part in respect of the person's expenditure under that transaction are restricted under section 217 or 218 (anti-avoidance).
> (2) A car is a section 206 car if expenditure on the provision of the car is required to be allocated to a single asset pool under that section.
> (3) The disposal value to be brought into account is—
> (a) the market value of the car at the time of the disposal event, or
> (b) if less, the capital expenditure incurred, or treated as incurred, on the provision of the car by the person disposing of it.
> (4) The person acquiring the car is to be treated as having incurred capital expenditure on its provision of an amount equal to the disposal value required to be brought into account under subsection (3).
> (5) In this section “car” has the meaning given in section 268A.
> (5) In this section “*car*” has the meaning given in section 268A.
##### 11
After section 268 insert—
> (268A)
> (1) In this Part “car” means a mechanically propelled road vehicle other than—
> (1) In this Part “*car*” means a mechanically propelled road vehicle other than—
> (a) a motor cycle,
> (b) a vehicle of a construction primarily suited for the conveyance of goods or burden of any description, or
> (c) a vehicle of a type not commonly used as a private vehicle and unsuitable for such use.
> (2) In this Part “motor cycle” has the meaning given by section 185(1) of the Road Traffic Act 1988.
> (2) In this Part “*motor cycle*” has the meaning given by section 185(1) of the Road Traffic Act 1988.
> (268B) For the purposes of this Part a vehicle is electrically-propelled only if—
> (a) it is propelled solely by electrical power, and
> (b) that power is derived from—
> (i) a source external to the vehicle, or
> (ii) an electrical storage battery which is not connected to any source of power when the vehicle is in motion.
> (268C)
> (1) In this Part “qualifying emissions certificate”, in relation to a vehicle, means an EC certificate of conformity, or a UK approval certificate, that specifies—
> (1) In this Part “*qualifying emissions certificate*”, in relation to a vehicle, means an EC certificate of conformity, or a UK approval certificate, that specifies—
> (a) in the case of a vehicle other than a bi-fuel vehicle, a CO₂ emissions figure in terms of grams per kilometre driven, or
> (b) in the case of a bi-fuel vehicle, separate CO₂ emissions figures in terms of grams per kilometre driven for different fuels.
> (2) For the purposes of this Part, in relation to a vehicle other than a bi-fuel vehicle, the applicable CO₂ emissions figure is—
@@ -5122,12 +5148,16 @@
> (a) where the qualifying emissions certificate specifies more than one CO₂ emissions figure in relation to each fuel, the lowest CO₂ emissions (combined) figure specified, and
> (b) in any other case, the lowest CO₂ figure specified by the certificate.
> (4) In this section—
> - “bi-fuel”, in relation to a vehicle, means capable of being propelled by— petrol and road fuel gas, or diesel and road fuel gas;
> - “diesel” means any diesel fuel within the definition in Article 2 of Directive [98/70/EC](https://www.legislation.gov.uk/european/directive/1998/0070) of the European Parliament and of the Council;
> - “EC certificate of conformity” means a certificate of conformity issued by a manufacturer under any provision of the law of a member State implementing Article 6 of Council Directive [70/156/EEC](https://www.legislation.gov.uk/european/directive/1970/0156), as amended;
> - “petrol” has the meaning given by Article 2 of Directive [98/70/EC](https://www.legislation.gov.uk/european/directive/1998/0070) of the European Parliament and of the Council;
> - “road fuel gas” has the same meaning as in section 171(1) of ITEPA 2003;
> - “UK approval certificate” means a certificate issued under— section 58(1) or (4) of the Road Traffic Act 1988, or Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981 ([S.I. 1981/154 (N.I. 1)](https://www.legislation.gov.uk/nisi/1981/154)).
> - “*bi-fuel*”, in relation to a vehicle, means capable of being propelled by—
> 1. petrol and road fuel gas, or
> 2. diesel and road fuel gas;
> - “*diesel*” means any diesel fuel within the definition in Article 2 of Directive [98/70/EC](https://www.legislation.gov.uk/european/directive/1998/0070) of the European Parliament and of the Council;
> - “*EC certificate of conformity*” means a certificate of conformity issued by a manufacturer under any provision of the law of a member State implementing Article 6 of Council Directive [70/156/EEC](https://www.legislation.gov.uk/european/directive/1970/0156), as amended;
> - “*petrol*” has the meaning given by Article 2 of Directive [98/70/EC](https://www.legislation.gov.uk/european/directive/1998/0070) of the European Parliament and of the Council;
> - “*road fuel gas*” has the same meaning as in section 171(1) of ITEPA 2003;
> - “*UK approval certificate*” means a certificate issued under—
> 1. section 58(1) or (4) of the Road Traffic Act 1988, or
> 2. Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981 (S.I. 1981/154 (N.I. 1)).
#### Consequential amendments of CAA 2001
@@ -5151,17 +5181,17 @@
.
- (3) In subsection (2), for “a car with low CO₂ emissions is a car which” substitute “a car has low CO₂ emissions if it”.
- (4) In subsection (3), for the words from “an EC certificate” to the end substitute “a qualifying emissions certificate.”
- (5) In subsection (4), for “in the case of” substitute “in relation to”.
- (3) In subsection (2), for “a car with low CO₂ emissions is a car which” substitute “ a car has low CO₂ emissions if it ”.
- (4) In subsection (3), for the words from “an EC certificate” to the end substitute “ a qualifying emissions certificate. ”
- (5) In subsection (4), for “in the case of” substitute “ in relation to ”.
- (6) Omit subsections (5) and (6).
- (7) In subsection (8)—
- (a) after “car” insert “is to a car within the meaning of section 268A, except that it”, and
- (a) after “car” insert “ is to a car within the meaning of section 268A, except that it ”, and
- (b) omit paragraph (b) (and the “but” before it).
@@ -5171,7 +5201,7 @@
> (11) In this section—
> - “applicable CO₂ emissions figure” and “qualifying emissions certificate” have the meanings given in section 268C;
> - “electrically-propelled” has the meaning given in section 268B.
> - “*electrically-propelled*” has the meaning given in section 268B.
##### 15
@@ -5179,11 +5209,11 @@
##### 16
In section 55(6) (determination of entitlement or liability), after “subject to” insert “section 104F (special rate cars: discontinued activity continued by relevant company) and”.
In section 55(6) (determination of entitlement or liability), after “subject to” insert “ section 104F (special rate cars: discontinued activity continued by relevant company) and ”.
##### 17
In section 65(3) (the final chargeable period), for “sections 77(1) and” substitute “section”.
In section 65(3) (the final chargeable period), for “sections 77(1) and” substitute “ section ”.
##### 18
@@ -5206,23 +5236,23 @@
- (3) In item 4, in the second column, insert “The expenditure is incurred on the provision of a car which is a hire car for a disabled person (as defined by section 268D)”.
- (4) In item 5, in the second column, for “within section 82(4) (cars hired out to persons receiving disability allowances etc)” substitute “a hire car for a disabled person (as defined by section 268D)”.
- (4) In item 5, in the second column, for “within section 82(4) (cars hired out to persons receiving disability allowances etc)” substitute “ a hire car for a disabled person (as defined by section 268D) ”.
##### 20
- (1) Section 86 (short-life assets) is amended as follows.
- (2) In subsection (2)(b), for “main pool” substitute “appropriate pool”.
- (2) In subsection (2)(b), for “main pool” substitute “ appropriate pool ”.
- (3) After subsection (4) insert—
> (5) In subsection (2)(b) “appropriate pool” means—
> (5) In subsection (2)(b) “*appropriate pool*” means—
> (a) in the case of expenditure incurred on the provision of a car that is not a main rate car (as defined by section 104AA), the special rate pool, and
> (b) in any other case, the main pool.
##### 21
In section 96 (expenditure on cars excluded from being long-life asset expenditure), for “car (as defined by section 81)” substitute “car or motor cycle (as defined by section 268A)”.
In section 96 (expenditure on cars excluded from being long-life asset expenditure), for “car (as defined by section 81)” substitute “ car or motor cycle (as defined by section 268A) ”.
##### 22
@@ -5230,7 +5260,7 @@
> (268D)
> (1) For the purposes of this Part a car is a hire car for a disabled person if it is provided wholly or mainly for hire to, or the carriage of, disabled persons in the ordinary course of a trade.
> (2) “Disabled person” means a person in receipt of—
> (2) “*Disabled person*” means a person in receipt of—
> (a) a disability living allowance under—
> (i) the Social Security Contributions and Benefits Act 1992, or
> (ii) the Social Security Contributions and Benefits (Northern Ireland) Act 1992,
@@ -5243,7 +5273,7 @@
- (1) Part 2 of Schedule 1 (defined expressions) is amended as follows.
- (2) In the entry relating to “car (in Part 2)”, for “section 81” substitute “section 268A”.
- (2) In the entry relating to “car (in Part 2)”, for “section 81” substitute “ section 268A ”.
- (3) Insert at the appropriate places—
@@ -5300,7 +5330,7 @@
##### 27
- (1) For the purposes of this Part of this Schedule “new expenditure” means—
- (1) For the purposes of this Part of this Schedule “*new expenditure*” means—
- (a) expenditure incurred on or after the first relevant date, and
@@ -5398,9 +5428,9 @@
> (c) a car that is electrically propelled, or
> (d) a qualifying hire car.
- (3) In subsection (2), for the words from “multiplying” to the end substitute “15%”.
- (4) In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “15%”.
- (3) In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.
- (4) In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “ 15% ”.
- (5) In subsection (4A)(a), (b) and (c), omit “or motor cycle”.
@@ -5429,8 +5459,8 @@
- (3) After that subsection insert—
> (1A) In section 48—
> - “a car that has low CO₂ emissions” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);
> - “electrically propelled” has the meaning given in section 268B of that Act.
> - “*a car that has low CO2 emissions*” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);
> - “*electrically propelled*” has the meaning given in section 268B of that Act.
- (4) In subsection (2)—
@@ -5459,7 +5489,7 @@
> (2) Condition A is that—
> (a) the expenses are incurred in respect of the making available of the car to the taxpayer for a period (“the hire period”) of not more than 45 consecutive days, and
> (b) if the car is made available to the taxpayer (whether by the same person or different persons) for one or more periods linked to the hire period, the hire period and the linked period or periods, taken together, consist of not more than 45 days.
> (3) Condition B is that the expenses are incurred in respect of a period (“the sub-hire period”) throughout which the taxpayer makes the car available to another person (“the customer”) and—
> (3) Condition B is that the expenses are incurred in respect of a period (“the sub-hire period”) throughout which the taxpayer makes the car available to another person (“*the customer*”) and—
> (a) the sub-hire period consists of more than 45 consecutive days, or
> (b) if the taxpayer makes the car available to the customer throughout one or more periods linked to the sub-hire period, the sub-hire period and the linked period or periods, taken together, consist of more than 45 days,
> but see subsection (4).
@@ -5478,7 +5508,7 @@
> (b) a period of consecutive days that begins not more than 14 days after the main period ends, and
> (c) a period of consecutive days linked to a period in paragraph (a) or (b).
> (8) For the purposes of this section, where arrangements for the hiring of a car include arrangements for the provision of a replacement car in the event that the first car is not available, the first car and any replacement car are to be treated as if they were the same car.
> (9) In this section (and section 50B) “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.
> (9) In this section (and section 50B) “*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.
> (50B)
> (1) This section applies where connected persons incur expenses on the hiring of the same car for the same period and—
> (a) section 48 would (but for this section) apply to the expenses of two or more of those persons, or
@@ -5489,7 +5519,7 @@
> (b) where there is more than one, any such expenses incurred by the first commercial lessee in the chain of arrangements for the hiring of the car for the period.
> (4) In this section—
> (a) references to expenses incurred by a commercial lessee include expenses incurred in that or any other capacity, and
> (b) “commercial arrangements” means arrangements the terms of which are such as would reasonably have been expected if the parties to the arrangements had been dealing at arm’s length.
> (b) “*commercial arrangements*” means arrangements the terms of which are such as would reasonably have been expected if the parties to the arrangements had been dealing at arm's length.
##### 40
@@ -5499,7 +5529,7 @@
In section 272(2) (profits of a property business: application of trading income rules), in the entry in the Table relating to sections 48 to 50—
- (a) for “50” substitute “50B”, and
- (a) for “50” substitute “ 50B ”, and
- (b) omit “or motor cycle”.
@@ -5537,9 +5567,9 @@
> (c) a car that is electrically propelled, or
> (d) a qualifying hire car.
- (3) In subsection (2), for the words from “multiplying” to the end substitute “15%”.
- (4) In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “15%”.
- (3) In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.
- (4) In subsection (4), for “multiplying it by the fraction in subsection (2)” substitute “ 15% ”.
- (5) In subsection (5)(a), (b) and (c), omit “or motor cycle”.
@@ -5568,8 +5598,8 @@
- (3) After that subsection insert—
> (1A) In section 56—
> - “a car that has low CO₂ emissions” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);
> - “electrically propelled” has the meaning given in section 268B of that Act.
> - “*a car that has low CO2 emissions*” has the same meaning as in section 104AA of CAA 2001 (special rate expenditure: main rate car);
> - “*electrically propelled*” has the meaning given in section 268B of that Act.
- (4) In subsection (2)—
@@ -5598,7 +5628,7 @@
> (2) Condition A is that—
> (a) the expenses are incurred in respect of the making available of the car to the taxpayer for a period (“the hire period”) of not more than 45 consecutive days, and
> (b) if the car is made available to the taxpayer (whether by the same person or different persons) for one or more periods linked to the hire period, the hire period and the linked period or periods, taken together, consist of not more than 45 days.
> (3) Condition B is that the expenses are incurred in respect of a period (“the sub-hire period”) throughout which the taxpayer makes the car available to another person (“the customer”) and—
> (3) Condition B is that the expenses are incurred in respect of a period (“the sub-hire period”) throughout which the taxpayer makes the car available to another person (“*the customer*”) and—
> (a) the sub-hire period consists of more than 45 consecutive days, or
> (b) if the taxpayer makes the car available to the customer throughout one or more periods linked to the sub-hire period, the sub-hire period and the linked period or periods, taken together, consist of more than 45 days,
> but see subsection (4).
@@ -5617,7 +5647,7 @@
> (b) a period of consecutive days that begins not more than 14 days after the main period ends, and
> (c) a period of consecutive days linked to a period in paragraph (a) or (b).
> (8) For the purposes of this section, where arrangements for the hiring of a car include arrangements for the provision of a replacement car in the event that the first car is not available, the first car and any replacement car are to be treated as if they were the same car.
> (9) In this section (and section 58B) “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.
> (9) In this section (and section 58B) “*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.
> (58B)
> (1) This section applies where connected persons incur expenses on the hiring of the same car for the same period and—
> (a) section 56 would (but for this section) apply to the expenses of two or more of those persons, or
@@ -5628,7 +5658,7 @@
> (b) where there is more than one, any such expenses incurred by the first commercial lessee in the chain of arrangements for the hiring of the car for the period.
> (4) In this section—
> (a) references to expenses incurred by a commercial lessee include expenses incurred in that or any other capacity, and
> (b) “commercial arrangements” means arrangements the terms of which are such as would reasonably have been expected if the parties to the arrangements had been dealing at arm’s length.
> (b) “*commercial arrangements*” means arrangements the terms of which are such as would reasonably have been expected if the parties to the arrangements had been dealing at arm's length.
##### 51
@@ -5638,7 +5668,7 @@
In section 210(2) (profits of a property business: application of trading income rules), in the entry in the Table relating to sections 56 to 58—
- (a) for “58” substitute “58B”, and
- (a) for “58” substitute “ 58B ”, and
- (b) omit “or motor cycle”.
@@ -5670,9 +5700,9 @@
> (c) a car that is electrically propelled, or
> (d) a qualifying hire car.
- (3) In subsection (2), for the words from “multiplying” to the end substitute “15%”.
- (4) In subsection (4)(b), for “multiply that amount by the fraction set out in subsection (2) above” substitute “reduce that amount by 15%”.
- (3) In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.
- (4) In subsection (4)(b), for “multiply that amount by the fraction set out in subsection (2) above” substitute “ reduce that amount by 15% ”.
- (5) In subsection (5)(a), (b) and (c), omit “or motor cycle”.
@@ -5682,7 +5712,7 @@
- (a) omit “or motor cycle”, and
- (b) for “58 (hiring cars with low CO₂ emissions before 1 April 2013)” substitute “58A (short-term hiring in and long-term hiring out)”.
- (b) for “58 (hiring cars with low CO₂ emissions before 1 April 2013)” substitute “ 58A (short-term hiring in and long-term hiring out) ”.
- (8) After that subsection insert—
@@ -5718,9 +5748,9 @@
> (1A) Subsection (2) does not apply if condition A or condition B in section 58A of CTA 2009 (short-term hiring in and long-term hiring out) is met.
- (4) In subsection (2), for the words from “multiplying” to the end substitute “15%”.
- (5) In subsection (5), for the words from “multiplying” to the end substitute “15%”.
- (4) In subsection (2), for the words from “multiplying” to the end substitute “ 15% ”.
- (5) In subsection (5), for the words from “multiplying” to the end substitute “ 15% ”.
- (6) In subsection (6)(a), (b) and (c), omit “or motor cycle”.
@@ -5754,9 +5784,9 @@
> (2C) This section does not apply to the hiring of a car where condition A or condition B in section 58A of CTA 2009 (short-term hiring in and long-term hiring out) is met.
- (5) In subsection (3), for the words from “multiplying” to the end substitute “15%”.
- (6) In subsection (4), for “multiplying it by the fraction in subsection (3) above” substitute “15%”.
- (5) In subsection (3), for the words from “multiplying” to the end substitute “ 15% ”.
- (6) In subsection (4), for “multiplying it by the fraction in subsection (3) above” substitute “ 15% ”.
- (7) After that subsection insert—
@@ -5844,7 +5874,7 @@
- (b) for corporation tax purposes, no later than 2 years after the end of the relevant chargeable period.
- (4) “The relevant chargeable period” means the first chargeable period (as defined in section 6 of CAA 2001) in which any expenditure by the person on the provision of the car or motor cycle under the agreement was incurred.
- (4) “*The relevant chargeable period*” means the first chargeable period (as defined in section 6 of CAA 2001) in which any expenditure by the person on the provision of the car or motor cycle under the agreement was incurred.
- (5) The election is irrevocable.
@@ -5885,7 +5915,7 @@
> (c) had company A disposed of the asset to company B immediately before the time of accrual, section 171(1) would have applied.
> (2) In determining for the purposes of subsection (1)(c) whether subsection (1) of section 171 would have applied, it is to be assumed that subsection (1A)(b) of that section read—
> (b) that, at the time of the disposal, company B is resident in the United Kingdom, or carrying on a trade in the United Kingdom through a permanent establishment there.
> (3) In this section “the time of accrual” means the time the chargeable gain or allowable loss accrues to company A (or would so accrue but for an election under this section).
> (3) In this section “*the time of accrual*” means the time the chargeable gain or allowable loss accrues to company A (or would so accrue but for an election under this section).
> (4) Companies A and B may make a joint election to transfer the chargeable gain or allowable loss, or such part of it as is specified in the election, from company A to company B.
> (5) An election under this section must be made—
> (a) by notice to an officer of Revenue and Customs, and
@@ -5899,7 +5929,7 @@
> (2) The effect of the election is that the chargeable gain or allowable loss, or such amount of it as is specified in the election, is treated as accruing not to company A but to company B.
> (3) The gain or loss treated as accruing to company B is to be taken to accrue at the time that, had the election not been made, it would have accrued to company A.
> (4) Where company B is not resident in the United Kingdom, the gain or loss treated as accruing to it is to be taken to accrue in respect of a chargeable asset held by it.
> (5) For this purpose an asset is a “chargeable asset” in relation to a company at any time if any gain accruing to the company on a disposal of the asset by the company at that time would be a chargeable gain and would by virtue of section 10B form part of its chargeable profits for corporation tax purposes.
> (5) For this purpose an asset is a “*chargeable asset*” in relation to a company at any time if any gain accruing to the company on a disposal of the asset by the company at that time would be a chargeable gain and would by virtue of section 10B form part of its chargeable profits for corporation tax purposes.
> (6) Any payment made by company A to company B or by company B to company A, in pursuance of an agreement between them in connection with the election—
> (a) is not to be taken into account in computing profits or losses of either company for corporation tax purposes, and
> (b) is not for any purposes of the Corporation Tax Acts to be regarded as a distribution,
@@ -5911,9 +5941,9 @@
> (2) For the purposes of section 171A(1)(c), section 440(3) of the Taxes Act (disposals of certain assets by and to insurance companies to fall outside the rule in section 171) is to be disregarded.
> (3) Subsection (2) does not apply if—
> (a) company A is an insurance company, and
> (b) the gain or loss arose in respect of the disposal of an asset that, immediately before the disposal, was part of that company’s long-term insurance fund.
> (4) The chargeable gain or allowable loss treated as accruing to company B as a result of the election is to be treated as arising in respect of an asset that is not part of company B’s long-term insurance fund.
> (5) In this section “insurance company” and “long-term insurance fund” have the same meaning as in Chapter 1 of Part 12 of the Taxes Act (see section 431(2) of that Act).
> (b) the gain or loss arose in respect of the disposal of an asset that, immediately before the disposal, was part of that company's long-term insurance fund.
> (4) The chargeable gain or allowable loss treated as accruing to company B as a result of the election is to be treated as arising in respect of an asset that is not part of company B's long-term insurance fund.
> (5) In this section “*insurance company*” and “*long-term insurance fund*” have the same meaning as in Chapter 1 of Part 12 of the Taxes Act (see section 431(2) of that Act).
#### Consequential amendments
@@ -5934,7 +5964,7 @@
.
- (3) In paragraph (b), for “reallocation or rollover of gain” substitute “degrouping: reallocation of gain or loss, or rollover of gain,”.
- (3) In paragraph (b), for “reallocation or rollover of gain” substitute “ degrouping: reallocation of gain or loss, or rollover of gain, ”.
##### 4
@@ -5964,17 +5994,15 @@
- (1) Section 263B (stock lending arrangements) is amended as follows.
- (2) In subsection (2), for “section 263C(2)” substitute “sections 263C(2) and 263CA(3) and (5)”.
- (2) In subsection (2), for “section 263C(2)” substitute “ sections 263C(2) and 263CA(3) and (5) ”.
- (3) In subsection (4)—
- (a) in paragraph (a), insert at the end “for a consideration equal to their market value at that time”,
- (b) in paragraph (b), after “at that time” insert “for that consideration”, and
- (c) insert at the end (not as part of paragraph (c))—
> This subsection does not apply where section 263CA (insolvency of borrower) applies.
- (b) in paragraph (b), after “at that time” insert “ for that consideration ”, and
- (c) insert at the end (not as part of paragraph (c))— “ This subsection does not apply where section 263CA (insolvency of borrower) applies. ”
- (4) In subsection (7), omit the definition of “interest”.
@@ -5999,12 +6027,12 @@
> (b) where not all the collateral is so used, the difference between—
> (i) the market value (at the insolvency date) of the number of securities which could have been acquired using the collateral, and
> (ii) the market value (at that date) of the number of securities which were in fact so acquired.
> (7) But if L at any time receives any amount (whether arising out of B’s insolvency or otherwise) in respect of B’s liability to L in respect of the securities which are treated under subsection (5) as having been disposed of by L that amount is to be treated as a chargeable gain accruing at that time to L.
> (7) But if L at any time receives any amount (whether arising out of B's insolvency or otherwise) in respect of B's liability to L in respect of the securities which are treated under subsection (5) as having been disposed of by L that amount is to be treated as a chargeable gain accruing at that time to L.
> (8) The liability mentioned in subsection (7) is not to be treated as giving rise to a relevant non-lending relationship for the purposes of Part 6 of CTA 2009 (relationships treated as loan relationships etc).
> (9) For the purposes of this section, B becomes insolvent—
> (a) if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986,
> (b) if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed,
> (c) on the commencement of a creditor’s voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,
> (c) on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,
> (d) if an individual voluntary arrangement takes effect under Part 8 of that Act,
> (e) on the presentation of a bankruptcy petition (within the meaning of Part 9 of that Act),
> (f) if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006,
@@ -6012,7 +6040,7 @@
> (h) if a bank administration order takes effect under Part 3 of that Act, or
> (i) on the occurrence of any corresponding event which has effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom.
> (10) In this section—
> (a) “collateral” means an amount of money or other property which—
> (a) “*collateral*” means an amount of money or other property which—
> (i) is provided under the arrangement (or under arrangements of which the arrangement forms part), and
> (ii) is payable to or made available for the benefit of L for the purpose of securing the discharge of the requirement to transfer any or all of the securities back to L, and
> (b) any expression used in this section and in section 263B has the same meaning as in that section.
@@ -6062,11 +6090,11 @@
> (3) For the purpose of section 931B a company is a resident of a territory if, under the laws of the territory, the company is liable to tax there—
> (a) by reason of its domicile, residence or place of management, but
> (b) not in respect only of income from sources in that territory or capital situated there.
> (4) In subsection (1) “non-discrimination provision”, in relation to double taxation relief arrangements, means a provision to the effect that nationals of a state which is a party to those arrangements (a “contracting state”) are not to be subject in any other contracting state to—
> (4) In subsection (1) “*non-discrimination provision*”, in relation to double taxation relief arrangements, means a provision to the effect that nationals of a state which is a party to those arrangements (a “contracting state”) are not to be subject in any other contracting state to—
> (a) any taxation, or
> (b) any requirement connected with taxation,
> which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances (in particular with respect to residence) are or may be subjected.
> (5) In subsection (4) “national”, in relation to a contracting state, includes—
> (5) In subsection (4) “*national*”, in relation to a contracting state, includes—
> (a) an individual possessing the nationality or citizenship of the contracting state, and
> (b) a legal person, partnership or association deriving its status as such from the laws in force in that contracting state.
> (6) Regulations under this section may—
@@ -6098,7 +6126,7 @@
> (3) For the purposes of this section shares are not of the same class if the amounts paid up on them (otherwise than by way of premium) are different.
> (931H)
> (1) A dividend falls into an exempt class if it is paid in respect of relevant profits.
> (2) In this section “relevant profits” means any profits available for distribution at the time that the dividend is paid, other than profits that reflect the results of a transaction, or of one or more of a series of transactions, where—
> (2) In this section “*relevant profits*” means any profits available for distribution at the time that the dividend is paid, other than profits that reflect the results of a transaction, or of one or more of a series of transactions, where—
> (a) the transaction or series of transactions achieve a reduction (other than a negligible reduction) in United Kingdom tax, and
> (b) the purpose or one of the main purposes of that transaction or series of transactions is to achieve that reduction.
> (3) A dividend that falls into an exempt class otherwise than by virtue of this section is for the purposes of this section treated, so far as possible, as paid in respect of relevant profits.
@@ -6113,7 +6141,7 @@
> (3) The condition is that the dividend is paid in respect of pre-control profits.
> (4) A dividend that falls into an exempt class otherwise than by virtue of section 931E is for the purposes of this section treated, so far as possible, as paid in respect of profits other than pre-control profits.
> (5) Any other dividend is for the purposes of this section treated, so far as possible, as paid in respect of pre-control profits.
> (6) In this section “pre-control profits” means any profits available for distribution at the time the dividend is paid that arose at a time when neither condition A nor condition B in section 931E was met.
> (6) In this section “*pre-control profits*” means any profits available for distribution at the time the dividend is paid that arose at a time when neither condition A nor condition B in section 931E was met.
> (7) Where—
> (a) the condition in subsection (2)(a) is met, and
> (b) by virtue of subsection (5) part of a dividend is treated as paid in respect of pre-control profits and part is treated as paid in respect of profits other than pre-control profits,
@@ -6158,7 +6186,7 @@
> (a) the distribution is made as part of a tax advantage scheme, and
> (b) the following condition is met.
> (3) The condition is that the scheme includes a payment, or the giving up of a right to income, by a relevant person where—
> (a) the payment is made, or the right to income is given up, under a liability incurred for consideration in money or money’s worth all or any of which consists of, or of the right to receive, the distribution, and
> (a) the payment is made, or the right to income is given up, under a liability incurred for consideration in money or money's worth all or any of which consists of, or of the right to receive, the distribution, and
> (b) in the case of a payment, the conditions in subsections (2) and (4) to (7) of section 1301 (restriction of deductions for annual payments) apply to the payment.
> (931P)
> (1) This section applies to a dividend or other distribution that would, apart from this section, fall into an exempt class.
@@ -6176,7 +6204,7 @@
> (b) if C had received the distribution, it would be reasonable to assume that the distribution would be dealt with under Part 3 (trading income), and
> (c) the main purpose, or one of the main purposes, of the scheme is to produce the result that the distribution is dealt with under this Part because it is received by the recipient.
> (3) For the purposes of subsection (2)(b) it is to be assumed that, in the case of any relevant transaction to which a relevant person other than C is a party, C were that party to that transaction.
> (4) In this section “relevant transaction” means any of the transactions giving rise to the distribution.
> (4) In this section “*relevant transaction*” means any of the transactions giving rise to the distribution.
> (931R)
> (1) This section applies where, apart from this section, a distribution (“the distribution”) would be exempt.
> (2) If the recipient so elects, the distribution is not exempt.
@@ -6194,25 +6222,27 @@
> (c) an insurance company, or
> (d) a friendly society.
> (3) In subsection (2)—
> - “open-ended investment company” has the meaning given by section 236 of FISMA 2000;
> - “authorised unit trust scheme” means a unit trust scheme (within the meaning given by section 237 of FISMA 2000) in relation to which a order under section 243 of that Act (authorisation orders) is in force;
> - “insurance company” has the meaning given by section 431 of ICTA;
> - “friendly society” has the meaning given by section 466(2) of ICTA.
> - “*open-ended investment company*” has the meaning given by section 236 of FISMA 2000;
> - “*authorised unit trust scheme*” means a unit trust scheme (within the meaning given by section 237 of FISMA 2000) in relation to which a order under section 243 of that Act (authorisation orders) is in force;
> - “*insurance company*” has the meaning given by section 431 of ICTA;
> - “*friendly society*” has the meaning given by section 466(2) of ICTA.
> (931T) In this Part—
> - “the payer”, in relation to a distribution, means the company that makes the distribution;
> - “the recipient”, in relation to a distribution, means the company that receives the distribution;
> - “a relevant person”, in relation to a distribution, means— the company that receives the distribution, or any person connected with that company.
> - “*the payer*”, in relation to a distribution, means the company that makes the distribution;
> - “*the recipient*”, in relation to a distribution, means the company that receives the distribution;
> - “*a relevant person*”, in relation to a distribution, means—
> 1. the company that receives the distribution, or
> 2. any person connected with that company.
> (931U)
> (1) In this Part “ordinary share” means a share that does not carry any present or future preferential right to dividends or to a company’s assets on its winding up.
> (2) A share is regarded as “redeemable” for the purposes of this Part only if it is redeemable as a result of its terms of issue (or any collateral arrangements)—
> (1) In this Part “*ordinary share*” means a share that does not carry any present or future preferential right to dividends or to a company's assets on its winding up.
> (2) A share is regarded as “*redeemable*” for the purposes of this Part only if it is redeemable as a result of its terms of issue (or any collateral arrangements)—
> (a) requiring redemption,
> (b) entitling the holder to require redemption, or
> (c) entitling the issuing company to redeem.
> (931V)
> (1) For the purposes of this Part—
> - “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions;
> - “tax advantage scheme” means a scheme the main purpose, or one of the main purposes, of which is to obtain a tax advantage (other than a negligible tax advantage).
> (2) In this section “tax advantage” has the meaning given by section 840ZA of ICTA.
> (“) For the purposes of this Part—
> - “*scheme*” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions;
> - “*tax advantage scheme*” means a scheme the main purpose, or one of the main purposes, of which is to obtain a tax advantage (other than a negligible tax advantage).
> (2) In this section “*tax advantage*” has the meaning given by section 840ZA of ICTA.
> (931W)
> (1) Any income so far as it falls within—
> (a) this Part, and
@@ -6255,7 +6285,7 @@
- (1) Section 95ZA (taxation of UK distributions received by insurance companies) is amended as follows.
- (2) In subsection (1), for “section 1285” substitute “section 130(2)”.
- (2) In subsection (1), for “section 1285” substitute “ section 130(2) ”.
- (3) In subsection (2)(a), omit “resident in the United Kingdom”.
@@ -6267,9 +6297,9 @@
- (a) omit “and section 219(4B) of the Finance Act 1994”,
- (b) for “resident in the United Kingdom makes a” substitute “(whether resident in the United Kingdom or outside the United Kingdom) makes an exempt”, and
- (c) for “another such company” substitute “a company resident in the United Kingdom”.
- (b) for “resident in the United Kingdom makes a” substitute “ (whether resident in the United Kingdom or outside the United Kingdom) makes an exempt ”, and
- (c) for “another such company” substitute “ a company resident in the United Kingdom ”.
- (3) After subsection (1A) insert—
@@ -6291,15 +6321,15 @@
,
- (b) in paragraph (a), insert at the beginning “in a case not falling under paragraph (za),”, and
- (b) in paragraph (a), insert at the beginning “ in a case not falling under paragraph (za), ”, and
- (c) in paragraph (c), insert at the beginning “in a case not falling under paragraph (za),”.
- (3) After subsection (3) insert—
> (3A) For the purposes of subsection (3)—
> (a) “small company” has the same meaning as in Part 9A of CTA 2009 (company distributions),
> (b) “relevant dividend” means a dividend that, for the purposes of section 931H of that Act (dividends derived from transactions not designed to reduce tax), is treated as paid in respect of profits other than relevant profits (see subsection (4) of that section), and
> (a) “*small company*” has the same meaning as in Part 9A of CTA 2009 (company distributions),
> (b) “*relevant dividend*” means a dividend that, for the purposes of section 931H of that Act (dividends derived from transactions not designed to reduce tax), is treated as paid in respect of profits other than relevant profits (see subsection (4) of that section), and
> (c) the profits in respect of which a dividend is paid are the profits in respect of which the dividend is treated as paid for the purposes of that section.
##### 9
@@ -6368,13 +6398,13 @@
In paragraph 5(3)(c) of Schedule 27 (distributing funds: United Kingdom equivalent profits)—
- (a) for “section 1285” substitute “Chapter 2 or 3 of Part 9A”, and
- (a) for “section 1285” substitute “ Chapter 2 or 3 of Part 9A ”, and
- (b) omit “in like manner as if they were dividends or distributions of a company resident outside the United Kingdom”.
##### 14
In paragraph 5 of Schedule 28AA (provision not at arm’s length), after sub-paragraph (7) insert—
In paragraph 5 of Schedule 28AA (provision not at arm's length), after sub-paragraph (7) insert—
> (8) For the purposes of sub-paragraph (1) section 209(2)(d) (excessive interest etc treated as distribution) is to be disregarded.
@@ -6388,11 +6418,11 @@
- (1) Section 85A (life assurance: excess adjusted Case I profits) is amended as follows.
- (2) In paragraph (a) of subsection (6), for “distributions received by the company in the accounting period from companies resident in the United Kingdom” substitute “non-taxable distributions received by the company in the accounting period”.
- (2) In paragraph (a) of subsection (6), for “distributions received by the company in the accounting period from companies resident in the United Kingdom” substitute “ non-taxable distributions received by the company in the accounting period ”.
- (3) After that subsection insert—
> (6A) In this section “non-taxable distribution” means—
> (6A) In this section “*non-taxable distribution*” means—
> (a) a distribution that is exempt for the purposes of Part 9A of the Corporation Tax Act 2009 (company distributions), and
> (b) does not include any amount withheld from the distribution on account of tax payable under the laws of a territory outside the United Kingdom.
@@ -6400,17 +6430,17 @@
- (1) Section 89 (life assurance: policy holders' share of profits) is amended as follows.
- (2) In subsection (2)(b), for “distributions received from companies resident in the United Kingdom” substitute “non-taxable distributions received”.
- (2) In subsection (2)(b), for “distributions received from companies resident in the United Kingdom” substitute “ non-taxable distributions received ”.
- (3) In subsection (7), after the definition of “Case I profits” insert—
> “non-taxable distribution” has the same meaning as in section 85A.
> “*non-taxable distribution*” has the same meaning as in section 85A.
#### FA 1994
##### 18
In section 219 of FA 1994 (taxation of profits of Lloyd’s underwriters etc)—
In section 219 of FA 1994 (taxation of profits of Lloyd's underwriters etc)—
- (a) in subsection (3), omit “Subject to subsection (4A) below,”, and
@@ -6458,9 +6488,9 @@
- (1) Section 974 (charge to tax in relation to sale of foreign dividend coupons) is amended as follows.
- (2) In subsection (3)(a), after “realisation of” insert “taxable”.
- (3) In subsection (4), after “sale of” insert “taxable”.
- (2) In subsection (3)(a), after “realisation of” insert “ taxable ”.
- (3) In subsection (4), after “sale of” insert “ taxable ”.
- (4) After subsection (4) insert—
@@ -6548,7 +6578,7 @@
##### 31
The amendments made by this Schedule have effect in relation to distributions paid on or after 1 July 2009 (“the commencement date”).
The amendments made by this Schedule have effect in relation to distributions paid on or after 1 July 2009 (“*the commencement date*”).
#### Transitional provision
@@ -6594,7 +6624,7 @@
- (7) Part 8 defines the “tested expense amount” and the “tested income amount” of the worldwide group for a period of account of the group, which are totals deriving from the financing expense amounts and financing income amounts of certain group companies.
- (8) Part 9 defines the “available amount” for a period of account of the worldwide group, which derives from certain financing costs disclosed in the group’s consolidated financial statements.
- (8) Part 9 defines the “available amount” for a period of account of the worldwide group, which derives from certain financing costs disclosed in the group's consolidated financial statements.
- (9) Part 10 contains further interpretative provisions.
@@ -6626,17 +6656,17 @@
- (1) The reference in paragraph 2 to the “UK net debt” of the worldwide group for a period of account of the group is to the sum of the net debt amounts of each company that was a relevant group company at any time during the period.
- (2) In this paragraph “net debt amount”, in relation to a company, means the average of—
- (a) the net debt of the company as at that company’s start date, and
- (b) the net debt of the company as at that company’s end date.
- (2) In this paragraph “*net debt amount*”, in relation to a company, means the average of—
- (a) the net debt of the company as at that company's start date, and
- (b) the net debt of the company as at that company's end date.
For the meaning of “net debt”, see paragraph 4.
- (3) Where the amount determined in accordance with sub-paragraph (2) is less than £3 million, the net debt amount of the company is nil.
- (4) Where a company is dormant (within the meaning given by section 1169 of the Companies Act 2006) at all times in the period beginning with that company’s start date and ending with that company’s end date, the net debt amount of the company is nil.
- (4) Where a company is dormant (within the meaning given by section 1169 of the Companies Act 2006) at all times in the period beginning with that company's start date and ending with that company's end date, the net debt amount of the company is nil.
- (5) The Treasury may by order amend sub-paragraph (3) by substituting a higher or lower amount for the amount for the time being specified there.
@@ -6656,13 +6686,13 @@
- (1) References in paragraph 3 to the “net debt” of a company as at any date are to—
- (a) the sum of the company’s relevant liabilities as at that date, less
- (b) the sum of the company’s relevant assets as at that date.
- (a) the sum of the company's relevant liabilities as at that date, less
- (b) the sum of the company's relevant assets as at that date.
- (2) The amount determined in accordance with sub-paragraph (1) may be a negative amount.
- (3) For the purposes of this paragraph a company’s “relevant liabilities” as at any date are the amounts that are disclosed in the balance sheet of the company as at that date in respect of—
- (3) For the purposes of this paragraph a company's “relevant liabilities” as at any date are the amounts that are disclosed in the balance sheet of the company as at that date in respect of—
- (a) amounts borrowed (whether by way of overdraft or other short term or long term borrowing),
@@ -6670,7 +6700,7 @@
- (c) amounts of such other description as may be specified in regulations made by the Commissioners.
- (4) For the purposes of this paragraph a company’s “relevant assets” as at any date are the amounts that are disclosed in the balance sheet of the company as at that date in respect of—
- (4) For the purposes of this paragraph a company's “relevant assets” as at any date are the amounts that are disclosed in the balance sheet of the company as at that date in respect of—
- (a) cash and cash equivalents,
@@ -6678,7 +6708,7 @@
- (c) net investments, or net cash investments, in finance leases,
- (d) securities of Her Majesty’s government or of the government of any other country or territory, or
- (d) securities of Her Majesty's government or of the government of any other country or territory, or
- (e) amounts of such other description as may be specified in regulations made by the Commissioners.
@@ -6710,7 +6740,7 @@
##### 6
- (1) This paragraph applies for the purpose of construing references in paragraph 4 to amounts disclosed in the balance sheet of a relevant group company as at any date (“the relevant date”).
- (1) This paragraph applies for the purpose of construing references in paragraph 4 to amounts disclosed in the balance sheet of a relevant group company as at any date (“*the relevant date*”).
- (2) Where the company—
@@ -6724,7 +6754,7 @@
- (a) is a foreign company, and
- (b) draws up a balance sheet (“a UK permanent establishment balance sheet”) as at the relevant date in respect of the company’s permanent establishment in the United Kingdom that treats the establishment as a distinct and separate enterprise,
- (b) draws up a balance sheet (“a UK permanent establishment balance sheet”) as at the relevant date in respect of the company's permanent establishment in the United Kingdom that treats the establishment as a distinct and separate enterprise,
the references are to amounts in that balance sheet.
@@ -6758,15 +6788,15 @@
- (3) In this Part, in relation to a period of account of the worldwide group—
- “UK trading income” means the sum of the trading income for that period of each company that was a relevant group company at any time during that period (see paragraph 12);
- “worldwide trading income” means the trading income for that period of the worldwide group (see paragraph 13).
- “*UK trading income*” means the sum of the trading income for that period of each company that was a relevant group company at any time during that period (see paragraph 12);
- “*worldwide trading income*” means the trading income for that period of the worldwide group (see paragraph 13).
#### Qualifying activities
##### 8
In this Part “qualifying activities” means—
In this Part “*qualifying activities*” means—
- (a) lending activities and activities that are ancillary to lending activities (see paragraph 9),
@@ -6778,7 +6808,7 @@
##### 9
- (1) In this Part “lending activities” means any of the following activities—
- (1) In this Part “*lending activities*” means any of the following activities—
- (a) acceptance of deposits or other repayable funds;
@@ -6802,7 +6832,7 @@
- (b) the income derived from lending activities of the worldwide group in the period of account.
- (3) In sub-paragraph (2) “income” means the gross income or net income that would be taken into account for the purposes of paragraph 7 in calculating the UK or worldwide trading income of the worldwide group for the period of account.
- (3) In sub-paragraph (2) “*income*” means the gross income or net income that would be taken into account for the purposes of paragraph 7 in calculating the UK or worldwide trading income of the worldwide group for the period of account.
- (4) The Commissioners may by order—
@@ -6810,21 +6840,21 @@
- (b) make other amendments of this paragraph in consequence of any amendment of sub-paragraph (1).
- (5) In sub-paragraph (1)(h), and in the references to ancillary activities in this paragraph and paragraph 8(a), “activities” includes buying, holding, managing and selling assets.
- (6) In this paragraph “alternative finance arrangements” has the same meaning as in Chapter 6 of Part 6 of CTA 2009.
- (5) In sub-paragraph (1)(h), and in the references to ancillary activities in this paragraph and paragraph 8(a), “*activities*” includes buying, holding, managing and selling assets.
- (6) In this paragraph “*alternative finance arrangements*” has the same meaning as in Chapter 6 of Part 6 of CTA 2009.
#### Insurance activities and insurance related activities
##### 10
- (1) In this Part “insurance activities” means—
- (1) In this Part “*insurance activities*” means—
- (a) the effecting or carrying out of contracts of insurance by a regulated insurer, and
- (b) investment business that arises directly from activities falling within paragraph (a).
- (2) In this Part “insurance-related activities” means—
- (2) In this Part “*insurance-related activities*” means—
- (a) activities that are ancillary to insurance activities, and
@@ -6844,21 +6874,21 @@
- (b) the income derived from insurance activities of the worldwide group in the period of account.
- (5) In sub-paragraph (4) “income” means the gross income or net income that would be taken into account for the purposes of paragraph 7 in calculating the UK or worldwide trading income of the worldwide group for the period of account.
- (5) In sub-paragraph (4) “*income*” means the gross income or net income that would be taken into account for the purposes of paragraph 7 in calculating the UK or worldwide trading income of the worldwide group for the period of account.
- (6) In this paragraph—
- “activities” includes buying, holding, managing and selling assets;
- “contract of insurance” has the same meaning as in Chapter 1 of Part 12 of ICTA;
- “regulated insurer” means a member of the worldwide group that— is authorised under the law of any territory to carry on insurance business, or is a member of a body or organisation that is so authorised.
- “*activities*” includes buying, holding, managing and selling assets;
- “*contract of insurance*” has the same meaning as in Chapter 1 of Part 12 of ICTA;
- “*regulated insurer*” means a member of the worldwide group that—is authorised under the law of any territory to carry on insurance business, oris a member of a body or organisation that is so authorised.
#### Relevant dealing in financial instruments
##### 11
- (1) In this Part “financial instrument” means anything that is a financial instrument for any purpose of the FSA Handbook.
- (1) In this Part “*financial instrument*” means anything that is a financial instrument for any purpose of the FSA Handbook.
- (2) For the purposes of this Part, a dealing in a financial instrument is a “relevant dealing” if—
@@ -6866,7 +6896,7 @@
- (b) profits or losses on the dealing form part of the trading profits or losses of a business.
- (3) In this paragraph “broker” includes any person offering to sell securities to, or purchase securities from, members of the public generally.
- (3) In this paragraph “*broker*” includes any person offering to sell securities to, or purchase securities from, members of the public generally.
#### UK trading income of the worldwide group
@@ -6900,7 +6930,7 @@
- (7) Gross income or net income is to be disregarded for the purposes of sub-paragraph (2) if the income arises in respect of an amount payable by another member of the worldwide group that is either a UK group company or a relevant group company.
- (8) In this paragraph “net-basis activity” means activity that is normally reported on a net basis in financial statements prepared in accordance with generally accepted accounting practice.
- (8) In this paragraph “*net-basis activity*” means activity that is normally reported on a net basis in financial statements prepared in accordance with generally accepted accounting practice.
#### Worldwide trading income of the worldwide group
@@ -6928,7 +6958,7 @@
- (b) would be accounted for as such if income arising from such activities were accounted for under international accounting standards.
- (5) In this paragraph “net-basis activity” means activity that is normally reported on a net basis in financial statements prepared in accordance with international accounting standards.
- (5) In this paragraph “*net-basis activity*” means activity that is normally reported on a net basis in financial statements prepared in accordance with international accounting standards.
- (6) For provision about references in this Schedule to financial statements of the worldwide group, and amounts disclosed in financial statements, see paragraphs 87 to 90.
@@ -6946,11 +6976,11 @@
- (b) for the purposes of determining under paragraph 3 the net debt amount of a company, the reference in sub-paragraph (3) of that paragraph to £3 million is to be read as a reference to the relevant amount.
- (4) For this purpose “the relevant amount” means the average of—
- (a) £3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company’s start date, and
- (b) £3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company’s end date.
- (4) For this purpose “*the relevant amount*” means the average of—
- (a) £3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company's start date, and
- (b) £3 million expressed in the relevant foreign currency, translated by reference to the spot rate of exchange for the company's end date.
## Part 3 — Disallowance of deductions
@@ -6964,7 +6994,7 @@
- (b) the available amount (see Part 9).
- (2) In this Part “the total disallowed amount” means the difference between the amounts referred to in paragraphs (a) and (b) of sub-paragraph (1).
- (2) In this Part “*the total disallowed amount*” means the difference between the amounts referred to in paragraphs (a) and (b) of sub-paragraph (1).
#### Meaning of “company to which this Part applies”
@@ -6996,7 +7026,7 @@
- (g) about cases where a company is not a relevant group company at all times during the relevant period of account.
- (4) In this paragraph “the appropriate person”, in relation to a company, means—
- (4) In this paragraph “*the appropriate person*”, in relation to a company, means—
- (a) the proper officer of the company, or
@@ -7008,7 +7038,7 @@
##### 18
In this Part “the reporting body” means—
In this Part “*the reporting body*” means—
- (a) in a case in which an appointment under paragraph 17 has effect in relation to the relevant period of account, the company appointed under that paragraph, and
@@ -7066,7 +7096,7 @@
- (b) in relation to each listed company, specify one or more financing expense amounts for the relevant period of account that are to be disallowed, and give the relevant details in relation to each such amount.
- (5) For this purpose “the relevant details”, in relation to a financing expense amount, are—
- (5) For this purpose “*the relevant details*”, in relation to a financing expense amount, are—
- (a) which of conditions A, B or C in paragraph 54 is met in relation to the amount, and
@@ -7074,7 +7104,7 @@
- (6) The sum of the amounts specified under sub-paragraph (4)(b) must equal the total disallowed amount.
- (7) In this paragraph “the appropriate person”, in relation to a company, means—
- (7) In this paragraph “*the appropriate person*”, in relation to a company, means—
- (a) the proper officer of the company, or
@@ -7130,7 +7160,7 @@
- (3) The total of the reductions required to be made by a company by virtue of sub-paragraph (2) is—
$$NFDTEA×TDA$ where— NFD is the net financing deduction of the company for the relevant period of account (see paragraph 70(2)), TEA is the tested expense amount for the relevant period of account (see paragraph 70(1)), and TDA is the total disallowed amount (see paragraph 15(2)).$
$$NFDTEA×TDA$where—NFD is the net financing deduction of the company for the relevant period of account (see paragraph 70(2)),TEA is the tested expense amount for the relevant period of account (see paragraph 70(1)), andTDA is the total disallowed amount (see paragraph 15(2)).$
- (4) The particular financing expense amounts that must be reduced, and the amounts by which they must be reduced, must be determined in accordance with regulations made by the Commissioners.
@@ -7156,7 +7186,7 @@
- (5) The Commissioners may by regulations make provision for determining a time later than that determined under paragraph 15(4) of Schedule 18 to FA 1998 (amendment of return by company) before which a company required to make default reductions may amend its company tax return so as to reflect a reduction under paragraph 25.
- (6) In this paragraph “specified” means specified in regulations under this paragraph.
- (6) In this paragraph “*specified*” means specified in regulations under this paragraph.
## Part 4 — Exemption of financing income
@@ -7170,7 +7200,7 @@
- (b) the available amount (see Part 9).
- (2) In this Part the “total disallowed amount” means the difference between the amounts referred to in paragraphs (a) and (b) of sub-paragraph (1).
- (2) In this Part the “*total disallowed amount*” means the difference between the amounts referred to in paragraphs (a) and (b) of sub-paragraph (1).
#### Meaning of “company to which this Part applies”
@@ -7200,7 +7230,7 @@
- (f) about cases where a company does not meet condition A in paragraph 86, or is not a member of the worldwide group, at all times during the relevant period of account.
- (4) In this paragraph “the appropriate person”, in relation to a company, means—
- (4) In this paragraph “*the appropriate person*”, in relation to a company, means—
- (a) the proper officer of the company, or
@@ -7212,7 +7242,7 @@
##### 30
In this Part “the reporting body” means—
In this Part “*the reporting body*” means—
- (a) in a case in which an appointment under paragraph 29 has effect in relation to the relevant period of account, the company appointed under that paragraph, and
@@ -7270,7 +7300,7 @@
- (b) in relation to each listed company, specify one or more financing income amounts for the relevant period of account that are to be exempted, and give the relevant details in relation to each such amount.
- (5) For this purpose “the relevant details”, in relation to a financing income amount, are—
- (5) For this purpose “*the relevant details*”, in relation to a financing income amount, are—
- (a) which of conditions A, B or C in paragraph 55 is met in relation to the amount, and
@@ -7282,7 +7312,7 @@
- (b) the tested income amount (see Part 8).
- (7) In this paragraph “the appropriate person”, in relation to a company, means—
- (7) In this paragraph “*the appropriate person*”, in relation to a company, means—
- (a) the proper officer of the company, or
@@ -7336,7 +7366,7 @@
- (2) Subject to the following provisions of this paragraph, each financing income amount for the relevant period of account of each company to which this Part applies is to be reduced to nil.
- (3) In this paragraph “unrestricted reduction” means a reduction of a financing income amount for the relevant period of account of a company to which this Part applies, determined in accordance with sub-paragraph (2).
- (3) In this paragraph “*unrestricted reduction*” means a reduction of a financing income amount for the relevant period of account of a company to which this Part applies, determined in accordance with sub-paragraph (2).
- (4) Sub-paragraph (5) applies if—
@@ -7350,7 +7380,7 @@
- (5) Each unrestricted reduction is to be reduced by—
$$URTUR×X$ where— UR is the unrestricted reduction in question, TUR is the total of the unrestricted reductions, and X is the excess mentioned in sub-paragraph (4).$
$$URTUR×X$where—UR is the unrestricted reduction in question,TUR is the total of the unrestricted reductions, andX is the excess mentioned in sub-paragraph (4).$
#### Power to make regulations in relation to reductions required under paragraph 37
@@ -7366,7 +7396,7 @@
- (5) The Commissioners may by regulations make provision for determining a time later than that determined under paragraph 15(4) of Schedule 18 to FA 1998 (amendment of return by company) before which a company required to make default reductions may amend its company tax return so as to reflect a reduction under paragraph 37.
- (6) In this paragraph “specified” means specified in regulations under this paragraph.
- (6) In this paragraph “*specified*” means specified in regulations under this paragraph.
#### Balancing payments between group companies: no charge to, or relief from, tax
@@ -7408,7 +7438,7 @@
##### 40
- (1) A financing income amount of a company that is a member of the worldwide group (“the recipient”) is not to be brought into account for the purposes of corporation tax if—
- (1) A financing income amount of a company that is a member of the worldwide group (“*the recipient*”) is not to be brought into account for the purposes of corporation tax if—
- (a) it arises as a result of a payment by another company that is a member of the worldwide group (“the payer”),
@@ -7426,7 +7456,7 @@
- (4) Condition C is that—
- (a) qualifying EEA tax relief for the payment is not available to the payer in the period in which the payment is made (“the current period”) or any previous period (see paragraph 43), and
- (a) qualifying EEA tax relief for the payment is not available to the payer in the period in which the payment is made (“*the current period*”) or any previous period (see paragraph 43), and
- (b) qualifying EEA tax relief for the payment is not available to the payer in any period after the current period (see paragraph 44).
@@ -7450,7 +7480,7 @@
- (1) For the purposes of this Part the payer is “tax-resident” in a territory if it is liable, under the law of that territory, to tax by reason of domicile, residence or place of management.
- (2) In this Part “EEA territory” means a territory outside the United Kingdom that is within the European Economic Area.
- (2) In this Part “*EEA territory*” means a territory outside the United Kingdom that is within the European Economic Area.
#### Qualifying EEA tax relief for payment in the current period or a previous period
@@ -7484,7 +7514,7 @@
- (a) arrangements are “double taxation arrangements” if they are arrangements made between any two territories with a view to affording relief from double taxation, and
- (b) “associated enterprise rules” means —
- (b) “*associated enterprise rules*” means —
- (i) rules that, on the passing of this Act, were contained in Article 9 of the Model Tax Convention on Income and on Capital published by the Organisation for Economic Co-operation and Development, or
@@ -7522,7 +7552,7 @@
- (a) arrangements are “double taxation arrangements” if they are arrangements made between any two territories with a view to affording relief from double taxation, and
- (b) “associated enterprise rules” means—
- (b) “*associated enterprise rules*” means—
- (i) rules that, on the passing of this Act, were contained in Article 9 of the Model Tax Convention on Income and on Capital published by the Organisation for Economic Co-operation and Development, or
@@ -7628,13 +7658,13 @@
##### 49
- (1) In paragraph 48(2) the “relevant net deduction” means—
- (1) In paragraph 48(2) the “*relevant net deduction*” means—
- (a) the amount by which the total disallowed amount exceeds the tested income amount, or
- (b) if the total disallowed amount does not exceed the tested income amount, nil.
- (2) In this paragraph the “total disallowed amount” means—
- (2) In this paragraph the “*total disallowed amount*” means—
- (a) the amount by which the tested expense amount exceeds the available amount, or
@@ -7656,7 +7686,7 @@
##### 51
- (1) In paragraph 48 “carried-back amount” means—
- (1) In paragraph 48 “*carried-back amount*” means—
- (a) an amount carried back under section 393A(1)(b) of ICTA (trading losses),
@@ -7664,7 +7694,7 @@
- (c) an amount carried back under section 389(2) of CTA 2009 (deficits of insurance companies).
- (2) In paragraph 48 “carried-forward amount” means—
- (2) In paragraph 48 “*carried-forward amount*” means—
- (a) an amount carried forward under section 76(12) or (13) of ICTA (certain expenses of insurance companies),
@@ -7714,7 +7744,7 @@
##### 53
- (1) For the purposes of this Part “scheme” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.
- (1) For the purposes of this Part “*scheme*” includes any scheme, arrangements or understanding of any kind whatever, whether or not legally enforceable, involving a single transaction or two or more transactions.
- (2) For the purposes of this Part a scheme is “excluded” if it is of a description specified in regulations made by the Commissioners.
@@ -7820,7 +7850,7 @@
##### 57
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is—
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is—
- (a) a financing expense amount of a group treasury company by virtue of meeting condition A, B or C in paragraph 54, or
@@ -7858,7 +7888,7 @@
- (f) hedging assets, liabilities, income or expenses.
- (10) For the purposes of this paragraph “group treasury revenue”, in relation to a company, means revenue—
- (10) For the purposes of this paragraph “*group treasury revenue*”, in relation to a company, means revenue—
- (a) arising from the treasury activities that the company undertakes for the worldwide group, and
@@ -7874,17 +7904,17 @@
- (12) In this paragraph—
- “debt security” has the same meaning as in the FSA Handbook;
- “relevant income”, in relation to a company, means income— arising from the activities of the company, and accounted for as such under generally accepted accounting practice, before any deduction (whether for expenses or otherwise);
- “relevant period” means the period of account of the worldwide group to which the relevant amount relates.
- “*debt security*” has the same meaning as in the FSA Handbook;
- “*relevant income*”, in relation to a company, means income—arising from the activities of the company, andaccounted for as such under generally accepted accounting practice,before any deduction (whether for expenses or otherwise);
- “*relevant period*” means the period of account of the worldwide group to which the relevant amount relates.
#### Real estate investment trusts
##### 58
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is—
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is—
- (a) a financing expense amount of a company by virtue of meeting condition A in paragraph 54, or
@@ -7896,7 +7926,7 @@
##### 59
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is—
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is—
- (a) a financing expense amount of a company by virtue of meeting condition A or condition B in paragraph 54, or
@@ -7912,7 +7942,7 @@
##### 60
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54.
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54.
- (2) The relevant amount is treated as not being a financing expense amount of company A, but only if an election is made for this purpose.
@@ -7930,7 +7960,7 @@
- (7) An election under this paragraph is irrevocable.
- (8) In this paragraph “short-term loan relationship” has the meaning given in paragraph 62.
- (8) In this paragraph “*short-term loan relationship*” has the meaning given in paragraph 62.
#### Intra-group short-term finance: financing income
@@ -7944,13 +7974,13 @@
- (2) The relevant amount is treated as not being a financing income amount of company B.
- (3) In this paragraph “company A” and “company B” have the same meanings as in paragraph 60.
- (3) In this paragraph “*company A*” and “*company B*” have the same meanings as in paragraph 60.
#### Short-term loan relationships
##### 62
- (1) For the purposes of paragraph 60 the finance arrangement is a short-term loan relationship as respects the period of account of the worldwide group (“the relevant period”) if—
- (1) For the purposes of paragraph 60 the finance arrangement is a short-term loan relationship as respects the period of account of the worldwide group (“*the relevant period*”) if—
- (a) regulations made by the Commissioners provide for it to be so, or
@@ -7984,7 +8014,7 @@
##### 63
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54.
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54.
- (2) The relevant amount is to be treated as not being a financing expense amount of company A, but only if an election is made for this purpose.
@@ -8020,13 +8050,13 @@
- (2) The relevant amount is treated as not being a financing income amount of company B.
- (3) In this paragraph “company A” and “company B” have the same meanings as in paragraph 63.
- (3) In this paragraph “*company A*” and “*company B*” have the same meanings as in paragraph 63.
#### Stranded management expenses in non-trading loan relationships: financing expense
##### 65
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54.
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is a financing expense amount of a company (“company A”) by virtue of meeting condition A in paragraph 54.
- (2) The relevant amount is treated as not being a financing expense amount of company A, but only if an election is made for this purpose.
@@ -8040,11 +8070,11 @@
- (b) is not resident in the United Kingdom and is carrying on a trade in the United Kingdom through a permanent establishment in the United Kingdom.
- (6) The third condition is that company B is allowed a deduction under section 1219 of CTA 2009 (expenses of management of a company’s investment business) in respect of an accounting period that falls wholly or partly within the period of account of the worldwide group (“the relevant period”).
- (6) The third condition is that company B is allowed a deduction under section 1219 of CTA 2009 (expenses of management of a company's investment business) in respect of an accounting period that falls wholly or partly within the period of account of the worldwide group (“*the relevant period*”).
- (7) The fourth condition is that the amount of the deduction allowed is equal to, or greater than, the relevant amount.
- (8) The fifth condition is that the calculation of company B’s total profits for the relevant period for the purposes of corporation tax results in a loss if company B’s credit is not included in that calculation.
- (8) The fifth condition is that the calculation of company B's total profits for the relevant period for the purposes of corporation tax results in a loss if company B's credit is not included in that calculation.
- (9) An election under this paragraph may only be made—
@@ -8052,7 +8082,7 @@
- (b) within 36 months of the end of the period of account of the worldwide group to which the relevant amount relates.
- (10) In this paragraph “company B’s credit” means the credit to company B that arises from the debit to company A by virtue of which condition A in paragraph 54 is met.
- (10) In this paragraph “*company B's credit*” means the credit to company B that arises from the debit to company A by virtue of which condition A in paragraph 54 is met.
#### Stranded management expenses in non-trading loan relationships: financing income
@@ -8066,27 +8096,27 @@
- (2) The relevant amount is treated as not being a financing income amount of company B.
- (3) In this paragraph “company A” and “company B” have the same meanings as in paragraph 65.
- (3) In this paragraph “*company A*” and “*company B*” have the same meanings as in paragraph 65.
#### Charities
##### 67
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company by virtue of meeting condition A, B or C in paragraph 54.
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is a financing expense amount of a company by virtue of meeting condition A, B or C in paragraph 54.
- (2) The relevant amount is treated as not being a financing expense amount of the company if the creditor is a charity.
- (3) In this paragraph—
- “charity” means any body of persons or trust established for charitable purposes only;
- “creditor” means— in a case where the relevant amount is a debit that meets condition A in paragraph 54, the loan creditor who receives the payment in relation to which the relevant amount arises; in a case where the relevant amount meets condition B or C in paragraph 54, the recipient of the payment in relation to which the relevant amount arises.
- “*charity*” means any body of persons or trust established for charitable purposes only;
- “*creditor*” means—in a case where the relevant amount is a debit that meets condition A in paragraph 54, the loan creditor who receives the payment in relation to which the relevant amount arises;in a case where the relevant amount meets condition B or C in paragraph 54, the recipient of the payment in relation to which the relevant amount arises.
#### Educational and public bodies
##### 68
- (1) This paragraph applies where, apart from this paragraph, an amount (“the relevant amount”) is a financing expense amount of a company by virtue of meeting condition A, B or C in paragraph 54.
- (1) This paragraph applies where, apart from this paragraph, an amount (“*the relevant amount*”) is a financing expense amount of a company by virtue of meeting condition A, B or C in paragraph 54.
- (2) The relevant amount is treated as not being a financing expense amount of the company if the creditor is—
@@ -8102,17 +8132,17 @@
- (4) In this paragraph—
- “creditor” means— in a case where the relevant amount is a debit that meets condition A in paragraph 54, the loan creditor who receives the payment in relation to which the relevant amount arises; in a case where the relevant amount meets condition B or C in paragraph 54, the recipient of the payment in relation to which the relevant amount arises;
- “designated educational establishment” has the same meaning as in section 105 of CTA 2009;
- “health service body” has the same meaning as in section 519A of ICTA.
- “*creditor*” means—in a case where the relevant amount is a debit that meets condition A in paragraph 54, the loan creditor who receives the payment in relation to which the relevant amount arises;in a case where the relevant amount meets condition B or C in paragraph 54, the recipient of the payment in relation to which the relevant amount arises;
- “*designated educational establishment*” has the same meaning as in section 105 of CTA 2009;
- “*health service body*” has the same meaning as in section 519A of ICTA.
#### Interpretation of paragraphs 57 to 68
##### 69
In paragraphs 57 to 68 “finance arrangement” means—
In paragraphs 57 to 68 “*finance arrangement*” means—
- (a) in the case of an amount that is a debit or credit that meets the condition in paragraph 54(2) or 55(2), the loan relationship to which the debit or credit relates;
@@ -8130,11 +8160,11 @@
- (2) References in this Schedule to the “net financing deduction” of a company for a period of account of the worldwide group are to—
- (a) the sum of the company’s financing expense amounts for the period (see paragraph 54), less
- (b) the sum of the company’s financing income amounts for the period (see paragraph 55).
- (3) References in sub-paragraph (2) to a company’s financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a relevant group company.
- (a) the sum of the company's financing expense amounts for the period (see paragraph 54), less
- (b) the sum of the company's financing income amounts for the period (see paragraph 55).
- (3) References in sub-paragraph (2) to a company's financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a relevant group company.
- (4) Where the amount determined in accordance with sub-paragraph (2) is negative, the net financing deduction of the company for the period is nil.
@@ -8148,11 +8178,11 @@
- (2) The reference in sub-paragraph (1) to the “net financing income” of a company for a period of account of the worldwide group is to—
- (a) the sum of the company’s financing income amounts for the period (see paragraph 55), less
- (b) the sum of the company’s financing expense amounts for the period (see paragraph 54).
- (3) References in sub-paragraph (2) to a company’s financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a UK group company.
- (a) the sum of the company's financing income amounts for the period (see paragraph 55), less
- (b) the sum of the company's financing expense amounts for the period (see paragraph 54).
- (3) References in sub-paragraph (2) to a company's financing expense amounts or financing income amounts for a period of account of the worldwide group do not include any amount that arises as a result of a transaction that takes place at a time at which the company is not a UK group company.
- (4) Where the amount determined in accordance with sub-paragraph (2) is negative, the net financing income of the company for the period is nil.
@@ -8208,7 +8238,7 @@
- (3) Condition B is that the external finance amount falls to be brought into account for the purposes of corporation tax in calculating the profits of that trade for that accounting period.
- (4) In this paragraph “relevant accounting period”, in relation to a member of the worldwide group, means an accounting period of the member that falls wholly or partly within the period of account.
- (4) In this paragraph “*relevant accounting period*”, in relation to a member of the worldwide group, means an accounting period of the member that falls wholly or partly within the period of account.
#### Group members with income from shipping subject to particular tax treatment in UK
@@ -8226,9 +8256,9 @@
- (4) In this paragraph—
- “relevant accounting period”, in relation to a member of the worldwide group, means an accounting period of the member that falls wholly or partly within the period of account;
- “relevant shipping profits” has the same meaning as in Schedule 22 to FA 2000 (see Part 6 of that Schedule).
- “*relevant accounting period*”, in relation to a member of the worldwide group, means an accounting period of the member that falls wholly or partly within the period of account;
- “*relevant shipping profits*” has the same meaning as in Schedule 22 to FA 2000 (see Part 6 of that Schedule).
#### Group members with income from property rental subject to particular tax treatment in UK
@@ -8240,7 +8270,7 @@
- (3) Condition B is that the external finance amount falls to be brought into account in calculating the profits arising from that business in that accounting period.
- (4) In this paragraph “relevant accounting period”, in relation to a member of the worldwide group, means an accounting period of the member that falls wholly or partly within the period of account.
- (4) In this paragraph “*relevant accounting period*”, in relation to a member of the worldwide group, means an accounting period of the member that falls wholly or partly within the period of account.
#### Meaning of accounting expressions used in this Part
@@ -8254,7 +8284,7 @@
##### 78
In this Schedule “the worldwide group” means any group of entities that—
In this Schedule “*the worldwide group*” means any group of entities that—
- (a) is large, and
@@ -8264,7 +8294,7 @@
##### 79
- (1) Subject to sub-paragraphs (2) and (3), in this Schedule “group” has the meaning for the time being given by international accounting standards.
- (1) Subject to sub-paragraphs (2) and (3), in this Schedule “*group*” has the meaning for the time being given by international accounting standards.
- (2) Where a group would (apart from this sub-paragraph) contain more than one ultimate parent, each of those ultimate parents, together with its subsidiaries, is to be treated as a separate group.
@@ -8276,7 +8306,7 @@
##### 80
- (1) For the purposes of this Schedule “ultimate parent”, in relation to a group, means an entity that—
- (1) For the purposes of this Schedule “*ultimate parent*”, in relation to a group, means an entity that—
- (a) is a member of the group,
@@ -8286,13 +8316,13 @@
- (d) is not a collective investment scheme.
- (2) In this paragraph “collective investment scheme” has the meaning given by section 235 of FISMA 2000.
- (2) In this paragraph “*collective investment scheme*” has the meaning given by section 235 of FISMA 2000.
#### Meaning of “corporate entity”
##### 81
- (1) In this Schedule “corporate entity” means (subject to sub-paragraph (4))—
- (1) In this Schedule “*corporate entity*” means (subject to sub-paragraph (4))—
- (a) a body corporate incorporated under the laws of any part of the United Kingdom or any other country or territory, or
@@ -8322,7 +8352,7 @@
##### 82
- (1) In this Schedule “relevant non-corporate entity” means an entity—
- (1) In this Schedule “*relevant non-corporate entity*” means an entity—
- (a) that is not a corporate entity, and
@@ -8376,7 +8406,7 @@
##### 85
- (1) For the purposes of this Schedule a group is “large” at any time if (and only if) any member of the group is not at that time within the category of micro, small and medium-sized enterprises as defined in the Annex to Commission Recommendation 2003/361/EC of 6 May 2003 (“the Annex”).
- (1) For the purposes of this Schedule a group is “large” at any time if (and only if) any member of the group is not at that time within the category of micro, small and medium-sized enterprises as defined in the Annex to Commission Recommendation 2003/361/EC of 6 May 2003 (“*the Annex*”).
- (2) In its application by virtue of sub-paragraph (1), the Annex has effect subject to the following qualifications.
@@ -8490,7 +8520,7 @@
##### 89
- (1) This paragraph applies where financial statements of the worldwide group are not drawn up in respect of a period (“the relevant period”).
- (1) This paragraph applies where financial statements of the worldwide group are not drawn up in respect of a period (“*the relevant period*”).
- (2) If the relevant period is 12 months or less, this Schedule (apart from this paragraph) applies as if IAS financial statements had been drawn up in respect of the relevant period.
@@ -8566,11 +8596,11 @@
In this Schedule—
- “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
- “FSA Handbook” means the Handbook made by the Financial Services Authority under FISMA 2000;
- “HMRC” means Her Majesty’s Revenue and Customs.
- “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs;
- “*FSA Handbook*” means the Handbook made by the Financial Services Authority under FISMA 2000;
- “*HMRC*” means Her Majesty's Revenue and Customs.
## Part 11 — Consequential amendments and commencement
@@ -8578,13 +8608,11 @@
##### 95
In section 98 of TMA 1970 (special returns etc), in the first column of the Table, insert at the end—
> regulations under paragraph 24, 25, 26, 36 or 38 of Schedule 15 to FA 2009.
In section 98 of TMA 1970 (special returns etc), in the first column of the Table, insert at the end— “ regulations under paragraph 24, 25, 26, 36 or 38 of Schedule 15 to FA 2009. ”
##### 96
In paragraph 5 of Schedule 28AA to ICTA (provision not at arm’s length), after sub-paragraph (8) (as inserted by paragraph 14 of Schedule 14 to this Act) insert—
In paragraph 5 of Schedule 28AA to ICTA (provision not at arm's length), after sub-paragraph (8) (as inserted by paragraph 14 of Schedule 14 to this Act) insert—
> (9) For the purposes of sub-paragraph (1), Schedule 15 to FA 2009 (tax treatment of financing costs and income) is to be disregarded.
@@ -8628,7 +8656,7 @@
- (c) section 409 of that Act (postponement until redemption of debits for close companies' deeply discounted securities), and
- (d) regulation 3A of the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 ([S.I. 2004/3271](https://www.legislation.gov.uk/uksi/2004/3271)) (prescribed debits and credits brought into account over prescribed period).
- (d) regulation 3A of the Loan Relationships and Derivative Contracts (Change of Accounting Practice) Regulations 2004 (S.I. 2004/3271) (prescribed debits and credits brought into account over prescribed period).
- (3) An amount that would, apart from this paragraph, meet condition A, B or C in paragraph 55 (definition of “financing income amount”) does not meet that condition if it is a credit that, but for the regulation mentioned in sub-paragraph (2)(d) of this paragraph, would be brought into account for the purposes of corporation tax in an accounting period beginning before 1 January 2010.
@@ -8736,7 +8764,7 @@
- (a) that part of the straddling accounting period that falls before 1 July 2009 and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of Chapter 4 of Part 17, and Part 18, of ICTA as separate accounting periods, and
- (b) the company’s chargeable profits for the straddling accounting period, and its creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a just and reasonable basis.
- (b) the company's chargeable profits for the straddling accounting period, and its creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a just and reasonable basis.
#### Transitional provision
@@ -8772,7 +8800,7 @@
- (2) In paragraph 6 (definition of exempt activities)—
- (a) in sub-paragraph (1)(c), for “(2), (3), (4) or (4A)” substitute “(2) or (3)”,
- (a) in sub-paragraph (1)(c), for “(2), (3), (4) or (4A)” substitute “ (2) or (3) ”,
- (b) in sub-paragraph (3)(b), omit “or superior holding companies”,
@@ -8780,7 +8808,7 @@
- (d) in sub-paragraph (5)—
- (i) for “sub-paragraphs (3) to (4B)” substitute “sub-paragraph (3)”, and
- (i) for “sub-paragraphs (3) to (4B)” substitute “ sub-paragraph (3) ”, and
- (ii) omit “or superior holding company”,
@@ -8788,25 +8816,25 @@
- (f) in sub-paragraph (5ZB), omit “or superior holding company”,
- (g) in sub-paragraph (5A), for “sub-paragraphs (3) to (4B)” substitute “sub-paragraph (3)”,
- (g) in sub-paragraph (5A), for “sub-paragraphs (3) to (4B)” substitute “ sub-paragraph (3) ”,
- (h) omit sub-paragraph (5B),
- (i) in sub-paragraph (5C), omit “or superior holding company”, and
- (j) in sub-paragraph (6), for “sub-paragraphs (1) to (4BB) above” substitute “this paragraph”.
- (j) in sub-paragraph (6), for “sub-paragraphs (1) to (4BB) above” substitute “ this paragraph ”.
- (3) In paragraph 8(3) (paragraph 6(1)(b) condition), omit “or superior holding company”.
- (4) In paragraph 12 (definition of “holding company” etc)—
- (a) in sub-paragraph (1), for “paragraph 12A below and in” substitute “in”,
- (a) in sub-paragraph (1), for “paragraph 12A below and in” substitute “ in ”,
- (b) in sub-paragraph (4), omit “or (4), as the case may be,”, and
- (c) in sub-paragraph (5)—
- (i) in the words before paragraph (a), for “sub-paragraphs (3) and (4)” substitute “sub-paragraph (3)”, and
- (i) in the words before paragraph (a), for “sub-paragraphs (3) and (4)” substitute “ sub-paragraph (3) ”, and
- (ii) in paragraph (a), omit “or superior holding company”.
@@ -8828,21 +8856,21 @@
- (1) The amendments made by this Part have effect in relation to accounting periods of controlled foreign companies beginning on or after the commencement date.
- (2) For this purpose “the commencement date” means—
- (2) For this purpose “*the commencement date*” means—
- (a) in relation to a controlled foreign company other than a qualifying holding company, 1 July 2009, and
- (b) in relation to a qualifying holding company, 1 July 2011.
- (b) in relation to a qualifying holding company, 1 July 2012.
#### Meaning of “qualifying holding company” and “exempt holding company”
##### 13
- (1) In this Part “qualifying holding company” means a controlled foreign company that was an exempt holding company in relation to the last accounting period to end before 1 July 2009.
- (1) In this Part “*qualifying holding company*” means a controlled foreign company that was an exempt holding company in relation to the last accounting period to end before 1 July 2009.
- (2) For the purposes of sub-paragraph (1) paragraphs 14 and 15 are to be disregarded.
- (3) For the purposes of this Part a company is an “exempt holding company” in relation to an accounting period if—
- (3) For the purposes of this Part a company is an “*exempt holding company*” in relation to an accounting period if—
- (a) throughout the period the company is, within the meaning of Part 2 of Schedule 25 to ICTA, engaged in exempt activities, and
@@ -8864,7 +8892,7 @@
- (a) that part of the straddling accounting period that falls before 1 July 2009 and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of Chapter 4 of Part 17 of ICTA as separate accounting periods, and
- (b) the company’s gross income for the straddling accounting period, and its chargeable profits and creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a time basis according to the respective lengths of the periods.
- (b) the company's gross income for the straddling accounting period, and its chargeable profits and creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a time basis according to the respective lengths of the periods.
#### Qualifying holding companies: periods straddling 1 July 2011
@@ -8872,7 +8900,7 @@
- (1) Where a qualifying holding company has an accounting period (“the straddling accounting period”) that—
- (a) begins before 1 July 2011, and
- (a) begins before 1 July 2012, and
- (b) ends on or after that date,
@@ -8880,9 +8908,9 @@
- (2) Where this paragraph provides that a straddling accounting period of a company is to be treated as “split”—
- (a) that part of the straddling accounting period that falls before 1 July 2011 and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of Chapter 4 of Part 17 of ICTA as separate accounting periods, and
- (b) the company’s gross income for the straddling accounting period, and its chargeable profits and creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a time basis according to the respective lengths of the periods.
- (a) that part of the straddling accounting period that falls before 1 July 2012 and that part of the straddling accounting period that falls on or after that date are to be treated for the purposes of Chapter 4 of Part 17 of ICTA as separate accounting periods, and
- (b) the company's gross income for the straddling accounting period, and its chargeable profits and creditable tax (if any) for that period, are to be apportioned to the two separate accounting periods on a time basis according to the respective lengths of the periods.
#### Qualifying holding companies: definition of “relevant accounting period”
@@ -8892,7 +8920,7 @@
- (a) begins on or after 1 July 2009, and
- (b) ends on or before the 1 July 2011.
- (b) ends on or before the 1 July 2012.
#### Qualifying holding companies: treatment during two years before 1 July 2011
@@ -8916,33 +8944,33 @@
- (5) Condition B is that amount X does not exceed amount Y.
- (6) Amount X is the amount of the company’s gross income in the accounting period in question that is non-qualifying gross income.
- (6) Amount X is the amount of the company's gross income in the accounting period in question that is non-qualifying gross income.
- (7) Amount Y is (subject to sub-paragraph (8))—
- (a) where there are three reference periods in relation to the company, the greatest of the amounts of the company’s non-qualifying gross income in each of those periods,
- (b) where there are two reference periods in relation to the company, the greater of the amounts of the company’s non-qualifying gross income in each of those periods,
- (c) where there is one reference period in relation to the company, the amount of the company’s non-qualifying gross income in that period, or
- (d) where there is no reference period in relation to the company, the amount of the company’s non-qualifying gross income in the period of 12 months ending with 9 December 2008.
- (a) where there are three reference periods in relation to the company, the greatest of the amounts of the company's non-qualifying gross income in each of those periods,
- (b) where there are two reference periods in relation to the company, the greater of the amounts of the company's non-qualifying gross income in each of those periods,
- (c) where there is one reference period in relation to the company, the amount of the company's non-qualifying gross income in that period, or
- (d) where there is no reference period in relation to the company, the amount of the company's non-qualifying gross income in the period of 12 months ending with 9 December 2008.
- (8) Where the number of days in the period by reference to which amount X is determined is not the same as the number of days in the period by reference to which amount Y is determined, amount Y is to be multiplied by—
$$DXDY$ where— DX is the number of days in the period by reference to which amount X is determined, and DY is the number of days in the period by reference to which amount Y is determined.$
$$DXDY$where—DX is the number of days in the period by reference to which amount X is determined, andDY is the number of days in the period by reference to which amount Y is determined.$
- (9) In this paragraph—
- “non-qualifying gross income” means gross income that does not satisfy the test in paragraph 6(3), (4) or (4A) of Schedule 25 to ICTA;
- “a reference period”, in relation to a company, means an accounting period of the company that— is one of the last three accounting periods of the company to end before 9 December 2008, and is an accounting period in relation to which the company is an exempt holding company.
- “*non-qualifying gross income*” means gross income that does not satisfy the test in paragraph 6(3), (4) or (4A) of Schedule 25 to ICTA;
- “*a reference period*”, in relation to a company, means an accounting period of the company that—is one of the last three accounting periods of the company to end before 9 December 2008, andis an accounting period in relation to which the company is an exempt holding company.
#### Meaning of “ultimate corporate parent” and “group” for the purposes of paragraph 17(3)
##### 18
- (1) In paragraph 17(3) the “ultimate corporate parent”, in relation to a group, means a member of the group that—
- (1) In paragraph 17(3) the “*ultimate corporate parent*”, in relation to a group, means a member of the group that—
- (a) is a body corporate, and
@@ -8960,9 +8988,9 @@
- (e) a foreign sovereign power.
- (3) In paragraph 17(3) and this paragraph “group” has the meaning for the time being given by international accounting standards.
- (4) In this paragraph “subsidiary” has the meaning for the time being given by international accounting standards.
- (3) In paragraph 17(3) and this paragraph “*group*” has the meaning for the time being given by international accounting standards.
- (4) In this paragraph “*subsidiary*” has the meaning for the time being given by international accounting standards.
#### Reference periods: anti-avoidance
@@ -9000,7 +9028,7 @@
##### 22
In the following provisions, after “751A” insert “or 751AA”—
In the following provisions, after “751A” insert “ or 751AA ”
- (a) section 747(3A) and (5A) (imputation of chargeable profits and creditable tax of controlled foreign companies),
@@ -9016,29 +9044,29 @@
> (751AA)
> (1) This section applies if—
> (a) an apportionment under section 747(3) falls to be made as regards an accounting period (“the relevant accounting period”) of a controlled foreign company,
> (a) an apportionment under section 747(3) falls to be made as regards an accounting period (“*the relevant accounting period*”) of a controlled foreign company,
> (b) the chargeable profits of the controlled foreign company for the relevant accounting period would, apart from this section, include an amount of income in respect of a payment made by another company (“the payer”),
> (c) the amount that the payer brings into account for the purposes of corporation tax in respect of the payment is reduced (in part or in full) by virtue of Part 3 of Schedule 15 to FA 2009 (tax treatment of financing costs and income), and
> (d) a company resident in the United Kingdom (“the UK resident company”) has a relevant interest in the controlled foreign company in the relevant accounting period.
> (2) The UK resident company may make an application to the Commissioners for Her Majesty’s Revenue and Customs for the chargeable profits of the controlled foreign company for the relevant accounting period (“the chargeable profits”) to be reduced by an amount (“the specified amount”) specified in the application (including to nil).
> (2) The UK resident company may make an application to the Commissioners for Her Majesty's Revenue and Customs for the chargeable profits of the controlled foreign company for the relevant accounting period (“the chargeable profits”) to be reduced by an amount (“*the specified amount*”) specified in the application (including to nil).
> (3) If the Commissioners grant the application—
> (a) the chargeable profits are treated as reduced by the specified amount, and
> (b) the controlled foreign company’s creditable tax (if any) for that period is treated as reduced by so much of that tax as, on a just and reasonable basis, relates to the reduction in the chargeable profits,
> (b) the controlled foreign company's creditable tax (if any) for that period is treated as reduced by so much of that tax as, on a just and reasonable basis, relates to the reduction in the chargeable profits,
> for the purpose of applying section 747(3) to (5) for determining the sum (if any) chargeable on the UK resident company under section 747(4)(a) (but for no other purpose).
> (4) The Commissioners may grant the application only if they are satisfied that the specified amount does not exceed the relevant amount.
> (5) In subsection (4) “the relevant amount” means the amount (if any) by which it is just and reasonable that the chargeable profits should be treated as reduced, having regard to the effect of Parts 3 and 4 of Schedule 15 to FA 2009 on amounts brought into account for the purposes of corporation tax by the payer, or any other company.
> (5) In subsection (4) “*the relevant amount*” means the amount (if any) by which it is just and reasonable that the chargeable profits should be treated as reduced, having regard to the effect of Parts 3 and 4 of Schedule 15 to FA 2009 on amounts brought into account for the purposes of corporation tax by the payer, or any other company.
##### 24
- (1) Section 751B (supplementary) is amended as follows.
- (2) In the heading, for “Section 751A” substitute “Sections 751A and 751AA”.
- (3) In subsections (1), (2), (3) (in each place) and (5), after “751A” insert “or 751AA”.
- (2) In the heading, for “Section 751A” substitute “ Sections 751A and 751AA ”.
- (3) In subsections (1), (2), (3) (in each place) and (5), after “751A” insert “ or 751AA ”.
- (4) In subsection (8)—
- (a) after ““the relevant amount”” insert
- (a) after “ “the relevant amount”” insert
> —
> (a) in the case of an appeal in respect of the refusal of an application under section 751A,
@@ -9052,9 +9080,9 @@
- (5) In subsection (10)—
- (a) after “751A” insert “or 751AA”, and
- (b) after “751A(1)” insert “or 751AA(1)”.
- (a) after “751A” insert “ or 751AA ”, and
- (b) after “751A(1)” insert “ or 751AA(1) ”.
#### Commencement
@@ -9062,7 +9090,7 @@
- (1) The amendments made by this Part have effect in relation to accounting periods of controlled foreign companies ending on or after 1 January 2010.
- (2) For this purpose “accounting period” and “controlled foreign company” have the same meaning as they have for the purposes of Chapter 4 of Part 17 of ICTA.
- (2) For this purpose “*accounting period*” and “*controlled foreign company*” have the same meaning as they have for the purposes of Chapter 4 of Part 17 of ICTA.
## SCHEDULE 17
@@ -9110,7 +9138,7 @@
- (3) The purpose of the report is to enable the Commissioners to consider whether the event or transaction results, directly or indirectly, in an advantage for any person in respect of corporation tax or any other tax or duty.
- (4) In this Schedule “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs.
- (4) In this Schedule “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs.
#### Meaning of “reporting body”
@@ -9174,7 +9202,7 @@
##### 7
In this Schedule “UK corporate parent” means a body corporate that—
In this Schedule “*UK corporate parent*” means a body corporate that—
- (a) is resident in the United Kingdom,
@@ -9190,7 +9218,7 @@
##### 8
- (1) For the purposes of this Schedule an event or transaction is “reportable”, in relation to a reporting body, if—
- (1) For the purposes of this Schedule an event or transaction is “*reportable*”, in relation to a reporting body, if—
- (a) it is of a value exceeding £100 million,
@@ -9236,7 +9264,7 @@
- (c) it consists in giving to the bankers of a foreign subsidiary any security for the payment of any sum due or to become due from it to them by reason of any transaction entered into with it by them in the ordinary course of their business as bankers,
- (d) it consists in a foreign subsidiary giving to an insurance company any security for the payment of any sum due or to become due from that subsidiary to that company by reason of any transaction entered into with that subsidiary by that company in the ordinary course of that company’s business by way of investment of its funds, or
- (d) it consists in a foreign subsidiary giving to an insurance company any security for the payment of any sum due or to become due from that subsidiary to that company by reason of any transaction entered into with that subsidiary by that company in the ordinary course of that company's business by way of investment of its funds, or
- (e) it is of a description specified in regulations made by the Commissioners.
@@ -9264,27 +9292,27 @@
##### 12
- (1) For the purposes of this Schedule “control”, in relation to a body corporate, means the power of a person to secure—
- (1) For the purposes of this Schedule “*control*”, in relation to a body corporate, means the power of a person to secure—
- (a) by means of the holding of shares or the possession of voting power in or in relation to the body or any other body corporate, or
- (b) by virtue of any powers conferred by the articles of association or other document regulating the body or any other body corporate,
that the affairs of the body are conducted in accordance with that person’s wishes.
that the affairs of the body are conducted in accordance with that person's wishes.
- (2) Where two or more persons, taken together, have the power mentioned in sub-paragraph (1), they are taken for the purposes of this Schedule to control the body corporate.
- (3) For the purposes of this Schedule “control” in relation to a partnership, means the right to a share of more than 50% of the assets, or of more than 50% of the income, of the partnership.
- (3) For the purposes of this Schedule “*control*” in relation to a partnership, means the right to a share of more than 50% of the assets, or of more than 50% of the income, of the partnership.
- (4) In this Schedule—
- “foreign” means resident outside the United Kingdom;
- “partnership” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “partner” is to be read accordingly;
- “subsidiary”, in relation to a reporting body, means a body corporate that is controlled by— the reporting body, or where the reporting body is a party to an arrangement under paragraph 6, any party to the arrangement.
- (5) Paragraph 3 of Schedule 28AA to ICTA (meaning of “transaction” and “series of transactions”) applies for the purposes of this Schedule.
- “*foreign*” means resident outside the United Kingdom;
- “*partnership*” includes an entity established under the law of a country or territory outside the United Kingdom of a similar character to a partnership, and “partner” is to be read accordingly;
- “*subsidiary*”, in relation to a reporting body, means a body corporate that is controlled by—the reporting body, orwhere the reporting body is a party to an arrangement under paragraph 6, any party to the arrangement.
- (5) Paragraph 3 of Schedule 28AA to ICTA (meaning of “*transaction*” and “*series of transactions*”) applies for the purposes of this Schedule.
## Part 3 — Commencement etc
@@ -9314,9 +9342,9 @@
In section 92(2) (the basic rule: sterling to be used), insert at the end—
> - section 92D (sterling equivalents: the basic rule);
> - sections 92DA and 92DB (sterling equivalents: special rules where amounts carried back or forward);
> - sections 92DC and 92DD (adjustment of sterling amounts carried back or forward where operating currency changes).
> section 92D (sterling equivalents: the basic rule);
> sections 92DA and 92DB (sterling equivalents: special rules where amounts carried back or forward);
> sections 92DC and 92DD (adjustment of sterling amounts carried back or forward where operating currency changes).
##### 3
@@ -9353,7 +9381,7 @@
> (8) Rule 3 is that the loss must be translated into its sterling equivalent by—
> (a) being translated into the earlier operating currency by reference to the spot rate of exchange for the last day of the relevant accounting period, before
> (b) being translated into sterling by reference to the same rate of exchange as that at which the profit against which the carried-back amount is to be set off is required to be translated under section 92D.
> (9) In this section “the relevant accounting period” means the latest accounting period of the company before the accounting period in which the loss arises in which the operating currency of the company is the earlier operating currency.
> (9) In this section “*the relevant accounting period*” means the latest accounting period of the company before the accounting period in which the loss arises in which the operating currency of the company is the earlier operating currency.
> (92DB)
> (1) This section applies where, for the purpose of computing a carried-forward amount in respect of a company, a loss (“the loss”) is required by section 92B or 92C to be translated into its sterling equivalent.
> (2) The translation must be made in accordance with rule 1, 2 or 3 (whichever is applicable).
@@ -9369,7 +9397,7 @@
> (8) Rule 3 is that the loss must be translated into its sterling equivalent by—
> (a) being translated into the later operating currency by reference to the spot rate of exchange for the first day of the relevant accounting period, before
> (b) being translated into sterling by reference to the same rate of exchange as that at which the profit against which the carried-forward amount is to be set off is required to be translated under section 92D.
> (9) In this section “the relevant accounting period” means the earliest accounting period of the company after the accounting period in which the loss arises in which the operating currency of the company is the later operating currency.
> (9) In this section “*the relevant accounting period*” means the earliest accounting period of the company after the accounting period in which the loss arises in which the operating currency of the company is the later operating currency.
> (92DC)
> (1) This section applies if conditions A to C are met.
> (2) Condition A is that, in accordance with generally accepted accounting practice, a company resident in the United Kingdom—
@@ -9380,7 +9408,7 @@
> (5) The loss must be adjusted by—
> (a) being translated into the earlier operating currency by reference to the spot rate of exchange for the last day of the relevant accounting period, before
> (b) being translated into sterling by reference to the same rate of exchange as that at which the profit against which the carried-back amount is to be set off is required to be translated under section 92D.
> (6) In this section “the relevant accounting period” means the latest accounting period of the company before the accounting period in which the loss arises in which the operating currency of the company is the earlier operating currency.
> (6) In this section “*the relevant accounting period*” means the latest accounting period of the company before the accounting period in which the loss arises in which the operating currency of the company is the earlier operating currency.
> (92DD)
> (1) This section applies if conditions A to C are met.
> (2) Condition A is that, in accordance with generally accepted accounting practice, a company resident in the United Kingdom—
@@ -9391,13 +9419,13 @@
> (5) The loss must be adjusted by—
> (a) being translated into the later operating currency by reference to the spot rate of exchange for the first day of the relevant accounting period, before
> (b) being translated into sterling by reference to the same rate of exchange as that at which the profit against which the carried-forward amount is to be set off is required to be translated under section 92D.
> (6) In this section “the relevant accounting period” means the earliest accounting period of the company after the accounting period in which the loss arises in which the operating currency of the company is the later operating currency.
> (6) In this section “*the relevant accounting period*” means the earliest accounting period of the company after the accounting period in which the loss arises in which the operating currency of the company is the later operating currency.
> (92DE)
> (1) In sections 92DA and 92DC “carried-back amount” means—
> (1) In sections 92DA and 92DC “*carried-back amount*” means—
> (a) an amount carried back under section 393A(1)(b) of the Taxes Act 1988 (trading losses),
> (b) an amount carried back by virtue of a claim under section 459(1)(b) of the Corporation Tax Act 2009 (non-trading deficits from loan relationships), or
> (c) an amount carried back under section 389(2) of the Corporation Tax Act 2009 (deficits of insurance companies).
> (2) In sections 92DB and 92DD “carried-forward amount” means—
> (2) In sections 92DB and 92DD “*carried-forward amount*” means—
> (a) an amount carried forward under section 76(12) or (13) of the Taxes Act 1988 (certain expenses of insurance companies),
> (b) an amount carried forward under section 392A(2) or (3) of the Taxes Act 1988 (UK property business losses),
> (c) an amount carried forward under section 392B(1)(b) of the Taxes Act 1988 (overseas property business losses),
@@ -9422,13 +9450,13 @@
- (3) In subsection (1), omit “in sections 92A to 92C”.
- (4) In subsection (2), for “The reference in section 92C” substitute “A reference”.
- (4) In subsection (2), for “The reference in section 92C” substitute “ A reference ”.
- (5) In subsection (3), omit “in sections 92A, 92B and 92D”.
- (6) Insert at the end—
> (4) References to “the appropriate exchange rate”, in relation to the translation of an amount for the purposes of computing the profits or losses of a company arising in an accounting period, are to—
> (4) References to “*the appropriate exchange rate*”, in relation to the translation of an amount for the purposes of computing the profits or losses of a company arising in an accounting period, are to—
> (a) the average exchange rate for the accounting period, or
> (b) where the amount to be translated relates to a single transaction, an appropriate spot rate of exchange for the transaction, or
> (c) where the amount to be translated relates to more than one transaction, a rate of exchange derived on a just and reasonable basis from appropriate spot rates of exchange for those transactions.
@@ -9474,11 +9502,11 @@
- (2) The translation must be made by taking the following steps—
- *Step 1*: translate the loss into its sterling equivalent by reference to the appropriate exchange rate.
- *Step 2*: translate the loss (as translated under step 1) into the original currency by reference to the spot rate of exchange for the first day of the first accounting period of the company beginning on or after the commencement date.
- *Step 3*: translate the loss (as translated under step 2) into its sterling equivalent in accordance with rule 1, 2 or 3 (whichever is applicable).
*Step 1*: translate the loss into its sterling equivalent by reference to the appropriate exchange rate.
*Step 2*: translate the loss (as translated under step 1) into the original currency by reference to the spot rate of exchange for the first day of the first accounting period of the company beginning on or after the commencement date.
*Step 3*: translate the loss (as translated under step 2) into its sterling equivalent in accordance with rule 1, 2 or 3 (whichever is applicable).
- (3) Rule 1 applies if the original currency and the operating currency of the company in the accounting period to which the carried-forward amount is to be carried forward (“the later operating currency”) are the same.
@@ -9504,7 +9532,7 @@
- (b) being translated into sterling by reference to the same rate of exchange as that at which the profit against which the carried-forward amount is to be set off is required to be translated under section 92D of FA 1993.
- (9) In this paragraph “the relevant accounting period” means the earliest accounting period of the company beginning after the commencement date in which the operating currency of the company is the later operating currency.
- (9) In this paragraph “*the relevant accounting period*” means the earliest accounting period of the company beginning after the commencement date in which the operating currency of the company is the later operating currency.
#### Adjustment of sterling loss if amount carried back to pre-commencement accounting period
@@ -9536,7 +9564,7 @@
- (3) In the application of section 92DD of FA 1993 by virtue of sub-paragraph (2) that section has effect as if for subsection (6) there were substituted—
> (6) In this section “the relevant accounting period” means the earliest accounting period of the company beginning after the commencement date in which the operating currency of the company is the later operating currency.
> (6) In this section “*the relevant accounting period*” means the earliest accounting period of the company beginning after the commencement date in which the operating currency of the company is the later operating currency.
#### Interpretation
@@ -9554,7 +9582,7 @@
- (2) Subsections (3) and (4) of section 92DE of FA 1993 (meaning of certain references to profit against which carried-forward amount is to be set off) apply in relation to this Schedule as they apply in relation to section 92DB and 92DD of that Act.
- (3) In this Schedule “the commencement date” means 29 December 2007.
- (3) In this Schedule “*the commencement date*” means 29 December 2007.
#### Right of company to elect for different commencement and transitional provision to apply
@@ -9564,7 +9592,7 @@
- (a) paragraphs 9 and 11 do not apply, and
- (b) “the commencement date” means the day on which this Act is passed.
- (b) “*the commencement date*” means the day on which this Act is passed.
- (2) An election by a company under this paragraph—
@@ -9588,7 +9616,7 @@
> (1) A UK resident or eligible non-UK resident receiving a relevant distribution made by a non-UK resident company is entitled to a tax credit equal to one-ninth of the amount or value of the grossed up distribution (but see subsections (3) and (6) and section 397AA).
- (3) In subsection (3), for “(2)” substitute “(1)”.
- (3) In subsection (3), for “(2)” substitute “ (1) ”.
- (4) In subsection (7), omit the definition of “minority shareholder”.
@@ -9608,12 +9636,14 @@
> (i) each company that makes a distribution in the series (a “scheme distribution”) is a resident of (and only of) a qualifying territory at the time that the scheme distribution is received, or
> (ii) the scheme is not a tax advantage scheme.
> (5) In this section—
> - “minority shareholder”, in relation to a company, has the meaning given in section 397C;
> - “offshore fund” has the same meaning as in Chapter 5 of Part 17 of ICTA (see sections 756A to 756C of that Act);
> - “qualifying territory” has the meaning given by or under section 397BA;
> - “relevant distribution” has the same meaning as in section 397A;
> - “scheme” includes any scheme, arrangements or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;
> - “tax advantage scheme” means a scheme that, ignoring any incidental purposes, has as its only purpose or purposes either or both of the following— to enable a person to obtain a tax credit under section 397A, and to enable a person to obtain (in any territory) any other relief from tax on a distribution.
> - “*minority shareholder*”, in relation to a company, has the meaning given in section 397C;
> - “*offshore fund*” has the same meaning as in Chapter 5 of Part 17 of ICTA (see sections 756A to 756C of that Act);
> - “*qualifying territory*” has the meaning given by or under section 397BA;
> - “*relevant distribution*” has the same meaning as in section 397A;
> - “*scheme*” includes any scheme, arrangements or understanding of any kind, whether or not legally enforceable and whether involving a single transaction or two or more transactions;
> - “*tax advantage scheme*” means a scheme that, ignoring any incidental purposes, has as its only purpose or purposes either or both of the following—
> 1. to enable a person to obtain a tax credit under section 397A, and
> 2. to enable a person to obtain (in any territory) any other relief from tax on a distribution.
##### 4
@@ -9621,7 +9651,7 @@
- (2) In subsection (2), omit “that is not an offshore fund”.
- (3) In subsection (3), after “representative” insert “(“the original dividend”)”.
- (3) In subsection (3), after “representative” insert “ ;the original dividend ”).
- (4) After subsection (3) insert—
@@ -9629,14 +9659,14 @@
> (a) the references in subsections (2)(a), (3) and (4)(a) to the relevant distribution were to the original dividend, and
> (b) the reference in subsection (2)(b) to the company that makes the relevant distribution were to the company that makes the original dividend.
- (5) In subsection (4), in the definition of “gross amount”, for “a manufactured” substitute “an”.
- (5) In subsection (4), in the definition of “gross amount”, for “a manufactured” substitute “ an ”.
##### 5
After that section insert—
> (397BA)
> (1) For the purposes of section 397AA “qualifying territory” means—
> (1) For the purposes of section 397AA “*qualifying territory*” means—
> (a) the United Kingdom, or
> (b) a territory within subsection (2).
> (2) A territory is within this subsection if—
@@ -9648,11 +9678,11 @@
> (4) For the purposes of section 397AA a company is a resident of a territory if, under the laws of the territory, the company is liable to tax there—
> (a) by reason of its domicile, residence or place of management, but
> (b) not in respect only of income from sources in that territory or capital situated there.
> (5) In subsection (2) “non-discrimination provision”, in relation to double taxation relief arrangements, means a provision to the effect that nationals of a state which is a party to those arrangements (a “contracting state”) are not to be subject in any other contracting state to—
> (5) In subsection (2) “*non-discrimination provision*”, in relation to double taxation relief arrangements, means a provision to the effect that nationals of a state which is a party to those arrangements (a “contracting state”) are not to be subject in any other contracting state to—
> (a) any taxation, or
> (b) any requirement connected with taxation,
> which is other or more burdensome than the taxation and connected requirements to which nationals of that other state in the same circumstances (in particular with respect to residence) are or may be subjected.
> (6) In subsection (5) “national”, in relation to a contracting state, includes—
> (6) In subsection (5) “*national*”, in relation to a contracting state, includes—
> (a) an individual possessing the nationality or citizenship of the contracting state, and
> (b) a legal person, partnership or association deriving its status as such from the laws in force in that contracting state.
> (7) Regulations under this section may—
@@ -9667,13 +9697,13 @@
- (2) In subsection (1)—
- (a) for “397A” substitute “397AA”, and
- (a) for “397A” substitute “ 397AA ”, and
- (b) omit “non-UK resident”.
- (3) After that subsection insert—
> (1A) Where the company has more than one class of share, the reference in subsection (1) to the company’s issued share capital is to issued share capital of the same class as the share in respect of which the distribution is made.
> (1A) Where the company has more than one class of share, the reference in subsection (1) to the company's issued share capital is to issued share capital of the same class as the share in respect of which the distribution is made.
- (4) Insert at the end—
@@ -9681,7 +9711,7 @@
##### 7
In section 398(1) (increase in amount or value of dividends where tax credit available), for “397A(2)” substitute “397A(1)”.
In section 398(1) (increase in amount or value of dividends where tax credit available), for “397A(2)” substitute “ 397A(1) ”.
##### 8
@@ -9703,23 +9733,23 @@
- (d) sections 59A(8)(b) and 59B(2)(b) (payments of and on account of income tax),
for “397A(2)” substitute “397A(1)”
for “397A(2)” substitute “ 397A(1) ”
##### 10
In ICTA—
- (a) in section 824(4A)(b) (repayment supplements: individuals and others), for “397A(2)” substitute “397A(1)”, and
- (b) in section 840ZA(3)(b) (meaning of “tax advantage”), after “397(1)” insert “or 397A(1)”.
- (a) in section 824(4A)(b) (repayment supplements: individuals and others), for “397A(2)” substitute “ 397A(1) ”, and
- (b) in section 840ZA(3)(b) (meaning of “tax advantage”), after “397(1)” insert “ or 397A(1) ”.
##### 11
In section 171(2B) of FA 1993 (Lloyd’s underwriters etc: taxation of profits and allowance of losses), for “397A(2)” substitute “397A(1)”.
In section 171(2B) of FA 1993 (Lloyd's underwriters etc: taxation of profits and allowance of losses), for “397A(2)” substitute “ 397A(1) ”.
##### 12
In Part 2 of Schedule 1 to ITEPA 2003 (definitions), in the entry for “tax credit”, in the second column, after “397(1)” insert “or 397A(1)”.
In Part 2 of Schedule 1 to ITEPA 2003 (definitions), in the entry for “tax credit”, in the second column, after “397(1)” insert “ or 397A(1) ”.
##### 13
@@ -9731,7 +9761,7 @@
- (c) in section 989 (definitions), in the definition of “tax credit”,
for “397A(2)” substitute “397A(1)”.
for “397A(2)” substitute “ 397A(1) ”.
#### Commencement
@@ -9749,9 +9779,9 @@
- (2) In this paragraph—
- “manufactured overseas dividend” has the same meaning as in Chapter 2 of Part 11 of ITA 2007;
- “qualifying distribution” has the meaning given in section 989 of ITA 2007.
- “*manufactured overseas dividend*” has the same meaning as in Chapter 2 of Part 11 of ITA 2007;
- “*qualifying distribution*” has the meaning given in section 989 of ITA 2007.
## SCHEDULE 20
@@ -9769,11 +9799,9 @@
- (2) In subsection (1)—
- (a) in paragraph (b), after “company” insert “(“C”)”, and
- (b) insert at the end (not as part of paragraph (b))—
> and the condition in subsection (1A) is met.
- (a) in paragraph (b), after “company” insert “ ( ”, and
- (b) insert at the end (not as part of paragraph (b))— “ and the condition in subsection (1A) is met. ”
- (3) After that subsection insert—
@@ -9784,9 +9812,9 @@
- (4) Insert at the end—
> (3) For the purposes of this section—
> (a) “non-qualifying territory” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,
> (a) “*non-qualifying territory*” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,
> (b) a non-qualifying territory is “non-taxing” if companies are not under its law liable to tax by reason of domicile, residence or place of management, and
> (c) “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.
> (c) “*resident for tax purposes*” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.
#### Sections 375 and 376
@@ -9794,11 +9822,9 @@
- (1) Section 375 (late interest: loans to close companies by participators etc) is amended as follows.
- (2) In subsection (1), insert at the end (not as part of paragraph (b))—
> and, where subsection (4A) applies, the non-qualifying territory condition is met.
- (3) In subsections (3)(b) and (4)(b), after “resident” insert “for tax purposes”.
- (2) In subsection (1), insert at the end (not as part of paragraph (b))— “ and, where subsection (4A) applies, the non-qualifying territory condition is met. ”
- (3) In subsections (3)(b) and (4)(b), after “resident” insert “ for tax purposes ”.
- (4) After subsection (4) insert—
@@ -9812,7 +9838,7 @@
- (2) In subsection (5), for the definition of “resident” substitute—
> “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management, and
> “*resident for tax purposes*” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management, and
.
@@ -9839,9 +9865,9 @@
> (a) resident for tax purposes in a non-qualifying territory at any time in the actual accrual period, or
> (b) effectively managed in a non-taxing non-qualifying territory at any such time.
> (3) For the purposes of this section—
> (a) “non-qualifying territory” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,
> (a) “*non-qualifying territory*” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,
> (b) a non-qualifying territory is “non-taxing” if companies are not under its law liable to tax by reason of domicile, residence or place of management, and
> (c) “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.
> (c) “*resident for tax purposes*” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.
#### Section 407
@@ -9851,7 +9877,7 @@
- (2) In subsection (1)—
- (a) in paragraph (b), after “company” insert “(“the creditor company”)”,
- (a) in paragraph (b), after “company” insert “ (“the creditor company” ,
- (b) omit the “and” at the end of paragraph (d), and
@@ -9869,9 +9895,9 @@
- (4) Insert at the end—
> (6) For the purposes of this section—
> (a) “non-qualifying territory” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,
> (a) “*non-qualifying territory*” has the meaning given by paragraph 5E of Schedule 28AA to ICTA,
> (b) a non-qualifying territory is “non-taxing” if companies are not under its law liable to tax by reason of domicile, residence or place of management, and
> (c) “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.
> (c) “*resident for tax purposes*” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management.
#### Sections 409 and 410
@@ -9879,17 +9905,15 @@
Section 409(1) (postponement until redemption of debits for close companies' deeply discounted securities)—
- (a) in paragraph (b), after “there is a person” insert “(“C”)”, and
- (b) insert at the end (not as part of paragraph (d))—
> and, where it applies, the non-qualifying territory condition is met.
- (a) in paragraph (b), after “there is a person” insert “ ( ”, and
- (b) insert at the end (not as part of paragraph (d))— “ and, where it applies, the non-qualifying territory condition is met. ”
##### 8
- (1) Section 410 (interpretation of section 409) is amended as follows.
- (2) In subsections (3)(b) and (4)(b), after “resident” insert “for tax purposes”.
- (2) In subsections (3)(b) and (4)(b), after “resident” insert “ for tax purposes ”.
- (3) After subsection (4) insert—
@@ -9899,7 +9923,7 @@
- (4) In subsection (5), for the definition of “resident” substitute—
> “resident for tax purposes” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management, and
> “*resident for tax purposes*” means liable, under the law of the non-qualifying territory, to tax there by reason of domicile, residence or place of management, and
.
@@ -9941,7 +9965,7 @@
After that section insert—
> (328A)
> (1) For the purposes of section 328 arrangements (“the arrangements”) have a “one-way exchange effect” in relation to a company (“company A”) in an accounting period of that company (“the relevant accounting period”) if the following two conditions are met.
> (1) For the purposes of section 328 arrangements (“the arrangements”) have a “*one-way exchange effect*” in relation to a company (“company A”) in an accounting period of that company (“*the relevant accounting period*”) if the following two conditions are met.
> (2) The first condition is that the arrangements include an option or a relevant contingent contract.
> (3) The second condition is that, in relation to any day in the relevant accounting period (“the test day”)—
> (a) amount A is not equal to amount B, and
@@ -9954,7 +9978,7 @@
> (b) the sum of the relevant exchange losses of those companies that would have arisen in such accounting periods,
> if exchange gains and losses of those companies in those accounting periods were calculated in accordance with section 328D (counterfactual currency movement assumptions).
> (6) For the purposes of subsections (4) and (5) an accounting period of company A, or of a company connected with company A, in which the test day falls and that does not end on that day is to be treated as if it did end on that day.
> (7) In this section “the matching rules” means—
> (7) In this section “*the matching rules*” means—
> (a) section 328(3) and (4), and
> (b) section 606(3) and (4).
> (328B)
@@ -9986,7 +10010,7 @@
> (3) Where the relevant foreign currency depreciates over the accounting period, or any part of the accounting period, relative to the operating currency of company A by any percentage, the calculation must be made on the assumption that the relevant foreign currency instead appreciates (over the same period and in relation to the same currency) by that percentage.
> (4) For provision as to the treatment of certain options for the purposes of the calculation in cases in which subsection (2) or (3) applies, see section 328E.
> (5) Except as provided for in that section, the calculation must be made on the basis of transactions in fact entered into (and not on the basis of transactions that would have been entered into on the assumption specified in subsection (2) or (3)).
> (6) In this section “relevant foreign currency” means—
> (6) In this section “*relevant foreign currency*” means—
> (a) the currency in which the loan relationships or relevant contracts in respect of which the exchange gains or losses arise are denominated, or
> (b) where the exchange gains or losses arise in respect of loan relationships or relevant contracts denominated in more than one currency, any of them.
> (7) References in this section to the “operating currency” of a company, in relation to an accounting period, are (subject to subsection (8)) to the currency in which profits or losses of the company arising in that accounting period that fall to be computed in accordance with generally accepted accounting practice for corporation tax purposes are required to be computed by virtue of section 92(1), 92A(2), 92B(2)(a) or 92C(3)(a) of FA 1993 (foreign currency accounting).
@@ -10003,21 +10027,21 @@
> (4) Subsection (5) applies if the option is not exercised on the test day but was exercisable on that day.
> (5) The option is to be treated as having been exercised on the test day if, on the relevant assumption, it is in all the circumstances more likely than not that it would have been exercised on that day.
> (328F)
> (1) In the Part 5 one-way exchange effect provisions “option” is to be construed as if section 580(2) and (3) (meaning of option) were omitted.
> (1) In the Part 5 one-way exchange effect provisions “*option*” is to be construed as if section 580(2) and (3) (meaning of option) were omitted.
> (2) For the purposes of the Part 5 one-way exchange effect provisions—
> (a) section 584 (hybrid derivatives with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, the company treats” there were substituted “it is possible to regard”,
> (b) section 585 (loan relationships with embedded derivatives) is to be construed as if in subsection (1) for the words “in accordance with generally accepted accounting practice a company treats” there were substituted “it is possible to regard”, and
> (c) section 586 (other contracts with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, treats” there were substituted “it is possible to regard”.
> (a) section 584 (hybrid derivatives with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, the company treats” there were substituted “ it is possible to regard ”,
> (b) section 585 (loan relationships with embedded derivatives) is to be construed as if in subsection (1) for the words “in accordance with generally accepted accounting practice a company treats” there were substituted “ it is possible to regard ”, and
> (c) section 586 (other contracts with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, treats” there were substituted “ it is possible to regard ”.
> (328G)
> (1) In the Part 5 one-way exchange effect provisions “relevant contingent contract” means a contract that meets the following two conditions.
> (2) The first condition is that company A, or a company connected with company A (“the relevant company”), is a party to the contract.
> (1) In the Part 5 one-way exchange effect provisions “*relevant contingent contract*” means a contract that meets the following two conditions.
> (2) The first condition is that company A, or a company connected with company A (“*the relevant company*”), is a party to the contract.
> (3) The second condition is that the contract includes a condition—
> (a) on the meeting of which a right or liability under the contract is altered, and
> (b) that operates (directly or indirectly) by reference to the exchange rate between the operating currency of the relevant company and another currency.
> (4) In this section “operating currency” has the same meaning as in section 328D.
> (5) In the Part 5 one-way exchange effect provisions, “operative condition” means a condition of the kind mentioned in subsection (3).
> (4) In this section “*operating currency*” has the same meaning as in section 328D.
> (5) In the Part 5 one-way exchange effect provisions, “*operative condition*” means a condition of the kind mentioned in subsection (3).
> (328H)
> (1) In this Act “the Part 5 one-way exchange effect provisions” means sections 328A to 328G and this section.
> (1) In this Act “*the Part 5 one-way exchange effect provisions*” means sections 328A to 328G and this section.
> (2) The following provisions of this section have effect for the purposes of the Part 5 one-way exchange effect provisions.
> (3) References to arrangements include any agreements, understandings, schemes, transactions or series of transactions (whether or not legally enforceable).
> (4) The circumstances to be taken into account in determining whether a loan relationship or relevant contract is “part of” any arrangements include (in particular)—
@@ -10059,9 +10083,7 @@
##### 5
For the heading before section 606 (exchange gains and losses) substitute—
.
For the heading before section 606 (exchange gains and losses) substitute— “ Exchange gains and losses ”.
##### 6
@@ -10084,7 +10106,7 @@
- (4) After that subsection insert—
> (4A) Condition A is that the exchange gain or loss arises in relation to a derivative contract whose underlying subject matter consists wholly or partly of currency.
> (4B) Condition B is that the exchange gain or loss arises as a result of the translation from one currency to another of the profit or loss of part of the company’s business.
> (4B) Condition B is that the exchange gain or loss arises as a result of the translation from one currency to another of the profit or loss of part of the company's business.
> (4C) Subsection (4D) applies where—
> (a) condition A is met, and
> (b) the amount that is recognised in respect of the exchange gain or loss as mentioned in subsection (3)(b) (“the recognised gain or loss”) is not calculated by reference to spot rates of exchange.
@@ -10106,7 +10128,7 @@
After that section insert—
> (606A)
> (1) For the purposes of section 606 arrangements (“the arrangements”) have a “one-way exchange effect” in relation to a company (“company A”) in an accounting period of that company (“the relevant accounting period”) if the following two conditions are met.
> (1) For the purposes of section 606 arrangements (“the arrangements”) have a “*one-way exchange effect*” in relation to a company (“company A”) in an accounting period of that company (“*the relevant accounting period*”) if the following two conditions are met.
> (2) The first condition is that the arrangements include an option or a relevant contingent contract.
> (3) The second condition is that, in relation to any day in the relevant accounting period (“the test day”)—
> (a) amount A is not equal to amount B, and
@@ -10119,7 +10141,7 @@
> (b) the sum of the relevant exchange losses of those companies that would have arisen in such accounting periods,
> if exchange gains and losses of those companies in those accounting periods were calculated in accordance with section 606D (counterfactual currency movement assumptions).
> (6) For the purposes of subsections (4) and (5) an accounting period of company A, or of a company connected with company A, in which the test day falls and that does not end on that day is to be treated as if it did end on that day.
> (7) In this section “the matching rules” means—
> (7) In this section “*the matching rules*” means—
> (a) section 328(3) and (4), and
> (b) section 606(3) and (4).
> (606B)
@@ -10151,7 +10173,7 @@
> (3) Where the relevant foreign currency depreciates over the accounting period, or any part of the accounting period, relative to the operating currency of company A by any percentage, the calculation must be made on the assumption that the relevant foreign currency instead appreciates (over the same period and in relation to the same currency) by that percentage.
> (4) For provision as to the treatment of certain options for the purposes of the calculation in cases in which subsection (2) or (3) applies, see section 606E.
> (5) Except as provided for in that section, the calculation must be made on the basis of transactions in fact entered into (and not on the basis of transactions that would have been entered into on the assumption specified in subsection (2) or (3)).
> (6) In this section “relevant foreign currency” means—
> (6) In this section “*relevant foreign currency*” means—
> (a) the currency in which the loan relationships or relevant contracts in respect of which the exchange gains or losses arise are denominated, or
> (b) where the exchange gains or losses arise in respect of loan relationships or relevant contracts denominated in more than one currency, any of them.
> (7) References in this section to the “operating currency” of a company, in relation to an accounting period, are (subject to subsection (8)) to the currency in which profits or losses of the company arising in that accounting period that fall to be computed in accordance with generally accepted accounting practice for corporation tax purposes are required to be computed by virtue of section 92(1), 92A(2), 92B(2)(a) or 92C(3)(a) of FA 1993 (foreign currency accounting).
@@ -10168,21 +10190,21 @@
> (4) Subsection (5) applies if the option is not exercised on the test day but was exercisable on that day.
> (5) The option is to be treated as having been exercised on the test day if, on the relevant assumption, it is in all the circumstances more likely than not that it would have been exercised on that day.
> (606F)
> (1) In the Part 7 one-way exchange effect provisions “option” is to be construed as if section 580(2) and (3) (meaning of option) were omitted.
> (1) In the Part 7 one-way exchange effect provisions “*option*” is to be construed as if section 580(2) and (3) (meaning of option) were omitted.
> (2) For the purposes of the Part 7 one-way exchange effect provisions—
> (a) section 584 (hybrid derivatives with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, the company treats” there were substituted “it is possible to regard”,
> (b) section 585 (loan relationships with embedded derivatives) is to be construed as if in subsection (1) for the words “in accordance with generally accepted accounting practice a company treats” there were substituted “it is possible to regard”, and
> (c) section 586 (other contracts with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, treats” there were substituted “it is possible to regard”.
> (a) section 584 (hybrid derivatives with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, the company treats” there were substituted “ it is possible to regard ”,
> (b) section 585 (loan relationships with embedded derivatives) is to be construed as if in subsection (1) for the words “in accordance with generally accepted accounting practice a company treats” there were substituted “ it is possible to regard ”, and
> (c) section 586 (other contracts with embedded derivatives) is to be construed as if in subsection (1)(b) for the words “in accordance with generally accepted accounting practice, treats” there were substituted “ it is possible to regard ”.
> (606G)
> (1) In the Part 7 one-way exchange effect provisions “relevant contingent contract” means a contract that meets the following two conditions.
> (2) The first condition is that company A, or a company connected with company A (“the relevant company”), is a party to the contract.
> (1) In the Part 7 one-way exchange effect provisions “*relevant contingent contract*” means a contract that meets the following two conditions.
> (2) The first condition is that company A, or a company connected with company A (“*the relevant company*”), is a party to the contract.
> (3) The second condition is that the contract includes a condition—
> (a) on the meeting of which a right or liability under the contract is altered, and
> (b) that operates (directly or indirectly) by reference to the exchange rate between the operating currency of the relevant company and another currency.
> (4) In this section “operating currency” has the same meaning as in section 606D.
> (5) In the Part 7 one-way exchange effect provisions “operative condition” means a condition of the kind mentioned in subsection (3).
> (4) In this section “*operating currency*” has the same meaning as in section 606D.
> (5) In the Part 7 one-way exchange effect provisions “*operative condition*” means a condition of the kind mentioned in subsection (3).
> (606H)
> (1) In this Act “the Part 7 one-way exchange effect provisions” means sections 606A to 606G and this section.
> (1) In this Act “*the Part 7 one-way exchange effect provisions*” means sections 606A to 606G and this section.
> (2) The following provisions of this section have effect for the purposes of the Part 7 one-way exchange effect provisions.
> (3) References to arrangements include any agreements, understandings, schemes, transactions or series of transactions (whether or not legally enforceable).
> (4) The circumstances to be taken into account in determining whether a loan relationship or relevant contract is “part of” any arrangements include (in particular)—
@@ -10203,7 +10225,7 @@
> and the percentage of the depreciation is the difference, expressed as a percentage of the amount mentioned in paragraph (b).
> (9) References in this section to a company connected with company A are to a company connected with company A for the relevant accounting period.
> (10) Section 466 (companies connected for an accounting period) applies for the purposes of subsection (9).
> (11) “Tax advantage” has the meaning given by section 840ZA of ICTA.
> (11) “*Tax advantage*” has the meaning given by section 840ZA of ICTA.
> (12) See section 606A for the meaning of the following expressions—
> - “the arrangements”;
> - “company A”;
@@ -10212,9 +10234,7 @@
##### 8
Immediately before section 607 (pre-contract or abortive expenses) insert—
.
Immediately before section 607 (pre-contract or abortive expenses) insert— “ Miscellaneous ”.
#### Interpretation
@@ -10236,7 +10256,7 @@
##### 10
The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2006 ([S.I. 2006/843](https://www.legislation.gov.uk/uksi/2006/843)) are revoked.
The Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2006 (S.I. 2006/843) are revoked.
#### Commencement
@@ -10248,7 +10268,7 @@
- (b) subject to the following provisions of this paragraph, in relation to exchange gains and losses arising in straddling accounting periods.
- (2) In this paragraph “straddling accounting period” means an accounting period that—
- (2) In this paragraph “*straddling accounting period*” means an accounting period that—
- (a) begins before 22 April 2009, and
@@ -10288,18 +10308,18 @@
> (40A)
> (1) This section and sections 40B to 40G have effect for this group of sections.
> (2) “Offshore fund” means—
> (2) “*Offshore fund*” means—
> (a) a mutual fund constituted by a body corporate resident outside the United Kingdom,
> (b) a mutual fund under which property is held on trust for the participants where the trustees of the property are not resident in the United Kingdom, or
> (c) a mutual fund constituted by other arrangements that create rights in the nature of co-ownership where the arrangements take effect by virtue of the law of a territory outside the United Kingdom (but see subsection (3)).
> (3) Subsection (2)(c) does not include a mutual fund constituted by two or more persons carrying on a trade or business in partnership.
> (4) “This group of sections” means this section and sections 40B to 42A.
> (4) “*This group of sections*” means this section and sections 40B to 42A.
> (5) References to participants in arrangements (or a fund) are to persons taking part in the arrangements (or the arrangements constituting the fund), whether by becoming the owner of, or of any part of, the property that is the subject of the arrangements or otherwise (and references to participation in arrangements or a fund, however expressed, are to be read accordingly).
> (6) In this section—
> - “body corporate” does not include a limited liability partnership;
> - “*body corporate*” does not include a limited liability partnership;
> - “co-ownership” is not restricted to the meaning of that term in the law of any part of the United Kingdom.
> (40B)
> (1) “Mutual fund” means arrangements with respect to property of any description, including money, that meet conditions A to C, subject to—
> (1) “*Mutual fund*” means arrangements with respect to property of any description, including money, that meet conditions A to C, subject to—
> (a) sections 40C and 40D, and
> (b) the exceptions made by or under sections 40E to 40G.
> (2) Condition A is that the purpose or effect of the arrangements is to enable the participants—
@@ -10315,13 +10335,13 @@
> (1) In the case of umbrella arrangements—
> (a) each part of the umbrella arrangements is to be treated as separate arrangements (subject to section 40D), and
> (b) the umbrella arrangements are to be disregarded.
> (2) “Umbrella arrangements” means arrangements which provide for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them.
> (2) “*Umbrella arrangements*” means arrangements which provide for separate pooling of the contributions of the participants and the profits or income out of which payments are made to them.
> (3) References to a part of umbrella arrangements are to the arrangements relating to a separate pool.
> (40D)
> (1) Where there is more than one class of interest in arrangements (the “main arrangements”)—
> (a) the arrangements relating to each class of interest are to be treated as separate arrangements, and
> (b) the main arrangements are to be disregarded.
> (2) In relation to umbrella arrangements, “class of interest” does not include a part of the umbrella arrangements (but there may be more than one class of interest in a part of umbrella arrangements).
> (2) In relation to umbrella arrangements, “*class of interest*” does not include a part of the umbrella arrangements (but there may be more than one class of interest in a part of umbrella arrangements).
> (40E)
> (1) Arrangements are not a mutual fund if—
> (a) under the terms of the arrangements, a reasonable investor participating in the arrangements would expect to be able to realise all or part of an investment in the arrangements on a basis mentioned in condition C in section 40B only in the event of the winding up, dissolution or termination of the arrangements, and
@@ -10338,7 +10358,7 @@
> (7) Condition Y is not met if the arrangements are designed to produce a return for participants that equates, in substance, to the return on an investment of money at interest.
> (8) For the purposes of this section, the fact that arrangements provide for a vote or other action that may lead to the winding up, dissolution or termination of the arrangements does not, by itself, mean that the arrangements are designed to wind up, dissolve or terminate on a date stated in or determinable under the arrangements.
> (40F)
> (1) “Relevant income-producing assets” means assets that produce income on which, if they were held directly by an individual resident in the United Kingdom, the individual would be charged to income tax (subject to the following provisions of this section).
> (1) “*Relevant income-producing assets*” means assets that produce income on which, if they were held directly by an individual resident in the United Kingdom, the individual would be charged to income tax (subject to the following provisions of this section).
> (2) An asset is not a relevant income-producing asset if the asset is hedged, provided that no income is expected to arise from—
> (a) the asset (taking account of the hedging), or
> (b) any product of the hedging arrangements.
@@ -10379,7 +10399,7 @@
> (5) Regulations under section 41 may, in particular, provide for provisions to have effect in relation to the tax year, or accounting periods, current on the day on which the regulations are made.
- (6) In subsection (6), for “and “offshore fund” have” substitute “has”.
- (6) In subsection (6), for “and “offshore fund” have” substitute “ has ”.
##### 5
@@ -10423,7 +10443,7 @@
- (a) provision for a person to elect to be treated in accordance with the regulations in respect of rights referred to in that sub-paragraph, or
- (b) provision that does not increase the person’s liability to tax in respect of such rights.
- (b) provision that does not increase the person's liability to tax in respect of such rights.
## Part 2 — Application of TCGA 1992 to offshore funds
@@ -10444,7 +10464,7 @@
> (2) An offshore fund is a relevant offshore fund if—
> (a) it is not constituted by a company, and
> (b) it is not a unit trust scheme (see section 99).
> (3) In this section “offshore fund” and “participant”, in relation to a fund, have the meanings given in section 40A of the Finance Act 2008.
> (3) In this section “offshore fund” and “*participant*”, in relation to a fund, have the meanings given in section 40A of the Finance Act 2008.
##### 9
@@ -10452,7 +10472,7 @@
##### 10
In section 288(1) (interpretation), in the definition of “company”, for “section 99” substitute “sections 99 and 103A”.
In section 288(1) (interpretation), in the definition of “company”, for “section 99” substitute “ sections 99 and 103A ”.
#### Consequential provision
@@ -10464,9 +10484,9 @@
- (b) section 28(2) (non-resident companies and trusts),
after “sections 99” insert “, 103A”.
- (2) In section 842(4) of ICTA (investment trusts), after “sections 99” insert “, 103A”.
after “sections 99” insert “ , 103A ”.
- (2) In section 842(4) of ICTA (investment trusts), after “sections 99” insert “ , 103A ”.
- (3) In ITTOIA 2005—
@@ -10482,13 +10502,13 @@
.
- (4) In section 834(5) of the Companies Act 2006 (investment company: condition as to holdings in other companies), in the definition of “company” and “shares”, after “sections 99” insert “, 103A”.
- (4) In section 834(5) of the Companies Act 2006 (investment company: condition as to holdings in other companies), in the definition of “company” and “shares”, after “sections 99” insert “ , 103A ”.
- (5) In section 332 of ITA 2007 (venture capital trusts: minor definitions), in the definition of “company”—
- (a) for “section 99” substitute “sections 99 and 103A”, and
- (b) after “schemes” insert “and certain offshore funds”.
- (a) for “section 99” substitute “ sections 99 and 103A ”, and
- (b) after “schemes” insert “ and certain offshore funds ”.
#### Commencement: general
@@ -10496,7 +10516,7 @@
- (1) The amendments made by this Part of this Schedule have effect in relation to the acquisition, holding and disposal of rights in a relevant offshore fund on or after the commencement day, subject to paragraphs 13 and 15.
- (2) In this paragraph and paragraphs 15 to 18 “the commencement day” means—
- (2) In this paragraph and paragraphs 15 to 18 “*the commencement day*” means—
- (a) in relation to the acquisition, holding and disposal of rights by a person subject to the charge to capital gains tax, 1 December 2009, and
@@ -10540,9 +10560,9 @@
- (5) In this paragraph and paragraph 16—
- “relevant accounting period” means an accounting period beginning on or after 1 April 2003 but before the day appointed under paragraph 12(2)(b);
- “relevant tax year” means the tax year 2003-04 and any subsequent tax year up to and including the tax year 2009-2010.
- “*relevant accounting period*” means an accounting period beginning on or after 1 April 2003 but before the day appointed under paragraph 12(2)(b);
- “*relevant tax year*” means the tax year 2003-04 and any subsequent tax year up to and including the tax year 2009-2010.
#### Making an election
@@ -10592,15 +10612,15 @@
- (2) For the purposes of TCGA 1992 the participant is to be treated as if the acquisition cost for those rights were the pre-commencement acquisition cost.
- (3) “The effective date” means—
- (3) “*The effective date*” means—
- (a) if the participant has made an election under paragraph 15, the election day, or
- (b) otherwise, the commencement day.
- (4) “Acquisition cost” means the total of the consideration, costs and expenditure described in section 38(1)(a) and (b) of TCGA 1992 (acquisition and disposal costs etc).
- (5) “Pre-commencement acquisition cost” means the total of the consideration, costs and expenditure that would have been allowable as a deduction under section 38(1)(a) and (b) of TCGA 1992 if the participant had disposed of the rights immediately before the effective date.
- (4) “*Acquisition cost*” means the total of the consideration, costs and expenditure described in section 38(1)(a) and (b) of TCGA 1992 (acquisition and disposal costs etc).
- (5) “*Pre-commencement acquisition cost*” means the total of the consideration, costs and expenditure that would have been allowable as a deduction under section 38(1)(a) and (b) of TCGA 1992 if the participant had disposed of the rights immediately before the effective date.
## SCHEDULE 23
@@ -10610,11 +10630,11 @@
- (1) In section 83 of FA 1989 (receipts to be taken into account), after subsection (2) insert—
> (2AZA) No amount shown as transfer from non technical account in line 32 of Form 58 in respect of the whole of the company’s long-term business in the periodical return for a period of account is to be taken into account as a receipt of the period of account.
> (2AZA) No amount shown as transfer from non technical account in line 32 of Form 58 in respect of the whole of the company's long-term business in the periodical return for a period of account is to be taken into account as a receipt of the period of account.
- (2) The amendment made by sub-paragraph (1) has effect in relation to periods of account ending on or after 22 April 2009.
- (3) But, in relation to a period of account of a company beginning before that date, that amendment has effect only insofar as the amount shown as transfer from non technical account in line 32 of Form 58 covering the whole of the company’s long-term business in the periodical return for the period of account is attributable to transfers made on or after that date.
- (3) But, in relation to a period of account of a company beginning before that date, that amendment has effect only insofar as the amount shown as transfer from non technical account in line 32 of Form 58 covering the whole of the company's long-term business in the periodical return for the period of account is attributable to transfers made on or after that date.
#### No deduction for capital allocations to with-profits policy holders
@@ -10625,7 +10645,7 @@
> (2A) But amounts are not allowed as such a deduction if they—
> (a) are allocated to holders of policies under which they are eligible to participate in surplus,
> (b) are of a capital nature, and
> (c) are not funded from amounts brought into account as part of total income in line 19 of the revenue account prepared for the purposes of Chapter 9 of the Prudential Sourcebook (Insurers) in respect of the whole of the company’s long-term business.
> (c) are not funded from amounts brought into account as part of total income in line 19 of the revenue account prepared for the purposes of Chapter 9 of the Prudential Sourcebook (Insurers) in respect of the whole of the company's long-term business.
> (2B) For the purposes of subsection (2A) above payments made in connection with the reattribution of inherited estate are to be regarded as being of a capital nature.
- (2) The amendment made by sub-paragraph (1) has effect in relation to amounts allocated on or after 22 April 2009 to holders of policies under which they are eligible to participate in surplus.
@@ -10647,7 +10667,7 @@
> (4) Condition A is that there is a relevant book value election in relation to assets of a non-profit fund of the company.
> (5) For the purposes of subsection (4), there is a relevant book value election in relation to assets of a non-profit fund if an amount is shown in relation to the non-profit fund as the excess of the value of net admissible assets in line 51 of the Form 14 of the non-profit fund in the periodical return for the current period of account.
> (6) Condition B is that the company is party to arrangements the main purpose, or one of the main purposes, of which is to reduce the relevant admissible value of assets of a non-profit fund of the company, other than any structural assets.
> (7) For the purposes of subsection (6) (and section 434AZB), the “relevant admissible value” means the value reflected in line 89 of Form 13 of the periodical return for the current period of account.
> (7) For the purposes of subsection (6) (and section 434AZB), the “*relevant admissible value*” means the value reflected in line 89 of Form 13 of the periodical return for the current period of account.
> (8) Condition C is that the surplus arising since the last valuation shown in line 34 of the Form 58 of the non-profit fund, or any of the non-profit funds, in relation to which condition A or B is met in the periodical return for the current period of account is a negative amount.
> (434AZB)
> (1) The amount of the relief allowable as mentioned in section 434AZA(1) is reduced by whichever of the following is the least—
@@ -10659,8 +10679,8 @@
> (b) where only condition B is met, the amount of the relevant reduction relating to the non-profit fund in relation to which it is met or (where it is met in relation to more than one non-profit fund) the sum of the relevant reductions relating to them, and
> (c) where both condition A and condition B are met, the aggregate of the amounts in paragraphs (a) and (b).
> (3) In subsection (2)—
> (a) “relevant amount”, in relation to a non-profit fund, means the amount shown in relation to the non-profit fund as the excess of the value of net admissible assets in line 51 of the Form 14 of the non-profit fund in the periodical return for the current period of account (as reduced by any amount which has had effect to reduce relief for losses for a previous accounting period), and
> (b) “relevant reduction”, in relation to a non-profit fund, means the reduction of the relevant admissible value of assets of the non-profit fund (other than structural assets) which is attributable to the arrangements (as so reduced).
> (a) “*relevant amount*”, in relation to a non-profit fund, means the amount shown in relation to the non-profit fund as the excess of the value of net admissible assets in line 51 of the Form 14 of the non-profit fund in the periodical return for the current period of account (as reduced by any amount which has had effect to reduce relief for losses for a previous accounting period), and
> (b) “*relevant reduction*”, in relation to a non-profit fund, means the reduction of the relevant admissible value of assets of the non-profit fund (other than structural assets) which is attributable to the arrangements (as so reduced).
> (4) The amount mentioned in subsection (1)(c) is—
> (a) if the relevant period of account is the current period of account, the amount referred to in section 434AZA(3) in the case of the non-profit fund, or of each of the non-profit funds, to which there has been a relevant addition in the relevant period of account, and
> (b) otherwise, so much of the amount shown in line 31 of the Form 58 of the non-profit fund or non-profit funds in the periodical return for the current period of account as is attributable to the amount so referred to.
@@ -10668,8 +10688,8 @@
> (1) For the purposes of sections 434AZA and 434AZB, a non-profit fund required to support a with-profits fund is to be treated as not being a non-profit fund.
> (2) Sections 434AZA and 434AZB apply to a non-profit part of a with-profits fund as if references to something shown in the Form 14 or Form 58 of the non-profit fund in a periodical return were to what would be so shown if there were a Form 14 or Form 58 of the non-profit part of the with-profits fund in the periodical return.
> (3) In sections 434AZA and 434AZB—
> - “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and
> - “structural assets” has the same meaning as in section 83XA of the Finance Act 1989 (see subsection (3) of that section and any regulations made under it).
> - “*arrangements*” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and
> - “*structural assets*” has the same meaning as in section 83XA of the Finance Act 1989 (see subsection (3) of that section and any regulations made under it).
- (2) The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 22 April 2009 unless—
@@ -10681,7 +10701,7 @@
##### 4
- (1) In paragraph 4(5) of Schedule 17 to FA 2008 (financing-arrangement-funded transfers: companies with unrepaid contingent loan liabilities before first period of account beginning on or after 1 January 2008), in the definition of “R”, after “(7)(a) of that section” insert “in respect of amounts brought into account as transfers to non-technical account for periods of account beginning on or after 1 January 2008”.
- (1) In paragraph 4(5) of Schedule 17 to FA 2008 (financing-arrangement-funded transfers: companies with unrepaid contingent loan liabilities before first period of account beginning on or after 1 January 2008), in the definition of “R”, after “(7)(a) of that section” insert “ in respect of amounts brought into account as transfers to non-technical account for periods of account beginning on or after 1 January 2008 ”.
- (2) The amendment made by sub-paragraph (1) has effect in relation to periods of account beginning on or after 1 January 2008.
@@ -10721,7 +10741,7 @@
##### 8
- (1) In section 32(1) of TCGA 1992 (value shifting: disposals within group followed by disposal of shares), after “171(1)” insert “or 211”.
- (1) In section 32(1) of TCGA 1992 (value shifting: disposals within group followed by disposal of shares), after “171(1)” insert “ or 211 ”.
- (2) The amendment made by sub-paragraph (1) has effect for determining whether section 30 of TCGA 1992 has effect as respects a disposal on or after 22 April 2009.
@@ -10765,16 +10785,16 @@
> (a) it is reasonable to assume that it is a return by reference to the time value of that amount of money,
> (b) it is at a rate reasonably comparable to what is (in all the circumstances) a commercial rate of interest, and
> (c) at the relevant time there is no practical likelihood that it will cease to be produced in accordance with the arrangement unless the person by whom it falls to be produced is prevented (by reason of insolvency or otherwise) from producing it.
> (3) In subsection (2)(c) “the relevant time” means the time when the company becomes party to the arrangement or, if later, when the arrangement begins to produce a return for the company.
> (3) In subsection (2)(c) “*the relevant time*” means the time when the company becomes party to the arrangement or, if later, when the arrangement begins to produce a return for the company.
> (4) The credits and debits to be brought into account for the purposes of Part 5 in respect of the return must be determined on an amortised cost basis of accounting.
> (5) But if any of the return is not recognised in determining the company’s profit or loss for any period it is to be treated as recognised using an amortised cost basis of accounting.
> (5) But if any of the return is not recognised in determining the company's profit or loss for any period it is to be treated as recognised using an amortised cost basis of accounting.
> (6) Where two or more persons are party to an arrangement which produces a return such as is mentioned in subsection (1)—
> (a) for the persons (when taken together), but
> (b) not for either (or any) of them individually,
> this section applies as if there were a profit arising to such (if any) of them as are companies from a loan relationship of so much of the return as is just and reasonable.
> (7) The only amounts which may be brought into account for corporation tax purposes in relation to a return such as is mentioned in subsection (1) in the case of any company are those which are brought into account in accordance with this section (but see section 486C).
> (8) In subsection (4) “credits” and “debits” include exchange gains and losses arising as a result of translating at different times the carrying value of the return or the amount by reference to which the return falls to be produced.
> (9) In this Chapter “arrangement” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), other than one which constitutes a finance lease (within the meaning given by section 219 of CAA 2001).
> (9) In this Chapter “*arrangement*” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), other than one which constitutes a finance lease (within the meaning given by section 219 of CAA 2001).
> (486C)
> (1) This Chapter does not apply to an arrangement which produces a return for a company if or to the extent that the return—
> (a) is charged to corporation tax as income of the company or brought into account as income of the company for corporation tax purposes no later than the time when amounts are brought into account in relation to the return in accordance with section 486B,
@@ -10788,7 +10808,7 @@
> (a) may not be made by a company if section 486B applies to the company in relation to the return in accordance with subsection (6) of that section,
> (b) must be made no later than the time when the arrangement begins to produce a return for the company, and
> (c) is irrevocable.
> (4) In this section “obtain a relevant tax advantage” means secure that the return (or any part of it) is produced in a way which means that its treatment for corporation tax purposes is more advantageous to the company than it would be if it were—
> (4) In this section “*obtain a relevant tax advantage*” means secure that the return (or any part of it) is produced in a way which means that its treatment for corporation tax purposes is more advantageous to the company than it would be if it were—
> (a) charged to corporation tax as income of the company, or
> (b) brought into account as income of the company for corporation tax purposes,
> at the time when amounts would be brought into account in relation to the return in accordance with section 486B.
@@ -10797,8 +10817,8 @@
> (a) are apportioned for the accounting period in accordance with section 752 of ICTA by virtue of section 747(3) of that Act, or
> (b) are not so apportioned because of section 748(1) of that Act.
> (486E)
> (1) This Chapter does not apply in relation to an accounting period (“the relevant accounting period”) of a company (“the holding company”) for which an arrangement produces a return for the company if the arrangement involves only relevant shares held by the company throughout the relevant period.
> (2) In this section “the relevant period” means the period—
> (1) This Chapter does not apply in relation to an accounting period (“*the relevant accounting period*”) of a company (“the holding company”) for which an arrangement produces a return for the company if the arrangement involves only relevant shares held by the company throughout the relevant period.
> (2) In this section “*the relevant period*” means the period—
> (a) beginning with the later of—
> (i) the time when the holding company becomes party to the arrangement, and
> (ii) the time when the arrangement begins to produce a return for the company, and
@@ -10808,9 +10828,9 @@
> (iii) the time when the arrangement ceases to produce a return for the company.
> (3) For the purposes of this section an arrangement “involves only” relevant shares if (and only if) the return produced reflects only an increase in the fair value of the shares.
> (4) For the purposes of subsection (3)—
> (a) “fair value”, in relation to relevant shares held by the holding company, means an amount which the company would obtain from a knowledgeable and willing purchaser of the shares dealing at arm’s length, and
> (a) “*fair value*”, in relation to relevant shares held by the holding company, means an amount which the company would obtain from a knowledgeable and willing purchaser of the shares dealing at arm's length, and
> (b) there is an increase in the fair value of shares even if the increase is realised by the payment of a distribution in respect of the shares.
> (5) In this section “relevant shares” means shares which, throughout the relevant period, are—
> (5) In this section “*relevant shares*” means shares which, throughout the relevant period, are—
> (a) fully paid-up shares of a relevant company, or
> (b) shares of a company, other than a relevant company, which would be accounted for as a liability by the company in which they are shares in accordance with generally accepted accounting practice and which produce for the holding company a return in relation to any amount which is economically equivalent to interest (as to which see Chapter 6A).
> (6) For the purposes of subsection (5)(a) shares are fully paid-up if there are no actual or contingent obligations—
@@ -10841,11 +10861,11 @@
> (a) section 521B (application of Part 5 to some shares as rights under creditor relationship), and
> (b) section 521C (which describes the shares to which the rules apply).
> (3) In this Chapter references to the investing company are to A and references to the issuing company are to B.
> (4) For the purposes of this Chapter, the definition of “share” in section 476(1) only applies so far as it provides that “share” does not include a share in a building society.
> (4) For the purposes of this Chapter, the definition of “share” in section 476(1) only applies so far as it provides that “*share*” does not include a share in a building society.
> (5) Section 550(3) (repos: ignoring effect on borrower of sale of securities) does not apply for the purposes of this Chapter.
> (6) See section 116B of TCGA 1992 for the effect for chargeable gains purposes of shares beginning or ceasing to be shares to which section 521C applies.
> (521B)
> (1) This section applies in relation to the times in a company’s accounting period when—
> (1) This section applies in relation to the times in a company's accounting period when—
> (a) the company holds a share in another company, and
> (b) section 521C (shares accounted for as liabilities) applies to the share.
> (2) Part 5 (and the other provisions of the Corporation Tax Acts) apply as if at those times—
@@ -10867,7 +10887,7 @@
> (a) it is reasonable to assume that it is a return by reference to the time value of that amount of money,
> (b) it is at a rate reasonably comparable to what is (in all the circumstances) a commercial rate of interest, and
> (c) at the relevant time there is no practical likelihood that it will cease to be produced in accordance with the arrangement unless the person by whom it falls to be produced is prevented (by reason of insolvency or otherwise) from producing it.
> (3) In subsection (2)(c) “the relevant time” means the time when the investing company first holds the share or, if later, when the share begins to produce a return for the investing company.
> (3) In subsection (2)(c) “*the relevant time*” means the time when the investing company first holds the share or, if later, when the share begins to produce a return for the investing company.
> (4) The condition mentioned in subsection (1)(d) is that the share does not fall to be treated for the accounting period in question as if it were rights under a creditor relationship of the investing company because of section 490 (holdings in OEICs, unit trusts and offshore funds treated as creditor relationship rights).
> (5) Section 466 (companies connected for an accounting period) applies for the purposes of this section.
> (521D)
@@ -10893,7 +10913,7 @@
> (3) An election under subsection (2)—
> (a) must be made no later than the time when the investing company first holds the share or, if later, when the share begins to produce a return for the investing company, and
> (b) is irrevocable.
> (4) In this section “obtain a relevant tax advantage” means secure that the return produced by the share (or any part of it) is received in a way that means that its treatment for corporation tax purpose is more advantageous to the investing company than it would be if it were—
> (4) In this section “*obtain a relevant tax advantage*” means secure that the return produced by the share (or any part of it) is received in a way that means that its treatment for corporation tax purpose is more advantageous to the investing company than it would be if it were—
> (a) charged to corporation tax as income of the investing company, or
> (b) brought into account as income of the investing company for corporation tax purposes,
> at the time when amounts would be brought into account in relation to the return in accordance with section 521B.
@@ -10906,8 +10926,8 @@
> (2) The investing company is treated for the purposes of Part 5—
> (a) as having disposed of the share immediately before that time for consideration of an amount equal to the notional carrying value of the share at that time, and
> (b) as having immediately reacquired it for consideration of the same amount.
> (3) In subsection (2) “notional carrying value”, in relation to the share, means the amount which would have been its carrying value in the accounts of the investing company if a period of account had ended immediately before section 521B began or ceased to apply in the case of the share and the investing company.
> (4) For the purposes of subsection (3) “carrying value” has the same meaning as it has for the purposes of section 316 (see section 317).
> (3) In subsection (2) “*notional carrying value*”, in relation to the share, means the amount which would have been its carrying value in the accounts of the investing company if a period of account had ended immediately before section 521B began or ceased to apply in the case of the share and the investing company.
> (4) For the purposes of subsection (3) “*carrying value*” has the same meaning as it has for the purposes of section 316 (see section 317).
#### Amendments and repeals
@@ -10915,21 +10935,21 @@
- (1) Section 116B of TCGA 1992 (shares beginning or ceasing to be shares to which section 523 of CTA 2009 applies) is amended as follows.
- (2) In subsection (1) and the heading, for “522” substitute “521B”.
- (3) In subsection (1)(b), for “its fair value” substitute “the notional carrying value of the share”.
- (2) In subsection (1) and the heading, for “522” substitute “ 521B ”.
- (3) In subsection (1)(b), for “its fair value” substitute “ the notional carrying value of the share ”.
- (4) In subsection (2), for the definition of “fair value” substitute—
> “notional carrying value” has the same meaning as in subsection (2) of section 521F of CTA 2009 (see subsection (3) of that section),
> “*notional carrying value*” has the same meaning as in subsection (2) of section 521F of CTA 2009 (see subsection (3) of that section),
.
- (5) In that subsection, in the definition of “investing company”—
- (a) for “7” substitute “6A”, and
- (b) for “with guaranteed returns) (see section 522(3)” substitute “accounted for as liabilities) (see section 521A(3)”.
- (a) for “7” substitute “ 6A ”, and
- (b) for “with guaranteed returns) (see section 522(3)” substitute “ accounted for as liabilities) (see section 521A(3) ”.
##### 6
@@ -10973,7 +10993,7 @@
- (7) Omit the entries relating to “the increasing value condition (in Chapter 7 of Part 6)” and “the redemption return condition (in Chapter 7 of Part 6)”.
- (8) In the entry relating to “share (in Part 5 and in Part 6 except for Chapter 7 of that Part)”, for “7” substitute “6A”.
- (8) In the entry relating to “share (in Part 5 and in Part 6 except for Chapter 7 of that Part)”, for “7” substitute “ 6A ”.
- (9) For the entries relating to “share (in Chapter 7 of Part 6)” and “the share (in Chapter 7 of Part 6) substitute—
@@ -11023,7 +11043,7 @@
##### 10
In section 542(2) of CTA 2009 (introduction to Chapter 10 of Part 6), for “547” substitute “546”.
In section 542(2) of CTA 2009 (introduction to Chapter 10 of Part 6), for “547” substitute “ 546 ”.
#### Commencement
@@ -11061,7 +11081,7 @@
- (2) Part 5 of CTA 2009 applies as if the company had acquired the share on 22 April 2009 for an amount equal to the notional carrying value of the share on that date.
- (3) In sub-paragraph (2) “notional carrying value” has the same meaning as in section 521F(2) of CTA 2009 (see subsection (3) of that section).
- (3) In sub-paragraph (2) “*notional carrying value*” has the same meaning as in section 521F(2) of CTA 2009 (see subsection (3) of that section).
- (4) Section 521F of CTA 2009 does not apply by virtue of the coming into force of section 521B of that Act.
@@ -11085,11 +11105,11 @@
- (1) This Part applies where—
- (a) a company within the charge to corporation tax (“the transferor”) makes a transfer to another person (“the transferee”) of a right to relevant receipts (see sub-paragraph (2)), and
- (a) a company within the charge to corporation tax (“*the transferor*”) makes a transfer to another person (“*the transferee*”) of a right to relevant receipts (see sub-paragraph (2)), and
- (b) (subject to sub-paragraph (3)) the transfer of the right is not a consequence of the transfer to the transferee of an asset from which the right to relevant receipts arises.
- (2) “Relevant receipts” means any income—
- (2) “*Relevant receipts*” means any income—
- (a) which (but for the transfer) would be charged to corporation tax as income of the transferor, or
@@ -11157,9 +11177,9 @@
##### 5
- (1) For the purposes of this Part a transfer of a right to relevant receipts consisting of the reduction in the transferor’s share in the profits or losses of a partnership is to be regarded as a consequence of a transfer of an asset from which the right arose (that is, the partnership property) if condition A or B is met.
- (2) Condition A is that there is a reduction of the transferor’s share in the partnership property and the reduction in the transferor’s share in the profits or losses is proportionate to that reduction.
- (1) For the purposes of this Part a transfer of a right to relevant receipts consisting of the reduction in the transferor's share in the profits or losses of a partnership is to be regarded as a consequence of a transfer of an asset from which the right arose (that is, the partnership property) if condition A or B is met.
- (2) Condition A is that there is a reduction of the transferor's share in the partnership property and the reduction in the transferor's share in the profits or losses is proportionate to that reduction.
- (3) Condition B is that it is not the main purpose, or one of the main purposes, of the transfer to secure that the relevant receipts are not charged to corporation tax or income tax as income of any partner or brought into account as income of any partner for the purpose of either of those taxes.
@@ -11193,9 +11213,9 @@
> (809AZA)
> (1) This Chapter applies where—
> (a) a person within the charge to income tax (“the transferor”) makes a transfer to another person (“the transferee”) of a right to relevant receipts (see subsection (2)), and
> (a) a person within the charge to income tax (“*the transferor*”) makes a transfer to another person (“*the transferee*”) of a right to relevant receipts (see subsection (2)), and
> (b) (subject to subsection (3)) the transfer of the right is not a consequence of the transfer to the transferee of an asset from which the right to relevant receipts arises.
> (2) “Relevant receipts” means any income—
> (2) “*Relevant receipts*” means any income—
> (a) which (but for the transfer) would be charged to income tax as income of the transferor, or
> (b) which (but for the transfer) would be brought into account in calculating profits of the transferor for the purposes of income tax.
> (3) Despite paragraph (b) of subsection (1), this Chapter applies if the transfer of the right is a consequence of the transfer to the transferee of all rights under an agreement for annual payments; and for the purposes of that paragraph the transfer of an asset under a sale and repurchase agreement is not to be regarded as a transfer of the asset.
@@ -11231,8 +11251,8 @@
> (b) annual payments under an annuity which is pension income within the meaning of Part 9 of ITEPA 2003 (see section 566(2) of that Act).
> (809AZE) This Chapter does not apply if the consideration for the transfer is the advance under an arrangement that is a structured finance arrangement for the purposes of section 774A or 774C of ICTA in relation to the transferor or a partnership in which the transferor is a partner.
> (809AZF)
> (1) For the purposes of this Chapter a transfer of a right to relevant receipts consisting of the reduction in a transferor’s share in the profits or losses of a partnership is to be regarded as a consequence of a transfer of an asset from which the right arose (that is, the partnership property) if condition A or B is met.
> (2) Condition A is that there is a reduction of the transferor’s share in the partnership property and the reduction in the transferor’s share in the profits or losses is proportionate to that reduction.
> (1) For the purposes of this Chapter a transfer of a right to relevant receipts consisting of the reduction in a transferor's share in the profits or losses of a partnership is to be regarded as a consequence of a transfer of an asset from which the right arose (that is, the partnership property) if condition A or B is met.
> (2) Condition A is that there is a reduction of the transferor's share in the partnership property and the reduction in the transferor's share in the profits or losses is proportionate to that reduction.
> (3) Condition B is that it is not the main purpose, or one of the main purposes, of the transfer to secure that the relevant receipts are not charged to income tax or corporation tax as income of any partner or brought into account as income of any partner for the purpose of either of those taxes.
> (809AZG)
> (1) For the purposes of this Chapter—
@@ -11259,8 +11279,8 @@
- (3) After Chapter 2A (inserted by Schedule 24) insert—
> (486F)
> (1) This Chapter provides for Part 5 to apply in relation to a company to which an income stream transfer is made (“the transferee”).
> (2) An “income stream transfer” is a transfer by a person (“the transferor”) to which either of the following provisions applies—
> (1) This Chapter provides for Part 5 to apply in relation to a company to which an income stream transfer is made (“*the transferee*”).
> (2) An “income stream transfer” is a transfer by a person (“*the transferor*”) to which either of the following provisions applies—
> (a) Part 1 of Schedule 25 to FA 2009 (transfers of income streams by companies), or
> (b) Chapter 5A of Part 13 of ITA 2007 (transfers of income streams by individuals).
> (486G)
@@ -11323,7 +11343,7 @@
- (i) in CTA 2009, in Schedule 1, paragraphs 214 and 230.
- (4) In section 785ZB(3) of ICTA, for “has the same meaning as in section 785A” substitute “includes an underlease, sublease, tenancy or licence and an agreement for any of those things”.
- (4) In section 785ZB(3) of ICTA, for “has the same meaning as in section 785A” substitute “ includes an underlease, sublease, tenancy or licence and an agreement for any of those things ”.
- (5) In section 2(13) of ITA 2007, omit the “and” at the end of paragraph (d) and insert at the end
@@ -11364,27 +11384,27 @@
- (1) Section 705 (certification of arrangements) is amended as follows.
- (2) In subsections (1) and (2), for “Treasury” (in each place) substitute “Commissioners”.
- (2) In subsections (1) and (2), for “Treasury” (in each place) substitute “ Commissioners ”.
- (3) After subsection (4) insert—
> (5) In this Chapter “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs.
> (5) In this Chapter “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs.
##### 3
In section 706(1) and (2) (withdrawal and variation of certifications etc), for “Treasury” substitute “Commissioners”.
In section 706(1) and (2) (withdrawal and variation of certifications etc), for “Treasury” substitute “ Commissioners ”.
##### 4
In section 707(1) (authorisation of providers), for “Treasury” substitute “Commissioners”.
In section 707(1) (authorisation of providers), for “Treasury” substitute “ Commissioners ”.
##### 5
- (1) Section 708 (withdrawal and variation of authorisations) is amended as follows.
- (2) In subsections (1) and (2), for “Treasury” substitute “Commissioners”.
- (3) In subsection (4), for “Treasury of its” substitute “Commissioners of their”.
- (2) In subsections (1) and (2), for “Treasury” substitute “ Commissioners ”.
- (3) In subsection (4), for “Treasury of its” substitute “ Commissioners of their ”.
#### Removal of requirement that notice be sent by post
@@ -11400,7 +11420,7 @@
##### 7
In section 706(2)(b) (notification of withdrawal and variation of certifications etc), for “28 days” substitute “15 days”.
In section 706(2)(b) (notification of withdrawal and variation of certifications etc), for “28 days” substitute “ 15 days ”.
#### Power to provide for withdrawals and variations not to affect certain contracts
@@ -11430,9 +11450,7 @@
- (1) Section 809D (application of remittance basis without claim where unremitted foreign income and gains under £2,000) is amended as follows.
- (2) In subsection (1), insert at the end (not as part of paragraph (c))—
> unless condition A or condition B is met.
- (2) In subsection (1), insert at the end (not as part of paragraph (c))— “ unless condition A or condition B is met. ”
- (3) After that subsection insert—
@@ -11447,13 +11465,11 @@
> (c) for that year the individual either has no UK income or gains or has no UK income and gains other than taxed investment income not exceeding £100.
- (3) In that subsection, insert at the end (not as part of paragraph (e))—
> unless the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year.
- (3) In that subsection, insert at the end (not as part of paragraph (e))— “ unless the individual gives notice in a return under section 8 of TMA 1970 that this section is not to apply in relation to the individual for that year. ”
- (4) After subsection (2) insert—
> (2A) For the purposes of subsection (1)(c) “taxed investment income” means UK income or gains consisting of payments within section 946 from which a sum representing income tax has been deducted.
> (2A) For the purposes of subsection (1)(c) “*taxed investment income*” means UK income or gains consisting of payments within section 946 from which a sum representing income tax has been deducted.
##### 5
@@ -11467,7 +11483,7 @@
- (2) Omit subsection (8).
- (3) In subsection (9), for “income or chargeable gains are used in respect of a debt include cases where income or chargeable gains are” substitute “property (including income or chargeable gains) is used in respect of a debt include cases where the property is”.
- (3) In subsection (9), for “income or chargeable gains are used in respect of a debt include cases where income or chargeable gains are” substitute “ property (including income or chargeable gains) is used in respect of a debt include cases where the property is ”.
##### 7
@@ -11477,8 +11493,8 @@
- (3) In subsection (3), after paragraph (c) insert—
> (ca) “participator”, in relation to a close company, means a person who is a participator in relation to the company for the purposes of section 419 of ICTA (see sections 417(1) and 419(7) of that Act),
> (cb) “51% subsidiary” has the same meaning as in the Corporation Tax Acts (see section 838 of ICTA),
> (ca) “*participator*”, in relation to a close company, means a person who is a participator in relation to the company for the purposes of section 419 of ICTA (see sections 417(1) and 419(7) of that Act),
> (cb) “*51% subsidiary*” has the same meaning as in the Corporation Tax Acts (see section 838 of ICTA),
.
@@ -11492,9 +11508,9 @@
- (1) Section 809T (foreign chargeable gains accruing on disposals made other than for full consideration) is amended as follows.
- (2) In subsection (1)(b), after “amount” insert “at least”.
- (3) In the heading, for “**other**” substitute “**otherwise**”.
- (2) In subsection (1)(b), after “amount” insert “ at least ”.
- (3) In the heading, for “**other**” substitute “ **otherwise** ”.
##### 10
@@ -11518,7 +11534,7 @@
##### 12
In section 14A(3)(b) of TCGA 1992 (section 13: non-UK domiciled individuals), after “amount” insert “at least”.
In section 14A(3)(b) of TCGA 1992 (section 13: non-UK domiciled individuals), after “amount” insert “ at least ”.
#### ITTOIA 2005
@@ -11561,19 +11577,17 @@
- (1) Section 121(1) (method of calculating cash equivalent of benefit of car) is amended as follows.
- (2) In step 3, insert at the end—
> The resulting amount is the interim sum.
- (2) In step 3, insert at the end— “ The resulting amount is the interim sum. ”
- (3) Omit step 4 (interim sum to be £80,000 if step 3 amount exceeds £80,000).
##### 3
In section 145(5) (modifications of provisions where car temporarily replaced), for “step 4” substitute “step 3”.
In section 145(5) (modifications of provisions where car temporarily replaced), for “step 4” substitute “ step 3 ”.
##### 4
In section 147(1) and (2) (classic cars), for “amount carried forward from” substitute “interim sum calculated under”.
In section 147(1) and (2) (classic cars), for “amount carried forward from” substitute “ interim sum calculated under ”.
##### 5
@@ -11585,7 +11599,7 @@
In section 139(4) (car with a CO₂ emissions figure: the appropriate percentage), for the table substitute—
| Tax year | Lower threshold (in g/km) |
| *Tax year* | *Lower threshold (in g/km)* |
| --- | --- |
| 2009-10 | 135 |
| 2010-11 | 130 |
@@ -11597,13 +11611,13 @@
##### 7
In section 140(3)(a) (appropriate percentage for electrically propelled cars), for “15%” substitute “9%”.
In section 140(3)(a) (appropriate percentage for electrically propelled cars), for “15%” substitute “ 9% ”.
##### 8
In section 142 (special provision for cars registered before 1998)—
- (a) in subsection (3) (cars without internal combustion engine with reciprocating pistons), for the words after “year is” substitute “32%”, and
- (a) in subsection (3) (cars without internal combustion engine with reciprocating pistons), for the words after “year is” substitute “ 32% ”, and
- (b) omit subsection (4) (definition of electrically propelled car).
@@ -11631,13 +11645,11 @@
- (2) In paragraph 4, in sub-paragraph (4)—
- (a) in paragraph (a), for “the amount deducted under section 922(2) of ITA 2007 or (as the case may be)” substitute “the relevant amount in relation to the amount deducted under section 922(2) of ITA 2007 or the whole of the amount”,
- (b) in paragraph (b), for “the amount so deducted or” substitute “the relevant amount in relation to the amount so deducted or the whole of the amount”, and
- (c) insert at the end—
> For the meaning of references in this paragraph to the relevant amount in relation to an amount deducted under section 922(2) of ITA 2007, see paragraph 4A.
- (a) in paragraph (a), for “the amount deducted under section 922(2) of ITA 2007 or (as the case may be)” substitute “ the relevant amount in relation to the amount deducted under section 922(2) of ITA 2007 or the whole of the amount ”,
- (b) in paragraph (b), for “the amount so deducted or” substitute “ the relevant amount in relation to the amount so deducted or the whole of the amount ”, and
- (c) insert at the end— “ For the meaning of references in this paragraph to the relevant amount in relation to an amount deducted under section 922(2) of ITA 2007, see paragraph 4A. ”
- (3) After that paragraph insert—
@@ -11660,8 +11672,8 @@
> (b) the amount so paid exceeds the relevant net amount, and
> (c) it is reasonable to assume that, in deciding the repurchase price of the securities, no account was taken of the fact that the amount would be so paid.
> (5) In this paragraph “the repurchase price” of the securities means the price at which the payer of the manufactured overseas dividend is entitled or obliged to sell the securities, or similar securities, to the recipient of the manufactured overseas dividend.
> (6) In this paragraph “the securities” means the securities in respect of which the overseas dividend of which the manufactured overseas dividend is representative is paid.
> (7) In this paragraph “the relevant net amount” means—
> (6) In this paragraph “*the securities*” means the securities in respect of which the overseas dividend of which the manufactured overseas dividend is representative is paid.
> (7) In this paragraph “*the relevant net amount*” means—
> (a) the gross amount of the overseas dividend of which the manufactured overseas dividend is representative, less
> (b) the amount deducted under section 922(2) of ITA 2007.
@@ -11671,7 +11683,7 @@
- (1) Section 736B of ICTA (deemed manufactured payments in the case of stock lending arrangements) is amended as follows.
- (2) In subsection (2), for “subsection (2A)” substitute “subsections (2A) and (2B)”.
- (2) In subsection (2), for “subsection (2A)” substitute “ subsections (2A) and (2B) ”.
- (3) After subsection (2A) insert—
@@ -11689,9 +11701,9 @@
- (3) In this paragraph—
- “interest” has the same meaning as in section 736B of ICTA;
- “overseas dividend” has the same meaning as in Schedule 23A to ICTA.
- “*interest*” has the same meaning as in section 736B of ICTA;
- “*overseas dividend*” has the same meaning as in Schedule 23A to ICTA.
## SCHEDULE 30
@@ -11703,34 +11715,34 @@
> (384A)
> (1) Relief is not to be given under this Chapter for interest paid by a person on a loan if—
> (a) the loan is made to the person (“the borrower”) as part of arrangements which appear very likely to produce a post-tax advantage, and
> (a) the loan is made to the person (“*the borrower*”) as part of arrangements which appear very likely to produce a post-tax advantage, and
> (b) the arrangements seem to have been designed to reduce any income tax or capital gains tax to which the borrower (or any person whose circumstances are like those of the borrower) would be liable apart from the arrangements.
> (2) Arrangements “appear very likely” to produce a post-tax advantage if (and only if) it would be reasonable to assume from either or both of—
> (a) the likely effect of the arrangements, and
> (b) the circumstances in which the arrangements, or any parts of the arrangements, are entered into or effected,
> that there is no risk, or only an insignificant risk, that they will not produce a post-tax advantage.
> (3) “Produce a post-tax advantage” means give rise to a sum or sums—
> (3) “*Produce a post-tax advantage*” means give rise to a sum or sums—
> (a) payable to the borrower or a person connected with the borrower, or
> (b) payable to any other person for the benefit of the borrower or a person connected with the borrower,
> of an amount (or aggregate amount) which, after making the appropriate tax adjustments, is equal to or greater than the relevant amount.
> (4) “The relevant amount” is the aggregate of—
> (a) the amount required to meet the borrower’s obligations in respect of the loan, and
> (a) the amount required to meet the borrower's obligations in respect of the loan, and
> (b) any amount which is used by the borrower in the same way as that which entitles the borrower to relief under this Chapter in respect of the loan and is not money lent to the borrower under any loan.
> (5) If, with a view to securing that the condition in subsection (1)(a) is not met, the arrangements make provision for securing that, in all or any circumstances in which they do not produce a post-tax advantage, they will produce a broadly compensatory amount, the arrangements are to be regarded for the purposes of subsection (2) as making provision for securing the production of a post-tax advantage in those circumstances.
> (6) “Produce a broadly compensatory amount” means give rise to a sum or sums payable as mentioned in subsection (3) of an amount (or aggregate amount) which, after making the appropriate tax adjustments, is not significantly less than the relevant amount.
> (6) “*Produce a broadly compensatory amount*” means give rise to a sum or sums payable as mentioned in subsection (3) of an amount (or aggregate amount) which, after making the appropriate tax adjustments, is not significantly less than the relevant amount.
> (7) For the purposes of subsections (3) and (6) causing the value of an asset to be obtainable, directly or indirectly, by a person is to be treated as equivalent to giving rise to a sum payable to the person of an amount equal to that value.
> (8) To make the appropriate tax adjustments for the purpose of subsection (3) or (6)—
> (a) if A exceeds B, deduct the amount of the excess from the amount (or aggregate amount), and
> (b) if B exceeds A, add the amount of the excess to the amount (or aggregate amount).
> (9) For the purposes of subsection (8)—
> - A is the amount of any income tax, any capital gains tax and any tax under the law of a territory outside the United Kingdom to which the borrower is liable in consequence of the arrangements, and
> - B is the amount by which the borrower’s liability to income tax and capital gains tax is (or apart from subsection (1) would be) reduced in consequence of the arrangements.
> - B is the amount by which the borrower's liability to income tax and capital gains tax is (or apart from subsection (1) would be) reduced in consequence of the arrangements.
> (10) Arrangements seem to have been designed to reduce any income tax or capital gains tax to which the borrower (or any person whose circumstances are like those of the borrower) would be liable apart from the arrangements if (and only if) it would be reasonable to assume from either or both of—
> (a) the likely effect of the arrangements, and
> (b) the circumstances in which the arrangements, or any parts of the arrangements, are entered into or effected,
> that the arrangements, or any parts of the arrangements, are designed to do so.
> (11) In this section “arrangements” means arrangements consisting of any number of agreements, understandings, schemes, transactions or other arrangements (whether or not legally enforceable); but in subsections (1)(a), (2), (5) and (9) the references to arrangements also include any related transactions.
> (12) In subsection (11) “related transactions” means transactions in the case of which it is reasonable to assume from either or both of—
> (11) In this section “*arrangements*” means arrangements consisting of any number of agreements, understandings, schemes, transactions or other arrangements (whether or not legally enforceable); but in subsections (1)(a), (2), (5) and (9) the references to arrangements also include any related transactions.
> (12) In subsection (11) “*related transactions*” means transactions in the case of which it is reasonable to assume from either or both of—
> (a) the likely effect of the transactions, and
> (b) the circumstances in which the transactions are entered into or effected,
> that the transactions would not have been entered into or effected independently of the arrangements.
@@ -11751,9 +11763,9 @@
> (b) condition A, B or C is met, and
> (c) an amount is not fully recognised for the period in respect of the creditor relationship as a result of the application of generally accepted accounting practice in relation to the creditor relationship and the debtor relationship, contribution or securities referred to in the condition that is met.
- (3) In subsection (3)(b), after “to the” insert “creditor relationship and the debtor”.
- (4) In paragraph (b) of subsection (4), after “to the” insert “creditor relationship and the relevant capital”.
- (3) In subsection (3)(b), after “to the” insert “ creditor relationship and the debtor ”.
- (4) In paragraph (b) of subsection (4), after “to the” insert “ creditor relationship and the relevant capital ”.
- (5) After that subsection insert—
@@ -11763,9 +11775,9 @@
- (6) In subsection (6)—
- (a) for “or a relevant capital contribution to it” substitute “, a contribution to it or securities issued by it”, and
- (b) for “or contribution” (in both places) substitute “, contribution or securities”.
- (a) for “or a relevant capital contribution to it” substitute “ , a contribution to it or securities issued by it ”, and
- (b) for “or contribution” (in both places) substitute “ , contribution or securities ”.
- (7) In section 317(5) of CTA 2009 (carrying value), before paragraph (a) insert—
@@ -11790,7 +11802,7 @@
> (3) Condition A is that—
> (a) an amount (a “relevant capital contribution”) has at any time been contributed to the company which forms part of its capital for the period, and
> (b) an amount is not fully recognised for the period in respect of the relevant capital contribution as a result of the application of generally accepted accounting practice in relation to the derivative contract and the relevant contribution.
> (4) It does not matter for the purposes of subsection (3) whether the contribution forms part of the company’s share capital or other capital for the period.
> (4) It does not matter for the purposes of subsection (3) whether the contribution forms part of the company's share capital or other capital for the period.
> (5) Condition B is that—
> (a) the company has issued securities that form part of its capital for the period, and
> (b) an amount is not fully recognised for the period in respect of the securities as a result of the application of generally accepted accounting practice in relation to the derivative contract and the securities.
@@ -11799,7 +11811,7 @@
> (b) an amount is so recognised in respect of only part of the contract, contribution or securities.
> (599B)
> (1) In determining the credits and debits which a company is to bring into account for the period referred to in section 599A(1) for the purposes of this Part in respect of the derivative contract mentioned in section 599A(2), the assumption in subsection (2) is to be made.
> (2) The assumption is that an amount in respect of the whole of the contract in question is recognised in determining the company’s profit or loss for the period.
> (2) The assumption is that an amount in respect of the whole of the contract in question is recognised in determining the company's profit or loss for the period.
> (3) The credits and debits which are to be brought into account for the purposes of this Part by the company in respect of the contract are to be determined on the basis of fair value accounting.
- (2) In section 702(3) of CTA 2009 (carrying value), before paragraph (c) insert—
@@ -11818,7 +11830,7 @@
- (1) Section 418 of CTA 2009 (loan relationships treated differently by connected debtor and creditor) is amended as follows.
- (2) In subsection (1)(b), for “A, B and C” substitute “A and B”.
- (2) In subsection (1)(b), for “A, B and C” substitute “ A and B ”.
- (3) For subsections (2) to (4) substitute—
@@ -11832,15 +11844,15 @@
- (4) After subsection (6) insert—
> (6A) For the purposes of this section the creditor is to be treated as continuing to be a party to the loan relationship even though the creditor has disposed of the creditor’s rights under the loan relationship to another person—
> (6A) For the purposes of this section the creditor is to be treated as continuing to be a party to the loan relationship even though the creditor has disposed of the creditor's rights under the loan relationship to another person—
> (a) under a repo or stock lending arrangement, or
> (b) under a transaction which is treated as not involving any disposal as a result of section 26 of TCGA 1992 (mortgages and charges not to be treated as disposals).
> (6B) For the purposes of this section the creditor is to be treated as continuing to be a party to the loan relationship even though the creditor has disposed of the creditor’s rights under the loan relationship to another person if the disposal was made with the relevant avoidance intention.
> (6B) For the purposes of this section the creditor is to be treated as continuing to be a party to the loan relationship even though the creditor has disposed of the creditor's rights under the loan relationship to another person if the disposal was made with the relevant avoidance intention.
> (6C) The relevant avoidance intention is the intention of eliminating or reducing the credits to be brought into account for the purposes of this Part.
- (5) In subsection (7), for “Section 419 supplements” substitute “Sections 418A and 419 supplement”.
- (6) In the heading, for “**treated differently by connected debtor and creditor**” substitute “**involving connected debtor and creditor where debits exceed credits**”.
- (5) In subsection (7), for “Section 419 supplements” substitute “ Sections 418A and 419 supplement ”.
- (6) In the heading, for “**treated differently by connected debtor and creditor**” substitute “ **involving connected debtor and creditor where debits exceed credits** ”.
- (7) After section 418 insert—
@@ -11850,7 +11862,7 @@
> (b) rights and liabilities under one or more derivative financial instruments or equity instruments.
> (2) Where the debtor, in accordance with generally accepted accounting practice, treats the rights and liabilities under the loan relationship as so divided, section 418 has effect as if the reference to the loan relationship in subsection (3)(a) were to the host contract.
> (3) Where the creditor, in accordance with generally accepted accounting practice, treats the rights and liabilities under the loan relationship as so divided, section 418 has effect as if the reference to the loan relationship in subsection (3)(b) were to the host contract.
> (4) In this section “the debtor” and “the creditor” have the same meaning as in section 418.
> (4) In this section “*the debtor*” and “*the creditor*” have the same meaning as in section 418.
- (8) The amendments made by this paragraph have effect in relation to debits and credits arising on or after 22 April 2009.
@@ -11858,9 +11870,9 @@
##### 5
- (1) In section 540(3) of CTA 2009 (manufactured interest treated as interest under loan relationship), insert at the end “and the credits and debits to be brought into account in respect of manufactured interest for any period are those that are recognised in determining the company’s profit or loss for the period in accordance with generally accepted accounting practice (but subject to the provisions of Part 5, including, in particular, section 307(3) and to paragraph 7A of Schedule 23A to ICTA).”
- (2) In section 97(2) of FA 1996 (equivalent provision for accounting periods ending before 1 April 2009), insert at the end “and the credits and debits to be brought into account in respect of manufactured interest for any period are those that are recognised in determining the company’s profit or loss for the period in accordance with generally accepted accounting practice (but subject to the provisions of this Chapter (including, in particular, section 84(1)) and to paragraph 7A of Schedule 23A to the Taxes Act 1988).”
- (1) In section 540(3) of CTA 2009 (manufactured interest treated as interest under loan relationship), insert at the end “and the credits and debits to be brought into account in respect of manufactured interest for any period are those that are recognised in determining the company's profit or loss for the period in accordance with generally accepted accounting practice (but subject to the provisions of Part 5, including, in particular, section 307(3) and to paragraph 7A of Schedule 23A to ICTA).”
- (2) In section 97(2) of FA 1996 (equivalent provision for accounting periods ending before 1 April 2009), insert at the end “and the credits and debits to be brought into account in respect of manufactured interest for any period are those that are recognised in determining the company's profit or loss for the period in accordance with generally accepted accounting practice (but subject to the provisions of this Chapter (including, in particular, section 84(1)) and to paragraph 7A of Schedule 23A to the Taxes Act 1988).”
- (3) The amendments made by this paragraph have effect in relation to manufactured interest whenever paid, apart from payments treated under section 737A(5) of ICTA as made before 27 January 2009.
@@ -11876,7 +11888,7 @@
##### 2
In paragraph 6(3) (meaning of “business of leasing plant or machinery”: condition A), for “accounting value of the plant or machinery owned by the relevant company on the relevant day” substitute “relevant plant or machinery value”.
In paragraph 6(3) (meaning of “business of leasing plant or machinery”: condition A), for “accounting value of the plant or machinery owned by the relevant company on the relevant day” substitute “ relevant plant or machinery value ”.
#### Paragraph 7
@@ -11892,7 +11904,7 @@
> (b) the amounts (if any) which would be shown in the appropriate balance sheet of the relevant company drawn up as at the end of the relevant day in respect of relevant transferred plant or machinery.
> (3A) For the purposes of sub-paragraph (3)(b) plant or machinery is “relevant transferred plant or machinery” if an amount in respect of it would be shown in the appropriate balance sheet of an associated company drawn up as at the start of the relevant day.
- (3) In sub-paragraph (4), for “this purpose” substitute “the purposes of this paragraph”.
- (3) In sub-paragraph (4), for “this purpose” substitute “ the purposes of this paragraph ”.
- (4) In sub-paragraph (8)(a), omit “as at the start of the relevant day”.
@@ -11929,7 +11941,7 @@
- (2) In sub-paragraph (1)—
- (a) after “paragraph” insert “and paragraph 17A”, and
- (a) after “paragraph” insert “ and paragraph 17A ”, and
- (b) for paragraph (a) substitute—
@@ -11946,7 +11958,7 @@
> (b) the amounts (if any) which would be shown in the appropriate balance sheet of the relevant company drawn up as at the end of the relevant day in respect of relevant transferred plant or machinery.
> (2B) For the purposes of sub-paragraph (2A)(b) plant or machinery is “relevant transferred plant or machinery” if an amount in respect of it would be shown in the appropriate balance sheet of an associated company drawn up as at the start of the relevant day.
- (4) In sub-paragraph (3), for “this purpose” substitute “the purposes of this paragraph”.
- (4) In sub-paragraph (3), for “this purpose” substitute “ the purposes of this paragraph ”.
- (5) In sub-paragraph (7)(a), omit “as at the start of the relevant day”.
@@ -11975,7 +11987,7 @@
##### 7
In paragraph 22(2) (migration), for “owned by the company” substitute “in respect of which an amount would be shown in a balance sheet of the company drawn up immediately before the relevant day in accordance with generally accepted accounting practice”.
In paragraph 22(2) (migration), for “owned by the company” substitute “ in respect of which an amount would be shown in a balance sheet of the company drawn up immediately before the relevant day in accordance with generally accepted accounting practice ”.
#### Paragraph 40
@@ -11989,7 +12001,7 @@
In paragraph 41 (definitions), after sub-paragraph (5) insert—
> (5A) “Long funding finance lease”, “long funding lease” and “long funding operating lease” have the same meaning as in Part 2 of CAA 2001 (see section 70YI of that Act).
> (5A) “*Long funding finance lease*”, “*long funding lease*” and “*long funding operating lease*” have the same meaning as in Part 2 of CAA 2001 (see section 70YI of that Act).
#### Paragraph 42
@@ -12026,12 +12038,12 @@
- (2) In the Table in subsection (2), for item 5A substitute—
| 5A. Commencement of the term of a long funding finance lease of the plant or machinery. | The greater of— the market value of the plant or machinery at the commencement of the term of the lease, and the qualifying lease payments. |
| 5A. Commencement of the term of a long funding finance lease of the plant or machinery. | The greater of—the market value of the plant or machinery at the commencement of the term of the lease, andthe qualifying lease payments. |
| --- | --- |
- (3) After subsection (5) insert—
> (5A) In item 5A of the Table “qualifying lease payments” means the minimum payments under the lease (including any initial payment), excluding the following—
> (5A) In item 5A of the Table “*qualifying lease payments*” means the minimum payments under the lease (including any initial payment), excluding the following—
> (a) so much of any payment as, under generally accepted accounting practice, falls (or would fall) to be treated as the gross return on investment in respect of the lease,
> (b) so much of any payment as represents charges for services, and
> (c) so much of any payment as represents qualifying UK or foreign tax (within the meaning of section 70YE) to be paid by the lessor.
@@ -12046,15 +12058,15 @@
- (1) Section 25A of TCGA 1992 (long funding leases of plant or machinery: deemed disposals) is amended as follows.
- (2) In subsection (2)(a), for “the value described in subsection (4)(a) or (b)” substitute “the relevant disposal value”.
- (2) In subsection (2)(a), for “the value described in subsection (4)(a) or (b)” substitute “ the relevant disposal value ”.
- (3) For subsections (4) to (4D) substitute—
> (4) “Relevant disposal value” means—
> (4) “*Relevant disposal value*” means—
> (a) in relation to a long funding finance lease, the disposal value described in item 5A of the table in section 61(2) of the Capital Allowances Act (disposal values), and
> (b) in relation to a long funding operating lease, the disposal value described in item 5B of that table.
- (4) In subsection (5), omit ““market value”,”.
- (4) In subsection (5), omit “ “market value”,”.
##### 4
@@ -12092,29 +12104,29 @@
> (b) the plant or machinery begins to be used wholly or partly for purposes other than those of the qualifying activity, or
> (c) the qualifying activity is permanently discontinued.
- (4) In subsection (2)(a), for “termination of the lease” substitute “relevant event”.
- (4) In subsection (2)(a), for “termination of the lease” substitute “ relevant event ”.
- (5) For subsections (3) to (8) substitute—
> (2A) The amount of the disposal value is—
> $$(QE-QA)+R$ where— QE is the person’s qualifying expenditure on the provision of the plant or machinery, QA is the qualifying amount (see subsections (2B) to (2E)), and R is any relevant rebate (see subsections (2F) and (2G)).$
> (2B) In the case of a long funding operating lease, “the qualifying amount” means the aggregate amount of the reductions made under section 502K of ICTA or section 148I of ITTOIA 2005 for periods of account in which the person was the lessee.
> (2C) In the case of a long funding finance lease, “the qualifying amount” means the aggregate of—
> $$(QE-QA)+R$where—QE is the person's qualifying expenditure on the provision of the plant or machinery,QA is the qualifying amount (see subsections (2B) to (2E)), andR is any relevant rebate (see subsections (2F) and (2G)).$
> (2B) In the case of a long funding operating lease, “*the qualifying amount*” means the aggregate amount of the reductions made under section 502K of ICTA or section 148I of ITTOIA 2005 for periods of account in which the person was the lessee.
> (2C) In the case of a long funding finance lease, “*the qualifying amount*” means the aggregate of—
> (a) the payments made to the lessor by the person under the lease (including any initial payment), and
> (b) the payments made to the lessor by the person under a guarantee of any residual amount (as defined in section 70YE),
> subject to subsection (2D).
> (2D) The following are excluded from the “qualifying amount” under subsection (2C)—
> (a) so much of any payment as, in accordance with generally accepted accounting practice, falls (or would fall) to be shown in the person’s accounts as finance charges in respect of the lease,
> (a) so much of any payment as, in accordance with generally accepted accounting practice, falls (or would fall) to be shown in the person's accounts as finance charges in respect of the lease,
> (b) so much of any payment as represents charges for services, and
> (c) so much of any payment as represents qualifying UK or foreign tax (within the meaning of section 70YE) to be paid by the lessor.
> (2E) In the case of a long funding finance lease that is not a transaction at arm’s length, “the qualifying amount” includes only so much of the amounts described in subsection (2C) as would reasonably be expected to have been paid if the lease had been such a transaction.
> (2F) “Relevant rebate” means—
> (2E) In the case of a long funding finance lease that is not a transaction at arm's length, “*the qualifying amount*” includes only so much of the amounts described in subsection (2C) as would reasonably be expected to have been paid if the lease had been such a transaction.
> (2F) “*Relevant rebate*” means—
> (a) in a case falling within subsection (1A)(a), any amount calculated by reference to the termination value that is payable for the benefit (directly or indirectly) of the person or another person connected with that person, or
> (b) in a case falling within subsection (1A)(b) or (c), any such amount that would have been so payable if, when the relevant event occurred, the lease had terminated and the plant or machinery had been sold for its market value at that time.
> (2G) In the case of a lease that is not a transaction at arm’s length, “relevant rebate” includes any amount that would reasonably be expected to have fallen within subsection (2F) if the lease had been such a transaction.
> (2G) In the case of a lease that is not a transaction at arm's length, “*relevant rebate*” includes any amount that would reasonably be expected to have fallen within subsection (2F) if the lease had been such a transaction.
> (2H) The amount of the disposal value brought into account under this section cannot be less than nil.
- (6) In subsection (9), for “termination of the lease” substitute “relevant event”.
- (6) In subsection (9), for “termination of the lease” substitute “ relevant event ”.
##### 8
@@ -12126,7 +12138,7 @@
- (1) Section 785C of ICTA (plant and machinery leases: capital receipts to be treated as income: interpretation) is amended as follows.
- (2) In subsection (6), for “subsection (9)” substitute “subsections (9) and (9A)”.
- (2) In subsection (6), for “subsection (9)” substitute “ subsections (9) and (9A) ”.
- (3) In subsection (9)—
@@ -12140,13 +12152,13 @@
> (a) a capital payment is an initial payment under a long-funding lease, and
> (b) under section 61 of the Capital Allowances Act (disposal events and disposal values), the commencement of the term of the lease is an event that requires the lessor to bring a disposal value into account,
> the capital payment is only “relevant” to the extent that it exceeds the disposal value.”
> (9B) “Commencement”, “disposal value”, “initial payment”, “long funding lease” and “the term” have the same meaning as in Part 2 of the Capital Allowances Act.
> (9B) “*Commencement*”, “*disposal value*”, “*initial payment*”, “*long funding lease*” and “*the term*” have the same meaning as in Part 2 of the Capital Allowances Act.
##### 10
- (1) Section 809ZB of ITA 2007 (plant and machinery leases: capital receipts to be treated as income: interpretation) is amended as follows.
- (2) In subsection (6), for “subsection (9)” substitute “subsections (9) and (9A)”.
- (2) In subsection (6), for “subsection (9)” substitute “ subsections (9) and (9A) ”.
- (3) In subsection (9)—
@@ -12160,39 +12172,27 @@
> (a) a capital payment is an initial payment under a long-funding lease, and
> (b) under section 61 of CAA 2001 (disposal events and disposal values), the commencement of the term of the lease is an event that requires the lessor to bring a disposal value into account,
> the capital payment is only “relevant” to the extent that it exceeds the disposal value.”
> (9B) “Commencement”, “disposal value”, “initial payment”, “long funding lease” and “the term” have the same meaning as in Part 2 of CAA 2001.
> (9B) “*Commencement*”, “*disposal value*”, “*initial payment*”, “*long funding lease*” and “*the term*” have the same meaning as in Part 2 of CAA 2001.
##### 11
- (1) The amendments made by paragraphs 9 and 10 have effect in relation to payments made under leases whose inception is on or after 13 November 2008 (subject to sub-paragraph (2)).
- (2) In relation to payments made under leases whose inception is before 22 April 2009, section 785C(9A) of ICTA and section 809ZB(9A) of ITA 2007 (inserted by this Schedule) have effect as if, for the words following paragraph (b), there were substituted “the capital payment is not “relevant””.
- (2) In relation to payments made under leases whose inception is before 22 April 2009, section 785C(9A) of ICTA and section 809ZB(9A) of ITA 2007 (inserted by this Schedule) have effect as if, for the words following paragraph (b), there were substituted “ the capital payment is not “relevant” .
#### Transfer and long funding leaseback: restrictions on lessee’s allowances
##### 12
In section 51A(10) of CAA 2001 (annual investment allowances), insert at the appropriate place—
> section 70DA(2) (transfer and long funding leaseback: no annual investment allowance for lessee),
.
In section 51A(10) of CAA 2001 (annual investment allowances), insert at the appropriate place— “ section 70DA(2) (transfer and long funding leaseback: no annual investment allowance for lessee), ”.
##### 13
In section 52(5) of CAA 2001 (first-year allowances), insert at the appropriate place—
> section 70DA(2) (transfer and long funding leaseback: no first-year allowance for lessee),
.
In section 52(5) of CAA 2001 (first-year allowances), insert at the appropriate place— “ section 70DA(2) (transfer and long funding leaseback: no first-year allowance for lessee), ”.
##### 14
In section 57(3) of CAA 2001 (available qualifying expenditure), insert at the appropriate place—
> section 70DA (transfer and long funding leaseback);
.
In section 57(3) of CAA 2001 (available qualifying expenditure), insert at the appropriate place— “ section 70DA (transfer and long funding leaseback); ”.
##### 15
@@ -12228,15 +12228,15 @@
##### 18
In section 51A(10) of CAA 2001 (annual investment allowances), after “218A” insert “, 229A(2)”.
In section 51A(10) of CAA 2001 (annual investment allowances), after “218A” insert “ , 229A(2) ”.
##### 19
In section 52(5) of CAA 2001 (first-year allowances), after “217” insert “, 229A(2)”.
In section 52(5) of CAA 2001 (first-year allowances), after “217” insert “ , 229A(2) ”.
##### 20
In section 57(3) of CAA 2001 (available qualifying expenditure), after “228(2)” insert “, 229A”.
In section 57(3) of CAA 2001 (available qualifying expenditure), after “228(2)” insert “ , 229A ”.
##### 21
@@ -12268,11 +12268,11 @@
##### 23
In section 216(1)(b)(i) of CAA 2001 (sale and leaseback etc), after “S” insert “or by a person (other than B) who is connected with S”.
In section 216(1)(b)(i) of CAA 2001 (sale and leaseback etc), after “S” insert “ or by a person (other than B) who is connected with S ”.
##### 24
In section 221(1)(b)(i) of CAA 2001 (meaning of “sale and finance leaseback”), for “a qualifying activity carried on by S” substitute “an activity carried on by S or by a person (other than B) who is connected with S,”.
In section 221(1)(b)(i) of CAA 2001 (meaning of “sale and finance leaseback”), for “a qualifying activity carried on by S” substitute “ an activity carried on by S or by a person (other than B) who is connected with S, ”.
##### 25
@@ -12304,7 +12304,7 @@
> (502GD)
> (1) If a company is or has been a lessor under a long funding lease of a film, sections 502B to 502G do not apply in respect of the lease.
> (2) “Film” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act).
> (2) “*Film*” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act).
##### 2
@@ -12312,11 +12312,11 @@
> (148FD)
> (1) If a person is or has been a lessor under a long funding lease of a film, sections 148A to 148F do not apply in respect of the lease.
> (2) “Film” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act).
> (2) “*Film*” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act).
##### 3
The amendments made by paragraphs 1 and 2 have effect where the inception of the long funding lease is on or after 13 November 2008 (“the relevant date”).
The amendments made by paragraphs 1 and 2 have effect where the inception of the long funding lease is on or after 13 November 2008 (“*the relevant date*”).
##### 4
@@ -12376,9 +12376,9 @@
For the purposes of paragraphs 3 to 8—
- (a) “film” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act),
- (b) “rental earnings” has the same meaning as in section 502B of ICTA or section 148A of ITTOIA 2005, and
- (a) “*film*” has the same meaning as in Part 15 of CTA 2009 (see section 1181 of that Act),
- (b) “*rental earnings*” has the same meaning as in section 502B of ICTA or section 148A of ITTOIA 2005, and
- (c) Chapter 6A of Part 2 of CAA 2001 (interpretation of provisions about long funding leases) applies.
@@ -12406,18 +12406,18 @@
- (1) Section 106 (conditions for company) is amended as follows.
- (2) In subsection (2), insert at the end “(subject to section 109 and regulations under section 116)”.
- (2) In subsection (2), insert at the end “ (subject to section 109 and regulations under section 116) ”.
- (3) In subsection (7)(a)(ii)—
- (a) for “fixed-rate” substitute “relevant”, and
- (a) for “fixed-rate” substitute “ relevant ”, and
- (b) omit “(within the meaning of paragraph 2 of Schedule 25 to ICTA (acceptable distribution policy))”.
- (4) After subsection (7) insert—
> (7A) For the purposes of Condition 5—
> (a) “relevant preference share” means a share which is a “relevant preference share” for the purposes of Schedule 18 to ICTA (group relief) or would be but for the fact that it carries a right of conversion into shares or securities in the company, and
> (a) “*relevant preference share*” means a share which is a “*relevant preference share*” for the purposes of Schedule 18 to ICTA (group relief) or would be but for the fact that it carries a right of conversion into shares or securities in the company, and
> (b) a share is “non-voting” if it carries no right to vote at a general meeting of the company or if it carries a right to vote which is contingent on the non-payment of a dividend and which has not become exercisable.
- (5) The amendment made by sub-paragraph (2) is to be treated as always having had effect.
@@ -12428,7 +12428,7 @@
##### 4
- (1) In section 108(3)(a) (conditions for balance of business), for “if it is property involved in the relevant property rental business within the meaning given by section 107(6)(a),” substitute “if it would be shown as an asset if separate accounts were produced for C (tax-exempt),”.
- (1) In section 108(3)(a) (conditions for balance of business), for “if it is property involved in the relevant property rental business within the meaning given by section 107(6)(a),” substitute “ if it would be shown as an asset if separate accounts were produced for C (tax-exempt), ”.
- (2) The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 22 April 2009.
@@ -12454,7 +12454,7 @@
- (4) In subsection (5)—
- (a) after “Conditions 1, 2,” insert “3,” and
- (a) after “Conditions 1, 2,” insert “ 3, ” and
- (b) omit paragraph (b) (but not the “and” at the end).
@@ -12470,7 +12470,7 @@
- (1) In section 115 (profit: financing-cost ratio), after subsection (3) insert—
> (3A) The Commissioners for Her Majesty’s Revenue and Customs may waive a charge in respect of an accounting period where they think that—
> (3A) The Commissioners for Her Majesty's Revenue and Customs may waive a charge in respect of an accounting period where they think that—
> (a) the company was in severe financial difficulties at a time in the accounting period,
> (b) the result of the sum specified in subsection (2) is less than 1.25 in respect of the accounting period because of circumstances that arose unexpectedly, and
> (c) in those circumstances, the company could not reasonably have taken action to avoid the result being less than 1.25.
@@ -12482,7 +12482,7 @@
##### 7
- (1) In section 118(5) (funds awaiting re-investment), after “one or more periods of” insert “(in aggregate)”.
- (1) In section 118(5) (funds awaiting re-investment), after “one or more periods of” insert “ (in aggregate) ”.
- (2) The amendment made by sub-paragraph (1) has effect in relation to accounting periods ending on or after 22 April 2009.
@@ -12494,7 +12494,7 @@
> (136A)
> (1) If they consider it expedient in the public interest the Treasury may make regulations about the application of this Part to activities or situations which involve, or arise in connection with, a relationship between a REIT company and another person.
> (2) In subsection (1) “REIT company” means—
> (2) In subsection (1) “*REIT company*” means—
> (a) a company to which this Part applies, and
> (b) a member of a group to which this Part applies (a “REIT group”).
> (3) The regulations may, in particular—
@@ -12516,9 +12516,9 @@
- (b) the amount of the special annual allowance.
- (2) The individual is a high-income individual if the individual’s relevant income for the tax year is £150,000 or more.
Paragraph 2 makes provision for calculating the individual’s relevant income.
- (2) The individual is a high-income individual if the individual's relevant income for the tax year is £150,000 or more.
Paragraph 2 makes provision for calculating the individual's relevant income.
- (3) Paragraphs 3 to 16 explain what is the total adjusted pension input amount.
@@ -12550,13 +12550,13 @@
- (9) But where—
- (a) the individual’s total pension input amount under section 229 of FA 2004 (annual allowance charge) for the tax year, exceeds
- (a) the individual's total pension input amount under section 229 of FA 2004 (annual allowance charge) for the tax year, exceeds
- (b) the amount of the annual allowance for the tax year (see section 228 of that Act and orders made under it),
the amount in respect of which the special annual allowance charge is charged is reduced by the amount of the excess.
- (10) In calculating the individual’s liability to income tax for the tax year the amount of any income tax to which the individual is liable under this section is to be added at Step 7 of the calculation in section 23 of ITA 2007 (which applies as if this Schedule were a provision listed in section 30 of that Act).
- (10) In calculating the individual's liability to income tax for the tax year the amount of any income tax to which the individual is liable under this section is to be added at Step 7 of the calculation in section 23 of ITA 2007 (which applies as if this Schedule were a provision listed in section 30 of that Act).
- (11) The amount in respect of which the special annual allowance charge is charged is not to be treated as income for any purpose of the Tax Acts.
@@ -12564,19 +12564,33 @@
##### 2
- (1) To find the individual’s relevant income for the tax year take the following steps—
- *Step 1* Identify the individual’s total income.
- *Step 2* Add the amount of any deductions made from any employment income of the individual for the tax year under section 193(2) of FA 2004 or made under Chapter 2 of Part 5 of ITEPA 2003 in accordance with paragraph 51 of Schedule 36 to FA 2004.
- *Step 3* Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than sections 193(4) and 194(1) of FA 2004, to which the individual is entitled for the tax year.
- *Step 4* Deduct the aggregate amount of any relevant contributions, but subject to a maximum of £20,000.
- *Step 5* Add any amount by which what would otherwise be general earnings or specific employment income of the individual for the tax year has been reduced by a post-22 April 2009 salary sacrifice scheme.
- *Step 6* If in the tax year the individual makes, or is treated under section 426 of ITA 2007 as making, a gift that is a qualifying donation for the purposes of Chapter 2 of Part 8 of that Act (gift aid), deduct the grossed up amount of the gift (that is, the amount of the gift grossed up by reference to the basic rate for the tax year). The result is the individual’s relevant income for the tax year unless the result is less than £150,000 and the following provisions provide that the individual’s relevant income is to be a different amount.
- (1) To find the individual's relevant income for the tax year take the following steps—
*Step 1*
Identify the individual's total income.
*Step 2*
Add the amount of any deductions made from any employment income of the individual for the tax year under section 193(2) of FA 2004 or made under Chapter 2 of Part 5 of ITEPA 2003 in accordance with paragraph 51 of Schedule 36 to FA 2004.
*Step 3*
Deduct the amount of any relief under the provisions listed in section 24 of ITA 2007, other than sections 193(4) and 194(1) of FA 2004, to which the individual is entitled for the tax year.
*Step 4*
Deduct the aggregate amount of any relevant contributions, but subject to a maximum of £20,000.
*Step 5*
Add any amount by which what would otherwise be general earnings or specific employment income of the individual for the tax year has been reduced by a post-22 April 2009 salary sacrifice scheme.
*Step 6*
If in the tax year the individual makes, or is treated under section 426 of ITA 2007 as making, a gift that is a qualifying donation for the purposes of Chapter 2 of Part 8 of that Act (gift aid), deduct the grossed up amount of the gift (that is, the amount of the gift grossed up by reference to the basic rate for the tax year).
The result is the individual's relevant income for the tax year unless the result is less than £150,000 and the following provisions provide that the individual's relevant income is to be a different amount.
- (2) If the amount arrived at under sub-paragraph (1) is less than £150,000, take the steps in that sub-paragraph in relation to—
@@ -12584,9 +12598,9 @@
- (b) the tax year before that.
If the result is £150,000 or more for either or both of those earlier tax years the individual’s relevant income for the tax year is to be assumed to be £150,000.
- (3) If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual’s relevant income for the tax year is less than £150,000, it is to be assumed to be £150,000.
If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year is to be assumed to be £150,000.
- (3) If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year is less than £150,000, it is to be assumed to be £150,000.
- (4) In step 4 in sub-paragraph (1) “relevant contributions” are—
@@ -12636,21 +12650,21 @@
- (b) at the time when the individual becomes entitled to all the benefits that may be provided to the individual under the arrangement or dies, there are at least 20 persons in respect of whom defined benefits arrangements subsist under the pension scheme under which benefits are accruing or scheme pensions are being paid, and
- (c) the individual’s becoming entitled to any of the benefits that may be provided to or in respect of the individual under the arrangement is not part of a scheme the main purpose, or one of the main purposes, of which is to avoid or reduce liability to the special annual allowance charge, the annual allowance charge or the lifetime allowance charge.
- (c) the individual's becoming entitled to any of the benefits that may be provided to or in respect of the individual under the arrangement is not part of a scheme the main purpose, or one of the main purposes, of which is to avoid or reduce liability to the special annual allowance charge, the annual allowance charge or the lifetime allowance charge.
- (3) Condition B is that—
- (a) the arrangement is under an occupational pension scheme, a public service pension scheme or a group personal pension scheme,
- (b) the individual’s entitlement to the benefits mentioned in section 229(3)(a) of FA 2004 arises only because the ill-health condition is satisfied, and
- (c) the individual’s becoming entitled to any of the benefits that may be provided to or in respect of the individual under the arrangement is not part of a scheme the main purpose, or one of the main purposes, of which is to avoid or reduce liability to the special annual allowance charge, the annual allowance charge or the lifetime allowance charge.
- (b) the individual's entitlement to the benefits mentioned in section 229(3)(a) of FA 2004 arises only because the ill-health condition is satisfied, and
- (c) the individual's becoming entitled to any of the benefits that may be provided to or in respect of the individual under the arrangement is not part of a scheme the main purpose, or one of the main purposes, of which is to avoid or reduce liability to the special annual allowance charge, the annual allowance charge or the lifetime allowance charge.
##### 5
- (1) Sections 230(1), 233(1) and 234(1) of FA 2004 have effect for arriving at an amount under paragraph 3(2) as if “the pension input period of the arrangement that ends in” were omitted.
- (2) Sections 230 to 237 of FA 2004 have effect for arriving at an amount under paragraph 3(2) as if “tax year” were substituted for “pension input period” in all other places.
- (2) Sections 230 to 237 of FA 2004 have effect for arriving at an amount under paragraph 3(2) as if “tax year” were substituted for “ pension input period ” in all other places.
#### Total adjusted pension input amount: modification in cases of avoidance scheme
@@ -12670,13 +12684,13 @@
- (a) the benefits are capable of assignment (or assignation),
- (b) the assignment (or assignation) is by a transaction between parties at arm’s length, and
- (b) the assignment (or assignation) is by a transaction between parties at arm's length, and
- (c) any power to reduce entitlement to the benefits does not exist.
- (5) If the arrangement ceases to exist during the tax year, the reference in sub-paragraph (3)(b) to the end of the tax year is to the time immediately before it ceases to exist.
- (6) Section 236 of FA 2004 applies for adjusting the amount in sub-paragraph (3)(b) as for adjusting the closing value of an individual’s rights as calculated under section 234(5) of that Act (but as if references to the pension input period were to the tax year and whether or not the arrangement is a defined benefits arrangement).
- (6) Section 236 of FA 2004 applies for adjusting the amount in sub-paragraph (3)(b) as for adjusting the closing value of an individual's rights as calculated under section 234(5) of that Act (but as if references to the pension input period were to the tax year and whether or not the arrangement is a defined benefits arrangement).
#### Protected pension input amounts: general
@@ -12726,7 +12740,7 @@
- (6) But even in that case the whole of the amount so arrived at, to the extent that it is so attributable, is a protected pension input amount if the material change affects at least 50 active members of the pension scheme.
- (7) In this paragraph “the relevant end date” means the end of the tax year or, if earlier, the time when benefits cease to accrue to or in respect of the individual under the arrangement.
- (7) In this paragraph “*the relevant end date*” means the end of the tax year or, if earlier, the time when benefits cease to accrue to or in respect of the individual under the arrangement.
#### Protected pension input amounts: existing cash balance arrangements
@@ -12754,7 +12768,7 @@
- (6) But even in that case the whole of the amount so arrived at, to the extent that it is so attributable, is a protected pension input amount if the material change affects at least 50 active members of the pension scheme.
- (7) In this paragraph “the relevant end date” means the end of the tax year or, if earlier, the time when benefits cease to accrue to or in respect of the individual under the arrangement.
- (7) In this paragraph “*the relevant end date*” means the end of the tax year or, if earlier, the time when benefits cease to accrue to or in respect of the individual under the arrangement.
#### Protected pension input amounts: other existing money purchase arrangements under occupational and public service pension schemes
@@ -12780,7 +12794,7 @@
- (b) at a rate which has not increased during the period beginning with that date and ending with the relevant end date otherwise than in accordance with an agreement made before noon on 22 April 2009 or made pursuant to a written application received by or on behalf of the scheme administrator of the pension scheme before that time.
- (6) In this paragraph “the relevant end date” means the end of the tax year or, if earlier, the time when the individual ceases to be an active member of the pension scheme by reference to the arrangement.
- (6) In this paragraph “*the relevant end date*” means the end of the tax year or, if earlier, the time when the individual ceases to be an active member of the pension scheme by reference to the arrangement.
#### Protected pension input amounts: other existing money purchase arrangements under other pension schemes
@@ -12806,7 +12820,7 @@
the references to before 22 April 2009 (and to that date) in sub-paragraphs (1)(b) and (2) are to the date on which the individual became such an active member pursuant to the application.
- (4) In this paragraph “the relevant end date” means the end of the tax year or, if earlier, the time when the individual ceases to be an active member of the pension scheme by reference to the arrangement.
- (4) In this paragraph “*the relevant end date*” means the end of the tax year or, if earlier, the time when the individual ceases to be an active member of the pension scheme by reference to the arrangement.
#### Protected pension input amounts: existing hybrid arrangements
@@ -12958,7 +12972,7 @@
- (5) But if the infrequent money purchase contributions amount for a tax year would otherwise be greater than the annual allowance for the tax year, it is to be taken to be the annual allowance for the tax year.
- (6) “Relevant contributions” means contributions which are—
- (6) “*Relevant contributions*” means contributions which are—
- (a) relievable pension contributions by or on behalf of the individual, or
@@ -12980,7 +12994,7 @@
- (3) The Treasury may by order made by statutory instrument amend paragraphs 2 to 18.
- (4) An order under sub-paragraph (3) may make provision having effect in relation to times before it is made if it does not increase any person’s liability to tax.
- (4) An order under sub-paragraph (3) may make provision having effect in relation to times before it is made if it does not increase any person's liability to tax.
- (5) No order may be made under sub-paragraph (1) unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, the House of Commons.
@@ -13002,7 +13016,7 @@
- (a) include provision having effect in relation to times before it is made,
- (b) confer discretion on the Commissioners for Her Majesty’s Revenue and Customs or officers of Revenue and Customs, and
- (b) confer discretion on the Commissioners for Her Majesty's Revenue and Customs or officers of Revenue and Customs, and
- (c) make different provision for different cases.
@@ -13030,13 +13044,13 @@
- (1) In this Schedule—
- “group personal pension scheme” means arrangements administered on a group basis under a personal pension scheme which are available to employees of the same employer or of employers which are members of the same group of companies;
- “personal pension scheme” means a pension scheme that is neither an occupational pension scheme nor a public service pension scheme;
- “*group personal pension scheme*” means arrangements administered on a group basis under a personal pension scheme which are available to employees of the same employer or of employers which are members of the same group of companies;
- “*personal pension scheme*” means a pension scheme that is neither an occupational pension scheme nor a public service pension scheme;
- “scheme” (otherwise than in the expression “pension scheme”) includes any arrangement, agreement, understanding, transaction or series of transactions (whether or not legally enforceable).
- (2) For the purposes of the definition of “group personal pension scheme” a company and all of its 75% subsidiaries form a group; and if any of those subsidiaries have 75% subsidiaries the group includes them and their 75% subsidiaries, and so on; and for this purpose “75% subsidiary” has the meaning given by section 838 of ICTA.
- (2) For the purposes of the definition of “group personal pension scheme” a company and all of its 75% subsidiaries form a group; and if any of those subsidiaries have 75% subsidiaries the group includes them and their 75% subsidiaries, and so on; and for this purpose “*75% subsidiary*” has the meaning given by section 838 of ICTA.
- (3) Expressions used in this Schedule and in any provisions of Part 4 of FA 2004 have the same meaning in this Schedule as they have in the provisions of that Part in which they are used.
@@ -13062,7 +13076,7 @@
- (4) In subsection (11), omit “or services” (in each place).
- (5) In the heading, insert at the end **“of goods”**.
- (5) In the heading, insert at the end “ of goods ”.
##### 4
@@ -13105,21 +13119,21 @@
> (4A) Subsection (1) does not apply to services of any of the descriptions specified in Schedule 9.
- (4) In subsection (5), for “add to, or vary, Schedule 5” substitute “amend subsection (4A) by altering the descriptions of services specified in that subsection”.
- (4) In subsection (5), for “add to, or vary, Schedule 5” substitute “ amend subsection (4A) by altering the descriptions of services specified in that subsection ”.
- (5) Omit subsection (6).
- (6) In subsection (7)—
- (a) for “add to or vary Schedule 5” substitute “amend subsection (4A)”, and
- (b) for “addition to or variation of that Schedule” substitute “amendment of that subsection”.
- (a) for “add to or vary Schedule 5” substitute “ amend subsection (4A) ”, and
- (b) for “addition to or variation of that Schedule” substitute “ amendment of that subsection ”.
- (7) In subsection (8)—
- (a) for “addition to or variation of that Schedule” substitute “amendment of subsection (4A)”, and
- (b) for “the Schedule” substitute “that subsection”.
- (a) for “addition to or variation of that Schedule” substitute “ amendment of subsection (4A) ”, and
- (b) for “the Schedule” substitute “ that subsection ”.
##### 6
@@ -13128,13 +13142,13 @@
> (9)
> (1) This section has effect for determining for the purposes of section 7A (or Schedule 4A) or section 8, in relation to any supply of services, whether a person who is the supplier or recipient belongs in one country or another.
> (2) A person who is a relevant business person is to be treated as belonging in the relevant country.
> (3) In subsection (2) “the relevant country” means—
> (3) In subsection (2) “*the relevant country*” means—
> (a) if the person has a business establishment, or some other fixed establishment, in a country (and none in any other country), that country,
> (b) if the person has a business establishment, or some other fixed establishment or establishments, in more than one country, the country in which the relevant establishment is, and
> (c) otherwise, the country in which the person’s usual place of residence is.
> (4) In subsection (3)(b) “relevant establishment” means whichever of the person’s business establishment, or other fixed establishments, is most directly concerned with the supply.
> (5) A person who is not a relevant business person is to be treated as belonging in the country in which the person’s usual place of residence is.
> (6) In this section “usual place of residence”, in relation to a body corporate, means the place where it is legally constituted.
> (c) otherwise, the country in which the person's usual place of residence is.
> (4) In subsection (3)(b) “*relevant establishment*” means whichever of the person's business establishment, or other fixed establishments, is most directly concerned with the supply.
> (5) A person who is not a relevant business person is to be treated as belonging in the country in which the person's usual place of residence is.
> (6) In this section “*usual place of residence*”, in relation to a body corporate, means the place where it is legally constituted.
##### 7
@@ -13142,7 +13156,7 @@
- (2) In subsection (2A)—
- (a) in paragraph (a), for “falling within Schedule 5” substitute “to which section 7A(2)(a) applies made”, and
- (a) in paragraph (a), for “falling within Schedule 5” substitute “ to which section 7A(2)(a) applies made ”, and
- (b) in paragraph (c)—
@@ -13156,11 +13170,11 @@
- (i) omit “falling within paragraphs 1 to 8 of Schedule 5”, and
- (ii) insert at the end “and section 7A(2)(a) applied to the supply”, and
- (b) in the words after the paragraphs, for “falling within that Schedule,” substitute “to which section 7A(2)(a) applies,”.
- (4) In subsection (2E)(b), for “there are services falling within paragraphs 1 to 8 of Schedule 5 which, if used by the transferor for making supplies falling within that Schedule,” substitute “there is a supply to which section 7A(2)(a) applies of services which, if used by the transferor for making such a supply,”.
- (ii) insert at the end “ and section 7A(2)(a) applied to the supply ”, and
- (b) in the words after the paragraphs, for “falling within that Schedule,” substitute “ to which section 7A(2)(a) applies, ”.
- (4) In subsection (2E)(b), for “there are services falling within paragraphs 1 to 8 of Schedule 5 which, if used by the transferor for making supplies falling within that Schedule,” substitute “ there is a supply to which section 7A(2)(a) applies of services which, if used by the transferor for making such a supply, ”.
##### 8
@@ -13168,7 +13182,7 @@
- (2) In subsection (1), after the definition of “regulations” insert—
> “relevant business person” has the meaning given by section 7A(4);
> “*relevant business person*” has the meaning given by section 7A(4);
.
@@ -13176,11 +13190,11 @@
##### 9
Section 97(4)(a) (orders subject to requirement of Parliamentary approval after making), after “5(4)” insert “, 7A(6)”.
Section 97(4)(a) (orders subject to requirement of Parliamentary approval after making), after “5(4)” insert “ , 7A(6) ”.
##### 10
Section 97A(1) (place of supply orders: transitional provision), for “on or after 17th March 1998 under section 7(11)” substitute “under section 7A(6)”.
Section 97A(1) (place of supply orders: transitional provision), for “on or after 17th March 1998 under section 7(11)” substitute “ under section 7A(6) ”.
##### 11
@@ -13196,15 +13210,15 @@
> (d) the provision in an hotel, inn, boarding house or similar establishment of sleeping accommodation or of accommodation in rooms which are provided in conjunction with sleeping accommodation or for the purpose of a supply of catering,
> (e) any works of construction, demolition, conversion, reconstruction, alteration, enlargement, repair or maintenance of a building or civil engineering work, and
> (f) services such as are supplied by estate agents, auctioneers, architects, surveyors, engineers and others involved in matters relating to land.
> (3) In sub-paragraph (2)(c) “holiday accommodation” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use.
> (4) In sub-paragraph (2)(d) “similar establishment” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers.
> (3) In sub-paragraph (2)(c) “*holiday accommodation*” includes any accommodation in a building, hut (including a beach hut or chalet), caravan, houseboat or tent which is advertised or held out as holiday accommodation or as suitable for holiday or leisure use.
> (4) In sub-paragraph (2)(d) “*similar establishment*” includes premises in which there is provided furnished sleeping accommodation, whether with or without the provision of board or facilities for the preparation of food, which are used by, or held out as being suitable for use by, visitors or travellers.
> (2)
> (1) A supply of services consisting of the transportation of passengers (or of any luggage or motor vehicles accompanying passengers) is to be treated as made in the country in which the transportation takes place, and (in a case where it takes place in more than one country) in proportion to the distances covered in each.
> (2) For the purposes of sub-paragraph (1) transportation which takes place partly outside the territorial jurisdiction of a country is to be treated as taking place wholly in the country if—
> (a) it takes place in the course of a journey between two points in the country (whether or not as part of a longer journey involving travel to or from another country), and
> (b) the means of transport used does not (except in an emergency or involuntarily) stop, put in or land in another country in the course of the journey between those two points.
> (3) For the purposes of sub-paragraph (1) a pleasure cruise is to be regarded as the transportation of passengers (so that services provided as part of a pleasure cruise are to be treated as supplied in the same place as the transportation of the passengers).
> (4) In sub-paragraph (3) “pleasure cruise” includes a cruise wholly or partly for education or training.
> (4) In sub-paragraph (3) “*pleasure cruise*” includes a cruise wholly or partly for education or training.
> (3)
> (1) A supply of services consisting of the short-term hiring of a means of transport is to be treated as made in the country in which the means of transport is actually put at the disposal of the person by whom it is hired.
> But this is subject to sub-paragraphs (3) and (4).
@@ -13236,7 +13250,7 @@
> (a) has as the first place at which passengers can embark a place which is within the EC,
> (b) has as the last place at which passengers who embarked in a member State can disembark a place which is within the EC, and
> (c) does not include a stop at a place which is not within the EC and at which passengers can embark or passengers who embarked in a member State can disembark.
> (3) “Relevant point of departure”, in relation to an intra-EC passenger transport operation, is the first place in the intra-EC passenger transport operation at which passengers can embark.
> (3) “*Relevant point of departure*”, in relation to an intra-EC passenger transport operation, is the first place in the intra-EC passenger transport operation at which passengers can embark.
> (4) A place is within the EC if it is within any member State.
> (5) For the purposes of this paragraph the return stage of a return passenger transport operation is to be regarded as a separate passenger transport operation; and for this purpose—
> (a) a return passenger transport operation is one which takes place in more than one country but is expected to end in the country in which it begins, and
@@ -13254,7 +13268,7 @@
> (1) This paragraph applies to a supply of services consisting of the provision of—
> (a) telecommunication services, or
> (b) radio or television broadcasting services.
> (2) In this Schedule “telecommunication services” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including—
> (2) In this Schedule “*telecommunication services*” means services relating to the transmission, emission or reception of signals, writing, images and sounds or information of any nature by wire, radio, optical or other electromagnetic systems, including—
> (a) the related transfer or assignment of the right to use capacity for such transmission, emission or reception, and
> (b) the provision of access to global information networks.
> (3) Where—
@@ -13281,7 +13295,7 @@
> (d) the supply of music, films and games (including games of chance and gambling games),
> (e) the supply of political, cultural, artistic, sporting, scientific, educational or entertainment broadcasts (including broadcasts of events), and
> (f) the supply of distance teaching.
> (4) But where the supplier of a service and the supplier’s customer communicate via electronic mail, this does not of itself mean that the service provided is an electronically supplied service for the purposes of this Schedule.
> (4) But where the supplier of a service and the supplier's customer communicate via electronic mail, this does not of itself mean that the service provided is an electronically supplied service for the purposes of this Schedule.
> (10)
> (1) A supply of services to which this paragraph applies is to be treated as made in the same country as the supply to which it relates.
> (2) This paragraph applies to a supply to a person who is not a relevant business person consisting of the making of arrangements for a supply by or to another person or of any other activity intended to facilitate the making of such a supply.
@@ -13294,14 +13308,14 @@
> (12) A supply of services to a person who is not a relevant business person consisting of the transportation of goods which begins in one member State and ends in another is to be treated as made in the member State in which the transportation begins.
> (13)
> (1) A supply to a person who is not a relevant business person of ancillary transport services is to be treated as made where the services are physically performed.
> (2) “Ancillary transport services” means loading, unloading handling and similar activities.
> (2) “*Ancillary transport services*” means loading, unloading handling and similar activities.
> (14) A supply to a person who is not a relevant business person of services consisting of the valuation of, or carrying out of work on, goods is to be treated as made where the services are physically performed.
> (15) A supply consisting of the provision by a person who belongs in a country which is not a member State (other than the Isle of Man) of electronically supplied services (as to the meaning of which see paragraph 9(3) and (4)) to a person (“the recipient”) who—
> (15) A supply consisting of the provision by a person who belongs in a country which is not a member State (other than the Isle of Man) of electronically supplied services (as to the meaning of which see paragraph 9(3) and (4)) to a person (“*the recipient*”) who—
> (a) is not a relevant business person, and
> (b) belongs in a member State,
> is to be treated as made in the country in which the recipient belongs.
> (16)
> (1) A supply consisting of the provision to a person (“the recipient”) who—
> (1) A supply consisting of the provision to a person (“*the recipient*”) who—
> (a) is not a relevant business person, and
> (b) belongs in a country which is not a member State (other than the Isle of Man),
> of services to which this paragraph applies is to be treated as made in the country in which the recipient belongs.
@@ -13324,11 +13338,11 @@
##### 13
In Article 5 of the Value Added Tax (Tour Operators) Order 1987 ([S.I. 1987/1806](https://www.legislation.gov.uk/uksi/1987/1806))—
In Article 5 of the Value Added Tax (Tour Operators) Order 1987 (S.I. 1987/1806)—
- (a) omit paragraph (1), and
- (b) in paragraph (2) after “treated” insert “for the purposes of this Act”,
- (b) in paragraph (2) after “treated” insert “ for the purposes of this Act ”,
and treat that article as made under section 7A(6)(c) of VATA 1994 (inserted by paragraph 4).
@@ -13377,9 +13391,9 @@
In Schedule 4A to VATA 1994 (inserted by paragraph 11), after paragraph 13 insert—
> (13A)
> (1) A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a means of transport is to be treated as made in the country in which the recipient belongs.
> (1) A supply to a person who is not a relevant business person (“*the recipient*”) of services consisting of the long-term hiring of a means of transport is to be treated as made in the country in which the recipient belongs.
> But this is subject to sub-paragraph (2) and paragraph 3(3) and (4).
> (2) A supply to a person who is not a relevant business person (“the recipient”) of services consisting of the long-term hiring of a pleasure boat which is actually put at the disposal of the recipient at the supplier’s business establishment, or some other fixed establishment of the supplier, is to be treated as made in the country where the pleasure boat is actually put at the disposal of the recipient.
> (2) A supply to a person who is not a relevant business person (“*the recipient*”) of services consisting of the long-term hiring of a pleasure boat which is actually put at the disposal of the recipient at the supplier's business establishment, or some other fixed establishment of the supplier, is to be treated as made in the country where the pleasure boat is actually put at the disposal of the recipient.
> (3) For the purposes of this Schedule, the hiring of a means of transport is “long-term” if it is not short-term (as to the meaning of which see paragraph 3(2)).
##### 18
@@ -13400,7 +13414,7 @@
- (2) The supply is not to be treated as made in the United Kingdom.
- (3) “The commencement date” means the date specified by this Schedule as that on or after which a supply must be made if it is to be treated as made in the United Kingdom by virtue of the amendments.
- (3) “*The commencement date*” means the date specified by this Schedule as that on or after which a supply must be made if it is to be treated as made in the United Kingdom by virtue of the amendments.
## SCHEDULE 37
@@ -13418,26 +13432,26 @@
> (1) This section applies where—
> (a) A and B have entered into an arrangement falling within section 80C(1),
> (b) the conditions in subsection (2A) or (3) of that section are met,
> (c) stock is transferred to A or A’s nominee, and
> (c) stock is transferred to A or A's nominee, and
> (d) the conditions in subsection (2) below are met.
> (2) The conditions in this subsection are that—
> (a) A and B are not connected persons within the meaning of section 839 of the Taxes Act 1988,
> (b) after B has transferred stock under the arrangement, A or B becomes insolvent,
> (c) it becomes apparent (whether before or after the insolvency occurs) that, as a result of the insolvency, stock will not be transferred to B or B’s nominee in accordance with the arrangement,
> (d) the party who does not become insolvent (“the solvent party”) or the solvent party’s nominee acquires replacement stock, and
> (c) it becomes apparent (whether before or after the insolvency occurs) that, as a result of the insolvency, stock will not be transferred to B or B's nominee in accordance with the arrangement,
> (d) the party who does not become insolvent (“the solvent party”) or the solvent party's nominee acquires replacement stock, and
> (e) the replacement stock is acquired before the end of the period of 30 days beginning with the day on which the insolvency occurs (“the insolvency date”).
> (3) Where collateral is provided under the arrangement (or under arrangements of which that arrangement forms part), stamp duty is not chargeable on any instrument transferring to the solvent party or the solvent party’s nominee—
> (3) Where collateral is provided under the arrangement (or under arrangements of which that arrangement forms part), stamp duty is not chargeable on any instrument transferring to the solvent party or the solvent party's nominee—
> (a) replacement stock acquired using the collateral (whether directly or indirectly), or
> (b) where the solvent party uses the whole of the value of the collateral to acquire replacement stock, any further replacement stock.
> (4) Where no collateral is provided as mentioned in subsection (3), stamp duty is not chargeable on any instrument transferring replacement stock to the solvent party or the solvent party’s nominee.
> (4) Where no collateral is provided as mentioned in subsection (3), stamp duty is not chargeable on any instrument transferring replacement stock to the solvent party or the solvent party's nominee.
> (5) Subsections (3) and (4) may apply as regards more than one instrument (and where those subsections apply as regards more than one instrument, the instruments may be executed by different persons).
> (6) But those subsections apply only as regards replacement stock up to the amount of stock which will not be transferred as a result of the insolvency.
> (7) An instrument on which stamp duty is not chargeable by virtue only of subsection (3) or (4) is not to be deemed to be duly stamped unless it has been stamped with a stamp denoting that it is not chargeable with any duty.
> (8) Despite section 122(1) of the Stamp Act 1891, the stamp mentioned in subsection (7) may be a stamp of such kind as the Commissioners for Her Majesty’s Revenue and Customs may prescribe.
> (8) Despite section 122(1) of the Stamp Act 1891, the stamp mentioned in subsection (7) may be a stamp of such kind as the Commissioners for Her Majesty's Revenue and Customs may prescribe.
> (9) For the purposes of this section a person becomes insolvent—
> (a) if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986,
> (b) if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed,
> (c) on the commencement of a creditor’s voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,
> (c) on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,
> (d) if an individual voluntary arrangement takes effect under Part 8 of that Act,
> (e) on the presentation of a bankruptcy petition (within the meaning of Part 9 of that Act),
> (f) if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006,
@@ -13445,14 +13459,14 @@
> (h) if a bank administration order takes effect under Part 3 of that Act, or
> (i) on the occurrence of any corresponding event which has effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom.
> (10) In this section—
> - “collateral” means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party’s nominee for the purpose of securing the discharge of the requirement to transfer stock to that party or the nominee;
> - “replacement stock”, in the event of a party to an arrangement becoming insolvent, is stock of the same kind as the stock which will not be transferred to the other party or that party’s nominee as a result of the insolvency.
> - “*collateral*” means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party's nominee for the purpose of securing the discharge of the requirement to transfer stock to that party or the nominee;
> - “replacement stock”, in the event of a party to an arrangement becoming insolvent, is stock of the same kind as the stock which will not be transferred to the other party or that party's nominee as a result of the insolvency.
##### 3
- (1) In consequence of the amendment made by paragraph 2, section 88(1C) (disregard of certain instruments falling within section 80C(1)) is amended as follows.
- (2) At the beginning of the words after paragraph (c) insert “then, if section 80D does not apply,”.
- (2) At the beginning of the words after paragraph (c) insert “ then, if section 80D does not apply, ”.
## Part 2 — Stamp duty reserve tax
@@ -13467,26 +13481,26 @@
> (89AB)
> (1) This section applies where—
> (a) P and Q have entered into an arrangement falling within section 89AA(1),
> (b) the only reason that the conditions in subsection (2A) or (3) of that section are not met is that chargeable securities of the same kind and amount as those transferred to P or P’s nominee are not transferred to Q or Q’s nominee, and
> (b) the only reason that the conditions in subsection (2A) or (3) of that section are not met is that chargeable securities of the same kind and amount as those transferred to P or P's nominee are not transferred to Q or Q's nominee, and
> (c) the conditions in subsection (2) below are met.
> (2) The conditions in this subsection are that—
> (a) P and Q are not connected persons within the meaning of section 839 of the Taxes Act 1988,
> (b) after Q has transferred securities under the arrangement, either P or Q becomes insolvent,
> (c) it becomes apparent (whether before or after the insolvency occurs) that, as a result of the insolvency, securities will not be transferred to Q or Q’s nominee in accordance with the arrangement.
> (3) Section 87 does not apply as regards an agreement to transfer chargeable securities to P or P’s nominee, or Q or Q’s nominee, in accordance with the arrangement.
> (c) it becomes apparent (whether before or after the insolvency occurs) that, as a result of the insolvency, securities will not be transferred to Q or Q's nominee in accordance with the arrangement.
> (3) Section 87 does not apply as regards an agreement to transfer chargeable securities to P or P's nominee, or Q or Q's nominee, in accordance with the arrangement.
> (4) Subsections (5) and (6) apply if—
> (a) the party who does not become insolvent (“the solvent party”) or the solvent party’s nominee acquires replacement securities, and
> (a) the party who does not become insolvent (“the solvent party”) or the solvent party's nominee acquires replacement securities, and
> (b) the replacement securities are acquired before the end of the period of 30 days beginning with the day on which the insolvency occurs (“the insolvency date”).
> (5) Where collateral is provided under the arrangement (or under arrangements of which that arrangement forms part), section 87 does not apply as regards any agreement to transfer to the solvent party or the solvent party’s nominee—
> (5) Where collateral is provided under the arrangement (or under arrangements of which that arrangement forms part), section 87 does not apply as regards any agreement to transfer to the solvent party or the solvent party's nominee—
> (a) replacement securities acquired using the collateral (whether directly or indirectly), or
> (b) where the solvent party uses the whole of the value of the collateral to acquire replacement securities, any further replacement securities.
> (6) Where no collateral is provided as mentioned in subsection (5), section 87 does not apply as regards any agreement to transfer replacement securities to the solvent party or the solvent party’s nominee.
> (6) Where no collateral is provided as mentioned in subsection (5), section 87 does not apply as regards any agreement to transfer replacement securities to the solvent party or the solvent party's nominee.
> (7) Subsections (5) and (6) may apply as regards more than one agreement (and where those subsections apply as regards more than one agreement, the agreements may be with different persons).
> (8) But those subsections apply only as regards replacement securities up to the amount of securities which will not be transferred as a result of the insolvency.
> (9) For the purposes of this section a person becomes insolvent—
> (a) if a company voluntary arrangement takes effect under Part 1 of the Insolvency Act 1986,
> (b) if an administration application (within the meaning of Schedule B1 to that Act) is made or a receiver or manager, or an administrative receiver, is appointed,
> (c) on the commencement of a creditor’s voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,
> (c) on the commencement of a creditor's voluntary winding up (within the meaning of Part 4 of that Act) or a winding up by the court under Chapter 6 of that Part,
> (d) if an individual voluntary arrangement takes effect under Part 8 of that Act,
> (e) on the presentation of a bankruptcy petition (within the meaning of Part 9 of that Act),
> (f) if a compromise or arrangement takes effect under Part 26 of the Companies Act 2006,
@@ -13494,8 +13508,8 @@
> (h) if a bank administration order takes effect under Part 3 of that Act, or
> (i) on the occurrence of any corresponding event which has effect under or as a result of the law of Scotland or Northern Ireland or a country or territory outside the United Kingdom.
> (10) In this section—
> - “collateral” means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party’s nominee for the purpose of securing the discharge of the requirement to transfer securities to that party or the nominee;
> - “replacement securities”, in the event of a party to an arrangement becoming insolvent, are chargeable securities of the same kind as the securities which will not be transferred to the other party or that party’s nominee as a result of the insolvency.
> - “*collateral*” means an amount of money or other property which is payable to, or made available for the benefit of, a party to an arrangement or that party's nominee for the purpose of securing the discharge of the requirement to transfer securities to that party or the nominee;
> - “replacement securities”, in the event of a party to an arrangement becoming insolvent, are chargeable securities of the same kind as the securities which will not be transferred to the other party or that party's nominee as a result of the insolvency.
## SCHEDULE 38
@@ -13507,7 +13521,7 @@
- (1) Section 163 (meaning of “general decommissioning expenditure”) is amended as follows.
- (2) In subsection (1), for “(3) and (4)” substitute “(3) to (4)”.
- (2) In subsection (1), for “(3) and (4)” substitute “ (3) to (4) ”.
- (3) After subsection (3) insert—
@@ -13518,7 +13532,7 @@
> (i) before the approval of an abandonment programme, and
> (ii) in relation to the decommissioning of the plant or machinery.
- (4) In subsection (5)(b), insert at the beginning ““abandonment programme”, “approval” and “approved” (in relation to an abandonment programme),”.
- (4) In subsection (5)(b), insert at the beginning “ “abandonment programme”, “approval” and “approved” (in relation to an abandonment programme),”.
##### 3
@@ -13533,7 +13547,7 @@
> (c) R incurred general decommissioning expenditure in a previous chargeable period in respect of decommissioning that has not been carried out until the relevant chargeable period.
> (1B) Condition B is that the plant or machinery concerned has been brought into use for the purposes of the ring fence trade.
- (3) In subsection (2)(a), for the words from “the chargeable period” to the end substitute “the relevant chargeable period, and”.
- (3) In subsection (2)(a), for the words from “the chargeable period” to the end substitute “ the relevant chargeable period, and ”.
- (4) In subsection (3)—
@@ -13547,9 +13561,9 @@
.
- (5) In subsection (4)(a), for the words from “the chargeable period” to the end substitute “the relevant chargeable period, and”.
- (6) In subsection (5), for the words from “a chargeable period” to the end substitute “the relevant chargeable period is equal to the amount of the general decommissioning expenditure to which the election relates.”
- (5) In subsection (4)(a), for the words from “the chargeable period” to the end substitute “ the relevant chargeable period, and ”.
- (6) In subsection (5), for the words from “a chargeable period” to the end substitute “ the relevant chargeable period is equal to the amount of the general decommissioning expenditure to which the election relates. ”
- (7) After that subsection insert—
@@ -13557,11 +13571,11 @@
> (5B) If an amount of general decommissioning expenditure to which the election relates is disproportionate to the relevant decommissioning carried out in the specified decommissioning period then, for the purposes of this section, the election is to be taken to specify only the allowable expenditure.
> (5C) The application of subsection (5B) to an amount of general decommissioning expenditure does not prevent a person from making an election under this section for a subsequent chargeable period specifying the non-allowable expenditure.
> (5D) In subsections (5B) and (5C)—
> - “allowable expenditure”, in relation to general decommissioning expenditure, means the amount of the expenditure that is proportionate to the relevant decommissioning carried out in the specified decommissioning period;
> - “non-allowable expenditure”, in relation to general decommissioning expenditure, means so much of that expenditure as is not allowable expenditure;
> - “relevant decommissioning”, in relation to general decommissioning expenditure, means the decommissioning to which the expenditure relates;
> - “specified decommissioning period”, in relation to relevant decommissioning, means the chargeable period specified in the election as the period in which the decommissioning was carried out;
> - “specified expenditure period”, in relation to general decommissioning expenditure, means the chargeable period specified in the election as the period in which the expenditure was incurred.
> - “*allowable expenditure*”, in relation to general decommissioning expenditure, means the amount of the expenditure that is proportionate to the relevant decommissioning carried out in the specified decommissioning period;
> - “*non-allowable expenditure*”, in relation to general decommissioning expenditure, means so much of that expenditure as is not allowable expenditure;
> - “*relevant decommissioning*”, in relation to general decommissioning expenditure, means the decommissioning to which the expenditure relates;
> - “*specified decommissioning period*”, in relation to relevant decommissioning, means the chargeable period specified in the election as the period in which the decommissioning was carried out;
> - “*specified expenditure period*”, in relation to general decommissioning expenditure, means the chargeable period specified in the election as the period in which the expenditure was incurred.
##### 4
@@ -13584,7 +13598,7 @@
> (i) a previous notional accounting period, or
> (ii) a chargeable period falling before the first notional accounting period,
> in respect of decommissioning that has not been carried out until the relevant period.
> (1B) “Notional accounting period” means each of the following periods—
> (1B) “*Notional accounting period*” means each of the following periods—
> (a) the period that—
> (i) begins with the day following the last day on which the former trader carried on the ring fence trade, and
> (ii) ends with the day on which the first termination event subsequently occurs, and
@@ -13592,16 +13606,16 @@
> (i) begins with the day following the last day of a period determined under paragraph (a) or this paragraph, and
> (ii) ends with the day on which the first termination event subsequently occurs;
> but there are to be no notional accounting periods after the end of the post-cessation period.
> (1C) “Termination event”, in relation to a notional accounting period, means each of the following—
> (1C) “*Termination event*”, in relation to a notional accounting period, means each of the following—
> (a) the end of the period of 12 months beginning with the first day of the notional accounting period,
> (b) the occurrence of an accounting date of the former trader or, if there is a period for which the former trader does not make up accounts, the end of that period (but see subsections (6A) and (6B)), and
> (c) the end of the post-cessation period.
- (4) In subsection (3)—
- (a) after “applies” insert “in relation to a notional accounting period”, and
- (b) in paragraph (a), after “relevant decommissioning cost” insert “for that period, or the aggregate of all the relevant decommissioning costs for that period,”.
- (a) after “applies” insert “ in relation to a notional accounting period ”, and
- (b) in paragraph (a), after “relevant decommissioning cost” insert “ for that period, or the aggregate of all the relevant decommissioning costs for that period, ”.
- (5) In subsection (4), for the definition of “the relevant decommissioning cost” substitute—
@@ -13612,20 +13626,20 @@
> (4B) If an amount of general decommissioning expenditure is disproportionate to the relevant decommissioning carried out in the decommissioning period then, for the purposes of this section, only the allowable expenditure is to be taken to have been incurred in the expenditure period.
> (4C) The application of subsection (4B) to an amount of general decommissioning expenditure does not prevent the non-allowable expenditure from being taken into account under this section in relation to a subsequent notional accounting period.
> (4D) In subsections (4B) and (4C)—
> - “allowable expenditure”, in relation to general decommissioning expenditure, means the amount of the expenditure that is proportionate to the relevant decommissioning carried out in the decommissioning period;
> - “decommissioning period”, in relation to relevant decommissioning, means the notional accounting period or chargeable period in which the decommissioning was carried out;
> - “expenditure period”, in relation to general decommissioning expenditure, means the notional accounting period or chargeable period in which the expenditure was incurred;
> - “non-allowable expenditure”, in relation to general decommissioning expenditure, means so much of that expenditure as is not allowable expenditure;
> - “relevant decommissioning”, in relation to general decommissioning expenditure, means the decommissioning to which the expenditure relates.
> - “*allowable expenditure*”, in relation to general decommissioning expenditure, means the amount of the expenditure that is proportionate to the relevant decommissioning carried out in the decommissioning period;
> - “*decommissioning period*”, in relation to relevant decommissioning, means the notional accounting period or chargeable period in which the decommissioning was carried out;
> - “*expenditure period*”, in relation to general decommissioning expenditure, means the notional accounting period or chargeable period in which the expenditure was incurred;
> - “*non-allowable expenditure*”, in relation to general decommissioning expenditure, means so much of that expenditure as is not allowable expenditure;
> - “*relevant decommissioning*”, in relation to general decommissioning expenditure, means the decommissioning to which the expenditure relates.
- (7) After subsection (6) insert—
> (6A) If the former trader—
> (a) carries on more than one trade,
> (b) makes up accounts of any of them to different dates, and
> (c) does not make up general accounts for the whole of the company’s activities,
> (c) does not make up general accounts for the whole of the company's activities,
> subsection (1C)(b) applies with reference to the accounting date of such one of the trades as the former trader may determine.
> (6B) If the Commissioners for Her Majesty’s Revenue and Customs are of the opinion, on reasonable grounds, that a date determined by the former trader for the purposes of subsection (6A) is inappropriate, the Commissioners may by notice direct that the accounting date of such other of the trades referred to in that subsection as appears to the Commissioners to be appropriate is to be used instead.
> (6B) If the Commissioners for Her Majesty's Revenue and Customs are of the opinion, on reasonable grounds, that a date determined by the former trader for the purposes of subsection (6A) is inappropriate, the Commissioners may by notice direct that the accounting date of such other of the trades referred to in that subsection as appears to the Commissioners to be appropriate is to be used instead.
##### 5
@@ -13642,22 +13656,22 @@
For section 63 substitute—
> (63)
> (1) This section applies if, at any time before its disposal or relevant appropriation, oil won from an oil field (“the relevant field”) in a chargeable period (“the relevant period”) is mixed with oil won from one or more other oil fields.
> (2) A relevant participator’s share of oil won from the relevant field in the relevant period is to be taken to be the amount of the blended oil that it is just and reasonable (for the purposes of the oil taxation legislation) to allocate to the participator in respect of the relevant period.
> (1) This section applies if, at any time before its disposal or relevant appropriation, oil won from an oil field (“the relevant field”) in a chargeable period (“*the relevant period*”) is mixed with oil won from one or more other oil fields.
> (2) A relevant participator's share of oil won from the relevant field in the relevant period is to be taken to be the amount of the blended oil that it is just and reasonable (for the purposes of the oil taxation legislation) to allocate to the participator in respect of the relevant period.
> (3) In making the allocation regard must be had (in particular) to the quantity and quality of the oil derived from each of the originating fields.
> (4) If the participators in the originating fields select a method for making the allocation, that method is to be used to determine that allocation.
> (5) But that is subject to Schedule 12.
> (6) If the participators in the originating fields fail to select a method for making the allocation, HMRC may select a method.
> (7) In a case where only some oil won from the relevant field in the relevant period is, before its disposal or relevant appropriation, mixed with oil won from one or more other fields, subsection (2) has effect for the purpose of determining the amount of the blended oil that is to be taken to be included in a relevant participator’s share of oil won from the relevant field.
> (7) In a case where only some oil won from the relevant field in the relevant period is, before its disposal or relevant appropriation, mixed with oil won from one or more other fields, subsection (2) has effect for the purpose of determining the amount of the blended oil that is to be taken to be included in a relevant participator's share of oil won from the relevant field.
> (8) Schedule 12 contains provision supplementing this section.
> (9) In this section and Schedule 12—
> - “blended oil” means oil that consists of oil from two or more oil fields that has been mixed;
> - “foreign field” means an area which is a foreign field for the purposes of section 12 of the Oil Taxation Act 1983;
> - “oil” includes any substance which would be oil if the enactments mentioned in section 1(1) of the principal Act extended to a foreign field;
> - “oil field” includes a foreign field;
> - “oil taxation legislation” means Part 1 of the principal Act and any enactment construed as one with that Part;
> - “originating fields”, in relation to any blended oil, means the oil fields from which oil which has been mixed as mentioned in subsection (1);
> - “relevant participator” means a person who is a participator in the relevant field at any time in the relevant period.
> - “*blended oil*” means oil that consists of oil from two or more oil fields that has been mixed;
> - “*foreign field*” means an area which is a foreign field for the purposes of section 12 of the Oil Taxation Act 1983;
> - “*oil*” includes any substance which would be oil if the enactments mentioned in section 1(1) of the principal Act extended to a foreign field;
> - “*oil field*” includes a foreign field;
> - “*oil taxation legislation*” means Part 1 of the principal Act and any enactment construed as one with that Part;
> - “*originating fields*”, in relation to any blended oil, means the oil fields from which oil which has been mixed as mentioned in subsection (1);
> - “*relevant participator*” means a person who is a participator in the relevant field at any time in the relevant period.
##### 3
@@ -13667,8 +13681,8 @@
> (1)
> (1) In this Schedule—
> - “HMRC” means Her Majesty’s Revenue and Customs;
> - “method of allocation” means a method for making an allocation of blended oil for the purposes of section 63 that has been selected by the participators in the originating fields (including such a method that has been amended in accordance with this Schedule).
> - “*HMRC*” means Her Majesty's Revenue and Customs;
> - “*method of allocation*” means a method for making an allocation of blended oil for the purposes of section 63 that has been selected by the participators in the originating fields (including such a method that has been amended in accordance with this Schedule).
> (2) In this Schedule a reference to a suitable method of allocation is a reference to a method which secures that allocation of blended oil is just and reasonable (for the purposes of the oil taxation legislation).
> (2)
> (1) This paragraph applies if it appears to HMRC that—
@@ -13685,11 +13699,11 @@
- (3) In paragraph 3(1)—
- (a) for “the Board” (in each place) substitute “HMRC”, and
- (b) for “paragraph 2(a)” substitute “paragraph 2(2)”.
- (4) In paragraph 3(2), for “the Board” (in each place) substitute “HMRC”.
- (a) for “the Board” (in each place) substitute “ HMRC ”, and
- (b) for “paragraph 2(a)” substitute “ paragraph 2(2) ”.
- (4) In paragraph 3(2), for “the Board” (in each place) substitute “ HMRC ”.
- (5) After paragraph 3(2) insert—
@@ -13732,7 +13746,7 @@
##### 4
In section 175(2C)(b) (replacement of business assets by members of a group), after “applies” insert “or is one where, by virtue of section 195B, 195C or 195E, neither a gain nor a loss accrues to the person making the disposal”.
In section 175(2C)(b) (replacement of business assets by members of a group), after “applies” insert “ or is one where, by virtue of section 195B, 195C or 195E, neither a gain nor a loss accrues to the person making the disposal ”.
##### 5
@@ -13741,10 +13755,10 @@
> (195A)
> (1) Sections 195B to 195E apply for the purposes of corporation tax on chargeable gains.
> (2) In those sections—
> - “licence-consideration swap” means a case where conditions A, B, C and D are met;
> - “mixed-consideration swap” means a case where conditions A, B, C and E are met.
> (3) Condition A is that a company (“company A”) disposes of one or more UK licences to another company (“company B”), by way of a bargain at arm’s length (“disposal A”).
> (4) Condition B is that company B disposes of one or more UK licences to company A, by way of a bargain at arm’s length (“disposal B”).
> - “*licence-consideration swap*” means a case where conditions A, B, C and D are met;
> - “*mixed-consideration swap*” means a case where conditions A, B, C and E are met.
> (3) Condition A is that a company (“company A”) disposes of one or more UK licences to another company (“company B”), by way of a bargain at arm's length (“disposal A”).
> (4) Condition B is that company B disposes of one or more UK licences to company A, by way of a bargain at arm's length (“disposal B”).
> (5) Condition C is that either or both of the following paragraphs applies—
> (a) the licence, or at least one of the licences, comprised in disposal A relates to a developed area;
> (b) the licence, or at least one of the licences, comprised in disposal B relates to a developed area.
@@ -13764,8 +13778,8 @@
> (3) As regards the licence, or each licence, which the company disposes of, the company is to be treated as if it had disposed of that licence for a consideration of such amount as to secure that on the disposal neither a gain nor a loss accrues to the company.
> (4) In a case where the company acquires only one licence, the company is to be treated as if it had acquired the licence for a consideration of the same amount as the deemed disposal consideration.
> (5) In a case where the company acquires two or more licences, as regards each licence acquired, the company is to be treated as if it had acquired that licence for a consideration of—
> $$DDC×ATA$ where— DDC is the deemed disposal consideration, A is the value of the licence acquired, and TA is total value of all the licences acquired.$
> (6) In this section “deemed disposal consideration”, in relation to a company participating in the swap, means—
> $$DDC×ATA$where—DDC is the deemed disposal consideration,A is the value of the licence acquired, andTA is total value of all the licences acquired.$
> (6) In this section “*deemed disposal consideration*”, in relation to a company participating in the swap, means—
> (a) the amount of the consideration for which the company is, under subsection (3), treated as having disposed of its licence (if the company disposes of only one licence), or
> (b) the aggregate of all such amounts (if the company disposes of two or more licences).
> (195C)
@@ -13775,13 +13789,13 @@
> (2) In a case where company R acquires only one licence, company R is to be treated as if it had acquired the licence for a consideration of—
> $N-C$
> (3) In a case where company R acquires two or more licences, as regards each licence acquired, company R is to be treated as if it had acquired the licence for a consideration of—
> $$(N-C)×ATA$ where— A is the value of the licence acquired, and TA is total value of all the licences acquired.$
> $$(N-C)×ATA$where—A is the value of the licence acquired, andTA is total value of all the licences acquired.$
> (4) The disposal by company R of a licence under the swap is to be taken to be one on which neither a gain nor a loss accrues.
> (5) But (despite subsection (4)), the disposal by company R is not a no gain/no loss disposal for the purposes of section 56.
> (6) For the purposes of the application of sections 53 and 54, any enactment is to be disregarded insofar as it provides that, if the other company which acquires a licence under the swap (“company G”) subsequently disposes of the licence, company R’s acquisition of the licence is to be treated as company G’s acquisition of it.
> (6) For the purposes of the application of sections 53 and 54, any enactment is to be disregarded insofar as it provides that, if the other company which acquires a licence under the swap (“company G”) subsequently disposes of the licence, company R's acquisition of the licence is to be treated as company G's acquisition of it.
> (7) In this section the reference to the no gain/no loss amount of company R is a reference to—
> (a) in a case where company R disposes of only one licence, company R’s no gain/no loss amount in relation to that disposal, or
> (b) in a case where company R disposes of two or more licences, the aggregate of company R’s no gain/no loss amounts in relation to all of those disposals.
> (a) in a case where company R disposes of only one licence, company R's no gain/no loss amount in relation to that disposal, or
> (b) in a case where company R disposes of two or more licences, the aggregate of company R's no gain/no loss amounts in relation to all of those disposals.
> (195D)
> (1) This section applies to a mixed-consideration swap if—
> (a) the no gain/no loss amount (“N”) of the company that receives the mixed consideration (“company R”) does not exceed
@@ -13790,7 +13804,7 @@
> (3) In a case where company R disposes of only one licence, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of—
> $C-N$
> (4) In a case where company R disposes of two or more licences, as regards each licence disposed of, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of—
> $$(C-N)×DTD$ where— D is the value of the licence disposed of, and TD is total value of all the licences disposed of.$
> $$(C-N)×DTD$where—D is the value of the licence disposed of, andTD is total value of all the licences disposed of.$
> (195E)
> (1) This section applies to a mixed-consideration swap—
> (a) whatever the no gain/no loss amount (“N”) of the company that gives the mixed consideration (“company G”), and
@@ -13798,47 +13812,47 @@
> (2) In a case where company G acquires only one licence, company G is to be treated as if it had acquired the licence for a consideration of—
> $N+C$
> (3) In a case where company G acquires two or more licences, as regards each licence acquired, company G is to be treated as if it had acquired the licence for a consideration of—
> $$(N+C)×ATA$ where— A is the value of the licence acquired, and TA is total value of all the licences acquired.$
> $$(N+C)×ATA$where—A is the value of the licence acquired, andTA is total value of all the licences acquired.$
> (4) The disposal by company G of a licence under the swap is to be taken to be one on which neither a gain nor a loss accrues.
> (5) But (despite subsection (4)), the disposal by company G is not a no gain/no loss disposal for the purposes of section 56.
> (6) For the purposes of the application of sections 53 and 54, any enactment is to be disregarded insofar as it provides that, if the other company which acquires a licence under the swap (“company R”) subsequently disposes of the licence, company G’s acquisition of the licence is to be treated as company R’s acquisition of it.
> (6) For the purposes of the application of sections 53 and 54, any enactment is to be disregarded insofar as it provides that, if the other company which acquires a licence under the swap (“company R”) subsequently disposes of the licence, company G's acquisition of the licence is to be treated as company R's acquisition of it.
> (7) In this section the reference to the no gain/no loss amount of company G is a reference to—
> (a) in a case where company G disposes of only one licence, company G’s no gain/no loss amount in relation to that disposal, or
> (b) in a case where company G disposes of two or more licences, the aggregate of company G’s no gain/no loss amounts in relation to all of those disposals.
> (a) in a case where company G disposes of only one licence, company G's no gain/no loss amount in relation to that disposal, or
> (b) in a case where company G disposes of two or more licences, the aggregate of company G's no gain/no loss amounts in relation to all of those disposals.
##### 6
- (1) Section 196 (interpretation of sections 194 and 195) is amended as follows.
- (2) In the heading, for **“and 195”** substitute **“to 195E”**.
- (3) In subsection (1), after “section 194” insert “and this section”.
- (2) In the heading, for **“and 195”** substitute “ to 195E ”.
- (3) In subsection (1), after “section 194” insert “ and this section ”.
- (4) After subsection (1A) insert—
> (1B) In sections 195A to 195E, a reference to a UK licence that relates to a developed area is a reference to any UK licence apart from one that relates to an undeveloped area.
- (5) In subsection (2), for “and (1A)” substitute “to (1B)”.
- (6) In subsection (3), after “(1)” insert “or (1B)”.
- (5) In subsection (2), for “and (1A)” substitute “ to (1B) ”.
- (6) In subsection (3), after “(1)” insert “ or (1B) ”.
- (7) In subsection (5)—
- (a) for “and 195” substitute “to 195E”,
- (a) for “and 195” substitute “ to 195E ”,
- (b) after the definition of “licence” insert—
> “licence-consideration swap” has the meaning given in section 195A(2);
> “*licence-consideration swap*” has the meaning given in section 195A(2);
, and
- (c) after the definition of “licensee” insert—
> “mixed consideration” means consideration that consists partly of disposal of a UK licence;
> “mixed-consideration swap” has the meaning given in section 195A(2);
> “no gain/no loss amount”, in relation to a company that disposes of a UK licence, means the amount that would be taken to be the consideration for the disposal if section 56(2) applied to the disposal;
> “non-licence consideration” means consideration that does not consist of disposal of a UK licence, as determined at the time the swap arrangements are entered into;
> “swap arrangements”, in relation to a licence-consideration swap or a mixed-consideration swap, means the arrangements under which the swap takes place;
> “*mixed consideration*” means consideration that consists partly of disposal of a UK licence;
> “*mixed-consideration swap*” has the meaning given in section 195A(2);
> “*no gain/no loss amount*”, in relation to a company that disposes of a UK licence, means the amount that would be taken to be the consideration for the disposal if section 56(2) applied to the disposal;
> “*non-licence consideration*” means consideration that does not consist of disposal of a UK licence, as determined at the time the swap arrangements are entered into;
> “*swap arrangements*”, in relation to a licence-consideration swap or a mixed-consideration swap, means the arrangements under which the swap takes place;
.
@@ -13848,7 +13862,7 @@
##### 7
In Schedule 3 (assets held on 31 March 1982), in paragraph 1(2) (meaning of no gain/no loss disposal), after “provisions” insert “or any of sections 195B, 195C or 195E”.
In Schedule 3 (assets held on 31 March 1982), in paragraph 1(2) (meaning of no gain/no loss disposal), after “provisions” insert “ or any of sections 195B, 195C or 195E ”.
##### 8
@@ -13871,7 +13885,7 @@
> (3) Where—
> (a) section 152 or 153 applies in relation to any of the consideration on a material disposal, and
> (b) the asset which constitutes the new assets for the purposes of that section is a depreciating asset,
> section 154(2)(b) is to have effect as if the reference to a trade carried on by the claimant were a reference solely to the claimant’s ring fence trade.
> section 154(2)(b) is to have effect as if the reference to a trade carried on by the claimant were a reference solely to the claimant's ring fence trade.
#### Alternative to roll-over relief
@@ -13893,7 +13907,7 @@
> (3) If P makes a claim under this section—
> (a) section 152 does not apply to any of the disposal consideration, and
> (b) any gain accruing to P on the disposal is not a chargeable gain.
> (4) In this section “disposal consideration” means the whole of the consideration obtained on the disposal made by P.
> (4) In this section “*disposal consideration*” means the whole of the consideration obtained on the disposal made by P.
> (198B)
> (1) This section applies if a person (“P”) makes a disposal and acquisition which—
> (a) is a ring fence reinvestment, and
@@ -13903,7 +13917,7 @@
> (a) section 153(1)(a) applies in relation to P and the disposal, but
> (b) section 153(1)(b) does not apply to P and the acquisition.
> (198C)
> (1) This section applies where a person (“P”) carrying on a ring fence trade who for a consideration disposes of, or of an interest in, any assets (“the old assets”) declares, in P’s return for the chargeable period in which the disposal takes place—
> (1) This section applies where a person (“P”) carrying on a ring fence trade who for a consideration disposes of, or of an interest in, any assets (“the old assets”) declares, in P's return for the chargeable period in which the disposal takes place—
> (a) that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”),
> (b) that the acquisition will take place as mentioned in section 152(3),
> (c) that the disposal and acquisition will be a ring fence reinvestment,
@@ -13920,7 +13934,7 @@
> (a) P makes a declaration under this section, and
> (b) the disposal and acquisition is not a ring fence reinvestment, but qualifies for roll-over relief or section 153 relief,
> on P making a claim, the declaration is to have effect as also a declaration under section 153A.
> (6) In this section “the relevant day” means—
> (6) In this section “*the relevant day*” means—
> (a) in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place, and
> (b) in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.
> (7) Section 152(6), (10) and (11) apply for the purposes of this section as they apply for the purposes of section 152.
@@ -13932,25 +13946,25 @@
> (a) are to be made by making or amending assessments or by repayment or discharge of tax, and
> (b) are to be so made despite any limitation on the time within which assessments or amendments may be made.
> (5) In this section—
> - “relevant acquisition” means the acquisition of the new assets that is comprised in the disposal and acquisition to which a claim under section 198A or 198B or declaration under section 198C relates;
> - “relevant claim” means a claim under section 152, 153, 198A or 198B.
> - “*relevant acquisition*” means the acquisition of the new assets that is comprised in the disposal and acquisition to which a claim under section 198A or 198B or declaration under section 198C relates;
> - “*relevant claim*” means a claim under section 152, 153, 198A or 198B.
> (198E)
> (1) This section applies for the purposes of sections 198A to 198G.
> (2) A disposal and acquisition is a ring fence reinvestment if—
> (a) the disposal was—
> (i) a material disposal, or
> (ii) a disposal of a UK licence which relates to an undeveloped area,
> (b) the old assets were used only for the purposes of P’s ring fence trade,
> (b) the old assets were used only for the purposes of P's ring fence trade,
> (c) the new assets are taken into use, and used only, for the purposes of one or more of the following trades—
> (i) P’s ring fence trade;
> (i) P's ring fence trade;
> (ii) if P is a member of a group of companies (within the meaning given in section 170), a ring fence trade of another member of that group, and
> (d) the new assets are oil assets.
> (3) If the disposal consists of—
> (a) disposal of a licence to which section 195D(3) applies, or
> (b) disposal of two or more licences to which section 195D(4) applies,
> the consideration for the disposal is to be taken to be the whole of the non-licence consideration obtained on the disposal (which is referred to as “C” in section 195D).
> the consideration for the disposal is to be taken to be the whole of the non-licence consideration obtained on the disposal (which is referred to as “*C*” in section 195D).
> (4) Accordingly, in sections 198A to 198G (including section 198A(4)), any reference to the consideration obtained on the disposal has effect subject to subsection (3).
> (5) Each of the following is an “oil asset” for the purposes of this section—
> (5) Each of the following is an “*oil asset*” for the purposes of this section—
> (a) an interest in oil to be won from an oil field,
> (b) an asset used in connection with an oil field,
> (c) a structure which is to be placed on the seabed of the United Kingdom continental shelf,
@@ -13962,8 +13976,8 @@
> (7) Expressions used in this section and in section 152 have the same meanings in this section as in section 152.
> (8) In this section a reference to a UK licence which relates to an undeveloped area has the same meaning as in section 194 (see section 196).
> (9) In this section—
> - “material disposal” has the meaning given in section 197;
> - “ring fence trade” has the meaning given in section 198.
> - “*material disposal*” has the meaning given in section 197;
> - “*ring fence trade*” has the meaning given in section 198.
> (198F)
> (1) This section applies for the purposes of sections 198A and 198B and section 198G.
> (2) A disposal and acquisition qualifies for roll-over relief if—
@@ -13998,9 +14012,9 @@
- (1) Section 3 of OTA 1975 (allowance of expenditure) is amended as follows.
- (2) In subsection (1C)(b), for “in connection with the field” substitute “for a qualifying purpose”.
- (3) In subsection (1D), for “in connection with the field” substitute “for a qualifying purpose”.
- (2) In subsection (1C)(b), for “in connection with the field” substitute “ for a qualifying purpose ”.
- (3) In subsection (1D), for “in connection with the field” substitute “ for a qualifying purpose ”.
- (4) After that subsection insert—
@@ -14045,7 +14059,7 @@
- (1) Paragraph 8 of Schedule 1 to OTA 1983 (allowable expenditure: use of new asset otherwise than in connection with taxable field) is amended as follows.
- (2) In sub-paragraph (1)(a) and (b), for “in connection with a taxable field” substitute “for a qualifying purpose”.
- (2) In sub-paragraph (1)(a) and (b), for “in connection with a taxable field” substitute “ for a qualifying purpose ”.
- (3) After sub-paragraph (2) insert—
@@ -14075,14 +14089,14 @@
- (1) Section 163 of CAA 2001 (meaning of “general decommissioning expenditure”) is amended as follows.
- (2) In subsection (3)(a), after “use” insert “wholly or partly”.
- (2) In subsection (3)(a), after “use” insert “ wholly or partly ”.
- (3) In subsection (4ZA), for paragraphs (a) and (b) substitute—
> (a) was not brought into use wholly for qualifying purposes, or
> (b) has, at any time since it was brought into use, not been used wholly for qualifying purposes.
- (4) In subsection (4ZC), for “the purposes of the ring fence trade” substitute “qualifying purposes”.
- (4) In subsection (4ZC), for “the purposes of the ring fence trade” substitute “ qualifying purposes ”.
- (5) After subsection (4C) insert—
@@ -14096,7 +14110,7 @@
##### 6
In section 165(4A) of CAA 2001 (general decommissioning expenditure after ceasing ring fence trade), for “abandonment expenditure” substitute “general decommissioning expenditure”.
In section 165(4A) of CAA 2001 (general decommissioning expenditure after ceasing ring fence trade), for “abandonment expenditure” substitute “ general decommissioning expenditure ”.
#### Commencement
@@ -14120,7 +14134,7 @@
- (2) In subsection (1), in the definition of “participator”—
- (a) for “any”, in the first place, substitute “a”,
- (a) for “any”, in the first place, substitute “ a ”,
- (b) after paragraph (a) insert—
@@ -14130,31 +14144,31 @@
,
- (c) in paragraph (b), after “field” insert “(and who does not fall within paragraph (aa) of this definition)”,
- (d) in paragraph (c), after “paragraph” insert “(aa) or”, and
- (c) in paragraph (b), after “field” insert “ (and who does not fall within paragraph (aa) of this definition) ”,
- (d) in paragraph (c), after “paragraph” insert “ (aa) or ”, and
- (e) omit the words after paragraph (g).
- (3) After that subsection insert—
> (1A) In the definition of “participator” in subsection (1)—
> (a) “cessation event”, in relation to an oil field to which a licence relates, means any of the following—
> (a) “*cessation event*”, in relation to an oil field to which a licence relates, means any of the following—
> (i) determination of the licence by the licensee,
> (ii) revocation of the licence by the Secretary of State or a Northern Ireland Department,
> (iii) expiry of the licence at the end of its term,
> (iv) the licensed area ceasing to include any relevant area whatsoever, by reason of the licensee surrendering the licence so far as it relates to the whole of the relevant area, and
> (v) the licence ceasing to apply to the oil field by reason of the operation of the licence;
> and for the purposes of sub-paragraph (iv) “relevant area” means an area which is, or combination of areas each of which is, included in the oil field (whether or not such an area falls partly outside the oil field);
> (b) “current participator”, “former participator” and “default payment” have the same meanings as in paragraph 2A of Schedule 5.
> and for the purposes of sub-paragraph (iv) “*relevant area*” means an area which is, or combination of areas each of which is, included in the oil field (whether or not such an area falls partly outside the oil field);
> (b) “*current participator*”, “*former participator*” and “*default payment*” have the same meanings as in paragraph 2A of Schedule 5.
##### 3
In Schedule 5 (allowance of expenditure other than abortive exploration expenditure), in paragraph 2C(2)—
- (a) in the definition of “current participator”, after “paragraph (a),” insert “(aa),”, and
- (b) in paragraph (b) of the definition of “former participator”, after “paragraph (a),” insert “(aa),”.
- (a) in the definition of “current participator”, after “paragraph (a),” insert “ (aa), ”, and
- (b) in paragraph (b) of the definition of “former participator”, after “paragraph (a),” insert “ (aa), ”.
##### 4
@@ -14168,13 +14182,13 @@
##### 6
In section 12(1) (interpretation of Part 1), in the definition of “oil field”, after “this Act” insert “(which also includes provision about areas that are to be treated as continuing to be oil fields)”.
In section 12(1) (interpretation of Part 1), in the definition of “oil field”, after “this Act” insert “ (which also includes provision about areas that are to be treated as continuing to be oil fields) ”.
##### 7
- (1) Schedule 1 (determination of oil fields) is amended as follows.
- (2) Before paragraph 1 insert—
- (2) Before paragraph 1 insert— “ Areas that are oil fields ”
- (3) After paragraph 5 insert—
@@ -14206,9 +14220,11 @@
> (7) An appeal under sub-paragraph (6) may, before it is notified to the tribunal, be abandoned by notice in writing given to the Board by the responsible person.
> (8) The provisions of paragraphs 14A to 14I of Schedule 2 apply to appeals under sub-paragraph (6) subject to any necessary modifications.
> (9) In this paragraph—
> - “qualifying assets” means assets that are qualifying assets within the meaning of OTA 1983;
> - “relevant area” means an area that is treated as being an oil field, or part of an oil field, under paragraph 6;
> - “UK offshore decommissioning regime” means— Part 4 of the Petroleum Act 1998, and Part 1 of the Petroleum Act 1987.
> - “*qualifying assets*” means assets that are qualifying assets within the meaning of OTA 1983;
> - “*relevant area*” means an area that is treated as being an oil field, or part of an oil field, under paragraph 6;
> - “*UK offshore decommissioning regime*” means—
> 1. Part 4 of the Petroleum Act 1998, and
> 2. Part 1 of the Petroleum Act 1987.
##### 8
@@ -14222,9 +14238,9 @@
In this Schedule—
- “future chargeable period” means a chargeable period beginning after 30 June 2009;
- “provisional expenditure allowance” means an amount calculated under section 2(9)(a) of OTA 1975.
- “*future chargeable period*” means a chargeable period beginning after 30 June 2009;
- “*provisional expenditure allowance*” means an amount calculated under section 2(9)(a) of OTA 1975.
#### Abolition of allowance
@@ -14260,11 +14276,11 @@
- (3) In this paragraph—
- “pre-abolition chargeable period” means a chargeable period that begins before 30 June 2009;
- “relevant participator” means the participator in respect of which the relevant allowance has been calculated;
- “the saved provisions” means— section 2(8) and (10) of OTA 1975, and paragraph 11 of Schedule 17 to FA 1980.
- “*pre-abolition chargeable period*” means a chargeable period that begins before 30 June 2009;
- “*relevant participator*” means the participator in respect of which the relevant allowance has been calculated;
- “*the saved provisions*” means—section 2(8) and (10) of OTA 1975, andparagraph 11 of Schedule 17 to FA 1980.
## SCHEDULE 44
@@ -14272,7 +14288,7 @@
##### 1
- (1) A company’s adjusted ring fence profits for an accounting period are to be reduced by the amount of the company’s pool of field allowances for that accounting period (see Part 2).
- (1) A company's adjusted ring fence profits for an accounting period are to be reduced by the amount of the company's pool of field allowances for that accounting period (see Part 2).
- (2) But, if the profits are less than the amount of the pool, the profits are to be reduced to nil.
@@ -14282,9 +14298,7 @@
##### 2
A company’s pool of field allowances for an accounting period (“the relevant accounting period”) is—
$$P+R$ where— P is the amount of the company’s pool of field allowances for the previous accounting period that has been carried into the relevant accounting period (see paragraphs 3 and 4), and R is the aggregate of the amounts of field allowances for new oil fields which the company holds (see Part 3) that are activated in respect of— the relevant accounting period (see Part 4), and reference periods that fall within the relevant accounting period (see Part 5).$
A company's pool of field allowances for an accounting period (“*the relevant accounting period*”) is—
#### Carrying part of pool of field allowances into following period
@@ -14294,13 +14308,13 @@
- (a) a company has a pool of field allowances for an accounting period (“accounting period 1”), and
- (b) the company’s adjusted ring fence profits for accounting period 1 are reduced to nil in accordance with paragraph 1(2).
- (2) A part of the company’s pool of field allowances for accounting period 1 is to be carried into the following accounting period (“accounting period 2”).
- (b) the company's adjusted ring fence profits for accounting period 1 are reduced to nil in accordance with paragraph 1(2).
- (2) A part of the company's pool of field allowances for accounting period 1 is to be carried into the following accounting period (“accounting period 2”).
- (3) The part to be carried into accounting period 2 is—
$$F-P$ where— F is the amount of the company’s pool of field allowances for accounting period 1, and P is the amount of the adjusted ring fence profits for accounting period 1.$
$$F-P$where—F is the amount of the company's pool of field allowances for accounting period 1, andP is the amount of the adjusted ring fence profits for accounting period 1.$
#### Carrying whole of pool of field allowances into following period
@@ -14312,7 +14326,7 @@
- (b) has no adjusted ring fence profits for the accounting period.
- (2) The whole of the company’s pool of field allowances for the accounting period is to be carried into the following accounting period.
- (2) The whole of the company's pool of field allowances for the accounting period is to be carried into the following accounting period.
## Part 3 — Field allowance: when held and unactivated amount
@@ -14324,7 +14338,7 @@
- (2) The amount of the field allowance which the licensee is to hold at that time is—
$$T×S$ where— T is the amount of the total field allowance for the field (see paragraph 24), and S is the share of the equity in the field which the initial licensee has at the beginning of the authorisation day.$
$$T×S$where—T is the amount of the total field allowance for the field (see paragraph 24), andS is the share of the equity in the field which the initial licensee has at the beginning of the authorisation day.$
#### Holding a field allowance on acquisition of equity share
@@ -14338,9 +14352,9 @@
- (1) This paragraph applies if a company holds a field allowance for a new oil field by virtue of paragraph 5 or 15(2).
- (2) The unactivated amount of that allowance at a particular time (“the relevant time”) is—
$$(R+E)-(A+D)$ where— R is the amount of the field allowance which the company held before the relevant time by virtue of paragraph 5 or 15(2), E is the total amount of the field allowance received before the relevant time by virtue of paragraph 15(1) (company already holding field allowance acquires equity share), A is the total amount of the field allowance activated in respect of— accounting periods ending before the relevant time, or reference periods ending before the relevant time, and D is the total amount of reductions in the field allowance made before the relevant time by virtue of paragraph 14 (company disposes of equity share).$
- (2) The unactivated amount of that allowance at a particular time (“*the relevant time*”) is—
$$(R+E)-(A+D)$where—R is the amount of the field allowance which the company held before the relevant time by virtue of paragraph 5 or 15(2),E is the total amount of the field allowance received before the relevant time by virtue of paragraph 15(1) (company already holding field allowance acquires equity share),A is the total amount of the field allowance activated in respect of—(a) accounting periods ending before the relevant time, or(b) reference periods ending before the relevant time, andD is the total amount of reductions in the field allowance made before the relevant time by virtue of paragraph 14 (company disposes of equity share).$
- (3) A company ceases to hold a field allowance for a new oil field if the unactivated amount of that allowance falls to nil.
@@ -14354,7 +14368,7 @@
- (2) Condition A is that the company is a licensee in the field for the whole of the accounting period.
- (3) Condition B is that the company’s share of the equity in the field is the same during the whole of the accounting period.
- (3) Condition B is that the company's share of the equity in the field is the same during the whole of the accounting period.
- (4) Condition C is that the company holds an unactivated amount of field allowance for the field at the beginning of the accounting period.
@@ -14364,19 +14378,19 @@
##### 9
- (1) An amount of the company’s field allowance for the new oil field is to be activated in respect of the accounting period.
- (1) An amount of the company's field allowance for the new oil field is to be activated in respect of the accounting period.
- (2) The amount of the field allowance to be activated is the smallest of the following amounts—
- (a) the relevant activation limit,
- (b) the company’s relevant income from the field in the accounting period, and
- (b) the company's relevant income from the field in the accounting period, and
- (c) the unactivated amount of the field allowance which the company holds at the beginning of the accounting period.
- (3) The relevant activation limit is—
$$T5×E×N365$ where— T is the amount of the total field allowance for the field (see paragraph 24), E is the company’s share of the equity in the field during the accounting period, and N is the number of days in the accounting period.$
$$T5×E×N365$where—T is the amount of the total field allowance for the field (see paragraph 24),E is the company's share of the equity in the field during the accounting period, andN is the number of days in the accounting period.$
## Part 5 — Change in equity share: activation of allowance
@@ -14388,7 +14402,7 @@
- (2) Condition A is that the company is a licensee in the field for the whole, or for part, of the accounting period.
- (3) Condition B is that the company’s share of the equity in the field is different at different times during the accounting period.
- (3) Condition B is that the company's share of the equity in the field is different at different times during the accounting period.
- (4) Condition C is that the company holds an unactivated amount of field allowance for the field at any time during the accounting period.
@@ -14406,7 +14420,7 @@
- (3) Condition A is that, at the beginning of each day in the period, the company is a licensee in the new oil field.
- (4) Condition B is that, at the beginning of each day in the period, the company’s share of the equity in the field is the same.
- (4) Condition B is that, at the beginning of each day in the period, the company's share of the equity in the field is the same.
- (5) Condition C is that, at the beginning of the first day of the period, the company holds an unactivated amount of field allowance for the field.
@@ -14416,23 +14430,23 @@
##### 12
- (1) An amount of the company’s field allowance for the new oil field is to be activated in respect of each reference period.
- (1) An amount of the company's field allowance for the new oil field is to be activated in respect of each reference period.
- (2) The amount of the field allowance to be activated is the smallest of the following amounts—
- (a) the relevant activation limit,
- (b) the company’s relevant income from the field in the reference period, and
- (b) the company's relevant income from the field in the reference period, and
- (c) the unactivated amount of the field allowance which the company holds at the beginning of the reference period.
- (3) The relevant activation limit is—
$$T5×E×R365$ where— T is the amount of the total field allowance for the field (see paragraph 24), E is the company’s share of the equity in the field during the reference period, and R is the number of days in the reference period.$
- (4) The company’s relevant income from the field in the reference period is—
$$I×RL$ where— I is the company’s relevant income from the field in the whole of the accounting period, R is the number of days in the reference period, and L is the number of days in the accounting period for which the company is a licensee in the new oil field.$
$$T5×E×R365$where—T is the amount of the total field allowance for the field (see paragraph 24),E is the company's share of the equity in the field during the reference period, andR is the number of days in the reference period.$
- (4) The company's relevant income from the field in the reference period is—
$$I×RL$where—I is the company's relevant income from the field in the whole of the accounting period,R is the number of days in the reference period, andL is the number of days in the accounting period for which the company is a licensee in the new oil field.$
## Part 6 — Change in equity share: transfer of field allowance
@@ -14442,17 +14456,17 @@
- (1) This Part applies if the following conditions are met.
- (2) Condition A is that a company that is a licensee in a new oil field (“the transferor”) disposes of the whole or a part of its share of the equity in the new oil field (and in this Part each of those to which a share of the equity is disposed of is referred to as “a transferee”).
- (2) Condition A is that a company that is a licensee in a new oil field (“*the transferor*”) disposes of the whole or a part of its share of the equity in the new oil field (and in this Part each of those to which a share of the equity is disposed of is referred to as “*a transferee*”).
- (3) Condition B is that, immediately before the disposal, the transferor holds an unactivated amount of field allowance for the new oil field.
- (4) Sub-paragraph (5) applies when—
- (a) determining (for the purposes of this paragraph) whether a transferor holds an unactivated amount of field allowance immediately before the disposal (“the relevant time”), and
- (a) determining (for the purposes of this paragraph) whether a transferor holds an unactivated amount of field allowance immediately before the disposal (“*the relevant time*”), and
- (b) determining (for the purposes of paragraph 14) the unactivated amount of field allowance which a transferor holds at the relevant time;
but it applies only if an amount of field allowance for the new oil field (“the relevant amount”) has, by virtue of paragraph 12, been activated in respect of the reference period that ends because of the disposal.
but it applies only if an amount of field allowance for the new oil field (“*the relevant amount*”) has, by virtue of paragraph 12, been activated in respect of the reference period that ends because of the disposal.
- (5) When making the determination, the relevant amount of the field allowance must be treated as having been activated at a time before the relevant time.
@@ -14464,7 +14478,7 @@
- (1) The unactivated amount of the field allowance for the new oil field which the transferor holds immediately before the disposal is to be reduced by the following amount—
$$F×E1-E2E1$ where— F is the unactivated amount of the field allowance which the transferor holds immediately before the disposal, E1 is the transferor’s share of the equity in the new oil field immediately before the disposal, and E2 is the transferor’s share of the equity in the new oil field immediately after the disposal.$
$$F×E1-E2E1$where—F is the unactivated amount of the field allowance which the transferor holds immediately before the disposal,E1 is the transferor's share of the equity in the new oil field immediately before the disposal, andE2 is the transferor's share of the equity in the new oil field immediately after the disposal.$
- (2) This paragraph has effect at the end of the day on which the disposal takes place.
@@ -14480,7 +14494,7 @@
- (4) The amount referred to in sub-paragraphs (1) and (3) is—
$$R×E3E1-E2$ where— R is the amount of the reduction determined in accordance with paragraph 14, E3 is the share of the equity in the new oil field that the transferee has acquired from the transferor, and E1 and E2 are the same as in paragraph 14.$
$$R×E3E1-E2$where—R is the amount of the reduction determined in accordance with paragraph 14,E3 is the share of the equity in the new oil field that the transferee has acquired from the transferor, andE1 and E2 are the same as in paragraph 14.$
- (5) This paragraph has effect at the end of the day on which the disposal takes place.
@@ -14490,15 +14504,15 @@
##### 16
If there is any alteration in a company’s adjusted ring fence profits for an accounting period after this Schedule has had effect in relation to the profits, any necessary adjustments to the operation of this Schedule (whether in relation to the profits or otherwise) are to be made (including any necessary adjustments to the effect of Part 1 on the profits or to the calculation of the company’s pool of field allowances for a subsequent accounting period).
If there is any alteration in a company's adjusted ring fence profits for an accounting period after this Schedule has had effect in relation to the profits, any necessary adjustments to the operation of this Schedule (whether in relation to the profits or otherwise) are to be made (including any necessary adjustments to the effect of Part 1 on the profits or to the calculation of the company's pool of field allowances for a subsequent accounting period).
#### Orders
##### 17
- (1) The Commissioners for Her Majesty’s Revenue and Customs may by order make provision about the oil fields that are qualifying oil fields for the purposes of this Schedule.
- (2) The Commissioners for Her Majesty’s Revenue and Customs may by order make provision about the amount of the total field allowance for any description of new oil field (whether or not provision has been made under sub-paragraph (1) about that description of new oil field).
- (1) The Commissioners for Her Majesty's Revenue and Customs may by order make provision about the oil fields that are qualifying oil fields for the purposes of this Schedule.
- (2) The Commissioners for Her Majesty's Revenue and Customs may by order make provision about the amount of the total field allowance for any description of new oil field (whether or not provision has been made under sub-paragraph (1) about that description of new oil field).
- (3) An order under this paragraph may, in particular, amend any or all of paragraphs 20 to 24.
@@ -14512,7 +14526,7 @@
##### 18
In this Schedule “new oil field” means an oil field—
In this Schedule “*new oil field*” means an oil field—
- (a) which is a qualifying oil field, and
@@ -14532,17 +14546,17 @@
- (2) In this paragraph—
- “consent for development”, in relation to an oil field, does not include consent which is limited to the purpose of testing the characteristics of an oil-bearing area;
- “development”, in relation to an oil field, means winning oil from the field otherwise than in the course of searching for oil or drilling wells;
- “national authority” means— the Secretary of State, or a Northern Ireland Department.
- “*consent for development*”, in relation to an oil field, does not include consent which is limited to the purpose of testing the characteristics of an oil-bearing area;
- “*development*”, in relation to an oil field, means winning oil from the field otherwise than in the course of searching for oil or drilling wells;
- “*national authority*” means—the Secretary of State, ora Northern Ireland Department.
#### Qualifying oil fields
##### 20
In this Schedule “qualifying oil field” means an oil field that is, on the authorisation day—
In this Schedule “*qualifying oil field*” means an oil field that is, on the authorisation day—
- (a) a small oil field,
@@ -14554,7 +14568,7 @@
##### 21
- (1) In this Schedule “small oil field” means an oil field which has reserves of oil of 3,500,000 tonnes or less.
- (1) In this Schedule “*small oil field*” means an oil field which has reserves of oil of 3,500,000 tonnes or less.
- (2) For the purposes of this paragraph and paragraph 24(2)—
@@ -14566,7 +14580,7 @@
##### 22
- (1) In this Schedule “ultra heavy oil field” means an oil field with oil at—
- (1) In this Schedule “*ultra heavy oil field*” means an oil field with oil at—
- (a) an API gravity below 18 degrees, and
@@ -14574,13 +14588,13 @@
- (2) For that purpose API gravity, in relation to oil, is the amount determined by the following calculation—
$$141.5G-131.5$ where G is the specific gravity of the oil at 15.56 degrees celsius.$
$$141.5G-131.5$where G is the specific gravity of the oil at 15.56 degrees celsius.$
#### Ultra high pressure/high temperature oil field
##### 23
In this Schedule “ultra high pressure/high temperature oil field” means an oil field with oil at—
In this Schedule “*ultra high pressure/high temperature oil field*” means an oil field with oil at—
- (a) a pressure of more than 1034 bar in the reservoir formation, and
@@ -14604,7 +14618,7 @@
- (b) in any other case (where the oil field has reserves of more than 2,750,000 tonnes but not more than 3,500,000 tonnes), the following amount—
$$£75,000,000×3,500,000-X3,500,000-2,750,000$ where X is the amount of the reserves of oil (in tonnes) which the oil field has.$
$$£75,000,000×3,500,000-X3,500,000-2,750,000$where X is the amount of the reserves of oil (in tonnes) which the oil field has.$
#### Other interpretation
@@ -14612,19 +14626,19 @@
In this Schedule—
- “adjusted ring fence profits”, in relation to a company and an accounting period, means the adjusted ring fence profits that would (if this Schedule were ignored) be taken into account in calculating the supplementary charge on the company under section 501A of ICTA for the accounting period;
- “authorisation day”, in relation to a new oil field, means the day when development of the field is authorised;
- “initial licensee”, in relation to a new oil field, means a company that is licensee in the field on the authorisation day.
- “licensee” has the same meaning as in Part 1 of OTA 1975;
- “oil” has the same meaning as in Part 1 of OTA 1975;
- “oil field” has the same meaning as in Part 1 of OTA 1975;
- “relevant income”, in relation to a new oil field and an accounting period of a company, means production income of the company from any oil extraction activities carried on in the field that is taken into account in calculating the company’s adjusted ring fence profits for the accounting period.
- “*adjusted ring fence profits*”, in relation to a company and an accounting period, means the adjusted ring fence profits that would (if this Schedule were ignored) be taken into account in calculating the supplementary charge on the company under section 501A of ICTA for the accounting period;
- “*authorisation day*”, in relation to a new oil field, means the day when development of the field is authorised;
- “*initial licensee*”, in relation to a new oil field, means a company that is licensee in the field on the authorisation day.
- “*licensee*” has the same meaning as in Part 1 of OTA 1975;
- “*oil*” has the same meaning as in Part 1 of OTA 1975;
- “*oil field*” has the same meaning as in Part 1 of OTA 1975;
- “*relevant income*”, in relation to a new oil field and an accounting period of a company, means production income of the company from any oil extraction activities carried on in the field that is taken into account in calculating the company's adjusted ring fence profits for the accounting period.
## SCHEDULE 45
@@ -14652,9 +14666,9 @@
- (3) In consequence of the omission of subsection (3) of section 9—
- (a) in subsection (2) of that section, for “subsections (3) and (4)” substitute “subsection (4)”, and
- (b) in subsection (4)(b) of that section, for “subsections (1) to (3)” substitute “subsections (1) and (2)”.
- (a) in subsection (2) of that section, for “subsections (3) and (4)” substitute “ subsection (4) ”, and
- (b) in subsection (4)(b) of that section, for “subsections (1) to (3)” substitute “ subsections (1) and (2) ”.
- (4) Omit sections 13 and 14 and Schedule 5 (transitional provision for expenditure incurred on or before 31 December 1983).
@@ -14664,7 +14678,7 @@
- (1) Schedule 20A to FA 1993 (as inserted by Part 1 of Schedule 33 to FA 2008) is renumbered as Schedule 20B to that Act.
- (2) In the following provisions, for “Schedule 20A” substitute “Schedule 20B”—
- (2) In the following provisions, for “Schedule 20A” substitute “ Schedule 20B ”
- (a) section 6(1A) of OTA 1975,
@@ -14710,7 +14724,7 @@
- (a) by such means and in such form as is reasonably specified by an officer of Revenue and Customs, and
- (b) not later than the end of the period for filing the company’s accounts for the financial year (or such later time as an officer of Revenue and Customs may have allowed).
- (b) not later than the end of the period for filing the company's accounts for the financial year (or such later time as an officer of Revenue and Customs may have allowed).
- (4) A certificate may relate to more than one qualifying company.
@@ -14724,7 +14738,7 @@
- (a) by such means and in such form as is reasonably specified by an officer of Revenue and Customs, and
- (b) not later than the end of the period for filing the company’s accounts for the financial year (or such later time as an officer of Revenue and Customs may have allowed for providing the certificate for the financial year under paragraph 2).
- (b) not later than the end of the period for filing the company's accounts for the financial year (or such later time as an officer of Revenue and Customs may have allowed for providing the certificate for the financial year under paragraph 2).
- (3) A notification may relate to more than one qualifying company.
@@ -14784,7 +14798,7 @@
- (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,
- (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
@@ -14804,7 +14818,7 @@
- (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.
- (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—
@@ -14860,7 +14874,7 @@
- (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—
- (2) In sub-paragraph (1), in relation to a specified sum, “*relevant date*” means—
- (a) the date on which this Act is passed, and
@@ -14888,11 +14902,11 @@
##### 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—
- (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),
@@ -14926,21 +14940,21 @@
- (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.
- (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.
- (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.
@@ -14948,11 +14962,11 @@
##### 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.
- (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.
@@ -14970,19 +14984,19 @@
- (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 468A of ICTA) or an investment trust (within the meaning of section 842 of ICTA);
- “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.
- “*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 468A of ICTA) or an investment trust (within the meaning of section 842 of ICTA);
- “*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—
@@ -15016,7 +15030,7 @@
> (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) In sub-paragraph (3)(c), after “is” insert “ to be ”.
##### 3
@@ -15026,7 +15040,7 @@
> (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”.
- (3) In sub-paragraph (4), for “give its approval for the purpose of” substitute “ approve the giving of a notice under ”.
##### 4
@@ -15038,11 +15052,11 @@
- (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))”.
- (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—
> (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.
@@ -15052,27 +15066,27 @@
- (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
- (c) in paragraph (c), after “as” insert “or in connection with”.
- (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”.
- (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
- (c) in paragraph (c), after “as” insert “ or in connection with ”.
- (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”.
- (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”.
- (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
@@ -15090,15 +15104,15 @@
- (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”.
- (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)”.
- (a) after “repayments” insert “ of tax or withholding of income ”, and
- (b) after “64(2)” insert “ or (2A) ”.
- (5) After sub-paragraph (8) insert—
@@ -15132,7 +15146,7 @@
> (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.
> (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
@@ -15171,9 +15185,9 @@
- (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”.
- (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—
@@ -15181,13 +15195,13 @@
> (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.
> (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.
> (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).
@@ -15200,13 +15214,13 @@
> (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.
> (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—
> (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).
@@ -15214,7 +15228,7 @@
- (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”.
- (2) In sub-paragraph (2), for “A person to whom this paragraph applies” substitute “ The person ”.
- (3) In the heading—
@@ -15224,7 +15238,7 @@
##### 14
In the heading before paragraph 40 (daily default penalties), insert at the end *“for failure to comply or obstruction”*.
In the heading before paragraph 40 (daily default penalties), insert at the end “ ;*for failure to comply or obstruction* ”
##### 15
@@ -15246,11 +15260,11 @@
- (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)”.
- (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
- (a) after “(1)” insert “ , in relation to a specified sum, ”, and
- (b) in paragraph (b), insert at the end “in relation to that sum”.
@@ -15276,15 +15290,15 @@
- (2) In sub-paragraph (1)—
- (a) for “or 40” substitute “, 40 or 40A”,
- (a) for “or 40” substitute “ , 40 or 40A ”,
- (b) omit “HMRC may”,
- (c) at the beginning of paragraph (a), insert “HMRC may”, and
- (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)”.
- (c) at the beginning of paragraph (a), insert “ HMRC may ”, and
- (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—
@@ -15302,7 +15316,7 @@
- (1) Paragraph 47 (right to appeal) is amended as follows.
- (2) In paragraph (a), for “or 40” substitute “, 40 or 40A”.
- (2) In paragraph (a), for “or 40” substitute “ , 40 or 40A ”.
- (3) Accordingly, in the heading, omit “*standard penalty or daily default*”.
@@ -15314,9 +15328,9 @@
- (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”.
- (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*”.
@@ -15343,11 +15357,11 @@
- (1) Paragraph 64 (tax position) is amended as follows.
- (2) In sub-paragraph (1)(c), after “with” insert “the person’s liability to pay”.
- (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).
> (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
@@ -15357,7 +15371,7 @@
##### 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”.
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
@@ -15371,13 +15385,13 @@
> 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) 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”.
- (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*”.
@@ -15386,12 +15400,12 @@
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.
> (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—
> (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,
@@ -15403,7 +15417,7 @@
> (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—
> (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—
@@ -15421,9 +15435,9 @@
- (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”.
- (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—
@@ -15437,13 +15451,13 @@
##### 7
In paragraph 17(b) (power to record information), after “premises,” insert “property, goods,”.
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”.
- (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*”.
@@ -15452,18 +15466,18 @@
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.
> (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.
> (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.
> (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
@@ -15485,11 +15499,11 @@
> (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.
> (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—
> (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.
@@ -15500,26 +15514,30 @@
> (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.
> (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— a retirement benefits scheme approved for the purposes of Chapter 1 of Part 14 of ICTA, a former approved superannuation fund (as defined in paragraph 1(3) of Schedule 36 to FA 2004), a relevant statutory scheme (as defined in section 611A of ICTA) or a pension scheme treated as if it were such a scheme, or 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).
> - “*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”.
- (a) for “paragraph 21” substitute “ paragraphs 21 and 21A ”, and
- (b) for “applies” substitute “ apply ”.
##### 13
@@ -15535,21 +15553,19 @@
After paragraph 61 insert—
> (61A)
> (1) In this Schedule “involved third party” means a person described in the first column of the Table below.
> (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 |
| | *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 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 | Capital gains 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 | Corporation 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), and has 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](https://www.legislation.gov.uk/uksi/1986/1711) (as amended from time to time)) | Information and documents relating to the agreement, transfer, issue, appropriation or surrender | Stamp duty reserve 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 |
@@ -15567,7 +15583,7 @@
.
- (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”.
- (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
@@ -15577,11 +15593,11 @@
- (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,
- (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,
- (c) the officer has reasonable grounds to believe that a person (“the third party”) has any such details, and
- (c) the officer has reasonable grounds to believe that a person (“*the third party*”) has any such details, and
- (d) the condition in sub-paragraph (2) is met.
@@ -15641,7 +15657,7 @@
- (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—
- (2) In sub-paragraph (1) “*relevant date*” means—
- (a) the date on which this Act is passed, and
@@ -15671,23 +15687,23 @@
In this Schedule—
- “business” includes— a profession, and a property business;
- “charity” means a company, body of persons or trust established for charitable purposes only;
- “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).
- “*business*” includes—a profession, anda property business;
- “*charity*” means a company, body of persons or trust established for charitable purposes only;
- “*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
@@ -15736,21 +15752,21 @@
- (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”.
- (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—
> (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).
> (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—
> (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.
> (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
@@ -15759,11 +15775,11 @@
> (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.
> 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*”.
Accordingly, in the heading before paragraph 10, for “*instead of original records*” substitute “ *etc* ”.
##### 8
@@ -15777,15 +15793,15 @@
> 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).
> (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—
> (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.
> (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
@@ -15794,11 +15810,11 @@
> (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.
> 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*”.
Accordingly, in the heading before paragraph 5, for “*instead of original records*” substitute “ *etc* ”.
##### 12
@@ -15812,11 +15828,11 @@
- (3) After sub-paragraph (4) insert—
> (4A) The Commissioners for Her Majesty’s Revenue and Customs may by regulations—
> (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.
> (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
@@ -15825,7 +15841,7 @@
> (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.
> subject to any conditions or exceptions specified in writing by the Commissioners for Her Majesty's Revenue and Customs.
#### Aggregates levy
@@ -15894,33 +15910,33 @@
##### 2
In paragraph 8(4) (recovery of overpaid tax), for “three years” substitute “4 years”.
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”.
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”.
- (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—
> (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)”.
- (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
> (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.
> (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
@@ -15932,11 +15948,11 @@
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.
> (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”.
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
@@ -15946,13 +15962,13 @@
##### 9
In section 179 (sale of shares etc from deceased’s estate: the relief), after subsection (2) insert—
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—
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).
@@ -15960,7 +15976,7 @@
- (1) Section 240 (underpayments) is amended as follows.
- (2) In subsection (2), for “six years” substitute “4 years”.
- (2) In subsection (2), for “six years” substitute “ 4 years ”.
- (3) For subsection (3) substitute—
@@ -15981,15 +15997,15 @@
> (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,
> (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,
> (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.
> (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”.
In section 241(1) (overpayments), for “six years” substitute “ 4 years ”.
#### Stamp duty land tax
@@ -16001,13 +16017,13 @@
- (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”.
- (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”.
- (5) In sub-paragraph (1), for “six years” substitute “ 4 years ”.
- (6) For sub-paragraph (2) substitute—
@@ -16015,14 +16031,14 @@
> (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),
> (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”.
- (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—
> (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.
@@ -16032,13 +16048,13 @@
> (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,
> (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,
> (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”.
> (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
@@ -16046,19 +16062,19 @@
- (2) In sub-paragraph (2)—
- (a) for “six years” substitute “4 years”, and
- (b) after “began to be incurred” insert “(“the relevant date”)”.
- (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)).
> (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),
> (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),
> (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.
@@ -16072,7 +16088,7 @@
- (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) In the entry relating to section 33 of TMA 1970, in the second column, for the entry relating to subsection (1) substitute “In subsection (1), for “year of assessment” substitute “chargeable period”.”
- (2) In the entry relating to section 33 of TMA 1970, in the second column, for the entry relating to subsection (1) substitute “In subsection (1), for “year of assessment” substitute “ chargeable period ”.”
- (3) Omit the entries relating to sections 34 and 36 of TMA 1970.
@@ -16097,13 +16113,13 @@
- (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
- (b) for “six years” substitute “ 4 years ”, and
- (c) insert at the end “(subject to paragraphs 12A and 12B)”.
##### 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”.
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
@@ -16112,15 +16128,15 @@
> (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—
> (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—
> (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.
> (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.
@@ -16130,13 +16146,13 @@
- (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”.
- (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”.
- (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
@@ -16146,15 +16162,15 @@
- (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
- (c) for “that period” substitute “the permitted period”.
- (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
- (c) for “that period” substitute “ the permitted period ”.
- (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)).
> (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.
@@ -16166,13 +16182,13 @@
> (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.
> (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”.
- (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.
@@ -16192,49 +16208,49 @@
##### 28
In section 32(1) (repayments of overpaid aggregates levy), for “three years” substitute “4 years”.
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”.
- (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
> (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.
> (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
- (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”.
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”.
- (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
> (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.
> (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
- (a) in paragraph (a), for “three years” substitute “ 4 years ”, and
- (b) omit paragraph (b) (and the “and” before it).
@@ -16246,29 +16262,29 @@
##### 33
In paragraph 64(1) (repayments of overpaid climate change levy), for “three years” substitute “4 years”.
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”.
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”.
- (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
> (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.
> (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
- (a) in paragraph (a), for “three years” substitute “ 4 years ”, and
- (b) omit paragraph (b) (and the “and” before it).
@@ -16276,19 +16292,19 @@
- (1) Paragraph 108 (time limits on penalty assessments) is amended as follows.
- (2) In sub-paragraph (1), for “three years” substitute “4 years”.
- (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
> (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.
> (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
- (a) in paragraph (a), for “three years” substitute “ 4 years ”, and
- (b) omit paragraph (b) (and the “and” before it).
@@ -16300,11 +16316,11 @@
##### 38
In paragraph 14(4) (recovery of overpaid tax), for “three years” substitute “4 years”.
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”.
In paragraph 29(8) (interest payable by Commissioners), for “three years” substitute “ 4 years ”.
##### 40
@@ -16312,29 +16328,29 @@
- (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”.
- (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—
> (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)”.
- (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
> (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.
> (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
- (a) in paragraph (a), for “three years” substitute “ 4 years ”, and
- (b) omit paragraph (b) (and the “and” before it).
@@ -16342,7 +16358,7 @@
##### 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”.
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
@@ -16398,23 +16414,23 @@
> (b) knew, or ought reasonably to have known, before the end of that period that such relief was available.
> (5) Case D is where the claim is made on grounds that—
> (a) have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or
> (b) have been put to Her Majesty’s Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of section 54 (settling of appeals by agreement)).
> (b) have been put to Her Majesty's Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of section 54 (settling of appeals by agreement)).
> (6) Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—
> (a) the date on which an appeal by the claimant relating to the amount paid, or liable to be paid, in the course of which the ground could have been put forward (a “relevant appeal”) was determined by a court or tribunal (or is treated as having been so determined),
> (b) the date on which the claimant withdrew a relevant appeal to a court or tribunal, and
> (c) the end of the period in which the claimant was entitled to make a relevant appeal to a court or tribunal.
> (7) Case F is where the amount in question was paid or is liable to be paid—
> (a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty’s Revenue and Customs, or
> (b) in accordance with an agreement between the claimant and Her Majesty’s Revenue and Customs settling such proceedings.
> (a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty's Revenue and Customs, or
> (b) in accordance with an agreement between the claimant and Her Majesty's Revenue and Customs settling such proceedings.
> (8) Case G is where—
> (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant’s liability to income tax or capital gains tax (other than a mistake in a PAYE assessment or PAYE calculation), and
> (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to income tax or capital gains tax (other than a mistake in a PAYE assessment or PAYE calculation), and
> (b) liability was calculated in accordance with the practice generally prevailing at the time.
> (9) Case H is where—
> (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in a PAYE assessment or PAYE calculation, and
> (b) the assessment or calculation was made in accordance with the practice generally prevailing at the end of the period of 12 months following the tax year for which the assessment or calculation was made.
> (10) For the purposes of Cases G and H—
> (a) “PAYE assessment” means an assessment on the claimant made in accordance with section 709 of ITEPA 2003 (assessment in connection with PAYE deductions), and
> (b) “PAYE calculation” means a calculation of the amount of a deduction or repayment made or to be made under PAYE regulations in respect of tax estimated to be payable by the claimant.
> (a) “*PAYE assessment*” means an assessment on the claimant made in accordance with section 709 of ITEPA 2003 (assessment in connection with PAYE deductions), and
> (b) “*PAYE calculation*” means a calculation of the amount of a deduction or repayment made or to be made under PAYE regulations in respect of tax estimated to be payable by the claimant.
> (3)
> (1) A claim under this Schedule may not be made more than 4 years after the end of the relevant tax year.
> (2) In relation to a claim made in reliance on paragraph 1(1)(a), the relevant tax year is—
@@ -16432,7 +16448,7 @@
> (b) P was not so accountable.
> (4) A claim under this Schedule in respect of the amount may be made only by P.
> (5) The Commissioners are not liable to give effect to a claim under sub-paragraph (4) if or to the extent that the amount has been repaid to T or set against amounts payable to the Commissioners by T.
> (6) “Relevant enactment” means—
> (6) “*Relevant enactment*” means—
> (a) PAYE regulations,
> (b) Chapter 3 of Part 3 of the Finance Act 2004 or regulations under that Chapter (construction industry scheme), or
> (c) any other provision of or made under the Taxes Acts.
@@ -16445,7 +16461,7 @@
> (a) may be made by the relevant partner nominated to make the claim by all of the relevant partners, and
> (b) may not be made by any other person.
> (3) In relation to such a claim, references in this Schedule to the claimant are to any of the relevant partners.
> (4) “Relevant partner” means—
> (4) “*Relevant partner*” means—
> (a) a person who was a partner in the partnership at any time during the period in respect of which the partnership return was made, or
> (b) the personal representative of such a person.
> (6)
@@ -16453,7 +16469,7 @@
> (a) a claim is made under this Schedule,
> (b) the grounds for giving effect to the claim also provide grounds for a discovery assessment or determination on the claimant in respect of any chargeable period, and
> (c) such an assessment or determination could be made but for a relevant restriction.
> (2) “Discovery assessment or determination” means—
> (2) “*Discovery assessment or determination*” means—
> (a) an assessment under section 29(1), or
> (b) a discovery assessment or discovery determination under Schedule 18 to the Finance Act 1998 (company tax return etc).
> (3) The following are relevant restrictions—
@@ -16487,10 +16503,10 @@
> (5) The Commissioners may set any amount repayable to the payer by virtue of the claim against any amount payable by the taxpayer by virtue of the assessment or determination.
> (6) The obligations of the Commissioners and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5).
> (7) In this paragraph—
> - “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;
> - “discovery assessment or determination” has the same meaning as in paragraph 6.
> - “*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;
> - “*discovery assessment or determination*” has the same meaning as in paragraph 6.
> (9)
> (1) In this Schedule “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs.
> (1) In this Schedule “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs.
> (2) For the purposes of this Schedule a claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on appeal or otherwise).
#### Consequential amendments
@@ -16511,11 +16527,11 @@
> (2B) For the purposes of this section and section 43B below, a claim under Schedule 1AB is relevant in relation to an assessment for a year of assessment if it relates to that year of assessment.
- (3) In subsection (3), for “a claim” substitute “any other claim”.
- (3) In subsection (3), for “a claim” substitute “ any other claim ”.
##### 6
- (1) In paragraph 1 of Schedule 1A (claims etc not included in returns), in the definition of “partnership claim”, after “46(2)(b) of” insert “, or paragraph 5 of Schedule 1AB to,”.
- (1) In paragraph 1 of Schedule 1A (claims etc not included in returns), in the definition of “partnership claim”, after “46(2)(b) of” insert “ , or paragraph 5 of Schedule 1AB to, ”.
##### 7
@@ -16523,11 +16539,11 @@
- (2) In sub-paragraph (1)—
- (a) for “and (4)” substitute “to (5)”, and
- (a) for “and (4)” substitute “ to (5) ”, and
- (b) omit “and to any other provision in the Taxes Acts which otherwise provides”.
- (3) In sub-paragraph (2), for “and (4)” substitute “to (5)”.
- (3) In sub-paragraph (2), for “and (4)” substitute “ to (5) ”.
- (4) Insert at the end—
@@ -16543,21 +16559,21 @@
- (1) Section 70H of CAA 2001 (lessee: requirement for tax return treating lease as long funding lease) is amended as follows.
- (2) In subsection (2), for “for relief under the error or mistake provisions in respect of” substitute “under the recovery provisions for relief in respect of an amount paid or liable to be paid that is excessive by reason of”.
- (2) In subsection (2), for “for relief under the error or mistake provisions in respect of” substitute “ under the recovery provisions for relief in respect of an amount paid or liable to be paid that is excessive by reason of ”.
- (3) In subsection (3)—
- (a) for ““the error or mistake provisions”” substitute ““the recovery provisions””, and
- (b) for “section 33 of” substitute “Schedule 1AB to”.
- (a) for “ “the error or mistake provisions”” substitute “ ;the recovery provisions ”, and
- (b) for “section 33 of” substitute “ Schedule 1AB to ”.
#### Transitional provision
##### 10
- (1) In relation to a relevant claim, paragraph 3(1) of Schedule 1AB to TMA 1970 (inserted by this Part of this Schedule) has effect as if for “more than 4 years after” there were substituted “more than 5 years after the 31st January next following”.
- (2) “Relevant claim” means a claim within paragraph 3(2)(a) of Schedule 1AB to TMA 1970 that—
- (1) In relation to a relevant claim, paragraph 3(1) of Schedule 1AB to TMA 1970 (inserted by this Part of this Schedule) has effect as if for “more than 4 years after” there were substituted “ more than 5 years after the 31st January next following ”.
- (2) “*Relevant claim*” means a claim within paragraph 3(2)(a) of Schedule 1AB to TMA 1970 that—
- (a) is made before 1 April 2012 by a person other than a company, and
@@ -16587,18 +16603,18 @@
> (1) This paragraph applies where—
> (a) a person has paid an amount by way of tax but believes that the tax was not due, or
> (b) a person has been assessed as liable to pay an amount by way of tax, or there has been a determination or direction to that effect, but the person believes that the tax is not due.
> (2) The person may make a claim to the Commissioners for Her Majesty’s Revenue and Customs for repayment or discharge of the amount.
> (3) Paragraph 51A makes provision about cases in which the Commissioners for Her Majesty’s Revenue and Customs are not liable to give effect to a claim under this paragraph.
> (2) The person may make a claim to the Commissioners for Her Majesty's Revenue and Customs for repayment or discharge of the amount.
> (3) Paragraph 51A makes provision about cases in which the Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under this paragraph.
> (4) The following make further provision about making and giving effect to claims under this paragraph—
> (a) paragraphs 51B to 51F and Part 7 of this Schedule, and
> (b) Schedule 1A to the Taxes Management Act 1970 (which is applied by that Part).
> (5) Paragraph 51G makes provision about the application of this paragraph and paragraphs 51A to 51F to amounts paid under contract settlements.
> (6) The Commissioners for Her Majesty’s Revenue and Customs are not liable to give relief in respect of a case described in sub-paragraph (1)(a) or (b) except as provided—
> (6) The Commissioners for Her Majesty's Revenue and Customs are not liable to give relief in respect of a case described in sub-paragraph (1)(a) or (b) except as provided—
> (a) by this Schedule and Schedule 1A to the Taxes Management Act 1970 (following a claim under this paragraph), or
> (b) by or under another provision of the Corporation Tax Acts.
> (7) For the purposes of this paragraph and paragraphs 51A to 51G, an amount paid by one person on behalf of another is treated as paid by the other person.
> (51A)
> (1) The Commissioners for Her Majesty’s Revenue and Customs are not liable to give effect to a claim under paragraph 51 if or to the extent that the claim falls within a case described in this paragraph (see also paragraph 51C(5)).
> (1) The Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under paragraph 51 if or to the extent that the claim falls within a case described in this paragraph (see also paragraph 51C(5)).
> (2) Case A is where the amount paid, or liable to be paid, is excessive by reason of—
> (a) a mistake in a claim, election or a notice,
> (b) a mistake consisting of making or giving, or failing to make or give, a claim, election or notice,
@@ -16610,16 +16626,16 @@
> (b) knew, or ought reasonably to have known, before the end of that period that such relief was available.
> (5) Case D is where the claim is made on grounds that—
> (a) have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or
> (b) have been put to Her Majesty’s Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of section 54 of the Taxes Management Act 1970 (settling of appeals by agreement)).
> (b) have been put to Her Majesty's Revenue and Customs in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal (by virtue of section 54 of the Taxes Management Act 1970 (settling of appeals by agreement)).
> (6) Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—
> (a) the date on which an appeal by the claimant relating to the amount paid, or liable to be paid, in the course of which the ground could have been put forward (a “relevant appeal”) was determined by a court or tribunal (or is treated as having been so determined),
> (b) the date on which the claimant withdrew a relevant appeal to a court or tribunal, and
> (c) the end of the period in which the claimant was entitled to make a relevant appeal to a court or tribunal.
> (7) Case F is where the amount in question was paid or is liable to be paid—
> (a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty’s Revenue and Customs, or
> (b) in accordance with an agreement between the claimant and Her Majesty’s Revenue and Customs settling such proceedings.
> (a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by Her Majesty's Revenue and Customs, or
> (b) in accordance with an agreement between the claimant and Her Majesty's Revenue and Customs settling such proceedings.
> (8) Case G is where—
> (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant’s liability to corporation tax, and
> (a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to corporation tax, and
> (b) liability was calculated in accordance with the practice generally prevailing at the time.
> (51B)
> (1) A claim under paragraph 51 may not be made more than 4 years after the end of the relevant accounting period.
@@ -16629,14 +16645,14 @@
> (3) In relation to a claim made in reliance on paragraph 51(1)(b), the relevant accounting period is the accounting period to which the assessment, determination or direction relates.
> (4) A claim under paragraph 51 may not be made by being included in a company tax return.
> (51C)
> (1) Sub-paragraph (2) applies where a person (“P”) is accountable to the Commissioners for Her Majesty’s Revenue and Customs under a relevant enactment for an amount that has been or is to be set off against a liability of another person (“T”) under a relevant enactment.
> (1) Sub-paragraph (2) applies where a person (“P”) is accountable to the Commissioners for Her Majesty's Revenue and Customs under a relevant enactment for an amount that has been or is to be set off against a liability of another person (“T”) under a relevant enactment.
> (2) A claim under paragraph 51 in respect of the amount may be made only by T.
> (3) Sub-paragraph (4) applies where—
> (a) a person (“P”) has paid an amount described in sub-paragraph (1) in the belief that P was accountable to the Commissioners for the amount under a relevant enactment, but
> (b) P was not so accountable.
> (4) A claim under paragraph 51 in respect of the amount may be made only by P.
> (5) The Commissioners for Her Majesty’s Revenue and Customs are not liable to give effect to a claim under sub-paragraph (4) if or to the extent that the amount has been repaid to T or set against amounts payable to the Commissioners by T.
> (6) “Relevant enactment” means—
> (5) The Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under sub-paragraph (4) if or to the extent that the amount has been repaid to T or set against amounts payable to the Commissioners by T.
> (6) “*Relevant enactment*” means—
> (a) Chapter 3 of Part 3 of the Finance Act 2004 or regulations under that Chapter (construction industry scheme), or
> (b) any other provision of or made under the Taxes Acts.
> (51D)
@@ -16648,7 +16664,7 @@
> (a) may be made by the relevant partner nominated to make the claim by all of the relevant partners, and
> (b) may not be made by any other person.
> (3) In relation to such a claim, references in paragraphs 51A to 51F to the claimant are to any of the relevant partners.
> (4) “Relevant partner” means—
> (4) “*Relevant partner*” means—
> (a) a person who was a partner in the partnership at any time during the period in respect of which the partnership return was made, or
> (b) the personal representative of such a person.
> (51E)
@@ -16685,9 +16701,9 @@
> (c) the references to the claimant in paragraphs 51E(1)(b) and 51F(1)(b) have effect as if they were references to the taxpayer, and
> (d) references to tax in Schedule 1A to the Taxes Management Act 1970 (as it applies to a claim under this Part of this Schedule) include such an amount.
> (4) Sub-paragraph (5) applies where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds for a discovery assessment or discovery determination on the taxpayer in respect of any chargeable period.
> (5) The Commissioners for Her Majesty’s Revenue and Customs may set any amount repayable to the payer by virtue of the claim against any amount payable by the taxpayer by virtue of the assessment or determination.
> (6) The obligations of the Commissioners for Her Majesty’s Revenue and Customs and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5).
> (7) “Contract settlement” means an agreement made in connection with any person’s liability to make a payment to the Commissioners for Her Majesty’s Revenue and Customs under or by virtue of an enactment.
> (5) The Commissioners for Her Majesty's Revenue and Customs may set any amount repayable to the payer by virtue of the claim against any amount payable by the taxpayer by virtue of the assessment or determination.
> (6) The obligations of the Commissioners for Her Majesty's Revenue and Customs and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5).
> (7) “*Contract settlement*” means an agreement made in connection with any person's liability to make a payment to the Commissioners for Her Majesty's Revenue and Customs under or by virtue of an enactment.
##### 14
@@ -16701,7 +16717,7 @@
> (1A) This paragraph applies to a claim under paragraph 51 relating to the accounting period in respect of which the amendment or assessment is made.
- (3) In sub-paragraph (2), for “a claim” substitute “any other claim”.
- (3) In sub-paragraph (2), for “a claim” substitute “ any other claim ”.
##### 16
@@ -16713,7 +16729,7 @@
##### 17
In Schedule 1A to TMA 1970 (claims etc not included in returns), in paragraph 1, in the definition of “partnership claim”, after “Act” insert “or paragraph 51D of Schedule 18 to the Finance Act 1998 (claims for overpaid corporation tax)”.
In Schedule 1A to TMA 1970 (claims etc not included in returns), in paragraph 1, in the definition of “partnership claim”, after “Act” insert “ or paragraph 51D of Schedule 18 to the Finance Act 1998 (claims for overpaid corporation tax) ”.
## SCHEDULE 53
@@ -16747,9 +16763,9 @@
- (4) In this paragraph—
- “balancing payment” means an amount payable— in accordance with section 59B(3), (4) or (5) of TMA 1970, or in accordance with section 59B(6) of that Act in respect of income tax assessed under section 29 of that Act;
- “payment on account” means an amount payable in accordance with section 59A(2) of TMA 1970.
- “*balancing payment*” means an amount payable—in accordance with section 59B(3), (4) or (5) of TMA 1970, orin accordance with section 59B(6) of that Act in respect of income tax assessed under section 29 of that Act;
- “*payment on account*” means an amount payable in accordance with section 59A(2) of TMA 1970.
#### Payments on account and overpayment
@@ -16771,9 +16787,9 @@
- (4) In this paragraph—
- “overpayment” means an amount repayable in accordance with section 59B(3), (4) or (5) of TMA 1970;
- “payment on account” means an amount payable in accordance with section 59A(2) of that Act.
- “*overpayment*” means an amount repayable in accordance with section 59B(3), (4) or (5) of TMA 1970;
- “*payment on account*” means an amount payable in accordance with section 59A(2) of that Act.
## Part 2 — Special provision: late payment interest start date
@@ -16797,7 +16813,7 @@
- (3) In the case of a person (“P”) who failed to give notice as required under section 7 of TMA 1970 (notice of liability to tax), the reference in sub-paragraph (1)(c) to an assessment which ought to have been made by P is a reference to the assessment which P would have been required to make if an officer of Revenue and Customs had given notice under section 8 of that Act.
- (4) In this paragraph “assessment” means any assessment or determination (however described) of any amount due and payable to HMRC.
- (4) In this paragraph “*assessment*” means any assessment or determination (however described) of any amount due and payable to HMRC.
#### Amounts postponed pending appeal under TMA 1970
@@ -16819,7 +16835,7 @@
##### 6
In respect of any amount charged by an assessment mentioned in section 252(5) of ICTA (recovery of payment of tax credit or interest on such a payment), the late payment interest start date is the date when the payment of tax credit or interest was made.
In respect of any amount charged by an assessment mentioned in section section 1111(2) of CTA 2010 (recovery of payment of tax credit or interest on such a payment), the late payment interest start date is the date when the payment of tax credit or interest was made.
#### Inheritance tax payable by instalments
@@ -16877,7 +16893,7 @@
##### 9
In the case of an amount which is payable under section 147(4) of IHTA 1984, the late payment interest start date is the day after the end of the period of 6 months beginning with the date of the testator’s death.
In the case of an amount which is payable under section 147(4) of IHTA 1984, the late payment interest start date is the day after the end of the period of 6 months beginning with the date of the testator's death.
#### VAT due from persons not registered as required
@@ -16895,7 +16911,7 @@
- (2) The late payment interest start date in respect of the amount which is shown as being value added tax, or which is to be taken as representing value added tax, is the date of the invoice.
- (3) In this paragraph “unauthorised person” has the meaning given in paragraph 2 of Schedule 41 to FA 2008.
- (3) In this paragraph “*unauthorised person*” has the meaning given in paragraph 2 of Schedule 41 to FA 2008.
#### Death of taxpayer
@@ -16937,7 +16953,7 @@
but section 101 does not otherwise apply to the income tax.
- (3) In this paragraph “return period” means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.
- (3) In this paragraph “*return period*” means a period for which a return is required to be made under Chapter 15 of Part 15 of ITA 2007.
#### Property accepted in lieu of inheritance tax
@@ -17143,13 +17159,13 @@
- (b) subject to paragraphs 14 to 17, the amount of the penalty.
- (3) If P’s failure falls within more than one paragraph of this Schedule, P is liable to a penalty under each of those paragraphs (but this is subject to paragraph 17(3)).
- (3) If P's failure falls within more than one paragraph of this Schedule, P is liable to a penalty under each of those paragraphs (but this is subject to paragraph 17(3)).
- (4) In this Schedule—
- “filing date”, in relation to a return or other document, means the date by which it is required to be made or delivered to HMRC;
- “penalty date”, in relation to a return or other document, means the date on which a penalty is first payable for failing to make or deliver it (that is to say, the day after the filing date).
- “*filing date*”, in relation to a return or other document, means the date by which it is required to be made or delivered to HMRC;
- “*penalty date*”, in relation to a return or other document, means the date on which a penalty is first payable for failing to make or deliver it (that is to say, the day after the filing date).
- (5) In the provisions of this Schedule which follow the Table—
@@ -17157,12 +17173,12 @@
- (b) any reference to making a return includes a reference to delivering a return or to delivering any such document.
| | Tax to which return etc relates | Return or other document |
| | *Tax to which return etc relates* | *Return or other document* |
| --- | --- | --- |
| 1 | Income tax or capital gains tax | Return under section 8(1)(a) of TMA 1970 Accounts, statement or document required under section 8(1)(b) of TMA 1970 |
| 2 | Income tax or capital gains tax | Return under section 8A(1)(a) of TMA 1970 Accounts, statement or document required under section 8A(1)(b) of TMA 1970 |
| 3 | Income tax or corporation tax | Return under section 12AA(2)(a) or (3)(a) of TMA 1970 Accounts, statement or document required under section 12AA(2)(b) or (3)(b) of TMA 1970 |
| 4 | Income tax | Annual return of payments and net tax deducted for the purposes of PAYE regulations Return of revised payments and net tax deducted for those purposes where those amounts are revised after end of tax year |
| 1 | Income tax or capital gains tax | (a) Return under section 8(1)(a) of TMA 1970(b) Accounts, statement or document required under section 8(1)(b) of TMA 1970 |
| 2 | Income tax or capital gains tax | (a) Return under section 8A(1)(a) of TMA 1970(b) Accounts, statement or document required under section 8A(1)(b) of TMA 1970 |
| 3 | Income tax or corporation tax | (a) Return under section 12AA(2)(a) or (3)(a) of TMA 1970(b) Accounts, statement or document required under section 12AA(2)(b) or (3)(b) of TMA 1970 |
| 4 | Income tax | (a) Annual return of payments and net tax deducted for the purposes of PAYE regulations(b) Return of revised payments and net tax deducted for those purposes where those amounts are revised after end of tax year |
| 5 | Income tax | Return under section 254 of FA 2004 (pension schemes) |
| 6 | Deductions on account of tax under Chapter 3 of Part 3 of FA 2004 (construction industry scheme) | Return under regulations under section 70 of FA 2004 |
| 7 | Corporation tax | Company tax return under paragraph 3 of Schedule 18 to FA 1998 |
@@ -17187,7 +17203,7 @@
- (1) P is liable to a penalty under this paragraph if (and only if)—
- (a) P’s failure continues after the end of the period of 3 months beginning with the penalty date,
- (a) P's failure continues after the end of the period of 3 months beginning with the penalty date,
- (b) HMRC decide that such a penalty should be payable, and
@@ -17203,7 +17219,7 @@
##### 5
- (1) P is liable to a penalty under this paragraph if (and only if) P’s failure continues after the end of the period of 6 months beginning with the penalty date.
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.
- (2) The penalty under this paragraph is the greater of—
@@ -17213,9 +17229,9 @@
##### 6
- (1) P is liable to a penalty under this paragraph if (and only if) P’s failure continues after the end of the period of 12 months beginning with the penalty date.
- (2) Where, by failing to make the return, P withholds information which would enable or assist HMRC to assess P’s liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.
- (2) Where, by failing to make the return, P withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).
- (3) If the withholding of the information is deliberate and concealed, the penalty is the greater of—
@@ -17247,13 +17263,13 @@
##### 9
- (1) P is liable to a penalty under this paragraph if (and only if) P’s failure continues after the end of the period of 2 months beginning with the penalty date.
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 2 months beginning with the penalty date.
- (2) The penalty under this paragraph is £200.
##### 10
- (1) P is liable to a penalty under this paragraph if (and only if) P’s failure continues after the end of the period of 6 months beginning with the penalty date.
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.
- (2) The penalty under this paragraph is the greater of—
@@ -17263,7 +17279,7 @@
##### 11
- (1) P is liable to a penalty under this paragraph if (and only if) P’s failure continues after the end of the period of 12 months beginning with the penalty date.
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.
- (2) Where, by failing to make the return, P withholds information which would enable or assist HMRC to assess the amount that P is liable to pay to HMRC in accordance with Chapter 3 of Part 3 of FA 2004, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).
@@ -17289,7 +17305,7 @@
- (1) P is liable to a penalty under this paragraph if (and only if)—
- (a) P’s failure continues after the end of the period of 12 months beginning with the penalty date, and
- (a) P's failure continues after the end of the period of 12 months beginning with the penalty date, and
- (b) the information required in the return relates only to persons registered for gross payment (within the meaning of Chapter 3 of Part 3 of FA 2004).
@@ -17313,7 +17329,7 @@
- (b) P is not liable to penalties under paragraphs 8 and 9 which exceed, in total, £3,000.
- (3) In sub-paragraph (1)(b) “earlier return” means any return falling within item 6 which has a filing date earlier than the date on which P first made a return.
- (3) In sub-paragraph (1)(b) “*earlier return*” means any return falling within item 6 which has a filing date earlier than the date on which P first made a return.
#### Reductions for disclosure
@@ -17335,7 +17351,7 @@
- (b) otherwise, is “prompted”.
- (4) In relation to disclosure “quality” includes timing, nature and extent.
- (4) In relation to disclosure “*quality*” includes timing, nature and extent.
##### 15
@@ -17359,7 +17375,7 @@
- (1) If HMRC think it right because of special circumstances, they may reduce a penalty under any paragraph of this Schedule.
- (2) In sub-paragraph (1) “special circumstances” does not include—
- (2) In sub-paragraph (1) “*special circumstances*” does not include—
- (a) ability to pay, or
@@ -17377,7 +17393,7 @@
- (1) Where P is liable for a penalty under any paragraph of this Schedule which is determined by reference to a liability to tax, the amount of that penalty is to be reduced by the amount of any other penalty incurred by P, if the amount of the penalty is determined by reference to the same liability to tax.
- (2) In sub-paragraph (1) the reference to “any other penalty” does not include—
- (2) In sub-paragraph (1) the reference to “*any other penalty*” does not include—
- (a) a penalty under any other paragraph of this Schedule, or
@@ -17421,7 +17437,7 @@
- (b) if there is no such assessment, the date on which that liability is ascertained or it is ascertained that the liability is nil.
- (4) In sub-paragraph (3)(a) “appeal period” means the period during which—
- (4) In sub-paragraph (3)(a) “*appeal period*” means the period during which—
- (a) an appeal could be brought, or
@@ -17449,23 +17465,23 @@
##### 22
- (1) On an appeal under paragraph 20(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision.
- (1) On an appeal under paragraph 20(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC's decision.
- (2) On an appeal under paragraph 20(2) that is notified to the tribunal, the tribunal may—
- (a) affirm HMRC’s decision, or
- (b) substitute for HMRC’s decision another decision that HMRC had power to make.
- (a) affirm HMRC's decision, or
- (b) substitute for HMRC's decision another decision that HMRC had power to make.
- (3) If the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 16—
- (a) to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or
- (b) to a different extent, but only if the tribunal thinks that HMRC’s decision in respect of the application of paragraph 16 was flawed.
- (4) In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.
- (5) In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 21(1)).
- (b) to a different extent, but only if the tribunal thinks that HMRC's decision in respect of the application of paragraph 16 was flawed.
- (4) In sub-paragraph (3)(b) “*flawed*” means flawed when considered in the light of the principles applicable in proceedings for judicial review.
- (5) In this paragraph “*tribunal*” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 21(1)).
#### Reasonable excuse
@@ -17475,7 +17491,7 @@
- (2) For the purposes of sub-paragraph (1)—
- (a) an insufficiency of funds is not a reasonable excuse, unless attributable to events outside P’s control,
- (a) an insufficiency of funds is not a reasonable excuse, unless attributable to events outside P's control,
- (b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and
@@ -17489,7 +17505,7 @@
- (2) In the case of a penalty which is assessed at a time before P makes the return to which the penalty relates—
- (a) HMRC is to determine the amount mentioned in sub-paragraph (1) to the best of HMRC’s information and belief, and
- (a) HMRC is to determine the amount mentioned in sub-paragraph (1) to the best of HMRC's information and belief, and
- (b) if P subsequently makes a return, the penalty must be re-assessed by reference to the amount of tax shown to be due and payable in that return (but subject to any amendments or corrections to the return).
@@ -17521,11 +17537,11 @@
- (6) In this paragraph—
- “relevant partner” means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required;
- “representative partner” means a person who has been required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver any return;
- “successor” has the meaning given by section 12AA(11) of TMA 1970.
- “*relevant partner*” means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required;
- “*representative partner*” means a person who has been required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver any return;
- “*successor*” has the meaning given by section 12AA(11) of TMA 1970.
#### Double jeopardy
@@ -17545,7 +17561,7 @@
- (b) “deliberate but not concealed” if P deliberately withholds the information but does not make arrangements to conceal the fact that the information has been withheld.
- (3) “HMRC” means Her Majesty’s Revenue and Customs.
- (3) “*HMRC*” means Her Majesty's Revenue and Customs.
- (4) References to a liability to tax, in relation to a return falling within item 6 in the Table (construction industry scheme), are to a liability to make payments in accordance with Chapter 3 of Part 3 of FA 2004.
@@ -17565,13 +17581,13 @@
- (b) subject to paragraph 9, the amount of the penalty.
- (3) If P’s failure falls within more than one provision of this Schedule, P is liable to a penalty under each of those provisions.
- (4) In the following provisions of this Schedule, the “penalty date”, in relation to an amount of tax, means the date on which a penalty is first payable for failing to pay the amount (that is to say, the day after the date specified in or for the purposes of column 4 of the Table).
| | Tax to which payment relates | Amount of tax payable | Date after which penalty is incurred |
- (3) If P's failure falls within more than one provision of this Schedule, P is liable to a penalty under each of those provisions.
- (4) In the following provisions of this Schedule, the “*penalty date*”, in relation to an amount of tax, means the date on which a penalty is first payable for failing to pay the amount (that is to say, the day after the date specified in or for the purposes of column 4 of the Table).
| | *Tax to which payment relates* | *Amount of tax payable* | *Date after which penalty is incurred* |
| --- | --- | --- | --- |
| *PRINCIPAL AMOUNTS* | *PRINCIPAL AMOUNTS* | *PRINCIPAL AMOUNTS* | *PRINCIPAL AMOUNTS* |
| ***PRINCIPAL AMOUNTS*** | ***PRINCIPAL AMOUNTS*** | ***PRINCIPAL AMOUNTS*** | ***PRINCIPAL AMOUNTS*** |
| 1 | Income tax or capital gains tax | Amount payable under section 59B(3) or (4) of TMA 1970 | The date falling 30 days after the date specified in section 59B(3) or (4) of TMA 1970 as the date by which the amount must be paid |
| 2 | Income tax | Amount payable under PAYE regulations (except an amount falling within item 20) | The date determined by or under PAYE regulations as the date by which the amount must be paid |
| 3 | Income tax | Amount shown in return under section 254(1) of FA 2004 | The date falling 30 days after the date specified in section 254(5) of FA 2004 as the date by which the amount must be paid |
@@ -17583,21 +17599,21 @@
| 9 | Stamp duty land tax | Amount payable under section 86(1) or (2) of FA 2003 | The date falling 30 days after the date specified in section 86(1) or (2) of FA 2003 as the date by which the amount must be paid |
| 10 | Stamp duty reserve tax | Amount payable under section 87, 93 or 96 of FA 1986 or Schedule 19 to FA 1999 (except an amount falling within item 17, 23 or 24) | The date falling 30 days after the date determined by or under regulations under section 98 of FA 1986 as the date by which the amount must be paid |
| 11 | Petroleum revenue tax | Amount charged in an assessment under paragraph 11(1) of Schedule 2 to OTA 1975 | The date falling 30 days after the date determined in accordance with paragraph 13 of Schedule 2 to OTA 1975 as the date by which the amount must be paid |
| *AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE* | *AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE* | *AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE* | *AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE* |
| ***AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE*** | ***AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE*** | ***AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE*** | ***AMOUNTS PAYABLE IN DEFAULT OF A RETURN BEING MADE*** |
| 12 | Income tax or capital gains tax | Amount payable under section 59B(5A) of TMA 1970 | The date falling 30 days after the date specified in section 59B(5A) of TMA 1970 as the date by which the amount must be paid |
| 13 | Corporation tax | Amount shown in determination under paragraph 36 or 37 of Schedule 18 to FA 1998 | The filing date for the company tax return for the accounting period for which the tax is due (see paragraph 14 of Schedule 18 to FA 1998) |
| 14 | Inheritance tax | Amount shown in a determination made by HMRC in the circumstances set out in paragraph 2 | The filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amount |
| 15 | Stamp duty land tax | Amount shown in determination under paragraph 25 of Schedule 10 to FA 2003 (including that paragraph as applied by section 81(3) of that Act) | The date falling 30 days after the filing date for the return in question |
| 16 | Petroleum revenue tax | Amount charged in an assessment made where participator fails to deliver return for a chargeable period | The date falling 6 months and 30 days after the end of the chargeable period |
| 17 | Tax falling within any of items 1 to 6, 9 or 10 | Amount (not falling within any of items 12 to 15) which is shown in an assessment or determination made by HMRC in the circumstances set out in paragraph 2 | The date falling 30 days after the date by which the amount would have been required to be paid if it had been shown in the return in question |
| *AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC* | *AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC* | *AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC* | *AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC* |
| ***AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC*** | ***AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC*** | ***AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC*** | ***AMOUNTS SHOWN TO BE DUE IN OTHER ASSESSMENTS, DETERMINATIONS, ETC*** |
| 18 | Income tax or capital gains tax | Amount payable under section 55 of TMA 1970 | The date falling 30 days after the date determined in accordance with section 55(3), (4), (6) or (9) of TMA 1970 as the date by which the amount must be paid |
| 19 | Income tax or capital gains tax | Amount payable under section 59B(5) or (6) of TMA 1970 | The date falling 30 days after the date specified in section 59B(5) or (6) of TMA 1970 as the date by which the amount must be paid |
| 20 | Income tax | Amount shown in determination made by HMRC where it appears that tax payable under PAYE regulations has not been paid | The date determined by or under PAYE regulations as the date by which the amount must be paid |
| 21 | Inheritance tax | Amount shown in— an amendment or correction of a return showing an amount falling within item 7 or 8, or a determination made by HMRC in circumstances other than those set out in paragraph 2 | The later of— the filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amount, and the date falling 30 days after the date on which the amendment, correction, assessment or determination is made |
| 22 | Petroleum revenue tax | Amount charged in an assessment, or an amendment of an assessment, made in circumstances other than those set out in items 11 and 16 | The date falling 30 days after— the date by which the amount must be paid, or the date on which the assess-ment or amendment is made, whichever is later |
| 23 | Tax falling within any of items 1 to 6, 9 or 10 | Amount (not falling within any of items 18 to 20) shown in an amendment or correction of a return showing an amount falling within any of items 1 to 6, 9 or 10 | The date falling 30 days after— the date by which the amount must be paid, or the date on which the amendment or correction is made, whichever is later |
| 24 | Tax falling within any of items 1 to 6, 9 or 10 | Amount (not falling within any of items 18 to 20) shown in an assessment or determination made by HMRC in circumstances other than those set out in paragraph 2 | The date falling 30 days after— the date by which the amount must be paid, or the date on which the assessment or determin-ation is made, whichever is later |
| 21 | Inheritance tax | Amount shown in—an amendment or correction of a return showing an amount falling within item 7 or 8, ora determination made by HMRC in circumstances other than those set out in paragraph 2 | The later of—the filing date (determined under section 216 of IHTA 1984) for the account in respect of the liability for that amount, andthe date falling 30 days after the date on which the amendment, correction, assessment or determination is made |
| 22 | Petroleum revenue tax | Amount charged in an assessment, or an amendment of an assessment, made in circumstances other than those set out in items 11 and 16 | The date falling 30 days after—the date by which the amount must be paid, orthe date on which the assess-ment or amendment is made,whichever is later |
| 23 | Tax falling within any of items 1 to 6, 9 or 10 | Amount (not falling within any of items 18 to 20) shown in an amendment or correction of a return showing an amount falling within any of items 1 to 6, 9 or 10 | The date falling 30 days after—the date by which the amount must be paid, orthe date on which the amendment or correction is made,whichever is later |
| 24 | Tax falling within any of items 1 to 6, 9 or 10 | Amount (not falling within any of items 18 to 20) shown in an assessment or determination made by HMRC in circumstances other than those set out in paragraph 2 | The date falling 30 days after—the date by which the amount must be paid, orthe date on which the assessment or determin-ation is made,whichever is later |
#### Assessments and determinations in default of return
@@ -17685,7 +17701,7 @@
- (1) If HMRC think it right because of special circumstances, they may reduce a penalty under any paragraph of this Schedule.
- (2) In sub-paragraph (1) “special circumstances” does not include—
- (2) In sub-paragraph (1) “*special circumstances*” does not include—
- (a) ability to pay, or
@@ -17769,7 +17785,7 @@
- (b) if there is no such assessment, the date on which that amount of tax is ascertained.
- (4) In sub-paragraph (3)(a) “appeal period” means the period during which—
- (4) In sub-paragraph (3)(a) “*appeal period*” means the period during which—
- (a) an appeal could be brought, or
@@ -17795,23 +17811,23 @@
##### 15
- (1) On an appeal under paragraph 13(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC’s decision.
- (1) On an appeal under paragraph 13(1) that is notified to the tribunal, the tribunal may affirm or cancel HMRC's decision.
- (2) On an appeal under paragraph 13(2) that is notified to the tribunal, the tribunal may—
- (a) affirm HMRC’s decision, or
- (b) substitute for HMRC’s decision another decision that HMRC had power to make.
- (a) affirm HMRC's decision, or
- (b) substitute for HMRC's decision another decision that HMRC had power to make.
- (3) If the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 9—
- (a) to the same extent as HMRC (which may mean applying the same percentage reduction as HMRC to a different starting point), or
- (b) to a different extent, but only if the tribunal thinks that HMRC’s decision in respect of the application of paragraph 9 was flawed.
- (4) In sub-paragraph (3)(b) “flawed” means flawed when considered in the light of the principles applicable in proceedings for judicial review.
- (5) In this paragraph “tribunal” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 14(1)).
- (b) to a different extent, but only if the tribunal thinks that HMRC's decision in respect of the application of paragraph 9 was flawed.
- (4) In sub-paragraph (3)(b) “*flawed*” means flawed when considered in the light of the principles applicable in proceedings for judicial review.
- (5) In this paragraph “*tribunal*” means the First-tier Tribunal or Upper Tribunal (as appropriate by virtue of paragraph 14(1)).
#### Reasonable excuse
@@ -17821,7 +17837,7 @@
- (2) For the purposes of sub-paragraph (1)—
- (a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside P’s control,
- (a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside P's control,
- (b) where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the failure, and
@@ -17839,7 +17855,7 @@
- (1) This paragraph applies for the construction of this Schedule.
- (2) “HMRC” means Her Majesty’s Revenue and Customs.
- (2) “*HMRC*” means Her Majesty's Revenue and Customs.
- (3) References to tax include construction industry deductions under Chapter 3 of Part 3 of FA 2004.
@@ -17860,7 +17876,7 @@
In paragraph 2 (under-assessment by HMRC), insert at the end—
> (4) In this paragraph (and in Part 2 of this Schedule so far as relating to this paragraph)—
> (a) “assessment” includes determination, and
> (a) “*assessment*” includes determination, and
> (b) accordingly, references to an under-assessment include an under-determination.
##### 3
@@ -17873,7 +17889,7 @@
##### 4
In paragraph 9(1)(b) and (c) (reductions for disclosure), for “supply or false information” substitute “supply of false information”.
In paragraph 9(1)(b) and (c) (reductions for disclosure), for “supply or false information” substitute “ supply of false information ”.
##### 5
@@ -17895,7 +17911,7 @@
- (2) In sub-paragraph (3)—
- (a) after “a body corporate” insert “other than a limited liability partnership”,
- (a) after “a body corporate” insert “ other than a limited liability partnership ”,
- (b) in paragraph (a), omit the “or” at the end, and
@@ -17907,11 +17923,11 @@
- (3) After that sub-paragraph insert—
> (3A) In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member.
> (3A) In the application of sub-paragraph (1) to a limited liability partnership, “*officer*” means a member.
- (4) Insert at the end—
> (6) In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership, a local authority or a local authority association.
> (6) In this paragraph “*company*” means any body corporate or unincorporated association, but does not include a partnership, a local authority or a local authority association.
##### 8
@@ -17919,7 +17935,7 @@
##### 9
In paragraphs 30 and 31 (consequential amendments) for “paragraph 7” substitute “paragraphs 7 and 7B”.
In paragraphs 30 and 31 (consequential amendments) for “paragraph 7” substitute “ paragraphs 7 and 7B ”.
## Part 2 — Amendments of Schedule 41 to FA 2008
@@ -17941,7 +17957,7 @@
- (2) In sub-paragraph (3)—
- (a) after “a body corporate” insert “other than a limited liability partnership”,
- (a) after “a body corporate” insert “ other than a limited liability partnership ”,
- (b) in paragraph (a), omit the “or” at the end,
@@ -17953,11 +17969,11 @@
- (3) After that sub-paragraph insert—
> (3A) In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member.
> (3A) In the application of sub-paragraph (1) to a limited liability partnership, “*officer*” means a member.
- (4) Insert at the end—
> (6) In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership, a local authority or a local authority association.
> (6) In this paragraph “*company*” means any body corporate or unincorporated association, but does not include a partnership, a local authority or a local authority association.
## Part 3 — Other amendments
@@ -17994,17 +18010,17 @@
##### 2
In subsection (1), omit “for Her Majesty’s Revenue and Customs”.
In subsection (1), omit “for Her Majesty's Revenue and Customs”.
##### 3
- (1) Subsection (2) is amended as follows.
- (2) For “PAYE regulations may, in particular, include” substitute “The provision that may be made in PAYE regulations includes”.
- (3) In the list of provisions, in item 1, in paragraph (a), omit “for Her Majesty’s Revenue and Customs”.
- (4) In item 2, for “or remaining unpaid (or treated as overpaid or remaining unpaid)” substitute “(or treated as overpaid) on account of, or any amounts other than relevant debts remaining unpaid (or treated as remaining unpaid)”.
- (2) For “PAYE regulations may, in particular, include” substitute “ The provision that may be made in PAYE regulations includes ”.
- (3) In the list of provisions, in item 1, in paragraph (a), omit “for Her Majesty's Revenue and Customs”.
- (4) In item 2, for “or remaining unpaid (or treated as overpaid or remaining unpaid)” substitute “ (or treated as overpaid) on account of, or any amounts other than relevant debts remaining unpaid (or treated as remaining unpaid) ”.
- (5) After item 2 insert—
@@ -18013,24 +18029,24 @@
> (b) as to the circumstances in which such deductions may be made, and
> (c) where such deductions are made, as to the date on which the relevant debts are to be treated as paid.
- (6) In item 3, for “income tax has been and is” substitute “amounts have been and are”.
- (6) In item 3, for “income tax has been and is” substitute “ amounts have been and are ”.
##### 4
After subsection (3) insert—
> (3A) PAYE regulations under item 2A in the above list may not make provision enabling deductions totalling more than £2,000 to be made from a payee’s income for a tax year without the payee’s consent.
> (3A) PAYE regulations under item 2A in the above list may not make provision enabling deductions totalling more than £2,000 to be made from a payee's income for a tax year without the payee's consent.
> (3B) The Treasury may by order amend the amount specified in subsection (3A).
##### 5
In paragraph (a) of subsection (7A), after “tax” insert “or other amounts”.
In paragraph (a) of subsection (7A), after “tax” insert “ or other amounts ”.
##### 6
After that subsection insert—
> (7AA) In this section “relevant debt”, in relation to a payee, means—
> (7AA) In this section “*relevant debt*”, in relation to a payee, means—
> (a) a sum payable by the payee to the Commissioners under or by virtue of an enactment, other than an excluded debt, and
> (b) a sum payable by the payee to the Commissioners under a contract settlement.
> (7AB) For the purposes of subsection (7AA)—
@@ -18041,8 +18057,8 @@
In subsection (7C), before the definition of “payer” insert—
> “the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
> “contract settlement” means an agreement made in connection with the liability of the payee or another person to make a payment to the Commissioners under or by virtue of an enactment.
> “*the Commissioners*” means the Commissioners for Her Majesty's Revenue and Customs;
> “*contract settlement*” means an agreement made in connection with the liability of the payee or another person to make a payment to the Commissioners under or by virtue of an enactment.
#### Consequential provision
@@ -18050,7 +18066,7 @@
In section 29(5) of the Tax Credits Act 2002 (recovery of overpayments)—
- (a) for “tax” substitute “income tax”, and
- (a) for “tax” substitute “ income tax ”, and
- (b) insert at the end “that is not a relevant debt (within the meaning of section 684 of the Income Tax (Earnings and Pensions) Act 2003)”.
@@ -18058,13 +18074,13 @@
- (1) Part 11 of ITEPA 2003 (pay as you earn) is amended as follows.
- (2) In section 682(1) (scope of Part), insert at the end “and includes provision in respect of the deduction of certain other amounts from, and the repayment of certain other amounts with, PAYE income”.
- (2) In section 682(1) (scope of Part), insert at the end “ and includes provision in respect of the deduction of certain other amounts from, and the repayment of certain other amounts with, PAYE income ”.
- (3) In section 685 (tax tables)—
- (a) in subsection (1), omit “for Her Majesty’s Revenue and Customs”, and
- (b) in subsection (2)(b), for “or 2” substitute “, 2 or 2A”.
- (a) in subsection (1), omit “for Her Majesty's Revenue and Customs”, and
- (b) in subsection (2)(b), for “or 2” substitute “ , 2 or 2A ”.
##### 10
@@ -18102,7 +18118,7 @@
> (a) each taxable supply made to the facility at any time falling within the certification period is to be treated as not being a reduced-rate supply, and
> (b) accordingly, an amount (determined in accordance with sub-paragraph (5)) is payable by way of levy on that taxable supply.
> (5) The amount payable under this paragraph on a taxable supply is—
> $$T-PT×0.8R$ where— T and P have the values mentioned in sub-paragraph (3), and R is the amount which would have been payable by way of levy on the supply (had it not been a reduced-rate supply) at the time that it was made, in accordance with paragraph 42(1)(a).$
> $$T-PT×0.8R$where—T and P have the values mentioned in sub-paragraph (3), andR is the amount which would have been payable by way of levy on the supply (had it not been a reduced-rate supply) at the time that it was made, in accordance with paragraph 42(1)(a).$
> (6) The Secretary of State must send the certificate to—
> (a) the Commissioners, and
> (b) the person who is the operator of the facility.
@@ -18113,7 +18129,7 @@
> (9) Levy due under this paragraph is payable in addition to any levy already payable on any supply made in the certification period.
> (10) In this paragraph—
> - “certification period”, in a case where the certificate referred to in sub-paragraph (1) has been varied under paragraph 45, means the period for which that certificate has effect as varied;
> - “tonne of carbon dioxide equivalent” has the meaning given in the Climate Change Act 2008.
> - “*tonne of carbon dioxide equivalent*” has the meaning given in the Climate Change Act 2008.
## Part 2 — Consequential amendments
@@ -18125,7 +18141,7 @@
- (1) Paragraph 40 (persons liable to account for levy) is amended as follows.
- (2) In sub-paragraph (1), after “sub-paragraph (2)” insert “or (3)”.
- (2) In sub-paragraph (1), after “sub-paragraph (2)” insert “ or (3) ”.
- (3) After sub-paragraph (2) insert—
@@ -18133,7 +18149,7 @@
##### 4
In paragraph 41(2A) (application of Part 7 where person liable to account otherwise than by reference to accounting period), after “regulations under sub-paragraph (1)(a)(ii) above” insert “or by virtue of paragraph 45B(8)”.
In paragraph 41(2A) (application of Part 7 where person liable to account otherwise than by reference to accounting period), after “regulations under sub-paragraph (1)(a)(ii) above” insert “ or by virtue of paragraph 45B(8) ”.
##### 5
@@ -18143,7 +18159,7 @@
##### 6
In paragraph 44(2) (definition of “reduced-rate supply” to have effect subject to paragraph 45), for “paragraph 45” substitute “paragraphs 45 and 45B”.
In paragraph 44(2) (definition of “reduced-rate supply” to have effect subject to paragraph 45), for “paragraph 45” substitute “ paragraphs 45 and 45B ”.
##### 7
@@ -18155,11 +18171,11 @@
- (1) Paragraph 91 (interpretation etc of Part 7 of the Schedule) is amended as follows.
- (2) In sub-paragraph (5) (modification of references to accounting periods in case of levy due otherwise than by reference to such periods), after “regulations under paragraph 41(1)(a)(ii)” insert “or by virtue of paragraph 45B(8)”.
- (2) In sub-paragraph (5) (modification of references to accounting periods in case of levy due otherwise than by reference to such periods), after “regulations under paragraph 41(1)(a)(ii)” insert “ or by virtue of paragraph 45B(8) ”.
##### 9
In paragraph 147 (interpretation), in the definition of “reduced-rate supply”, for “paragraph 45” substitute “paragraphs 45 and 45B”.
In paragraph 147 (interpretation), in the definition of “reduced-rate supply”, for “paragraph 45” substitute “ paragraphs 45 and 45B ”.
## SCHEDULE 60
@@ -18195,9 +18211,13 @@
> (b) may not alter any rate at which landfill tax is charged.
> (8) Subsections (5) to (7) do not limit the generality of subsection (4).
> (9) In this section—
> - “connected provision” means provision which appears to the Treasury to be necessary or expedient in connection with provision made under subsection (1);
> - “designated area” means an area of a landfill site designated in accordance with— an order under this section, or regulations under Part 1 of Schedule 5;
> - “landfill site activity” means any of the following descriptions of activity, or an activity that falls within any of the following descriptions— using or otherwise dealing with material at a landfill site; storing or otherwise having material at a landfill site.
> - “*connected provision*” means provision which appears to the Treasury to be necessary or expedient in connection with provision made under subsection (1);
> - “*designated area*” means an area of a landfill site designated in accordance with—
> 1. an order under this section, or
> 2. regulations under Part 1 of Schedule 5;
> - “*landfill site activity*” means any of the following descriptions of activity, or an activity that falls within any of the following descriptions—
> 1. using or otherwise dealing with material at a landfill site;
> 2. storing or otherwise having material at a landfill site.
##### 3
@@ -18222,7 +18242,7 @@
##### 6
For the heading before paragraph 1 substitute—
For the heading before paragraph 1 substitute— “ Information: general ”
##### 7
@@ -18239,7 +18259,7 @@
##### 8
For the heading before paragraph 2 substitute—
For the heading before paragraph 2 substitute— “ Records: registrable persons ”
##### 9
@@ -18265,7 +18285,7 @@
> (1) Before commencing restoration of all or part of a landfill site, the operator of the site must—
> (a) notify the Commissioners in writing that the restoration is to commence, and
> (b) provide such other written information as the Commissioners may require generally or in the particular case.
> (2) In this paragraph “restoration” means work, other than capping waste, which is required by a relevant instrument to be carried out to restore a landfill site to use on completion of waste disposal operations.
> (2) In this paragraph “*restoration*” means work, other than capping waste, which is required by a relevant instrument to be carried out to restore a landfill site to use on completion of waste disposal operations.
> (3) The following are relevant instruments—
> (a) a planning consent,
> (b) a waste management licence, and
@@ -18301,15 +18321,15 @@
- (1) In this Schedule—
- “alternative finance investment bond” means arrangements within section 48A of FA 2005 (alternative finance investment bond: introduction);
- “*alternative finance investment bond*” means arrangements within section 48A of FA 2005 (alternative finance investment bond: introduction);
- “bond assets”, “bond-holder”, “bond-issuer” and “capital” have the meaning given by that section;
- “HMRC” means Her Majesty’s Revenue and Customs;
- “prescribed” means prescribed in regulations made by HMRC;
- “qualifying interest” means a major interest in land (within the meaning given by section 117 of FA 2003) except that it does not include a lease if the lease is for— a term of years of 21 years or less, or in Scotland, a period of 21 years or less.
- “*HMRC*” means Her Majesty's Revenue and Customs;
- “*prescribed*” means prescribed in regulations made by HMRC;
- “*qualifying interest*” means a major interest in land (within the meaning given by section 117 of FA 2003) except that it does not include a lease if the lease is for—a term of years of 21 years or less, orin Scotland, a period of 21 years or less.
- (2) Except where the context otherwise requires, any expression which is used in this Schedule and in Part 4 of FA 2003 has the meaning which it has in that Part.
@@ -18355,9 +18375,9 @@
- (4) In this paragraph—
- “connected” is to be read in accordance with section 839 of ICTA, and
- “underwrite”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
- “*connected*” is to be read in accordance with section 839 of ICTA, and
- “*underwrite*”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
## Part 3 — Transactions relating to underlying assets consisting of land
@@ -18393,7 +18413,7 @@
- (a) a lease (if the interest transferred is freehold or, in Scotland, the interest of the owner), or
- (b) a sub-lease (if the interest transferred is leasehold or, in Scotland, the tenant’s right over or interest in a property subject to a lease).
- (b) a sub-lease (if the interest transferred is leasehold or, in Scotland, the tenant's right over or interest in a property subject to a lease).
- (6) Condition D is that, before the end of the period of 120 days beginning with the effective date of the first transaction, Q provides HMRC with the prescribed evidence that—
@@ -18407,7 +18427,7 @@
- (a) is a first charge on, or a security ranking first granted over, the interest transferred to Q,
- (b) is in favour of the Commissioners for Her Majesty’s Revenue and Customs, and
- (b) is in favour of the Commissioners for Her Majesty's Revenue and Customs, and
- (c) is for the amount mentioned in sub-paragraph (8).
@@ -18639,7 +18659,7 @@
- (4) At the time that Q ceases to hold the asset as a bond asset, Q is to be treated as becoming, and P is to be treated as ceasing to be, the owner of the asset.
- (5) Accordingly, Q’s ceasing to hold the asset as a bond asset is to be treated—
- (5) Accordingly, Q's ceasing to hold the asset as a bond asset is to be treated—
- (a) as regards plant or machinery, as a disposal event (in relation to P) occurring in the chargeable period in which the cessation takes place, and
@@ -18781,9 +18801,9 @@
- (4) In this paragraph—
- “connected” is to be read in accordance with section 839 of ICTA, and
- “underwrite”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
- “*connected*” is to be read in accordance with section 839 of ICTA, and
- “*underwrite*”, in relation to an offer of rights under a bond, means to agree to make payments of capital under the bond in the event that other persons do not make those payments.
#### Relief not available if purpose of arrangements is improper
@@ -18795,7 +18815,7 @@
- (b) form part of arrangements of which the main purpose, or one of the main purposes, is the avoidance of liability to tax.
- (2) In sub-paragraph (1) “tax” means income tax, corporation tax, capital gains tax, stamp duty or stamp duty land tax.
- (2) In sub-paragraph (1) “*tax*” means income tax, corporation tax, capital gains tax, stamp duty or stamp duty land tax.
#### Regulations
@@ -18837,7 +18857,7 @@
- (1) Section 48B of FA 2005 (alternative finance investment bond: effects) is amended as follows.
- (2) In subsections (2) and (3), for “any tax other than the Corporation Tax Acts” substitute “income tax or capital gains tax”.
- (2) In subsections (2) and (3), for “any tax other than the Corporation Tax Acts” substitute “ income tax or capital gains tax ”.
- (3) After subsection (8) insert—
@@ -19992,908 +20012,3 @@
[^key-4316f8b2fdc7ef8de9e797c2e4068042]: Sch. 53 Pt. 2 modified (8.4.2010) by [Finance Act 2010 (c. 13)](https://www.legislation.gov.uk/ukpga/2010/13), [Sch. 1 para. 30(2)](https://www.legislation.gov.uk/ukpga/2010/13/schedule/1/paragraph/30/2)
[^M_I_2109f618-2ee4-43b8-af18-373d4db41444]: Sch. 53 in force at 31.8.2010 for specified purposes by [S.I. 2010/1878](https://www.legislation.gov.uk/uksi/2010/1878), [art. 2](https://www.legislation.gov.uk/uksi/2010/1878/article/2) (with [art. 3](https://www.legislation.gov.uk/uksi/2010/1878/article/3))
### Protected pension input amounts: contribution paid in accordance with agreement entered into on or before 22 April 2009
##### 13A
The amount arrived at under paragraph 3(2) in relation to an arrangement which relates to an employment of the individual is a protected lump sum input amount if it is attributable to a single contribution which—
- (a) is paid on or after 22 April 2009, and
- (b) is paid, in accordance with the terms of a written agreement between the individual and the employer made not later than 22 April 2009, not later than the date specified for payment in the agreement.
#### Intangible fixed assets and goodwill
#### Taxable benefit of living accommodation: lease premiums
#### Special annual allowance charge etc
#### Place of supply of services etc
#### Information relating to cross-border supplies of services to taxable recipients
#### Effect of VAT changes on arbitration of rent for agricultural holdings
#### Exercise of collective rights by tenants of flats
#### Registered providers of social housing
#### Rent to shared ownership
#### Capital allowances for oil decommissioning expenditure
#### Remote bingo etc
#### Taxable commodities ineligible for reduced-rate supply
#### Removal of reduced rate where targets not met
#### Inheritance tax: agricultural property and woodlands relief for EEA land
#### Interpretation
#### Short title
### Tax on payments out of discretionary trust taxable as employment income
##### 9A
In the case of a repayment made in consequence of a claim under section 496B of ITA 2007 (relief for payments by discretionary trust taxable as employment income) the repayment interest start date is 31 January next following the end of the tax year to which the claim relates.
### Individuals with relevant income below £150,000 in 2009-10
##### 16A
- (1) This paragraph has effect if the individual's relevant income for the tax year 2009-10 is less than £150,000.
- (2) References in this Schedule to a pre-22 April 2009 pension input amount are to a pre-9 December 2009 pension input amount.
- (3) References in this Schedule to noon on 22 April 2009 are to 9 December 2009.
- (4) Other references in this Schedule to 22 April 2009 (except in paragraph 2) are to 9 December 2009.
- (5) The reference in paragraph 16(2) to 21 April 2009 is to 8 December 2009.
- (6) If the amount arrived at in the case of the individual under sub-paragraph (1) of paragraph 2 for the tax year 2009-10 is less than £150,000, take the steps in that sub-paragraph in relation to the tax year 2007-08 and the tax year 2008-09.
If the result is £150,000 or more for either or both of those earlier tax years the individual's relevant income for the tax year 2009-10 is to be assumed for the purposes of sub-paragraph (1) to be £150,000.
- (7) If there is a scheme the main purpose, or one of the main purposes, of which is to secure that the individual's relevant income for the tax year 2009-10 is less than £150,000, it is to be assumed for the purposes of sub-paragraph (1) to be £150,000.
### Different penalty date for certain PAYE payments
##### 2A
- (1) PAYE regulations may provide that, in relation to specified payments of tax falling within item 2, the penalty date is a specified date later than that determined in accordance with column 4 of the Table.
- (2) In sub-paragraph (1) “*specified*” means specified in the regulations.
### Payments in connection with life assurance premium relief
##### 9D
In the case of a payment made under paragraph 6(1) of Schedule 14 to ICTA (payment where entitlement to life assurance premium relief has not been given by deduction), the repayment interest start date is 31 January next following the end of the tax year in which the entitlement to relief arose.
##### 6A
- (1) Information is category 1 information if—
- (a) it involves a domestic matter, or
- (b) it involves an offshore matter and—
- (i) the territory in question is a category 1 territory, or
- (ii) it is information which would enable or assist HMRC to assess P's liability to a tax other than income tax or capital gains tax.
- (2) Information is category 2 information if—
- (a) it involves an offshore matter,
- (b) the territory in question is a category 2 territory, and
- (c) it is information which would enable or assist HMRC to assess P's liability to income tax or capital gains tax.
- (3) Information is category 3 information if—
- (a) it involves an offshore matter,
- (b) the territory in question is a category 3 territory, and
- (c) it is information which would enable or assist HMRC to assess P's liability to income tax or capital gains tax.
- (4) Information “involves an offshore matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to—
- (a) income arising from a source in a territory outside the UK,
- (b) assets situated or held in a territory outside the UK,
- (c) activities carried on wholly or mainly in a territory outside the UK, or
- (d) anything having effect as if it were income, assets or activities of a kind described above.
- (5) Information “involves a domestic matter” if the liability to tax which would have been shown in the return includes a liability to tax charged on or by reference to anything not mentioned in sub-paragraph (4)(a) to (d).
- (6) If the information which P withholds falls into more than one category—
- (a) P's failure to make the return is to be treated for the purposes of this Schedule as if it were separate failures, one for each category of information according to the matters which the information involves, and
- (b) for each separate failure, the liability to tax which would have been shown in the return in question is taken to be such share of the liability to tax which would have been shown in the return mentioned in paragraph (a) as is just and reasonable.
- (7) For the purposes of this Schedule—
- (a) paragraph 21A of Schedule 24 to FA 2007 (classification of territories) has effect, but
- (b) an order under that paragraph does not apply to a failure if the filing date is before the date on which the order comes into force.
- (8) Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraph 6A of this Schedule as they apply for the purposes of paragraph 4A of that Schedule.
- (9) In this paragraph—
- “*assets*” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling;
- “*UK*” means the United Kingdom, including the territorial sea of the United Kingdom.
### Amount of penalty: real time information for PAYE
##### 6B
Paragraphs 6C and 6D apply in the case of a return falling within item 4 in the Table.
##### 6C
- (1) If P fails during a tax month to make a return on or before the filing date, P is liable to a penalty under this paragraph in respect of that month.
- (2) But this is subject to sub-paragraphs (3) and (4).
- (3) P is not liable to a penalty under this paragraph in respect of a tax month as a result of any failure to make a return on or before the filing date which occurs during the initial period.
- (4) P is not liable to a penalty under this paragraph in respect of a tax month falling in a tax year if the month is the first tax month in that tax year during which P fails to make a return on or before the filing date (disregarding for this purpose any failure which occurs during the initial period).
- (5) In sub-paragraphs (3) and (4) “*the initial period*” means the period which—
- (a) begins with the day in the first tax year on which P is first required to make a return, and
- (b) is of such duration as is specified in regulations made by the Commissioners,
and for this purpose “*the first tax year*” means the first tax year in which P is required to make returns.
- (6) P may be liable under this paragraph to no more than one penalty in respect of each tax month.
- (7) The penalty under this paragraph is to be calculated in accordance with regulations made by the Commissioners.
- (8) Regulations under sub-paragraph (7) may provide for a penalty under this paragraph in respect of a tax month to be calculated by reference to either or both of the following matters—
- (a) the number of persons employed by P, or treated as employed by P for the purposes of PAYE regulations;
- (b) the number of previous penalties incurred by P under this paragraph in the same tax year.
- (9) The Commissioners may by regulations disapply sub-paragraph (3) or (4) in such circumstances as are specified in the regulations.
- (10) If P has elected under PAYE regulations to be treated as different employers in relation to different groups of employees, this paragraph applies to P as if—
- (a) in respect of each group P were a different person, and
- (b) each group constituted all of P's employees.
- (11) Regulations made by the Commissioners under this paragraph may—
- (a) make different provision for different cases, and
- (b) include incidental, consequential and supplementary provision.
##### 6D
- (1) P may be liable to one or more penalties under this paragraph in respect of extended failures.
- (2) In this paragraph an “*extended failure*” means a failure to make a return on or before the filing date which continues after the end of the period of 3 months beginning with the day after the filing date.
- (3) P is liable to a penalty or penalties under this paragraph if (and only if)—
- (a) HMRC decide at any time that such a penalty or penalties should be payable in accordance with sub-paragraph (4) or (6), and
- (b) HMRC give notice to P specifying the date from which the penalty, or each penalty, is payable.
- (4) HMRC may decide under sub-paragraph (3)(a) that a separate penalty should be payable in respect of each unpenalised extended failure in the tax year to date.
- (5) In that case the amount of the penalty in respect of each failure is 5% of any liability to make payments which would have been shown in the return in question.
- (6) HMRC may decide under sub-paragraph (3)(a) that a single penalty should be payable in respect of all the unpenalised extended failures in the tax year to date.
- (7) In that case the amount of the penalty in respect of those failures is 5% of the sum of the liabilities to make payments which would have been shown in each of the returns in question.
- (8) For the purposes of this paragraph, an extended failure is unpenalised if a penalty has not already been imposed in respect of it under this paragraph (whether in accordance with sub-paragraph (4) or (6)).
- (9) The date specified in the notice under sub-paragraph (3)(b) in relation to a penalty—
- (a) may be earlier than the date on which the notice is given, but
- (b) may not be earlier than the end of the period mentioned in sub-paragraph (2) in relation to the relevant extended failure.
- (10) In sub-paragraph (9)(b) “*the relevant extended failure*” means—
- (a) the extended failure in respect of which the penalty is payable, or
- (b) if the penalty is payable in respect of more than one extended failure (in accordance with sub-paragraph (6)), the extended failure with the latest filing date.
### Cancellation of penalty
##### 17A
- (1) This paragraph applies where—
- (a) P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 1 or 2 in the Table, and
- (b) P makes a request under section 8B of TMA 1970 for HMRC to withdraw a notice under section 8 or 8A of that Act.
- (2) The notice under section 8B of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.
##### 17B
- (1) This paragraph applies where—
- (a) P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 3 in the Table, and
- (b) a request is made under section 12AAA of TMA 1970 for HMRC to withdraw a notice under section 12AA of that Act.
- (2) The notice under section 12AAA of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.
### Interaction with other penalties and late payment surcharges
##### 9A
In the application of the following provisions, no account shall be taken of a penalty under this Schedule—
- (a) section 97A of TMA 1970 (multiple penalties),
- (b) paragraph 12(2) of Schedule 24 to FA 2007 (interaction with other penalties), and
- (c) paragraph 15(1) of Schedule 41 to FA 2008 (interaction with other penalties).
#### Taxable benefit of living accommodation: lease premiums
#### Special annual allowance charge etc
#### Information relating to cross-border supplies of services to taxable recipients
#### Registered providers of social housing
#### Rent to shared ownership
#### Penalties for failure to make returns etc
#### VAT exemption for gaming participation fees
#### Remote bingo etc
#### Removal of reduced rate where targets not met
#### Inheritance tax: agricultural property and woodlands relief for EEA land
#### Short title
##### 6AA
- (1) This paragraph makes provision in relation to offshore transfers.
- (2) Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income—
- (a) is received in a territory outside the UK, or
- (b) is transferred before the relevant date to a territory outside the UK.
- (3) Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds—
- (a) are received in a territory outside the UK, or
- (b) are transferred before the relevant date to a territory outside the UK.
- (4) Where the liability to tax which would have been shown in the return is a liability to inheritance tax, the applicable condition is satisfied if—
- (a) the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and
- (b) after that disposition but before the relevant date the assets, or any part of the assets, are transferred to a territory outside the UK.
- (5) In the case of a transfer falling within sub-paragraph (2)(b), (3)(b) or (4)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets.
- (6) In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the information involves an offshore transfer.
- (7) “*Relevant date*” means the date on which P becomes liable to a penalty under paragraph 6.
##### 6AB
Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.
##### 15A
- (1) If a person who would otherwise be liable to a penalty of a percentage shown in column 1 of the Table (a “standard percentage”) has made a disclosure, HMRC must reduce the standard percentage to one that reflects the quality of the disclosure.
- (2) But the standard percentage may not be reduced to a percentage that is below the minimum shown for it—
- (a) in the case of a prompted disclosure, in column 2 of the Table, and
- (b) in the case of an unprompted disclosure, in column 3 of the Table.
| *Standard %* | *Minimum % for prompted disclosure* | *Minimum % for unprompted disclosure* |
| --- | --- | --- |
| 70% | 45% | 30% |
| 87.5% | 53.75% | 35% |
| 100% | 60% | 40% |
| 105% | 62.5% | 40% |
| 125% | 72.5% | 50% |
| 140% | 80% | 50% |
| 150% | 85% | 55% |
| 200% | 110% | 70% |
- (3) But HMRC must not under this paragraph reduce a penalty below £300.
### Soft drinks industry levy due from unregistered persons
##### 11C
- (1) This paragraph applies where an amount of soft drinks industry levy is due from a person (P) in respect of a period during which P meets the liability condition (as defined for the purposes of section 46(2) of FA 2017) but was not registered.
- (2) The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had been registered when P had first become liable to be registered.
### Amount of penalty: returns for periods of between 2 and 6 months
##### 13A
- (1) Paragraphs 13B to 13E apply in the case of a return falling within any of items 7A to 7B, 13A and 14 to 2829 in the Table which relates to a period of less than 6 months but more than 2 months.
- (2) But those paragraphs do not apply in the case of a return mentioned in paragraph 2(1)(c).
##### 13B
- (1) P is liable to a penalty under this paragraph of £100.
- (2) In addition, a penalty period begins to run on the penalty date for the return.
- (3) The penalty period ends with the day 12 months after the filing date for the return, unless it is extended under paragraph 13C(2)(c) or 13H(2)(c).
##### 13C
- (1) This paragraph applies if—
- (a) a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and
- (b) before the end of the period, P fails to make another return (“return B”) falling within the same item in the Table as return A.
- (2) In such a case—
- (a) paragraph 13B(1) and (2) do not apply to the failure to make return B, but
- (b) P is liable to a penalty under this paragraph for that failure, and
- (c) the penalty period that has begun is extended so that it ends with the day 12 months after the filing date for return B.
- (3) The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.
- (4) If the failure to make return B is P's first failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.
- (5) If the failure to make return B is P's second failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £300.
- (6) If the failure to make return B is P's third or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £400.
- (7) For the purposes of this paragraph—
- (a) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a return are references to a return falling within the same item in the Table as returns A and B, and
- (b) a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.
- (8) A penalty period may be extended more than once under sub-paragraph (2)(c).
##### 13D
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.
- (2) The penalty under this paragraph is the greater of—
- (a) 5% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
##### 13E
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.
- (2) Where, by failing to make the return, P deliberately withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).
- (3) If the withholding of the information is deliberate and concealed, the penalty is the greater of—
- (a) 100% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
- (4) If the withholding of the information is deliberate but not concealed, the penalty is the greater of—
- (a) 70% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
- (5) In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—
- (a) 5% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
### Amount of penalty: returns for periods of 2 months or less
##### 13F
- (1) Paragraphs 13G to 13J apply in the case of a return falling within any of items 7A, 7B and 14 to 2829 in the Table which relates to a period of 2 months or less.
- (2) But those paragraphs do not apply in the case of a return mentioned in paragraph 2(1)(c).
##### 13G
- (1) P is liable to a penalty under this paragraph of £100.
- (2) In addition, a penalty period begins to run on the penalty date for the return.
- (3) The penalty period ends with the day 12 months after the filing date for the return, unless it is extended under paragraph 13C(2)(c) or 13H(2)(c).
##### 13H
- (1) This paragraph applies if—
- (a) a penalty period has begun under paragraph 13B or 13G because P has failed to make a return (“return A”), and
- (b) before the end of the period, P fails to make another return (“return B”) falling within the same item in the Table as return A.
- (2) In such a case—
- (a) paragraph 13G(1) and (2) do not apply to the failure to make return B, but
- (b) P is liable to a penalty under this paragraph for that failure, and
- (c) the penalty period that has begun is extended so that it ends with the day 12 months after the filing date for return B.
- (3) The amount of the penalty under this paragraph is determined by reference to the number of returns that P has failed to make during the penalty period.
- (4) If the failure to make return B is P's first, second, third, fourth or fifth failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £100.
- (5) If the failure to make return B is P's sixth or a subsequent failure to make a return during the penalty period, P is liable, at the time of the failure, to a penalty of £200.
- (6) For the purposes of this paragraph—
- (a) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (5) to a return are references to a return falling within the same item in the Table as returns A and B, and
- (b) a failure to make a return counts for the purposes of those sub-paragraphs if (but only if) the return relates to a period of less than 6 months.
- (7) A penalty period may be extended more than once under sub-paragraph (2)(c).
##### 13I
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 6 months beginning with the penalty date.
- (2) The penalty under this paragraph is the greater of—
- (a) 5% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
##### 13J
- (1) P is liable to a penalty under this paragraph if (and only if) P's failure continues after the end of the period of 12 months beginning with the penalty date.
- (2) Where, by failing to make the return, P deliberately withholds information which would enable or assist HMRC to assess P's liability to tax, the penalty under this paragraph is determined in accordance with sub-paragraphs (3) and (4).
- (3) If the withholding of the information is deliberate and concealed, the penalty is the greater of—
- (a) 100% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
- (4) If the withholding of the information is deliberate but not concealed, the penalty is the greater of—
- (a) 70% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
- (5) In any case not falling within sub-paragraph (2), the penalty under this paragraph is the greater of—
- (a) 5% of any liability to tax which would have been shown in the return in question, and
- (b) £300.
#### Rent to shared ownership
#### Penalties for failure to make returns etc
#### VAT exemption for gaming participation fees
#### Remote bingo etc
#### Removal of reduced rate where targets not met
### Plastic packaging tax due from unregistered persons
##### 11D
- (1) This paragraph applies where an amount of plastic packaging tax is due from a person (P) in respect of a period during which P meets the liability condition but was not registered.
- (2) The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had been registered when P first became liable to be registered.
- (3) For the purposes of this paragraph P meets the “liability condition” at a particular time if—
- (a) at the end of the preceding month, the condition in section 55(2)(b) of FA 2021 (liability to register) is met in relation to P, or
- (b) at that time, the condition in section 55(2)(a) of that Act is met in relation to P.
### Amount of penalty: amounts in respect of periods of between 2 and 6 months
##### 8A
- (1) Paragraphs [8B](#p00190) to [8E](#p00192) apply in the case of a payment of tax falling within any of items 6A, 6C and 11A to 11M11N in the Table which relates to a period of less than 6 months but more than 2 months.
- (2) But those paragraphs do not apply in the case of a payment mentioned in paragraph 3(1)(d).
- (3) Paragraph 8K sets out how payments on account of VAT (item 6A) are to be treated for the purposes of paragraphs [8B](#p00190) to [8E](#p00192).
##### 8B
- (1) A penalty period begins to run on the penalty date for the payment of tax.
- (2) The penalty period ends with the day 12 months after the date specified in or for the purposes of column 4 for the payment, unless it is extended under paragraph 8C(2)(c) or 8H(2)(c).
##### 8C
- (1) This paragraph applies if—
- (a) a penalty period has begun under paragraph 8B or 8G because P has failed to make a payment (“payment A”), and
- (b) before the end of the period, P fails to make another payment (“payment B”) falling within the same item in the Table as payment A.
- (2) In such a case—
- (a) paragraph [8B](#p00190)(1) does not apply to the failure to make payment B,
- (b) P is liable to a penalty under this paragraph for that failure, and
- (c) the penalty period that has begun is extended so that it ends with the day 12 months after the date specified in or for the purposes of column 4 for payment B.
- (3) The amount of the penalty under this paragraph is determined by reference to the number of defaults that P has made during the penalty period.
- (4) If the default is P’s first default during the penalty period, P is liable, at the time of the default, to a penalty of 2% of the amount of the default.
- (5) If the default is P’s second default during the penalty period, P is liable, at the time of the default, to a penalty of 3% of the amount of the default.
- (6) If the default is P’s third or a subsequent default during the penalty period, P is liable, at the time of the default, to a penalty of 4% of the amount of the default.
- (7) For the purposes of this paragraph—
- (a) P makes a default when P fails to pay an amount of tax in full on or before the date on which it becomes due and payable;
- (b) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (6) to a default are references to a default in relation to the tax to which payments A and B relate;
- (c) a default counts for the purposes of those sub-paragraphs if (but only if) the period to which the payment relates is less than 6 months;
- (d) the amount of a default is the amount which P fails to pay.
- (8) A penalty period may be extended more than once under sub-paragraph (2)(c).
##### 8D
If any amount of the tax is unpaid after the end of the period of 6 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.
##### 8E
If any amount of the tax is unpaid after the end of the period of 12 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.
### Amount of penalty: amounts in respect of periods of 2 months or less
##### 8F
- (1) Paragraphs [8G](#p00194) to [8J](#p00196) apply in the case of a payment of tax falling within any of items 6A, 6C and 11A to 11M11N in the Table which relates to a period of 2 months or less.
- (2) But those paragraphs do not apply in the case of a payment mentioned in paragraph 3(1)(d).
##### 8G
- (1) A penalty period begins to run on the penalty date for the payment of tax.
- (2) The penalty period ends with the day 12 months after the date specified in or for the purposes of column 4 for the payment, unless it is extended under paragraph 8C(2)(c) or 8H(2)(c).
##### 8H
- (1) This paragraph applies if—
- (a) a penalty period has begun under paragraph 8B or 8G because P has failed to make a payment (“payment A”), and
- (b) before the end of the period, P fails to make another payment (“payment B”) falling within the same item in the Table as payment A.
- (2) In such a case—
- (a) paragraph 8G(1) does not apply to the failure to make payment B,
- (b) P is liable to a penalty under this paragraph for that failure, and
- (c) the penalty period that has begun is extended so that it ends with the day 12 months after the date specified in or for the purposes of column 4 for payment B.
- (3) The amount of the penalty under this paragraph is determined by reference to the number of defaults that P has made during the penalty period.
- (4) If the default is P’s first, second or third default during the penalty period, P is liable, at the time of the default, to a penalty of 1% of the amount of the default.
- (5) If the default is P’s fourth, fifth or sixth default during the penalty period, P is liable, at the time of the default, to a penalty of 2% of the amount of the default.
- (6) If the default is P’s seventh, eighth or ninth default during the penalty period, P is liable, at the time of the default, to a penalty of 3% of the amount of the default.
- (7) If the default is P’s tenth or a subsequent default during the penalty period, P is liable, at the time of the default, to a penalty of 4% of the amount of the default.
- (8) For the purposes of this paragraph—
- (a) P makes a default when P fails to pay an amount of tax in full on or before the date on which it becomes due and payable;
- (b) in accordance with sub-paragraph (1)(b), the references in sub-paragraphs (3) to (7) to a default are references to a default in relation to the tax to which payments A and B relate;
- (c) a default counts for the purposes of those sub-paragraphs if (but only if) the period to which the payment relates is less than 6 months;
- (d) the amount of a default is the amount which P fails to pay.
- (9) A penalty period may be extended more than once under sub-paragraph (2)(c).
##### 8I
If any amount of the tax is unpaid after the end of the period of 6 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.
##### 8J
If any amount of the tax is unpaid after the end of the period of 12 months beginning with the penalty date, P is liable to a penalty of 5% of that amount.
### Calculation of unpaid VAT: treatment of payments on account
##### 8K
- (1) Where P is required, by virtue of an order under section 28 of VATA 1994, to make any payment on account of VAT—
- (a) each payment is to be treated for the purposes of this Schedule as relating to the prescribed accounting period in respect of which it is to be paid (and not as relating to the interval between the dates on which payments on account are required to be made), and
- (b) the amount of tax unpaid in respect of the prescribed accounting period is the total of the amounts produced by paragraphs (a) and (b) of sub-paragraph (3).
- (2) In determining that total—
- (a) if there is more than one amount of POAD or POAT, those amounts are to be added together, and
- (b) if the amount produced by sub-paragraph (3)(b) is less than zero, that amount is to be disregarded.
- (3) The amounts are—
- (a) $POAD−POAT$, and
- (b) $BPD−BPT$.
- (4) In this paragraph—
- POAD is the amount of any payment on account due in respect of the prescribed accounting period,
- POAT is the amount of any payment on account paid on time (that is, on or before the date on which it was required to be made),
- BPD (which is the balancing payment due in respect of the prescribed accounting period) is equal to $PAPD−POAD$, and
- BPT (which is the amount paid on time in satisfaction of any liability to pay BPD) is equal to $PAPP−POAP$.
- (5) In sub-paragraph (4)—
- PAPD is the amount of VAT due in respect of the prescribed accounting period,
- PAPP is the total amount paid, on or before the last day on which P is required to make payments in respect of that period, in satisfaction of any liability to pay PAPD, and
- POAP is the total amount paid, on or before that day (but whether or not paid on time), in satisfaction of any liability to pay POAD.
##### 103A
Schedule 54A makes special provision as to certain amounts of late payment interest and repayment interest.
### VAT payments on account
##### 12C
- (1) This paragraph applies in the case of a repayment of the amount by which—
- (a) the total amount of payments on account made in respect of a prescribed accounting period, exceeds
- (b) the amount of VAT payable in respect of that accounting period.
- (2) The repayment interest start date is the date on which the VAT return for the prescribed accounting period is due.
- (3) In this paragraph—
- “*payment on account*” means a payment on account required under section 28 of VATA 1994;
- “*prescribed accounting period*” has the same meaning as in VATA 1994;
- “*VAT return*” means a return required to be made by regulations under VATA 1994.
## PART 2A — VAT: special provision as to period for which amount carries interest
##### 12D
In this Part of this Schedule—
- “*prescribed accounting period*” has the same meaning as in VATA 1994;
- “*relevant VAT return*” means the VAT return for the prescribed accounting period to which the VAT credit relates;
- “*VAT credit*” has the same meaning as in VATA 1994;
- “*VAT return*” means a return required to be made by regulations under VATA 1994.
##### 12E
- (1) An amount of VAT credit does not carry interest for any period during which—
- (a) a VAT return required to be made on or before the date on which the relevant VAT return is made has not been made, or
- (b) there is a failure to comply with a requirement imposed under paragraph 4(1A) of Schedule 11 to VATA 1994 ... giving of security).
- (2) The period referred to in sub-paragraph (1)(b)—
- (a) begins on the date when written notice requiring ... the giving of security is given by HMRC, and
- (b) ends on the date when HMRC receive ... the required security.
## Schedule 54A
## PART 1 — CORPORATION TAX
### Certain amounts of repayment interest recoverable as late payment interest
##### 1
Where each of conditions A to D (see paragraph 2) is met, an amount of repayment interest that—
- (a) has been paid to a company, but
- (b) ought not to have been paid (see condition D),
may be recovered from the company as if it were late payment interest.
##### 2
- (1) This paragraph applies for the purposes of paragraph 1.
- (2) Condition A is that repayment interest has been paid to the company on—
- (a) a repayment of corporation tax paid by the company for an accounting period,
- (b) a payment of first-year tax credit under Schedule A1 to CAA 2001 for an accounting period,
- (c) a payment of R&D tax credit under Chapter 2 or 7 of Part 13 of CTA 2009 for an accounting period,
- (d) a payment of land remediation tax credit or life assurance company tax credit under Part 14 of CTA 2009 for an accounting period, or
- (e) a payment of film tax credit under Chapter 3 of Part 15 of CTA 2009 for an accounting period.
- (3) Condition B, in a case falling within sub-paragraph (2)(a), is that (whether or not any previous assessment or determination has been made)—
- (a) an assessment, or an amendment of an assessment, of the amount of corporation tax payable by the company for the accounting period is made, or
- (b) a determination of that amount is made under paragraph 36 or 37 of Schedule 18 to FA 1998 (which until superseded by a self-assessment under that Schedule has effect as if it were one).
- (4) Condition B, in a case falling within sub-paragraph (2)(b) to (e), is that an assessment, or an amendment of an assessment, is made to recover an amount of the tax credit in question paid to the company for that accounting period.
- (5) Condition C is that the change (as a result of condition B being met) in—
- (a) the company's assessed liability to corporation tax, or
- (b) the amount of tax credit payable,
is not one which in whole or in part corrects an error made by HMRC.
- (6) In sub-paragraph (5) “*error*” includes—
- (a) any computational error, and
- (b) the allowance of a claim or election which ought not to have been allowed.
- (7) Condition D is that as a result only of that change (and, in particular, not as a result of any error in the calculation of the interest), it appears to HMRC that some or all of the repayment interest ought not to have been paid.
### Common period rule for corporation tax
##### 3
- (1) This paragraph applies where—
- (a) there is a common period in relation to a company (see sub-paragraph (2)), and
- (b) each of conditions A to C (see paragraph 4) is met.
- (2) A common period in relation to a company is any period during which—
- (a) an amount of corporation tax is due and payable by the company in accordance with section 59D of TMA 1970 or regulations made under section 59E of that Act (“the overdue payment”), and
- (b) an amount which has been paid on account of corporation tax is repayable to the company (“the repayment”).
- (3) During the common period—
- (a) the overdue payment does not carry late payment interest or interest under regulations made by virtue of section 59E(2)(g) of TMA 1970 (interest payable to HMRC on amounts of corporation tax due and payable under regulations under that section), and
- (b) the repayment does not carry repayment interest or interest under regulations made by virtue of section 59E(2)(i) of TMA 1970 (interest payable by HMRC on amounts paid or repaid under regulations under that section).
##### 4
- (1) This paragraph applies for the purposes of paragraph 3.
- (2) Condition A is that the overdue payment and the repayment are in respect of different accounting periods.
- (3) Condition B is that the overdue payment would (apart from paragraph 3) carry—
- (a) late payment interest, or
- (b) interest under regulations made by virtue of section 59E(2)(g) of TMA 1970.
- (4) Condition C is that the repayment would (apart from paragraph 3) carry—
- (a) repayment interest, or
- (b) interest under regulations made by virtue of section 59E(2)(i) of TMA 1970.
## PART 2 — Value added tax
### Interpretation
##### 5
In this Part of this Schedule—
- “*assessment*” has the same meaning as in paragraph 3 of Schedule 53;
- “*prescribed accounting period*” has the same meaning as in VATA 1994;
- “*VAT credit*” has the same meaning as in VATA 1994.
### Certain amounts of repayment interest recoverable as late payment interest
##### 6
Where each of conditions A to C is met, an amount of repayment interest that—
- (a) has been paid to a person, but
- (b) ought not to have been paid (see condition C),
may be recovered from the person as if it were late payment interest.
##### 7
- (1) Condition A is that repayment interest has been paid to the person on a VAT credit for a prescribed accounting period.
- (2) Condition B is that (whether or not a previous assessment has been made), an assessment or amendment of an assessment is made of the amount of value added tax payable by the person for that prescribed accounting period.
- (3) Condition C is that as a result of the assessment or amendment of an assessment, it appears to HMRC that some or all of the repayment interest ought not to have been paid.
### Common period rules for value added tax
##### 8
- (1) This paragraph applies where there is a common period in relation to a person (see sub-paragraph (2)).
- (2) A common period in relation to a person is any period during which—
- (a) an amount of value added tax that carries late payment interest is due and payable by the person (“the overdue payment”), and
- (b) an amount of VAT credit that carries repayment interest is payable to the person (“the VAT credit”).
- (3) During the common period—
- (a) the overdue payment is to be treated as carrying late payment interest only on the amount (if any) by which the overdue payment exceeds the VAT credit, and
- (b) the VAT credit is to be treated as carrying repayment interest only on the amount (if any) by which the VAT credit exceeds the overdue payment.
### VAT due after excess payment or credit from HMRC
##### 11ZA
- (1) This paragraph applies to any amount of value added tax which is due and recoverable from a person by virtue of—
- (a) section 73(9) of VATA 1994, in relation to an amount assessed and notified to the person under subsection (2) of that section, or
- (b) section 80C(1) of that Act.
- (2) The late payment interest start date in respect of that amount is the date on which HMRC paid or credited that amount to the person.
#### Penalties for failure to make returns etc
#### Remote bingo etc
2009-07-21
Finance Act 2009
original version
Text at this date