Legalize / United Kingdom / Public General Act

Finance Act 2011

Type Public General Act

Publication 2011-07-19

Last updated 2025-03-20

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(11) This sub-paragraph applies to the relevant arrangements so far as they are an agreement within paragraph 15S(1)(d) and (e), 15T(1)(e) and (f), 15Z3(1)(c) and (d), 25(1)(c) and (d), 27A(1)(d) and (e) or 27B(1)(d) and (e).

(12) This sub-paragraph applies to the relevant arrangements so far as their effect is to increase, on an ongoing basis, the amount of the high quality liquid assets of the relevant group or the relevant entity.

(13) If the relevant group is a foreign banking group or a relevant non-banking group, in the sub-paragraphs above references to the relevant group are to be read as references to the members of the group, collectively, which are relevant members.

(14) In sub-paragraph (13) “relevant member” means—

(a) a chargeable UK resident entity which is a member of the relevant group;

(b) a UK sub-group of the relevant group;

48

(1) Section 1139 of CTA 2010 (definition of “tax advantage”) is amended as follows.

(2) In subsection (2)—

(a) omit the “or” after paragraph (c), and

(b) after paragraph (d) insert

, or (e) the avoidance or reduction of a charge or assessment to the bank levy under Schedule 19 to FA 2011 (the bank levy).

(3) After subsection (3) insert—

(3A) The avoidance or reduction of a charge or assessment to the bank levy as a result of arrangements to which paragraph 47 of Schedule 19 to FA 2011 (bank levy: anti-avoidance) applies is to be ignored for the purposes of subsection (2)(e) to the extent that it results from arrangements, or part of arrangements, to which any of paragraph 47(7) to (12) of that Schedule applies.

Part 6 — Collection and management

Responsibility for collection and management

49

(1) The Commissioners for Her Majesty's Revenue and Customs are responsible for the collection and management of the bank levy.

(2) In this Part of this Schedule “ HMRC ” means Her Majesty's Revenue and Customs.

Payment of the bank levy through the corporation tax system

50

(1) This paragraph applies where the bank levy is charged as provided for by paragraph 4.

(2) The bank levy is to be treated as if it were an amount of corporation tax chargeable on the relevant group's responsible member (see paragraph 54) for the accounting period or periods determined in accordance with the following sub-paragraphs.

(3) Subject to what follows, the accounting period for which the bank levy is to be treated as if it were an amount of corporation tax chargeable is to be—

(a) the responsible member's accounting period which ends at the same time as the chargeable period, or

(b) if it does not have an accounting period which ends at that time, its accounting period during which the chargeable period ends.

(4) If a proportion (“X%”) of the chargeable period falls in any other accounting period of the responsible member, X% of the bank levy is to be treated as if it were an amount of corporation tax chargeable for that other accounting period.

51

(1) This paragraph applies where the bank levy is charged as provided for by paragraph 5.

(2) The bank levy is to be treated as if it were an amount of corporation tax chargeable on the relevant entity for the accounting period or periods determined in accordance with the following sub-paragraphs.

(3) Subject to what follows, the accounting period for which the bank levy is to be treated as if it were an amount of corporation tax chargeable is to be—

(a) the relevant entity's accounting period which ends at the same time as the chargeable period, or

(b) if it does not have an accounting period which ends at that time, its accounting period during which the chargeable period ends.

(4) If a proportion (“X%”) of the chargeable period falls in any other accounting period of the relevant entity, X% of the bank levy is to be treated as if it were an amount of corporation tax chargeable for that other accounting period.

52

(1) Paragraphs 50(2) and 51(2) are to be taken as applying all enactments applying generally to corporation tax.

(2) This is subject to—

(a) any provisions of the Taxes Acts (within the meaning of TMA 1970),

(b) any necessary modifications, and

(3) The enactments mentioned in sub-paragraph (1) include—

(a) those relating to returns of information and the supply of accounts, statements and reports,

(b) those relating to the assessing, collecting and receiving of corporation tax,

(d) those concerning administration, penalties, interest on unpaid tax and priority of tax in cases of insolvency under the law in any part of the United Kingdom.

(4) Accordingly—

(a) TMA 1970 is to have effect as if any reference to corporation tax included the bank levy where it is treated by paragraph 50(2) or 51(2) as an amount of corporation tax chargeable on an entity, and

(b) in particular, where the bank levy is so treated, it is due and payable as an amount of corporation tax in accordance with section 59D of TMA 1970, subject to section 59E of that Act.

(5) Nothing in section 53 of this Act (leases and changes to accounting standards) has effect in relation to the bank levy or any provision of this Schedule.

Joint and several liability

53

(1) This paragraph applies where the bank levy is charged as provided for by paragraph 4.

(2) The entities within sub-paragraph (3) are jointly and severally liable for the bank levy liability of the relevant group's responsible member (see paragraph 54) for an accounting period; and HMRC may enforce that liability against any of those entities accordingly.

(2A) But sub-paragraph (2) is subject to paragraph 53A (ring-fenced bodies).

(3) The entities within this sub-paragraph are—

(a) if the relevant group is a relevant non-banking group, all relevant members of the relevant group within the charge to corporation tax as at the end of the chargeable period, or

(b) otherwise, all members of the relevant group within the charge to corporation tax as at the end of the chargeable period.

(4) In sub-paragraph (3)(a) “ relevant member ” means a member of the relevant group which—

(a) is a member of a UK sub-group,

(b) is a chargeable UK resident entity which is a banking entity (see paragraph 15C(2)),

(d) is a relevant foreign bank which is a member of the relevant group.

(5) An entity's liability by virtue of sub-paragraph (2) is not affected if, after the end of the chargeable period, it ceases to be within the charge to corporation tax.

(6) An entity is not within sub-paragraph (3) if, as at the end of the chargeable period, it is—

(a) a securitisation company,

(b) a covered bond vehicle, or

(7) In sub-paragraph (6)—

“ capital market arrangement ” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act);

“ covered bond vehicle ” means a limited liability partnership— which is a party to a capital market arrangement, or a transaction in pursuance of a capital market arrangement,whose trade or business (ignoring any incidental activities) consists wholly of one or both of the following—providing guarantees, andacquiring, owning and managing assets directly or indirectly forming the whole or part of the security for the capital market arrangement, andwhich is within the charge to corporation tax;

“ limited liability partnership ” includes an entity established under the law of a territory outside the United Kingdom of a similar character to a limited liability partnership;

“ securitisation company ” means a company of the kind mentioned in paragraphs (a) to (e) of section 83(2) of FA 2005 or paragraphs (a) to (e) of regulation 4(2) of the Taxation of Securitisation Companies Regulations 2006 ( S.I. 2006/3296).

(8) The responsible member's “bank levy liability” for an accounting period—

(a) is the member's liability for corporation tax for that period as calculated in accordance with paragraph 8 of Schedule 18 to FA 1998 so far as the tax calculated consists of the bank levy by virtue of paragraph 50(2) of this Schedule, and

(b) includes any interest or penalties payable in relation to that tax so far as it consists of the bank levy.

(9) An order under sub-paragraph (6) may have retrospective effect in relation to—

(a) any chargeable period in which the order is made, or

(b) in the case of an order made on or before 31 December 2011, any chargeable period ending on or after 1 January 2011.

(10) Orders under sub-paragraph (6) are to be made by statutory instrument.

(11) A statutory instrument containing an order under sub-paragraph (6) is subject to annulment in pursuance of a resolution of the House of Commons.

Meaning of “the responsible member”

54

(1) This paragraph applies where the bank levy is charged as provided for by paragraph 4.

(2) In this paragraph and paragraph 55 “ chargeable member ” means a member of the relevant group within paragraph 53(3).

(3) The relevant group's responsible member is the entity (“E”) in relation to which the following requirements are met—

(a) E is a chargeable member of the relevant group,

(b) E has an accounting period for corporation tax purposes which is the same as the chargeable period,

(i) during the nomination period the parent entity, or another entity acting on behalf of the parent entity, nominated E to HMRC to be the responsible member, or

(ii) the renewal conditions are met in relation to E, and

(d) HMRC did not—

(i) in a case within paragraph (c)(i), reject E’s nomination;

(ii) in a case within paragraph (c)(ii), make a determination under paragraph 55A.

See paragraphs 55 and 55A for further provision about nominations and renewals.

(3A) The renewal conditions are met in relation to E if—

(a) E was the relevant group’s responsible member at the end of the immediately preceding chargeable period, and

(b) neither the parent entity, nor another entity acting on behalf of the parent entity, nominated an entity other than E during the nomination period.

(3B) In sub-paragraphs (3) and (3A), “nomination period” means the first 45 days of the chargeable period.

(4) If—

(a) no entity meets the requirements in sub-paragraph (3) and the relevant group is a UK banking group or a building society group, and

(b) the parent entity is a chargeable member of the relevant group,

the responsible member is the parent entity.

(5) If no entity meets the requirements in sub-paragraph (3) and the relevant group is a foreign banking group or a relevant non-banking group, the responsible member is the entity in relation to which the following requirements are met—

(a) it is a chargeable member of the relevant group,

(b) it has an accounting period for corporation tax purposes which is the same as the chargeable period, and

(i) the relevant member with the largest amount of UK-based equity and liabilities or UK-allocated equity and liabilities, or

(ii) if the relevant member with the largest amount of UK-based equity and liabilities or UK-allocated equity and liabilities is a UK sub-group, the entity which is the parent or parent undertaking for that sub-group.

(6) In sub-paragraph (5)(c) “relevant member” means—

(a) a chargeable UK resident entity which is a member of the relevant group;

(b) a UK sub-group of the relevant group;

(6A) Sub-paragraph (6B) applies if—

(a) HMRC rejects E’s nomination (see sub-paragraph (3)(d)(i)), and

(b) within the period of 30 days after the day on which HMRC rejects the nomination, HMRC and the parent entity, or another entity acting on behalf of the parent entity, agree that another entity (“A”) which is a chargeable member of the relevant group is to be the relevant group’s responsible member.

(6B) Where this sub-paragraph applies—

(a) A is the relevant group’s responsible member, and

(b) sub-paragraphs (4) and (5) do not apply.

(7) If no entity meets the requirements of sub-paragraph (3) or sub-paragraph (4) or (5) (as the case may be), and sub-paragraph (6B) does not apply, the responsible member is the member of the relevant group determined by HMRC within the period of 30 days after the end of the chargeable period.

(8) HMRC must give written notice of a determination under sub-paragraph (7) to the member concerned within that period.

(9) HMRC cannot determine as the responsible member under sub-paragraph (7)—

(a) an entity within paragraph 53(6)(a) or (b), or

(b) an entity of a kind prescribed by an order under paragraph 53(6)(c).

(10) In relation to chargeable periods arising by virtue of paragraph 41 (chargeable periods: entities which do not prepare financial statements), the Treasury may by order modify the time limit applying to determinations under sub-paragraph (7) (including determinations in cases to which paragraph 65(3) applies).

(11) An order under sub-paragraph (10) may amend paragraphs 41 to 44 of Schedule 18 to FA 1998 (discovery assessments and determinations) in relation to any bank levy charged by virtue of paragraph 41 of this Schedule.

(12) Orders under sub-paragraph (10) are to be made by statutory instrument.

(13) A statutory instrument containing an order under sub-paragraph (10) is subject to annulment in pursuance of a resolution of the House of Commons.

(14) An order under sub-paragraph (10) may have retrospective effect in relation to—

(a) any chargeable period in which the order is made, or

(b) in the case of an order made on or before 31 December 2011, any chargeable period ending on or after 1 January 2011.

55

(1) This paragraph applies for the purposes of paragraph 54(3).

(2) Only one nomination may be made during the chargeable period.

(3) A nominator may nominate itself.

(4) HMRC may from time to time publish requirements as to the information to be included with a nomination.

(5) HMRC may reject a nomination within the period of 30 days starting with the day on which it receives the nomination.

(6) HMRC may reject a nomination only if—

(a) the nomination contravenes sub-paragraph (2),

(b) information required under sub-paragraph (4) is missing from the nomination, or

(i) not to be a chargeable member of the relevant group,

(ii) not to have an accounting period for corporation tax purposes which is the same as the chargeable period, or

(iii) not to have sufficient resources itself to pay the bank levy.

Consequential amendment to section 1 of PCTA 1968

56

In section 1 of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting certain taxes), in subsection (1) after “corporation tax” insert “ , the bank levy ” .

Consequential amendments to TMA 1970

57

TMA 1970 is amended as follows.

58

(1) Section 59E (provision about when corporation tax is due and payable) is amended as follows.

(2) In subsection (11), after paragraph (c) insert—

(d) to the bank levy where treated as an amount of corporation tax chargeable on a company by paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy).

(3) After that subsection insert—

(12) Without prejudice to the generality of any provision above— (a) in relation to cases where the bank levy is treated as an amount of corporation tax chargeable on a company, regulations under this section may make provision— (i) for amounts of the bank levy to be treated as becoming due and payable on dates which fall within the chargeable period (within the meaning of Schedule 19 to the Finance Act 2011); (ii) for payments in respect of any such amounts of the bank levy as are mentioned in sub-paragraph (i) to become due and payable on dates which fall within that period; (b) in relation to cases where a company on which the bank levy is treated as an amount of corporation tax chargeable for an accounting period has made payments in respect of corporation tax for that period, regulations under this section may make provision for or in connection with determining the extent to which those payments are to be treated as being payments of the bank levy; (c) in relation to cases where a company (“ the relevant company ”) has made payments in respect of corporation tax for an accounting period wholly or partly on the assumption that the bank levy will be treated as an amount of corporation tax chargeable on the relevant company for that period, regulations under this section may make provision for or in connection with treating those payments (wholly or partly) to have been made by another company if it turns out that the bank levy is not to be treated as an amount of corporation tax chargeable on the relevant company for that period; (d) where regulations under this section impose a requirement within subsection (2)(j) above to furnish information for purposes related to the bank levy, the regulations may make provision for or in connection with applying Part 7 of Schedule 36 to the Finance Act 2008 in whole or in part (with or without modification) as if the requirement to furnish the information were contained in an information notice within the meaning of that Schedule.

59

At the end of section 59F(6) (provision for paying corporation tax on behalf of group members) insert

, and (c) the bank levy where treated as an amount of corporation tax chargeable on a company by paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy).

Consequential amendments to Schedule 18 to FA 1998

60

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

61

At the end of paragraph 1 insert

, and paragraphs 50 and 51 of Schedule 19 to the Finance Act 2011 (the bank levy).

62

After paragraph 3 insert—

(3A) (1) Her Majesty's Revenue and Customs may from time to time publish requirements as to the information, accounts, statements and reports which a company must deliver as part of its company tax return where the company has a tax liability by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy); and such information, accounts, statements and reports must be delivered as if the notice to the company under paragraph 3(1) had required them to be delivered (and paragraph 4 is to be read accordingly). (2) The publication of any requirements under sub-paragraph (1) does not stop a notice under paragraph 3(1) requiring the delivery of any additional information, accounts, statements and reports as part of a company tax return.

63

(1) Paragraph 8 is amended as follows.

(2) At the end of the “Third step” in sub-paragraph (1) insert— “ 3. Any amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy). ”

(3) After sub-paragraph (1) insert—

(1A) Sub-paragraph (1B) applies if an amount of the bank levy chargeable by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy) is added at the third step. (1B) Any deductions made at the fourth step are to be treated as made from all other amounts before being made from the amount of the bank levy.

64

(1) Paragraph 11 is amended as follows.

(2) The existing provision becomes sub-paragraph (1).

(3) After that sub-paragraph insert—

(2) Sub-paragraph (1) does not affect— (a) the power to require the delivery of accounts, information or documents in relation to a company's tax liability by virtue of paragraph 50 or 51 of Schedule 19 to the Finance Act 2011 (the bank levy), or (b) the requirements which may be imposed under paragraph 3A.

Transitional provision

65

(1) Sub-paragraphs (2) to (6) apply if the chargeable period starts on or before the day on which this Act is passed (whether or not it ends on or before that day).

(2) Paragraph 54(3)(c) has effect as if for the words “during the chargeable period but no later than 45 days after it started” there were substituted “ within the period of 7 days starting with the day on which this Act is passed ” .

(3) Paragraph 54(7) has effect as if for the words “30 days after the end of the chargeable period” there were substituted “ 15 days starting with the day on which this Act is passed ” .

(4) Paragraph 55(5) has effect as if for “30” there were substituted “ 7 ” .

(5) Sub-paragraph (6) applies if, before the passing of this Act—

(a) HMRC published a statement stating that it was ready to receive nominations for responsible members,

(b) an entity made a nomination in accordance with HMRC 's statement, and

(6) For the purposes of paragraphs 54(3)(c) and 55(5) (as modified above) the nomination is to be treated as if it were made by the entity and received by HMRC immediately after the passing of this Act.

(7) The requirements covered by paragraph 55(4) include any requirements published by HMRC before the passing of this Act which are stated to apply for the purposes of nominations for responsible members.

(8) But such requirements are to apply only to nominations made during 2011.

(9) Regulations under section 59E of TMA 1970, in relation to amounts within subsection (11)(d) of that section (amounts of bank levy), made on or before 31 December 2011 may have effect in relation to amounts of bank levy which—

(a) are payable in respect of chargeable periods ending on or before that day, or

(b) are treated as amounts of corporation tax for accounting periods ending on or before that day.

Part 7 — Double taxation reliefETC

Arrangements affording double taxation relief

66

(1) If the Treasury by order declares—

(a) that arrangements specified in the order have been made in relation to any foreign territory with a view to affording relief from double taxation in relation to the bank levy and any equivalent foreign levy, and

(b) that it is expedient that those arrangements should have effect,

those arrangements (“double taxation arrangements”) have effect so far as they provide for relief from the bank levy.

(2) In this Part of this Schedule—

“ equivalent foreign levy ”, in relation to a foreign territory, means any tax imposed by the law of that territory which corresponds to the bank levy;

“ foreign territory ” means a territory outside the United Kingdom.

(3) For the purposes of sub-paragraph (2), tax may correspond to the bank levy even though—

(a) the tax is payable under the law of a province, state or other part of a country,

(b) it is levied by or on behalf of a municipality or other local body, or

(4) Double taxation arrangements have effect under sub-paragraph (1)—

(a) subject to the following provisions of this paragraph, and

(b) despite anything in any other enactment.

(5) This paragraph gives effect to arrangements even if they provide for relief from the bank levy for periods before the making of the arrangements or before the passing of this Act.

(6) Relief under this paragraph requires a claim.

(7) An order under this paragraph revoking an earlier order may contain transitional provisions that appear to the Treasury to be necessary or expedient.

(8) The Treasury may by regulations make provision—

(a) generally for carrying out the provisions of this paragraph or double taxation arrangements;

(b) for removing, or reducing the amount of, relief obtained by virtue of double taxation arrangements in circumstances where a scheme or arrangement of a specified description has been made or in other specified circumstances;

(c) for restricting the amount of relief allowed against an entity's liability for the bank levy for a chargeable period to an amount calculated in a specified manner.

(9) Regulations under sub-paragraph (8)(a) may, in particular, provide that where, under double taxation arrangements, the Commissioners for Her Majesty's Revenue and Customs arrive at a solution to a case, or make a mutual agreement with an authority in another territory for the resolution of a case—

(a) the Commissioners are to give effect to the solution or mutual agreement despite anything in any enactment, and

(b) any adjustment as is appropriate in consequence may be made.

(9A) If arrangements specified in an order under this paragraph provide for relief from the bank levy for periods before the order is made, regulations under this paragraph which are made on the same day as the order, and come into force on the same day as the order, may make provision in relation to those periods.

(10) Regulations under this paragraph may—

(a) amend any provision made by or under an Act whenever passed or made (including this Act), and

(b) contain transitional provisions that appear to the Treasury to be necessary or expedient.

(11) Orders or regulations under this paragraph are to be made by statutory instrument.

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

Power to provide for double taxation relief

67

(1) The Treasury may by regulations make provision for relief from the bank levy for the purpose of affording relief from double taxation in relation to the bank levy and any equivalent foreign levy imposed by the law of a foreign territory.

(2) Regulations under this paragraph must specify the equivalent foreign levy or levies in respect of which they are made.

(3) Regulations under this paragraph may, in particular—

(a) provide for relief from the bank levy for periods before the making of the regulations or before the passing of this Act;

(b) make provision for removing, or reducing the amount of, relief obtained in circumstances where a scheme or arrangement of a specified description has been made or in other specified circumstances;

(c) make provision for restricting the amount of relief allowed against an entity's liability for the bank levy for a chargeable period to an amount calculated in a specified manner.

(4) Regulations under this paragraph may—

(a) make different provision for different purposes, cases or circumstances,

(b) amend any provision made by or under an Act whenever passed or made (including this Act), and

(5) Regulations under this paragraph are to be made by statutory instrument.

(6) A statutory instrument containing regulations under this paragraph—

(a) in a case where the reciprocity condition is met, are subject to annulment in pursuance of a resolution of the House of Commons, and

(b) in any other case, may not be made unless a draft has been laid before and approved by a resolution of that House.

(7) The reciprocity condition is met if the Treasury is satisfied that in relation to the foreign territory or each of the foreign territories concerned—

(a) appropriate provision has been made under the law of the territory for relief from double taxation in relation to the bank levy and the equivalent foreign levy under the law of that territory to which the regulations apply, or

(b) such provision will be made as a result of an agreement which has been entered into in relation to the territory.

Disclosure of information to foreign tax authorities

68

(1) Sub-paragraph (2) applies if the law of a foreign territory makes provision allowing, in respect of payments of the bank levy, relief from an equivalent foreign levy payable under that law.

(2) No obligation as to secrecy or other restriction on the disclosure of information prevents the Commissioners for Her Majesty's Revenue and Customs, or an officer of Revenue and Customs, from disclosing to the authorised officer of the authorities of the territory such facts as may be necessary to enable the proper relief to be given under the law of the territory.

Consequential amendment to the Constitutional Reform and Governance Act 2010

69

In section 23 of the Constitutional Reform and Governance Act 2010 (which excepts certain treaties from the requirements imposed by section 20 of that Act as to the laying of treaties before Parliament), after subsection (2) insert—

(2A) Section 20 does not apply to a treaty in relation to which an order may be made under paragraph 66 of Schedule 19 to the Finance Act 2011 (bank levy: arrangements affording double taxation relief).

Part 8 — Definitions

General

70

(1) In this Schedule—

“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not it is legally enforceable);

“asset management activities” is defined in paragraph 71;

“assets” is defined in paragraph 14;

“banking group” is defined in paragraph 12;

“the bank levy” is defined in paragraph 1;

“building society” means a building society within the meaning of the Building Societies Act 1986;

“building society group” is defined in paragraph 9;

“capital resources condition” is defined in paragraph 72;

“the chargeable period” is defined in paragraph 4(1) or 5(1) (as the case may be);

“Commission Regulation 2015/61” means Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions;

“company” has the meaning given by section 1121(1) of CTA 2010;

“contract of insurance” has the meaning given by article 3(1) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( S.I. 2001/544);

“designated FPE entity” is defined in paragraph 15F(2);

“entity” includes a company, a partnership or a joint venture, but not— the Crown,a Minister of the Crown,a government department,a Northern Ireland department,a foreign sovereign power, oran international organisation;

“entity-by-entity election” is defined in paragraph 15L(1);

“equity” is defined in paragraph 14;

“excluded”, in relation to equity and liabilities, is defined in paragraph 28;

“excluded entity” is defined in paragraph 73;

“exempt activities condition” is defined in paragraph 13;

“fair value”, in relation to an item, means the amount for which the item could be exchanged between knowledgeable, willing parties in an arm's length transaction;

“the FCA Handbook” means the Handbook made by the Financial Conduct Authority under FISMA 2000 (as that Handbook has effect from time to time);”;

“FCA investment firm” has the meaning given by section 143A of FISMA 2000;

“foreign banking group” is defined in paragraph 10;

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

“high quality liquid asset”, in relation to an entity or group of entities, means an asset (within the meaning of this Schedule) which— is a liquid asset to which Article 416 of Regulation ( EU ) No 575/2013 of the European Parliament and the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms applies, and falls within the description of “level 1 assets” given by Article 10(1) of Commission Regulation 2015/61;

“international accounting standards” has the meaning given by section 1127(5) of CTA 2010, including any modifications mentioned in section 1127(6);

“international organisation” means an organisation of which— two or more sovereign powers are members, orthe governments of two or more sovereign powers are members,(see also sub-paragraph (5));

“investment bank” has the meaning given by sub-paragraph (1A);

“liabilities” is defined in paragraph 14;

“long term”, in relation to equity and liabilities, is defined in paragraphs 74 to 77;

“non-UK allocated equity and liabilities” is defined in paragraph 15Z1;

“the parent entity” is defined in paragraph 4(1);

“partnership” includes— a limited liability partnership, andan entity established under the law of a territory outside the United Kingdom of a similar character to a partnership, and “member”, in relation to a partnership, is to be read accordingly;

“period of account”, in relation to an entity, means a period for which the entity prepares financial statements (consolidated or otherwise), (see also paragraph 41);

“permanent establishment” is to be read in accordance with Chapter 2 of Part 24 of CTA 2010;

“the PRA Rulebook” means the Rulebook made by the Prudential Regulation Authority under FISMA 2000 (as that Rulebook has effect from time to time);

“the relevant entity” is defined in paragraph 5(1);

“relevant foreign bank” is defined in paragraph 78;

“the relevant group” is defined in paragraph 4(1);

“relevant non-banking group” is defined in paragraph 11;

“relevant regulated activity” is defined in paragraph 79;

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

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

“residual UK-sub-group” is defined in paragraph 15K(2);

“short term”, in relation to liabilities, means any liabilities which are not long term;

“UK allocated equity and liabilities” is defined in paragraph 24;

“UK-based equity and liabilities”—in relation to a UK resident entity, other than a designated FPE entity, is defined in paragraph 15H,in relation to a designated FPE entity (other than a member of a UK sub-group) is defined in paragraphs 15I and 15Z1, andin relation to a UK sub-group, is defined in paragraphs 15J, 15K and 15L;

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

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

“UK resident bank” is defined in paragraph 80;

“UK resident entity” means an entity which is resident in the United Kingdom (see paragraph 45) and “non-UK resident entity” is to be read accordingly;

“UK sub-group” is defined in paragraph 15B;

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

(1A) In this Schedule, “investment bank” means an entity which—

(a) is an FCA investment firm that meets the conditions in sub-paragraph (1B), or

(b) is designated by the Prudential Regulation Authority under article 3 of the Financial Services and Markets Act 2000 (PRA-regulated Activities) Order 2013 (S.I. 2013/556) (dealing in investments as principal: designation by PRA).

(1B) An FCA investment firm meets the conditions in this sub-paragraph if it has a permanent minimum capital requirement of £750,000 and is not—

(a) a limited activity firm,

(b) a limited licence firm,

(d) a matched principal trading firm.

(1C) In sub-paragraph (1B)—

“limited activity firm” means an investment firm that—deals on own account only for the purpose of fulfilling or executing a client order or for the purpose of gaining entrance to a clearing and settlement system or a recognised exchange when acting in an agency capacity or executing a client order; ormeets all the following conditions—it does not hold client monies or securities;it undertakes only dealing on own account;it has no external customers; andits execution and settlement transactions take place under the responsibility of a clearing institution and are guaranteed by that clearing institution;

“limited licence firm” means an investment firm that is not authorised to provide the investment services and activities of—dealing on own account; orunderwriting of financial instruments or placing of financial instruments on a firm commitment basis;

“local firm” means a firm—dealing on own account on markets in financial futures or options or other derivatives and on cash markets for the sole purpose of hedging positions on derivatives markets, ordealing for the accounts of other members of those markets and being guaranteed by clearing members of the same markets, where responsibility for ensuring the performance of contracts entered into by such a firm is assumed by clearing members of the same markets;

“matched principal trading firm” means an investment firm that executes investors’ orders for financial instruments (including in the course of operating an organised trading facility) and meets the following conditions—the firm only holds financial instruments for its own account as a result of its failure to match investors’ orders precisely;the total market value of all such positions is no more than 15% of the firm’s initial capital;such positions are incidental and provisional in nature and strictly limited to the time required to carry out the transaction in question.

(1D) In determining, for the purposes of sub-paragraph (1B), whether an FCA investment firm has a permanent minimum capital requirement of £750,000, any transitional provision in the FCA Handbook is to be disregarded.

(2) In this Schedule the following terms have the meaning given in the PRA Rulebook —

“authorised corporate director”;

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

“capital resources requirement”;

“contracts for differences”;

“discretionary investment manager”;

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

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

“ILAS BIPRU firm”;

“designated multilateral development bank”;

“pension scheme”;

“principal”;

“retail client”.

(2A) In this Schedule the following terms have the meaning given in the FCA Handbook—

“commodity and emission allowance dealer”;

“dealing on own account”;

“financial instrument”;

“initial capital”;

“investment firm”;

“market value”;

“permanent minimum capital requirement”.

(3) A entity which would be an FCA investment firm that meets the conditions in sub-paragraph (1B) by virtue of activities carried on in the United Kingdom but for the fact that its registered office (or, if it does not have a registered office, its head office) is not in the United Kingdom is to be treated as being one.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) If, in any proceedings, any question arises whether a person is an international organisation for the purposes of the definition of “entity” in sub-paragraph (1), a certificate issued by or under the authority of the Secretary of State stating any fact relevant to that question is conclusive evidence of that fact.

“Asset management activities”

71

(1) “ Asset management activities ” means activities which consist (or, if they were carried on in the United Kingdom, would consist) of any or all of the following—

(a) acting as the operator of a collective investment scheme (within the meaning of Part 17 of FISMA 2000: see sections 235 and 237 of that Act),

(b) acting as a discretionary investment manager for clients none of which is a linked entity, and

(2) In sub-paragraph (1), “ linked entity ”, in relation to an entity (“E”), means—

(a) a member of the same group as E,

(b) a company in which a company which is a member of the same group as E has a major interest (within the meaning of Part 5 of CTA 2009: see section 473 of that Act), or

(i) which is a member of the same group as E, and

(ii) whose share of the profits or losses of a trade carried on by the partnership for an accounting period of the partnership any part of which falls within the chargeable period is at least a 40% share (see Part 17 of CTA 2009 for provisions about shares of partnership profits and losses).

(3) In sub-paragraph (2) “ group ” means a group for the purposes of—

(a) the provisions mentioned in paragraph 4(3), ...

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

“Capital resources condition”

72

(1) “The capital resources condition” is that the entity has a capital resources requirement of at least £100,000,000.

(2) But if the entity is a member of a group, “the capital resources condition” is that the entity and—

(a) any other entities which—

(i) are members of the group,

(ii) meet either of the conditions in sub-paragraph (3),

(iii) are not excluded entities, and

(iv) are not members of any partnership within paragraph (b), and

(b) any partnership—

(i) the members of which are or include one or more entities which are members of the group and not excluded entities, and

(ii) which meets either of the conditions in sub-paragraph (3),

have (in aggregate) capital resources requirements of at least £100,000,000.

(3) The conditions referred to in sub-paragraph (2) are that the entity or partnership—

(a) is an investment bank, or

(b) is an entity or partnership which carries on in the United Kingdom activities including the relevant regulated activity described in the provision mentioned in paragraph 79(a).

(4) In determining whether the entity is a UK resident bank or a relevant foreign bank by virtue of paragraph 78(2) or 80(2), the references in sub-paragraph (1) to the entity are to the partnership.

(5) If any entity whose capital resources may be material for the purposes of sub-paragraph (1) or (2) prepares its accounts in a currency other than sterling, the amount of its capital resources at the end of the chargeable period is to be translated into its sterling equivalent by reference to the spot rate of exchange on the last day of the chargeable period.

(6) If any entity whose capital resources may be material for the purposes of sub-paragraph (1) or (2) carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom, its capital resources are to be determined as they would be for corporation tax purposes (see Chapter 4 of Part 2 of CTA 2009).

(7) In sub-paragraph (2) “ group ” means a group for the purposes of—

(a) the provisions mentioned in paragraph 4(3), ...

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

“Excluded entity”

73

(1) “Excluded entity” means an entity which is—

(a) an insurance company or an insurance special purpose vehicle,

(b) an entity which is a member of a group and does not carry on any relevant regulated activities otherwise than on behalf of an insurance company or insurance special purpose vehicle which is a member of the group,

(c) an entity which does not carry on any relevant regulated activities otherwise than as the manager of a pension scheme,

(d) an investment trust (within the meaning given by section 1158 of CTA 2010),

(e) an entity which does not carry on any relevant regulated activities other than asset management activities,

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(fa) a commodity and emission allowance dealer,

(g) an entity which does not carry on any relevant regulated activities otherwise than for the purpose of trading in commodities or commodity derivatives,

(h) an entity which does not carry on any relevant regulated activities otherwise than for the purpose of dealing in contracts for differences—

(i) as principal with persons all or all but an insignificant proportion of whom are retail clients, or

(ii) with another person to enable the entity or other person to deal in contracts for differences as principal with persons all or all but an insignificant proportion of whom are retail clients,

(i) a society incorporated under the Friendly Societies Act 1992,

(j) a society registered as a credit union under the Co-operative and Community Benefit Societies Act 2014 or the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)), ...

(k) a building society, or

(l) an entity falling within sub-paragraph (1A).

(1A) An entity falls within this sub-paragraph if—

(a) it would fall within a relevant relieving provision but for one (and only one) line of business which it carries on,

(b) that line of business does not involve the relevant regulated activity described in the provision mentioned in paragraph 79(a), and

(c) the entity’s activities in that line of business would not, on their own, result in it being an FCA investment firm that meets the conditions in paragraph 70(1B).

(1B) For the purposes of sub-paragraph (1A) the “relevant relieving provisions” are paragraphs (b), (c), (e), (g) and (h) of sub-paragraph (1).

(2) In sub-paragraph (1)(a) and (b) “insurance company” and “insurance special purpose vehicle” have the meanings given by sections 65 and 139 of FA 2012 respectively.

(3) In sub-paragraph (1)(b) “group” means a group for the purposes of—

(a) the provisions mentioned in paragraph 4(3), ...

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

“Long term” equity and liabilities

74

All equity is “long term”.

75

(1) Liabilities are “long term” to the extent that—

(a) as at the end of the chargeable period, the liabilities are not required, and cannot be required, to be repaid or otherwise met during the 12 month period starting with the last day of the chargeable period, and

(b) in the case of liabilities of one member of the relevant group to another member of the relevant group, an officer of Revenue and Customs is satisfied that the following condition is also met in relation to the liabilities.

(2) The condition is that, as at the end of the chargeable period, the liabilities are funded by the relevant group through—

(a) equity,

(b) excluded liabilities to persons who are not members of the relevant group, or

(c) liabilities to such persons which are not required, and cannot be required, to be repaid or otherwise met during the 12 month period starting with the last day of the chargeable period.

(3) This paragraph is subject to paragraph 76A.

76

(1) Liabilities are also “long term” so far as they consist of non-protected deposits.

(2) But sub-paragraph (1) does not apply to a deposit if the depositor is—

(a) an authorised person for the purposes of FISMA 2000 (see section 31 of that Act), or

(b) an entity which if it were a UK resident entity which carried on its activities in the United Kingdom would be required to be an authorised person.

(3) A deposit is “non-protected” so far as it is not a protected deposit for the purposes of paragraph 29.

(4) For the purposes of this paragraph—

(a) “ deposit ” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( S.I. 2001/544), and

(b) in relation to a deposit held in a territory outside the United Kingdom, the exclusions in articles 6 to 9AB of that Order apply with whatever modifications are appropriate to achieve the following purpose.

(5) The purpose is that the exclusions are to cover, essentially, the same matters in relation to the territory concerned as they cover in relation to the United Kingdom.

77

Paragraphs 74 to 76A are subject to Step 7 in paragraph 15Z1 and Step 6 in paragraph 24(1).

“Relevant foreign bank”

78

(1) “ Relevant foreign bank ” means an entity which—

(a) is a non-UK resident entity,

(b) is an authorised person for the purposes of FISMA 2000 (see section 31 of that Act),

(c) is an entity which carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom and—

(i) whose activities include the relevant regulated activity described in the provision mentioned in paragraph 79(a), or

(ii) which is an investment bank, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 79(b) to (f),

(d) carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of that trade,

(e) meets the capital resources condition, and

(f) is not an excluded entity.

(2) “Relevant foreign bank” also includes an entity which—

(a) meets the conditions in sub-paragraph (1)(a) and (f), and

(b) is a member of a partnership which meets the conditions in paragraph 80(1)(b) to (e).

“Relevant regulated activity”

79

“ Relevant regulated activity ” means an activity which is a regulated activity for the purposes of FISMA 2000 by virtue of any of the following provisions of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( S.I. 2001/544)—

(a) article 5 (accepting deposits),

(b) article 14 (dealing in investments as principal),

(d) article 25 (arranging deals in investments),

(da) article 25DA (operating an organised trading facility), but only where dealing on own account in relation to sovereign debt instruments for which there is no liquid market (within the meaning of the FCA Handbook);

(e) article 40 (safeguarding and administering investments), and

(f) article 61 (entering into regulated mortgage contracts).

“UK resident bank”

80

(1) “ UK resident bank ” means an entity which—

(a) is a UK resident entity,

(b) is an authorised person for the purposes of FISMA 2000 (see section 31 of that Act),

(i) whose activities include the relevant regulated activity described in the provision mentioned in paragraph 79(a), or

(ii) which is an investment bank, whose activities consist wholly or mainly of any of the relevant regulated activities described in the provisions mentioned in paragraph 79(b) to (f),

(d) carries on that relevant regulated activity, or those relevant regulated activities, wholly or mainly in the course of trade,

(e) meets the capital resources condition, and

(f) is not an excluded entity.

(2) “ UK resident bank” also includes an entity which—

(a) meets the conditions in sub-paragraph (1)(a) and (f), and

(b) is a member of a partnership which meets the conditions in sub-paragraph (1)(b) to (e).

Part 9 — Powers to amend

81

(1) The Treasury may, by order made by statutory instrument, make such amendments of this Schedule as they consider appropriate in consequence of—

(a) any change made to or replacement of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ( S.I. 2001/544) (or any replacement),

(b) any change made to the PRA Rulebook, ...

(d) any regulatory requirement, or change to any regulatory requirement, imposed by EU legislation, or by or under any Act (whenever adopted, enacted or made).

(1A) The Treasury may by regulations made by statutory instrument—

(a) amend Part 8 of this Schedule (definitions);

(b) amend other Parts of this Schedule in consequence of provision made under paragraph (a).

(1B) An order under sub-paragraph (1) or regulations under sub-paragraph (1A) may include transitional provision.

(2) An order under sub-paragraph (1) may have retrospective effect in relation to—

(a) any chargeable period in which the order is made, or

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

(c) in the case of an order made on or before 30 June 2022, in relation to any chargeable period ending on or after 1 January 2022.

(2A) Regulations under sub-paragraph (1A) made on or before 30 June 2022 may have retrospective effect in relation to any chargeable period ending on or after 1 January 2022.

(3) A statutory instrument containing only an order under sub-paragraph (1) is subject to annulment in pursuance of a resolution of the House of Commons.

(4) Any other statutory instrument containing provision made under this paragraph may not be made unless a draft of the instrument has been laid before and approved by a resolution of the House of Commons.

SCHEDULE 20

1

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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

SCHEDULE 21

Introduction

1

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

Alternative property finance

2

In section 45 (contract and conveyance: effect of transfer of rights), in subsection (3) for the words from “subsection (3)” to the end substitute “ any of sections 71A to 73 (which relate to alternative property finance). ”

3

(1) Omit sections 71A(8), 72(7), 72A(8) and 73(5)(a) (which contain definitions of “financial institution” for the purposes of provisions relating to alternative property finance).

(2) After section 73B insert—

(73BA) (1) In sections 71A to 73B “financial institution” has the meaning given by section 564B of the Income Tax Act 2007. (2) For this purpose section 564B(1) applies as if paragraph (d) were omitted.

Exchanges

4

(1) Paragraph 5 of Schedule 4 (chargeable consideration: exchanges) is amended as follows.

(2) In sub-paragraph (3)—

(a) for paragraph (a)(i) and (ii) substitute—

(i) the amount determined under sub-paragraph (3A) in respect of the acquisition, or (ii) if greater, the amount which would be the chargeable consideration for the acquisition ignoring paragraph 5;

, and

(b) for paragraph (b)(i) and (ii) substitute—

(i) the amount determined under sub-paragraph (3A) in respect of that acquisition, or (ii) if greater, the amount which would be the chargeable consideration for that acquisition ignoring paragraph 5;

(3) After that sub-paragraph insert—

(3A) The amount mentioned in sub-paragraph (3)(a)(i) and (b)(i) is— (a) the market value of the subject-matter of the acquisition, and (b) if the acquisition is the grant of a lease at a rent, that rent.

Commencement

5

(1) Subject to what follows, the amendments made by paragraphs 2 and 4 have effect in relation to any transaction the effective date of which is on or after 24 March 2011.

(2) The amendments do not have effect in relation to any transaction (other than a notional transaction under section 75A of FA 2003)—

(a) which is effected in pursuance of a contract entered into and substantially performed before 24 March 2011, or

(b) which is effected in pursuance of a contract entered into before 24 March 2011 and which is not excluded by sub-paragraph (4).

(3) The amendments do not have effect in relation to any notional transaction under section 75A of FA 2003 if any scheme transaction—

(a) is completed before 24 March 2011,

(b) is effected in pursuance of a contract entered into and substantially performed before 24 March 2011, or

(4) A transaction effected in pursuance of a contract entered into before 24 March 2011 is excluded by this sub-paragraph if—

(a) there is any variation of the contract, or assignment of rights under the contract, on or after 24 March 2011,

(b) the transaction is effected in consequence of the exercise on or after 24 March 2011 of any option, right of pre-emption or similar right, or

(c) on or after 24 March 2011, there is an assignment, sub-sale or other transaction relating to the whole or part of the subject-matter of the contract as a result of which a person other than the purchaser under the contract becomes entitled to call for a conveyance.

(5) Terms used in this paragraph have the same meaning as in Part 4 of FA 2003.

6

(1) The amendments made by paragraph 3 are treated as having come into force on 24 March 2011.

(2) But those amendments—

(a) do not have effect for the purposes of any of sections 71A to 73B of FA 2003 (other than those provisions mentioned in paragraph (b) below) if the arrangements referred to in section 71A(1), 72(1), 72A(1) or 73(1) (as the case may be) were entered into before 24 March 2011, and

(b) do not have effect for the purposes of section 71A(2)(b), 72(2)(b), 72A(2)(b) or 73(2)(b) of that Act if the arrangements referred to there were entered into before 24 March 2011.

SCHEDULE 22

New relief

1

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

2

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

3

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

Other amendments of Part 4 of FA 2003

4

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

5

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

6

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

7

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

8

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

Commencement

9

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

SCHEDULE 23

Part 1 — Power to obtain data

Power to give notice

1

(1) An officer of Revenue and Customs may by notice in writing require a relevant data-holder to provide relevant data.

(2) Part 2 of this Schedule sets out who is a relevant data-holder.

(3) In relation to a relevant data-holder, “relevant data” means data of a kind specified for that type of data-holder in regulations made by the Treasury.

(4) The data that a relevant data-holder may be required to provide—

(a) may be general data or data relating to particular persons or matters, and

(b) may include personal data (such as names and addresses of individuals).

(5) A notice under this paragraph is referred to as a data-holder notice.

Purpose of power

2

(1) The power in paragraph 1(1) is exercisable to assist with the efficient and effective discharge of HMRC's tax functions—

(a) whether a particular function or more generally, and

(b) whether involving a particular taxpayer or taxpayers generally.

(2) It is additional to and is not limited by other powers that HMRC may have to obtain data (for example, in Schedule 36 to FA 2008).

(3) But it may not be used (in place of the power in paragraph 1 of that Schedule) to obtain data required for the purpose of checking the relevant data-holder's own tax position.

(4) Sub-paragraph (3) does not prevent use of the power in paragraph 1(1) of this Schedule to obtain data about a matter mentioned in paragraph 14(3)(a) (beneficial ownership of certain payments etc).

(5) Nothing in this paragraph limits the use that may be made of data that have been obtained under this Schedule (see section 17(1) of CRCA 2005).

Specifying relevant data

3

(1) A data-holder notice must specify the relevant data to be provided.

(2) Relevant data may not be specified in a data-holder notice unless an officer of Revenue and Customs has reason to believe that the data could have a bearing on chargeable or other periods ending on or after the applicable day.

(3) The applicable day is the first day of the period of 4 years ending with the day on which the notice is given.

Compliance

4

(1) Relevant data specified in a data-holder notice must be provided by such means and in such form as is reasonably specified in the notice.

(2) If the notice specifies that the data are to be provided by sending them somewhere, the data must be sent to such address and within such period as is reasonably specified in the notice.

(3) If the notice specifies that the data are to be provided by making documents available for inspection somewhere, the documents must be made available for inspection at such place and time as is—

(a) reasonably specified in the notice, or

(b) agreed between an officer of Revenue and Customs and the data-holder.

(4) A place used solely as a dwelling may not be specified under sub-paragraph (3)(a).

(5) A data-holder notice requiring the provision of specified documents requires the documents to be provided only if they are in the data-holder's possession or power.

(6) A power in this paragraph to specify something in a notice includes power to specify it in a document referred to in the notice.

Approval by tribunal

5

(1) An officer of Revenue and Customs may ask for the approval of the tribunal before giving a data-holder notice.

(2) This does not require an officer to do so (but see paragraph 28(3) for the effect of obtaining approval).

(3) An application for approval under this paragraph may be made without notice (except as required under sub-paragraph (4)).

(4) The tribunal may not approve the giving of a data-holder notice unless—

(a) the application for approval is made by, or with the agreement of, an authorised officer,

(b) the tribunal is satisfied that, in the circumstances, the officer giving the notice is justified in doing so,

(c) the data-holder has been told that the data are to be required and given a reasonable opportunity to make representations to an officer of Revenue and Customs, and

(d) the tribunal has been given a summary of any representations made by the data-holder.

(5) Paragraphs (c) and (d) of sub-paragraph (4) do not apply to the extent that the tribunal is satisfied that taking the action specified in those paragraphs might prejudice any purpose for which the data are required.

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

(7) “Authorised officer” means an officer of Revenue and Customs who is, or is a member of a class of officers who are, authorised by the Commissioners for the purposes of this paragraph.

Power to copy documents

6

An officer of Revenue and Customs may take copies of or make extracts from any document provided pursuant to a data-holder notice.

Power to retain documents

7

(1) If an officer of Revenue and Customs thinks it reasonable to do so, HMRC may retain documents provided pursuant to a data-holder notice for a reasonable period.

(2) While a document is being retained, the data-holder may, if the document is reasonably required for any purpose, request a copy of it.

(3) The retention of a document under this paragraph is not to be regarded as breaking any lien claimed on the document.

(4) If a document retained under this paragraph is lost or damaged, the Commissioners are liable to compensate the owner of the document for any expenses reasonably incurred in replacing or repairing the document.

Part 2 — Relevant data-holders

Introduction

8

(1) This Part of this Schedule sets out who is a relevant data-holder for the purposes of this Schedule.

(2) Descriptions of the various types of data-holder are to be read as including anyone who was previously of such a description.

Salaries, fees, commission etc

9

(1) Each of the following is a relevant data-holder—

(a) an employer,

(b) a person who is concerned in making payments to or in respect of another person's employees with respect to their employment with that other person,

(d) a person who carries on a business in connection with which relevant payments are or are likely to be made.

(2) Relevant payments are—

(a) payments for or in connection with services provided by persons who are not employed in the business, or

(b) periodical or lump sum payments in respect of any copyright, public lending right, right in a registered design or design right.

(3) Payments are taken to be made in connection with a business if they are made—

(a) in the course of carrying on the business or a part of it, or

(b) in connection with the formation, acquisition, development or disposal of the business or a part of it.

(4) Sub-paragraph (1)(d) applies to the carrying on of any other kind of activity as it applies to the carrying on of a business, but only if the activity is being carried on by a body of persons (and references in sub-paragraphs (2) and (3) to the business are to be read accordingly).

(5) A reference in this paragraph to the making of payments includes—

(a) the provision of benefits, and

(b) the giving of any other valuable consideration.

10

(1) This paragraph applies if—

(a) services that an individual provides or is obliged to provide under an agency contract are treated under section 44(2) of ITEPA 2003 as the duties of an employment held by the individual with the agency, or

(b) remuneration receivable under or in consequence of arrangements falling within section 45 of that Act is treated as earnings from an employment held by an individual with the agency.

(2) For the purposes of paragraph 9—

(a) the individual is treated as being employed by the agency, and

(b) payments made to the individual under or in consequence of the agency contract, or treated as earnings under section 45 of ITEPA 2003, do not count as “relevant payments”.

(3) “Agency contract” and “remuneration” have the same meaning as in Chapter 7 of Part 2 of ITEPA 2003.

11

(1) This paragraph applies if—

(a) a person (“A”) performs in the United Kingdom duties of an employment,

(b) the employment is under or with a person resident outside and not resident in the United Kingdom,

(d) those duties are performed for the benefit of a person (“B”) resident or carrying on a trade, profession or vocation in the United Kingdom.

(2) For the purposes of paragraph 9—

(a) B is treated as if B were an employer, but

(b) only the name and place of residence of A may be specified for a relevant data-holder of B's type in regulations made under paragraph 1(3).

Interest etc

12

(1) A person by or through whom interest is paid or credited is a relevant data-holder.

(2) For the purposes of this paragraph, the following are to be treated as interest—

(a) a dividend in respect of a share in a building society,

(b) an amount to which a person holding a deeply discounted security is entitled on the redemption of that security,

(d) an alternative finance return.

(3) In sub-paragraph (2)—

“alternative finance return” means—an alternative finance return within the meaning of Part 10A of ITA 2007, andan alternative finance return within the meaning of Part 6 of CTA 2009;

“building society” means a building society within the meaning of the Building Societies Act 1986;

“deeply discounted security” has the same meaning as in Chapter 8 of Part 4 of ITTOIA 2005;

“foreign dividend” means any annual payment, interest or dividend payable out of, or in respect of the funds or securities of—a body of persons that is not resident in the United Kingdom, ora government or public or local authority in a country outside the United Kingdom.

Income, assets etc belonging to others

13

A person who (in whatever capacity) is in receipt of money or value of or belonging to another is a relevant data-holder.

Payments derived from securities

14

(1) Each of the following is a relevant data-holder—

(a) a person who is the registered or inscribed holder of securities,

(b) a person who receives a payment derived from securities or would be entitled to do so if a payment were made,

(c) a person who receives a payment treated by the company that makes it as a payment to which section 1033 of CTA 2010 applies (purchase by unquoted trading company of own shares), and

(d) a person who receives a chargeable payment within the meaning of Chapter 5 of Part 23 of CTA 2010 (company distributions: demergers).

(2) But, for a relevant data-holder of a type described in this paragraph, data may only be specified in regulations under paragraph 1(3) if the data concern a matter mentioned in sub-paragraph (3).

(3) The matters are—

(a) whether the relevant data-holder is the beneficial owner (or sole beneficial owner) of the securities or payment in question,

(b) if not—

(i) details of the beneficial owner (or other beneficial owners), and

(ii) if those details are not known or if different, details of the person for whom the securities are held or to whom the payment is or may be paid on, and

(c) if there is more than one beneficial owner or more than one person of the kind mentioned in paragraph (b)(ii), their respective interests in the securities or payment.

(4) “ Payment derived from securities ” includes in particular—

(a) an amount (whether of income or capital) that is payable out of or in respect of securities or rights attaching to securities, and

(b) a payment that is representative of any such amount.

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.