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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

[^key-3657baebba1d60d7a1a3288c3202d28b]: Sch. 23 para. 17 modified (6.4.2018) by Housing and Planning Act 2016 (c. 22), ss. 39(5), 216(3); S.I. 2018/393, reg. 2(a)

[^key-4ec5defb09d8a9c66ed8a7bac92b55aa]: Words in Sch. 19 para. 7 added (1.1.2019) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 4(2)(b)(3)

[^key-98d450434a39e2ec289b9ff681489136]: S. 53 omitted (with effect in accordance with Sch. 14 para. 11(2)(3) of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 14 para. 11(1) (with Sch. 14 paras. 12-17)

[^key-169284e9893fb40c30bd94926910fa4f]: Words in Sch. 19 para. 7 added (1.1.2020) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 5(2)(b)(3)

[^key-47509b8ea758c0083d0ebbcd6015b0e1]: Words in Sch. 19 para. 13(4) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 20(2)(a) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-9b0084f5d4b0d6fbf16f115d0dc2bd2f]: Sch. 19 para. 31(4)(za) inserted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 20(2)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-fb59cc69fe25155667a81eedebd50b7b]: Word in Sch. 19 para. 67A(4) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 20(2)(c) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-9619e8ab391c4b104a1f748d41aa3773]: Word in Sch. 23 para. 13D(3)(a) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 20(3)(a)(i) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-9076a1df47d18443a617009105981b19]: Sch. 23 para. 13D(3)(b) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 20(3)(a)(ii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-f03b2ee18b31d2afee79b394e1cedf4c]: Sch. 23 para. 45(3)(b) and word omitted (31.12.2020) by virtue of Taxation (Cross-border Trade) Act 2018 (c. 22), s. 57(3), Sch. 8 para. 120 (with savings and transitional provisions in S.I. 2019/105 (as amended by S.I. 2020/1495, regs. 1(2), 21), S.I. 2020/1545, Pt. 4 and 2020 c. 26, Sch. 2 para. 7(7)-(9)); S.I. 2020/1642, reg. 4(b) (with reg. 7)

[^key-ce9301528a6eb5880cdf16c141c77f8c]: Words in Sch. 23 para. 45(4)(a) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 20(3)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)

[^key-0c3fde37d3ba0b50fe0a3c473f8efbda]: Words in Sch. 25 para. 3(2) inserted (31.12.2020) by The MARD (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/996), regs. 1, 2(2)

[^key-6b78ccc1d8b38c0960c539769b9b9cb4]: Word in Sch. 25 para. 6(1) substituted (31.12.2020) by The MARD (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/996), regs. 1, 2(3)

[^key-fe5c53ef35f70e7d849f4b95907317df]: Word in Sch. 25 para. 14 substituted (31.12.2020) by The MARD (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/996), regs. 1, 2(4)

[^key-c440d7a5c4b5ccc78948a35a0008c710]: Word in Sch. 19 para. 7 cross-heading substituted (1.1.2021) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 6(2)(c)(3)

[^key-e71f0208672356e65130d9f7df80b2ae]: Word in Sch. 19 para. 6(2) substituted (1.1.2021) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 6(1)(a)(3)

[^key-f5998491b75cd1ae6fc9aaf858a0b1de]: Word in Sch. 19 para. 6(2) substituted (1.1.2021) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 6(1)(b)(3)

[^key-527e83ccae860871582a7f6d84c755b4]: Word in Sch. 19 para. 7(1) substituted (1.1.2021) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 6(2)(a)(3)

[^key-edd0ff468a8adbdbef1a2186d9139187]: Words in Sch. 19 para. 7 inserted (1.1.2021) by Finance (No. 2) Act 2015 (c. 33), Sch. 2 para. 6(2)(b)(3)

[^key-b0722416440b9ce896901543072d5b57]: Sch. 19 Pt. 9 heading substituted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(6)

[^key-c36d68eddf8e939df7ab3fb15c541579]: Sch. 19 para. 81(1A)(1B) inserted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(7)(a)

[^key-66d4c719d1c099473ae11726128f042d]: Sch. 19 para. 81(2A) inserted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(7)(c)

[^key-16d9efa64b2377b9e0e33e399b9f491a]: Sch. 19 para. 81(4) inserted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(7)(e)

[^key-f2e7a3d8f67ac0277003ed5b82069a90]: Words in Sch. 19 para. 81(2) substituted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(7)(b)(i)

[^key-e8b4f38381c9b7333882bbdf6987a976]: Sch. 19 para. 81(2)(b) omitted (10.6.2021) by virtue of Finance Act 2021 (c. 26), s. 134(7)(b)(ii)

[^key-a038e629da741c1566f2bc66ee8d91be]: Sch. 19 para. 81(2)(c) inserted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(7)(b)(iii)

[^key-1d9f9d5c51745cada3d16115b53e747a]: Words in Sch. 19 para. 81(3) substituted (10.6.2021) by Finance Act 2021 (c. 26), s. 134(7)(d)

[^key-dad1505c1418826d515db30becc139ec]: Sch. 23 para. 45(1) modified (temp.) (with effect in accordance with Sch. 10 para. 43 of the amending Act) (as amended (5.1.2023) by S.I. 2022/1321, regs. 1, 2(2))) by Finance Act 2022 (c. 3), Sch. 10 para. 30(2)

[^key-afd2a6e3c9c3bb7284aff4691ecc6b61]: Words in Sch. 19 para. 12(8) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 13(b)

[^key-0fd965d1e415c036452b35423b4d3c82]: Words in Sch. 19 para. 12(8) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 13(a)

[^key-8919b8252531b666d1c1750bc08f3d4d]: Words in Sch. 19 para. 30(3)(c) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 14

[^key-e7698dc6c7fa81fad5a24d3286c570f7]: Sch. 19 para. 79(da) inserted (5.4.2022 with application in relation to any chargeable period ending on or after 5.4.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(10)(11), 17

[^key-eceffe61c67e157dc27d7065909443d8]: Word in Sch. 19 para. 81(1)(b) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 18

[^key-080fe82886e77b462a9b366f4028c2d1]: Sch. 19 para. 73(1)(fa) inserted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 16(2)(b)

[^key-d8168398cce122adbb336b3f6dd28cfa]: Sch. 19 para. 73(1)(f) omitted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by virtue of The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 16(2)(a)

[^key-314488ed1d1c83e825b0ca531ab4804d]: Words in Sch. 19 para. 73(1A)(c) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 16(3)

[^key-b1c0bfc1b844cc810ce2e1b80fd87fd3]: Sch. 19 para. 70(1A)-(1D) inserted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(3)

[^key-e94cd4edb3f5839b76be67e19c8b052e]: Words in Sch. 19 para. 70(1) inserted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(2)(a)

[^key-66be63086b21edbfebb2cd3aa854986d]: Words in Sch. 19 para. 70(1) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(2)(b)

[^key-745f18911ece0df25857df2d1de111aa]: Word in Sch. 19 para. 70(1) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(2)(c)

[^key-375d0ee0b1b156fa74400ffc7deea548]: Word in Sch. 19 para. 70(2) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(4)

[^key-4823bcd13d6cf89b9a54b114036a6344]: Word in Sch. 19 para. 70(2A) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(5)

[^key-73e4c4e7463a1459651d43bb7bb809b0]: Words in Sch. 19 para. 70(3) substituted (5.4.2022 with application in relation to any chargeable period ending on or after 1.1.2022) by The Taxation of Banks (Amendments to the Corporation Tax Act 2009, Corporation Tax Act 2010 and Finance Act 2011) Regulations 2022 (S.I. 2022/286), regs. 1(2)(9), 15(6)

[^key-636499ca5fd3514085170af330be9cfe]: Words in Sch. 25 para. 5(5)(a) substituted (28.4.2022) by The Criminal Justice Act 2003 (Commencement No. 33) and Sentencing Act 2020 (Commencement No. 2) Regulations 2022 (S.I. 2022/500), regs. 1(2), 5(1), Sch. Pt. 1

[^key-4bde553197d6e3294cb1d9458c925916]: Words in Sch. 25 para. 5(2)(b) substituted (E.W.) (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(1), Sch. Pt. 1 table

[^key-4b470a0768ed53a40f1a818916593e35]: Words in Sch. 25 para. 5(5) substituted (E.W.) (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 2(1), Sch. Pt. 1 table

[^key-99e1b04c3b4ff7f2a076d46f56a01943]: Words in Sch. 18 para. 14(4) inserted (for the tax year 2023-24 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), s. 23(5)(8)

[^key-ed6c82af4c0c0ff941d4a4d90c37a766]: Words in Sch. 18 para. 14(1)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 90(2), 124 (with Sch. 9 paras. 125-132)

[^key-99b1d00404a7a3627306770a9a9fce61]: Words in Sch. 18 para. 14(1A)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 90(3), 124 (with Sch. 9 paras. 125-132)

[^key-5c1ed733290c6f3fef3c13c757681e90]: Sch. 22 omitted (with effect in accordance with s. 7(3) of the amending Act) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 7(2)(c) (with s. 7(4)-(10))

[^key-0be2d0bb14c730768ef70471467efca9]: S. 83 omitted (with effect in accordance with s. 7(3) of the amending Act) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 7(2)(c) (with s. 7(4)-(10))

[^key-f15d07c496df250439b04a7d6e76591e]: Sch. 18 para. 14(3)(3A) substituted for Sch. 18 para. 14(3) (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 13

[^key-094c8dcf946725eed8da218157762c12]: Sch. 14 Pt. 1 repealed (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 5 paras. 4(c), 12(1) (with Sch. 5 paras. 15, 18(4), 19)

[^key-a8f23921b12a3ad89492a7d3472afca3]: Sch. 14 Pt. 2 repealed (for the purposes of corporation tax in relation to accounting periods beginning on or after 1.4.2025) by Finance Act 2025 (c. 8), Sch. 5 paras. 7(c), 12(2) (with Sch. 5 paras. 15, 18(4), 19)

[^key-598b615bc419e5d2e2e54ff9fea61354]: Sch. 14 Pt. 3 repealed (for the purposes of corporation tax, in relation to accounting periods beginning on or after 1.4.2025 and, for the purposes of income tax, in relation to periods of account beginning on or after 6.4.2025) by Finance Act 2025 (c. 8), Sch. 5 paras. 9(e), 12(3) (with Sch. 5 paras. 15, 18(4), 19)

[^key-7a6118af525dc3f1ab8d052f5c32f05c]: Sch. 14 Pt. 4 repealed (with effect in accordance with Sch. 5 para. 13 of the amending Act) by Finance Act 2025 (c. 8), Sch. 5 paras. 11(h), 13 (with Sch. 5 paras. 14, 15, 18(4), 19)

Increase in rate of supplementary charge

Entrepreneurs' relief

Plant and machinery writing-down allowances

Annual investment allowance

Short-life assets

General beer duty: reduced rate for lower strength beer

Rates of tobacco products duty

Fuel duties: rates of duty and rebates from 1 January 2012

VED rates for light passenger vehicles, light goods vehicles, motorcycles etc

VED rates for certain goods vehicles without road-friendly suspension

Rate of aggregates levy

Tainted charity donations

Company ceasing to be member of group: availability of relief

Long funding finance leases

Reduction in childcare relief for higher earners

Gift aid: increase of limits on total value of benefits associated with gifts

Enterprise investment scheme: amount of relief

Relief for expenditure on R&D by SMEs

Company ceasing to be member of a group

Leases and changes to accounting standards

Tonnage tax: capital allowances in respect of ship leasing

Offshore funds

PRT: areas treated as continuing to be oil fields

Intangible fixed assets: oil licences

Reduction of supplementary charge for certain new oil fields

Chargeable gains: oil activities

Annual allowance charge

Tax provision consequential on Part 1 of Pensions Act 2008 etc

Power to suspend exemption for supplies used in recycling processes

Power to suspend exemption for supplies used in recycling processes

Relief from VAT on imported goods of low value

Specified investments

Data-gathering powers

Amendments of section 1 of the Provisional Collection of Taxes Act 1968

Machine games duty

Short title

Furnished holiday lettings

Companies with small profits: associated companies

Companies with small profits: associated companies

Transfer pricing: application of OECD principles

Intangible fixed assets: oil licences

Intangible fixed assets: oil licences

The bank levy

Business samples

Amendments of section 1 of the Provisional Collection of Taxes Act 1968

Interpretation

Disclosure of information to foreign tax authorities etc

67A
  • (1) If the Treasury by order declares that—
  • (a) international tax enforcement arrangements which are specified in the order have been made in relation to any territory or territories outside the United Kingdom in association with double taxation arrangements specified under paragraph 66 in the same or a previous order, and
  • (b) it is expedient that those international tax enforcement arrangements have effect,

those arrangements have effect, and do so in spite of anything in any enactment or instrument.

  • (2) “ International tax enforcement arrangements ” means arrangements which relate to one or both of the following—
  • (a) the exchange of information foreseeably relevant to the administration, enforcement or recovery of the bank levy or any equivalent foreign levy to which the double taxation arrangements relate;
  • (b) the service of documents relating to the bank levy or any such equivalent foreign levy.
  • (3) An order under this paragraph revoking an earlier order may contain transitional provisions that appear to the Treasury to be necessary or expedient.
  • (4) Subsections (4) to (5) of section 173 of FA 2006 (international tax enforcement arrangements: disclosure of information) apply to arrangements which have effect under this paragraph as they apply to arrangements which have effect under that section.
  • (5) Orders under this paragraph are to be made by statutory instrument.
  • (6) A statutory instrument containing an order under this paragraph is subject to annulment in pursuance of a resolution of the House of Commons.
15
  • (1) The Commissioners for Her Majesty's Revenue and Customs may by regulations amend paragraph 14.
  • (2) Regulations under this paragraph may (for example) add to the cases in which paragraph 14 is to apply or is to cease to apply.
  • (3) Regulations under this paragraph may include provision having effect in relation to a time before the regulations are made; but—
  • (a) the time must be no earlier than 6 April 2012, and
  • (b) the provision must not increase any person's liability to tax.
  • (4) In relation to regulations under this paragraph made during 2013, sub-paragraph (3) has effect with the omission of paragraph (b) so long as the time in question is no earlier than 6 April 2013.
16
  • (1) The Commissioners for Her Majesty's Revenue and Customs may by regulations make provision specifying how any notice required to be given to an officer of Revenue and Customs under paragraph 14 is to be given.
  • (2) In sub-paragraph (1) the reference to paragraph 14 is to that paragraph as amended from time to time by regulations under paragraph 15.
17
  • (1) Regulations under paragraph 15 or 16 may include supplementary or incidental provision.
  • (2) The powers to make regulations under paragraphs 15 and 16 are exercisable by statutory instrument.
  • (3) A statutory instrument containing regulations under paragraph 15 or 16 is subject to annulment in pursuance of a resolution of the House of Commons.

Foreign levies to be ignored for purposes of income tax or corporation tax

69A
  • (1) In calculating profits or losses for the purposes of income tax or corporation tax—
  • (a) no deduction is allowed in respect of any tax which is imposed by the law of a territory outside the United Kingdom and corresponds to the bank levy, and
  • (b) no account is to be taken of any amount which is paid (directly or indirectly) by a member of a group to another member for the purposes of meeting or reimbursing the cost of such a tax charged in relation to the group.
  • (2) Paragraph 66(3) applies for the purposes of sub-paragraph (1) as it applies for the purposes of paragraph 66(2).

Merchant acquirers etc

13A
  • (1) A person who has a contractual obligation to make payments to retailers in settlement of payment card transactions is a relevant data-holder.
  • (2) In this paragraph—
  • “ payment card ” includes a credit card, a charge card and a debit card;
  • “ payment card transaction ” means any transaction in which a payment card is accepted as payment;
  • “ retailer ” means a person who accepts a payment card as payment for any transaction.
  • (3) In this paragraph any reference to a payment card being accepted as payment includes a reference to any account number or other indicators associated with a payment card being accepted as payment.
38A
  • (1) Liabilities are excluded if they represent cash collateral provided as QCP margin in relation to a trade executed or to be executed under a client clearing agreement.
  • (2) Cash collateral is provided as “QCP margin” if, and to the extent that—
  • (a) it exceeds the fair value of the instrument to which the trade relates, and
  • (b) it corresponds to either—
  • (i) an asset held in respect of the qualifying central counterparty which represents cash collateral provided to that qualifying central counterparty, or
  • (ii) cash collateral provided to the qualifying central counterparty which has the effect of reducing a liability of the clearing member to the qualifying central counterparty.
  • (3) In this paragraph—
  • “clearing member”, in relation to a recognised central counterparty, has the meaning given by Article 2(14) of the EMIR Regulation,
  • “client” has the meaning given by Article 2(15) of the EMIR Regulation,
  • “client clearing agreement” means a contract between a clearing member of a qualifying central counterparty and a client, relating to the clearing of transactions with the qualifying central counterparty,
  • “derivative contract” has the meaning given by international accounting standards,
  • “the EMIR Regulation” means Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories,
  • “qualifying central counterparty” means a central counterparty that has been either authorised or recognised under the EMIR Regulation,
  • “trade” means a transaction relating to the sale and purchase of a financial instrument or to the entering into of a derivative contract.
76A
  • (1) Liabilities under derivative contracts are never “long term” (and are therefore always short term).
  • (2) In this paragraph “derivative contract” has the meaning given by international accounting standards.

Gift aid: increase of limits on total value of benefits associated with gifts

Enterprise investment scheme: amount of relief

Relief for expenditure on R&D by SMEs

Value shifting

Transfer pricing: application of OECD principles

PRT: areas treated as continuing to be oil fields

Reduction of supplementary charge for certain new oil fields

Chargeable gains: oil activities

Security for payment of PAYE

Providers of electronic stored-value payment services

13B
  • (1) A person who provides electronic stored-value payment services is a relevant data-holder.
  • (2) In this paragraph “electronic stored-value payment services” means services by means of which monetary value is stored electronically for the purpose of payments being made in respect of transactions to which the provider of those services is not a party.

Business intermediaries

13C
  • (1) A person who—
  • (a) provides services to enable or facilitate transactions between suppliers and their customers or clients (other than services provided solely to enable payments to be made), and
  • (b) receives information about such transactions in the course of doing so,

is a relevant data-holder.

  • (2) In this paragraph “suppliers” means persons supplying goods or services in the course of business.
  • (3) For the purposes of this paragraph, information about transactions includes information that is capable of indicating the likely quantity or value of transactions.

Money service businesses

13D
  • (1) A person is a relevant data-holder if the person—
  • (a) carries on any of the activities in sub-paragraph (2) by way of business,
  • (b) is a relevant person within the meaning of regulation 8(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692), and
  • (c) is not an excluded credit institution.
  • (2) The activities referred to in sub-paragraph (1)(a) are—
  • (a) operating a currency exchange office;
  • (b) transmitting money (or any representation of monetary value) by any means;
  • (c) cashing cheques which are made payable to customers.
  • (3) An excluded credit institution is a credit institution which has permission to carry on the regulated activity of accepting deposits—
  • (a) under Part 4A of the Financial Services and Markets Act 2000 (permission to carry on regulated activities), ...
  • (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  • (4) Sub-paragraph (3) is to be read with section 22 of and Schedule 2 to the Financial Services and Markets Act 2000, and any order under that section (classes of regulated activities).
  • (5) In this paragraph “credit institution” has the meaning given by Article 4.1(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.

Money service businesses

Chargeable equity and liabilities: relevant entities

15A
  • (1) This paragraph applies if the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups).
  • (2) The amount of the chargeable equity and liabilities of the relevant entity is—
  • (a) in the case of a UK resident bank or building society, the amount of the UK-based equity and liabilities of the entity, as at the end of the chargeable period, or
  • (b) in the case of a relevant foreign bank, the amount of the UK allocated equity and liabilities of that bank as at the end of the chargeable period (see paragraph 24).

Meaning of “UK sub-group”

15B

“UK sub-group” means a group of entities—

  • (a) which is a group for the purposes of those provisions of international accounting standards which relate to the preparation of consolidated financial statements,
  • (b) which has as its parent or parent undertaking for the purposes of those provisions an entity which is—
  • (i) if the relevant group is a relevant non-banking group, a UK resident bank, or
  • (ii) in any other case, a UK resident entity,
  • (c) the members of which, for the purposes of those provisions, are all members of the relevant group,
  • (d) in respect of which consolidated financial statements for the chargeable period are prepared under international accounting standards, and
  • (e) the members of which are not members of any larger group of entities, in respect of which the conditions in paragraphs (a) to (c) are met, for which such financial statements are prepared.

Meaning of “chargeable UK resident entity”

15C
  • (1) “Chargeable UK resident entity” means a UK resident entity which—
  • (a) is a member of the relevant group, but is not a member of a UK sub-group, and
  • (b) if the relevant group is a relevant non-banking group, is a banking entity.
  • (2) A UK resident entity is a “banking entity” for the purposes of sub-paragraph (1) if it is—
  • (a) a UK resident bank, or
  • (b) a subsidiary of a UK resident bank.
  • (3) In sub-paragraph (2)(b) “subsidiary” has the meaning given by those provisions of international accounting standards which relate to the preparation of consolidated financial statements.

Election to disregard non-UK allocated equity and liabilities

15D
  • (1) This paragraph applies if—
  • (a) the bank levy is charged as provided for by paragraph 4 (groups), and
  • (b) a UK resident entity, which is a member of the relevant group, has a foreign permanent establishment.
  • (2) For the purposes of this Part of this Schedule, a UK resident entity “has a foreign permanent establishment” if the entity carries on a trade in a territory outside the United Kingdom through a permanent establishment (the “foreign permanent establishment”) in that territory.
  • (3) The relevant group’s responsible member may, for the purposes of determining the UK-based equity and liabilities of a UK sub-group or a chargeable UK resident entity, elect to disregard the non-UK allocated equity and liabilities attributable to—
  • (a) any or all of the foreign permanent establishments of any or all of the UK resident entities which are members of the UK sub-group;
  • (b) any or all of the foreign permanent establishments of the chargeable UK resident entity.
  • (4) See paragraph 15Z1 for further provision about non-UK allocated equity and liabilities.
15E
  • (1) This paragraph applies if—
  • (a) the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups), and
  • (b) the relevant entity is a UK resident entity which has a foreign permanent establishment.
  • (2) The relevant entity may, for the purposes of determining its UK-based equity and liabilities, elect to disregard the non-UK allocated equity and liabilities attributable to any or all of its foreign permanent establishments.
15F
  • (1) An election made under paragraph 15D or 15E in respect of a UK resident entity—
  • (a) must be made in the form and manner specified by the Commissioners for Her Majesty’s Revenue and Customs,
  • (b) must contain such information and declarations as the Commissioners may require, and
  • (c) may be revoked at any time—
  • (i) in the case of an election under paragraph 15D, by the relevant group’s responsible member;
  • (ii) in the case of an election under paragraph 15E, by the relevant entity.
  • (2) In this Schedule, “designated FPE entity” means a UK resident entity in respect of which an election is made under paragraph 15D or 15E.

Determining the assets, equity and liabilities of UK resident entities

15G
  • (1) This paragraph applies, in relation to a UK resident entity, for the purposes of paragraphs 15H(2), 15L(3) and 15Z1.
  • (2) The assets, equity and liabilities, as at the end of the chargeable period, of the entity are to be determined by reference to—
  • (a) the amounts recognised in the entity’s financial statements for the chargeable period as prepared under international accounting standards, or
  • (b) if no such financial statements are prepared, the amounts which would have been so recognised had such financial statements been prepared under international accounting standards.

Determining the UK-based equity and liabilities of UK resident entities

15H
  • (1) This paragraph applies in relation to a UK resident entity, other than a designated FPE entity, which is—
  • (a) where the bank levy is charged as provided for by paragraph 4 (groups), a chargeable UK resident entity;
  • (b) where the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups), the relevant entity.
  • (2) To determine the UK-based equity and liabilities of the UK resident entity, as at the end of the chargeable period—
  • (a) determine the amount of the entity’s equity and liabilities, in accordance with paragraph 15G(2), and
  • (b) adjust that amount in accordance with paragraph 15N.
15I
  • (1) This paragraph applies in relation to a designated FPE entity which is—
  • (a) where the bank levy is charged as provided for by paragraph 4 (groups), a chargeable UK resident entity;
  • (b) where the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups), the relevant entity.
  • (2) To determine the UK-based equity and liabilities of the entity, as at the end of the chargeable period, take Steps 1 to 5 in paragraph 15Z1.

Determining the UK-based equity and liabilities of UK sub-groups

15J
  • (1) This paragraph applies in relation to a UK sub-group if—
  • (a) each member of the UK sub-group is a UK resident entity,
  • (b) none of those members is a designated FPE entity, and
  • (c) the relevant group’s responsible member has not made an entity-by-entity election (see paragraph 15L) in relation to the UK sub-group.
  • (2) The assets, equity and liabilities, as at the end of the chargeable period, of the UK sub-group are to be determined by reference to the amounts recognised in the sub-group’s consolidated financial statements for the chargeable period.
  • (3) To determine the UK-based equity and liabilities of the UK sub-group, as at the end of the chargeable period—
  • (a) determine the amount of the UK sub-group’s equity and liabilities in accordance with sub-paragraph (2), and
  • (b) adjust that amount in accordance with paragraph 15N.
15K
  • (1) This paragraph applies in relation to a UK sub-group if—
  • (a) at least one member of the UK sub-group is—
  • (i) a non-UK resident entity, or
  • (ii) a designated FPE entity, and
  • (b) the relevant group’s responsible member has not made an entity-by-entity election (see paragraph 15L) in relation to the UK sub-group.
  • (2) In this Schedule, “residual UK sub-group” means, in relation to a UK sub-group to which this paragraph applies, the group of entities consisting of the members of the UK sub-group which—
  • (a) are UK resident entities, but
  • (b) are not designated FPE entities.
  • (3) The assets, equity and liabilities of the residual UK sub-group are to be determined by reference to the amounts which, if financial statements had been prepared for the residual UK sub-group for the chargeable period under international accounting standards, would have been recognised in those statements.
  • (4) The amount of the UK-based equity and liabilities of the UK sub-group, as at the end of the chargeable period, is the total amount of—
  • (a) the equity and liabilities of the residual UK sub-group as at the end of that period, adjusted in accordance with paragraph 15N, and
  • (b) the adjusted equity and liabilities of each designated FPE entity which is a member of the UK sub-group (see Step 5 in paragraph 15Z1).
15L
  • (1) If the relevant group’s responsible member makes an election under this paragraph (an “entity-by-entity election”) in relation to a UK sub-group, the UK-based equity and liabilities of the UK sub-group are to be determined in accordance with this paragraph.
  • (2) The amount of the UK-based equity and liabilities of the UK sub-group as at the end of the chargeable period is the total amount of—
  • (a) the adjusted equity and liabilities of each UK resident entity, other than a designated FPE entity, which is a member of the UK sub-group, and
  • (b) the adjusted equity and liabilities of each designated FPE entity which is a member of the UK sub-group (see Step 5 in paragraph 15Z1).
  • (3) To determine the “adjusted equity and liabilities” of a UK resident entity for the purposes of sub-paragraph (2)(a)—
  • (a) determine the amount of the entity’s equity and liabilities in accordance with paragraph 15G(2), and
  • (b) adjust that amount in accordance with paragraph 15N.
  • (4) An election made under this paragraph has effect in relation to the chargeable period during which the election is made and each subsequent chargeable period (unless it is revoked under sub-paragraph (6)(c)).
  • (5) But an election under this paragraph has no effect in relation to a UK sub-group for a chargeable period if the purpose, or one of the main purposes, of making the election is to avoid or reduce a charge or assessment to the bank levy.
  • (6) An election made under this paragraph in respect of the relevant group—
  • (a) must be made in the form and manner specified by the Commissioners for Her Majesty’s Revenue and Customs,
  • (b) must contain such information and declarations as the Commissioners may require, and
  • (c) may be revoked by the relevant group’s responsible member at any time.

Adjustments: general

15M

For the purposes of paragraphs 15N to 15Z, references to a “chargeable UK sub-group or entity” are references to—

  • (a) in a case to which paragraph 15H or 15L(3) applies, the UK resident entity,
  • (b) in a case to which paragraph 15J applies, the UK sub-group,
  • (c) in a case to which paragraph 15K applies, the residual UK sub-group, or
  • (d) in a case to which paragraph 15Z1 applies, the designated FPE entity.
15N
  • (1) To adjust the amount of the equity and liabilities of a chargeable UK sub-group or entity for the purposes of paragraph 15H(2)(b), 15J(3)(b), 15K(4)(a), 15L(3)(b) or Step 3 in paragraph 15Z1, take the following steps—
  • Step 1Take the amount of the equity and liabilities of the chargeable UK sub-group or entity, other than excluded equity and liabilities, as at the end of the chargeable period.
  • Step 2Adjust that amount in accordance with paragraphs 15O to 15U (so far as applicable).
  • Step 3If paragraph 15X (loss absorbing instruments issued by overseas subsidiaries) applies in relation to the chargeable UK sub-group or entity, reduce the adjusted amount (but not below nil) by the amount determined under that paragraph (subject to sub-paragraph (2)).
  • Step 4Subject to sub-paragraph (2), reduce the amount given by Step 3 (but not below nil) by—the amount of the chargeable UK sub-group or entity’s high quality liquid assets as at the end of that period, other than—any asset which, for the purposes of an adjustment at Step 2, is an asset to which paragraph 15U(1) applies;any asset which is taken into account in determining the amount of a reduction under paragraph 15X for the purposes of Step 3;in a case where the bank levy is charged as provided for by paragraph 4 (groups) and a relevant foreign bank is a member of the relevant group, any asset which for the purposes of Step 3 of paragraph 24(1) is an asset to which paragraph 27D(1) applies; andif paragraph 15Z (high quality liquid assets) applies, the amount determined under that paragraph.
  • (2) Where any amount (“A”) within Step 3, or within paragraph (a) or (b) of Step 4, is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.

Step 2 in paragraph 15N: equity and liability adjustments and netting

15O
  • (1) This paragraph applies if—
  • (a) the bank levy is charged as provided for by paragraph 4 (groups), and
  • (b) the members of a UK sub-group which are UK resident entities are also members of at least one larger unconsolidated sub-group.
  • (2) A group of entities is an “unconsolidated sub-group” if—
  • (a) the conditions in paragraph 15B(a) to (c) and (e) are met in respect of the group, but
  • (b) the condition in paragraph 15B(d) (consolidated financial statements) is not met in respect of the group.
  • (3) Any equity of the UK resident entities which are members of the UK sub-group is to be left out so far as it would have been eliminated under normal consolidation procedures, had consolidated financial statements for the larger or largest unconsolidated sub-group been prepared for the chargeable period under international accounting standards.
15P
  • (1) This paragraph applies if the bank levy is charged as provided for by paragraph 4 (groups).
  • (2) Sub-paragraph (3) applies in relation to an entity if—
  • (a) it is a chargeable UK resident entity (whether or not a designated FPE entity), and
  • (b) it is a member of at least one unconsolidated sub-group (see paragraph 15O(2)).
  • (3) Any equity of the entity is to be left out so far as it would have been eliminated under normal consolidation procedures, had consolidated financial statements for the unconsolidated sub-group, or the largest unconsolidated sub-group of which the entity is a member, been prepared for the chargeable period under international accounting standards.
15Q
  • (1) This paragraph applies if the bank levy is charged as provided for by paragraph 4 (groups).
  • (2) Sub-paragraph (3) applies in relation to a UK resident entity if—
  • (a) it is a member of a UK sub-group in respect of which an entity-by-entity election has been made under paragraph 15L (whether or not it is a designated FPE entity), or
  • (b) it is a designated FPE entity and a member of a UK sub-group in respect of which no entity-by-entity election has been made.
  • (3) Any equity of the entity is to be left out so far as it would have been eliminated under normal consolidation procedures under international accounting standards, but disregarding from the consolidation any non-UK resident entities.
15R
  • (1) This paragraph applies if the bank levy is charged as provided for by paragraph 4 (groups).
  • (2) The following liabilities of a chargeable UK sub-group or entity are to be left out—
  • (a) UK connected liabilities to a chargeable UK resident entity which is a member of the relevant group,
  • (b) UK connected liabilities to a UK sub-group of the relevant group,
  • (c) UK connected liabilities to a relevant foreign bank which is a member of the relevant group, and
  • (d) in the case of an entity to which paragraph 15Q applies, UK connected liabilities of the entity to another UK resident entity which is a member of the same UK sub-group.
  • (3) For the purposes of sub-paragraph (2)(a) and (d), liabilities to a UK resident entity are “UK connected liabilities” except so far as the entity’s assets corresponding to the liabilities are assets of a foreign permanent establishment in respect of which an election under paragraph 15D has been made (as determined at Step 2 in paragraph 15Z1).
  • (4) For the purposes of sub-paragraph (2)(b), liabilities to a UK sub-group are “UK connected liabilities” except so far as the sub-group’s assets corresponding to the liabilities are—
  • (a) assets of a non-UK resident entity, or
  • (b) assets of a foreign permanent establishment in respect of which an election under paragraph 15D has been made (as determined at Step 2 in paragraph 15Z1).
  • (5) For the purposes of sub-paragraph (2)(c), liabilities to a relevant foreign bank are “UK connected liabilities” so far as the bank’s assets corresponding to the liabilities are assets of the permanent establishment through which the bank carries on a trade in the United Kingdom as determined at Step 2 in paragraph 24(1).
15S
  • (1) Paragraph 15U applies if—
  • (a) the bank levy is charged as provided for by paragraph 4 (groups),
  • (b) an entity (“M”) within sub-paragraph (5) has liabilities to another entity (“N”) not within that sub-paragraph (“M’s liabilities”),
  • (c) M, or another member of the relevant group, recognises, as assets, amounts (“N’s liabilities”) that are due to any member of the relevant group from N or another entity not within sub-paragraph (5),
  • (d) there is in place an agreement which makes net settlement provision, and
  • (e) that provision is legally effective and enforceable.
  • (2) In sub-paragraph (1)(d), “net settlement provision” means provision for there to be a single net settlement—
  • (a) if a netting event occurs, or
  • (b) at the option of M or N, if a netting event occurs.
  • (3) The reference in sub-paragraph (2) to a “single net settlement” is a reference to a single net settlement of—
  • (a) all M’s liabilities, and liabilities of other entities within sub-paragraph (5), to N or another entity which is not within that sub-paragraph (so far as covered by the provision mentioned in sub-paragraph (1)(d)), and
  • (b) all N’s liabilities (so far as covered by that provision).
  • (4) But a provision for there to be single net settlement—
  • (a) at the option of M, but not at the option of N, if a netting event occurs, or
  • (b) at the option of N, but not at the option of M, if a netting event occurs,

is not to be treated as a net settlement provision for the purposes of sub-paragraph (1)(d).

  • (5) An entity is within this sub-paragraph if it is —
  • (a) a UK resident entity which is a member of a UK sub-group, or
  • (b) a chargeable UK resident entity.
  • (6) For the purposes of sub-paragraph (1)—
  • (a) “agreement” includes an agreement which forms part of a multi-lateral agreement, arrangement or trading facility,
  • (b) if N is a relevant foreign bank which is a member of the relevant group, liabilities of M to N are to be ignored so far as N recognises assets in respect of those liabilities as assets of the permanent establishment through which N carries on a trade in the United Kingdom as determined at Step 2 in paragraph 24(1),
  • (c) references to amounts due from N or another entity not within sub-paragraph (5) include securities provided by M, or another member of the relevant group, to N or another entity not within sub-paragraph (5) as collateral, but only where M or that other member recognises those securities in its balance sheet or statement of financial position, and
  • (d) “a netting event occurs”—
  • (i) in relation to M, if the insolvency or bankruptcy of M, or another entity within sub-paragraph (5) which has a liability covered by the provision mentioned in sub-paragraph (1)(d), gives rise to the termination of any arrangements under which such a liability arises, or
  • (ii) in relation to N, if the insolvency or bankruptcy of N, or another entity not within sub-paragraph (5) which has a liability covered by the provision mentioned in sub-paragraph (1)(d), gives rise to the termination of any arrangements under which such a liability arises.
  • (7) Section 556 of CTA 2009 (meaning of securities and similar securities) applies for the purposes of sub-paragraph (6) and paragraph 15T(5) as it applies for the purposes of Chapter 10 of Part 6 of that Act.
15T
  • (1) Paragraph 15U also applies if—
  • (a) the bank levy is charged as provided for by paragraph 5 (entities which are not members of groups),
  • (b) the relevant entity (“M”) is a UK resident entity,
  • (c) M has liabilities to another entity (“M’s liabilities”),
  • (d) M recognises, as assets, amounts due from that other entity (“N”) to M (“N’s liabilities”),
  • (e) there is in place an agreement between M and N which makes net settlement provision, and
  • (f) that provision is legally effective and enforceable.
  • (2) In sub-paragraph (1)(e), “net settlement provision” means provision for there to be a single net settlement—
  • (a) if a netting event occurs, or
  • (b) at the option of M or N, if a netting event occurs.
  • (3) The reference in sub-paragraph (2) to a “single net settlement” is a reference to a single net settlement of—
  • (a) all M’s liabilities (so far as covered by the provision mentioned in sub-paragraph (1)(e)), and
  • (b) all N’s liabilities (so far as covered by that provision).
  • (4) But a provision for there to be single net settlement—
  • (a) at the option of M, but not at the option of N, if a netting event occurs, or
  • (b) at the option of N, but not at the option of M, if a netting event occurs,

is not to be treated as a net settlement provision for the purposes of sub-paragraph (1)(e).

  • (5) For the purposes of sub-paragraph (1)—
  • (a) “agreement” includes an agreement which forms part of a multi-lateral agreement, arrangement or trading facility,
  • (b) references to amounts due from N include securities provided by M to N as collateral, but only where M recognises those securities in its balance sheet or statement of financial position, and
  • (c) “a netting event occurs”—
  • (i) in relation to M, if the insolvency or bankruptcy of M gives rise to the termination of any arrangements under which any liability covered by the provision mentioned in sub-paragraph (1)(e) arises, or
  • (ii) in relation to N, if the insolvency or bankruptcy of N gives rise to the termination of any arrangements under which such a liability arises.
15U
  • (1) The amount of M’s net settlement liabilities is to be reduced (but not below nil) by the amount of M’s net settlement assets.
  • (2) “M’s net settlement liabilities” means M’s liabilities so far as they—
  • (b) are not excluded liabilities.
  • (3) “M’s net settlement assets” means the assets of—
  • (a) M, or
  • (b) in a case within paragraph 15S, another member of the relevant group,

so far as corresponding to N’s net settlement liabilities.

  • (4) But, in a case within paragraph 15S—
  • (a) if N’s net settlement liabilities include liabilities of a relevant foreign bank which is a member of the relevant group, X% (as determined at Step 2 in paragraph 24(1)) of the assets corresponding to the liabilities of the relevant foreign bank are to be disregarded for the purposes of sub-paragraph (3), and
  • (b) if sub-paragraph (1) applies in relation to more than one entity within paragraph 15S(5), no part of an asset may be included in the net settlement assets of more than one such entity, and
  • (c) if an asset, or part of an asset, is included for the purposes of paragraph 27D in the net settlement assets of a relevant foreign bank which is a member of the relevant group, the asset (or part) is not to be included in M’s net settlement assets for the purposes of this paragraph.
  • (5) “N’s net settlement liabilities” means N’s liabilities so far as they are covered by the provision mentioned in paragraph 15S(1)(d) or 15T(1)(e).
  • (6) If M’s net settlement liabilities exceed M’s net settlement assets, and a proportion (A%) of those liabilities is long term liabilities and a proportion (B%) of those liabilities is short term liabilities, under sub-paragraph (1)—
  • (a) the long term liabilities are reduced by A% of M’s net settlement assets, and
  • (b) the short term liabilities are reduced by B% of those assets.

Step 3 in paragraph 15N: loss absorbing instruments issued by overseas subsidiaries

15V

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