Legalize / United Kingdom / Public General Act

Finance Act 2012

Type Public General Act

Publication 2012-07-17

Last updated 2024-02-22

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(a) in a case falling within Article 9(3), the value of the omitted taxable base by reference to which the one-off payment was calculated, and

(b) in any other case, the value shown in the Part 2 certificate as the value of the relevant capital (Cr).

Ceasing to be liable to tax

7

(1) The result of “ceasing to be liable” to tax on a qualifying amount depends on the tax (or taxes) in respect of which the amount is untaxed.

(2) For income tax or capital gains tax, the result is that the amount is no longer liable to be brought into account in assessing the income tax or capital gains tax due from P for the tax year in which the amount would otherwise be liable to be brought into account.

(3) For inheritance tax, the result is that any inheritance tax due from P in respect of the chargeable transfer and attributable to the property whose value is included in the amount is no longer due from P.

(4) For VAT, the result is that P is no longer required to account for output tax on the amount in determining the VAT payable by P for the prescribed accounting period in which P would otherwise be required to account for output tax on the amount.

(5) But—

(a) ceasing to be liable to tax on a qualifying amount does not affect P's liability to tax on any other amount, and

(b) P's liability to tax on any other amount remains what it would have been, had the qualifying amount been brought into account in calculating that liability.

(6) Accordingly, if the qualifying amount were ever to be brought into account and it were found that the tax assessed on any other amount should have been higher as a result, P would remain liable for the extra tax due on that other amount and for any associated ancillary charge.

(7) For the purposes of sub-paragraphs (5) and (6), the qualifying amount is assumed to form the top slice of the total sum on which P is liable to tax.

Effect if P not eligible for clearance

8

(1) This paragraph sets out the effect of the Part 2 certificate if P is not eligible for clearance.

(2) The one-off payment is to be treated as if it were a credit allowable against the tax due from P taking account of qualifying amounts.

(3) The one-off payment is to be applied for the purposes of sub-paragraph (2)—

(a) in the order specified in sub-paragraph (4), and

(b) subject to that, in the way that produces the most beneficial outcome for P.

(4) The order is—

(a) first, for VAT,

(b) then, for income tax,

(d) finally, for inheritance tax.

Interest, penalties etc

9

(1) Where, by virtue of this Part, P ceases to be liable to tax on a qualifying amount, P also ceases to be liable to any ancillary charge directly connected with that amount.

(2) Where, by virtue of this Part, all or part of a one-off payment is treated as if it were a credit allowable against the tax due from P taking account of a qualifying amount, the credit may also be used to offset any ancillary charge directly connected with that amount.

(3) Sub-paragraph (4) applies in the case of a qualifying amount that is part only of—

(a) an amount of income on which income tax is charged,

(b) a chargeable gain,

(d) the value of a supply on which VAT is charged.

(4) The amount of any ancillary charge directly connected with that qualifying amount is determined by apportioning the ancillary charge directly connected with the income, gain or value on a just and reasonable basis.

Repayments

10

Nothing in this Part entitles any person to a repayment or refund of tax, save for any repayment or refund to which P may be entitled by virtue of paragraph 6(4) or 8(2) if the credit allowable under that paragraph exceeds the total amount of tax against which the credit is allowable.

Paragraph 4: supplementary provision

11

(1) This paragraph explains how paragraph 4(2) is to be read for each description of taxable amount.

(2) For income and chargeable gains—

(a) the reference to P being “liable to tax” includes a case where P would be so liable if the income or gain were to be remitted to the United Kingdom,

(b) “the taxable event” takes place when the income arises or the gain accrues (whether or not, in a remittance basis case, it is remitted to the United Kingdom), and

(c) the income or gain is “untaxed” if it has not been brought into account in an assessment to income tax or, as the case may be, capital gains tax for the tax year in which it is required to be brought into account.

(3) For the value of property forming part of the value transferred by a chargeable transfer—

(a) “the taxable event” takes place when the chargeable transfer is made (or, in the case of a potentially exempt transfer, when death occurs), and

(b) the value of the property is “untaxed” if it has not been brought into account in determining the value transferred by the chargeable transfer.

(4) For the value of supplies on which VAT is charged—

(a) “the taxable event” takes place when P makes the supply, and

(b) the value of the supply is “untaxed” if output tax on the supply has not been accounted for in determining the VAT payable by P for the prescribed accounting period in which P is required to account for output tax on the supply.

(5) Paragraph 4(2)(a) is not satisfied in a case where P is liable to tax only because the liability has been transferred to P as a result of action taken by HMRC (for example, as a result of a notice given under section 77A of VATA 1994 or a direction given under regulation 81 of the Income Tax (PAYE) Regulations 2003 (S.I. 2003/2682)).

Refund of one-off payment

12

If a one-off payment is refunded by HMRC in accordance with Article 15(3), this Part ceases to apply with respect to that payment.

PART 3 — The future: income tax and capital gains tax

Taxes affected

13

The taxes affected by this Part are—

(a) income tax, and

(b) capital gains tax.

Application of this Part

14

(1) This Part applies if—

(a) a sum is levied under Article 19 on an amount of income or a gain of a person, and

(b) a certificate is issued to the person under Article 30(1) in respect of the levying of that sum (or sums that include that sum).

(2) This Part also applies if—

(a) a retention is made under EUSA from an amount of income or a gain of a person,

(b) a tax finality payment, as contemplated by the Joint Declaration, is made on the same income or gain, and

(c) a certificate is issued to the person under the Joint Declaration in respect of the making of that payment (or payments that include that payment).

(3) In this Part—

(a) the person is referred to as “P”,

(b) the certificate is referred to as “the relevant certificate”,

(d) the account or deposit (within the meaning of the Agreement) to which the certificate relates (or to which certificates relate that include the certificate) is referred to as “the underlying account”, and

(e) the sum levied under Article 19 on the cleared amount or, as the case may be, the tax finality payment made on it is referred to as “the transferred sum”.

Effect of relevant certificate

15

(1) The effect of the relevant certificate depends on whether P makes an election under paragraph 16 in respect of the underlying account for the applicable year.

(2) “The applicable year” is the tax year for which P is liable to income tax or, as the case may be, capital gains tax on the cleared amount.

(3) If P makes an election, the transferred sum is to be treated as if it were a credit allowable against the income tax or, as the case may be, capital gains tax due from P for the applicable year.

(4) If P does not make an election, P ceases to be liable to income tax or, as the case may be, capital gains tax on the cleared amount.

(5) Sub-paragraph (4) is to be read in accordance with paragraph 7.

(6) Where P ceases to be liable to tax on the cleared amount, P also ceases to be liable to any ancillary charge directly connected with that amount.

Election

16

(1) P may make an election under this paragraph in respect of the underlying account for a tax year if all the affected amounts are included in full in a return (or amended return) made by P under Part 2 of TMA 1970 for that tax year.

(2) In relation to a tax year, an amount is an “affected amount” if—

(a) a certificate is issued to P under Article 30(1) or the Joint Declaration in respect of the levying of a sum, or the making of a tax finality payment, on that amount,

(b) the account or deposit to which the certificate relates is the underlying account, and

(c) the amount is required to be brought into account in assessing the income tax or capital gains tax due from P for that tax year.

(3) An election under this paragraph must be made in the return or amended return in which the affected amounts are included.

(4) An election may only be made under this paragraph if it is accompanied by all the relevant certificates relating to the underlying account.

(5) For the purposes of paragraph 15, P is treated as making an election under this paragraph in respect of the underlying account for a tax year if a claim is made under Part 3 of TIOPA 2010 (double taxation relief for special withholding tax) in relation to any of the affected amounts.

(6) Section 143 of TIOPA 2010 (taking account of special withholding tax in calculating income or gains) applies with any necessary modifications in relation to a tax finality payment as it applies in relation to special withholding tax.

Other credits to be allowed first

17

Other than a credit allowed under Part 3 of TIOPA 2010, any credit for foreign tax allowed under that Act against the income tax or, as the case may be, capital gains tax due from P for the applicable year is to be allowed before effect is given to paragraph 15(3).

Repayments

18

(1) Sub-paragraph (2) applies if the amount of a credit allowable under paragraph 15(3) exceeds the amount of income tax or, as the case may be, capital gains tax due from P for the applicable year (before set-off).

(2) The excess is to be set against any amount of the other tax (income tax or capital gains tax) due from P for that year.

(3) Nothing in this Part entitles any person to a repayment or refund of tax, save for any repayment to which P may be entitled as a result of paragraph 15(3) if, in relation to a credit allowable under that paragraph, there is any remaining balance after applying—

(a) sub-paragraph (2), and

(b) section 138(4)(a) or 140(5)(a) of TIOPA 2010, if applicable to the cleared amount.

Relationship with special withholding tax rules

19

The Joint Declaration does not count for the purposes of section 136(6)(b) of TIOPA 2010 (definition of “special withholding tax”) as a corresponding provision of international arrangements.

PART 4 — The future: inheritance tax

Taxes affected

20

This Part affects inheritance tax.

Application of this Part

21

(1) This Part applies if—

(a) an amount is withheld under Article 32(2) in respect of relevant assets of a deceased person (“P”), and

(b) a certificate is issued under Article 32(6) in respect of the withholding of that amount.

(2) The certificate is referred to in this Part as “the Article 32 certificate”.

(3) The relevant assets in relation to which the Article 32 certificate is issued are referred to as “the cleared assets”.

(4) Any reference in this Part to “the chargeable transfer” is to the transfer made (under section 4 of IHTA 1984) on P's death.

Effect of Article 32 certificate

22

(1) The cleared assets are to be treated as if they were excluded property in determining the value of P's estate immediately before P's death.

(2) As a result, any ancillary charge directly connected with those assets is also extinguished.

(3) But—

(a) treating the cleared assets as if they were excluded property does not affect any liability to inheritance tax on the rest of P's estate, and

(b) that liability remains what it would have been, had the cleared assets not been treated as excluded property.

(4) Accordingly, if the cleared assets were ever to be included in an account or further account under section 216 or 217 of IHTA 1984 in respect of the chargeable transfer and it were found that the inheritance tax charged on the value of the property in P's estate other than the cleared assets should have been higher, the extra tax charged on the value of that other property remains due, together with any associated ancillary charge.

(5) For the purposes of sub-paragraphs (3) and (4), the value of the cleared assets is assumed to form the highest part of the value transferred by the chargeable transfer.

Election in respect of Article 32 certificates

23

(1) This paragraph applies if the cleared assets for each of the Article 32 certificates issued in respect of P's death are included in full in an account or further account delivered in respect of P's death under section 216 or 217 of IHTA 1984 within the time permitted for delivering such an account or further account.

(2) The person who delivers the account or further account may elect to disapply paragraph 22.

(3) An election under this paragraph must be made in writing at the same time as the account or further account in which all the cleared assets are included, and signed by each person delivering the account or further account.

(4) An election may only be made under this paragraph if it is accompanied by each of the Article 32 certificates.

(5) If an election is made under this paragraph—

(a) paragraph 22 does not apply to the cleared assets for any of the Article 32 certificates issued in respect of P's death, and

(b) the amounts withheld under Article 32(2) are instead to be treated as if they were credits allowable against the inheritance tax due on the value transferred by the chargeable transfer (calculated with the value of all those cleared assets brought into account).

Repayments

24

Nothing in this Part entitles any person to a repayment or refund of tax, save for any repayment to which a person may be entitled as a result of paragraph 23 if the credit allowable under that paragraph exceeds the inheritance tax due from the person on the value transferred by the chargeable transfer.

PART 5 — General provisions

Information exchange

25

No obligation of secrecy (whether imposed by statute or otherwise) prevents HMRC from disclosing information pursuant to a request made by virtue of Article 36 (reciprocity measures of the United Kingdom).

Amounts recoverable as if they were VAT

26

(1) Part 2 of this Schedule applies to amounts otherwise recoverable under paragraph 5(3) of Schedule 11 to VATA 1994 as a debt due to the Crown (amounts shown on invoices as VAT etc) in the same way as it applies to VAT.

(2) But in the application of Part 2 to such amounts—

(a) a reference to the value of a supply on which VAT is charged is a reference to the value of the supply shown in the invoice mentioned in paragraph 5(2) of that Schedule,

(b) “the taxable event” takes place when the invoice is issued,

(c) the value of the supply shown in the invoice is “untaxed” if the amount otherwise recoverable under paragraph 5(3) of that Schedule has not been recovered, and

(d) “ceasing to be liable” to tax on the value of that supply means that the amount otherwise recoverable is no longer recoverable.

General interpretation

27

(1) In this Schedule—

“ancillary charge” means any interest, penalty, surcharge or other ancillary charge;

“assessment”, in relation to a tax, includes a determination and also includes an amended assessment or determination (and “assess” is to be read accordingly);

“chargeable gain” means a gain that is a chargeable gain for the purposes of TCGA 1992;

“chargeable transfer” has the meaning given in section 2 of IHTA 1984;

“EUSA” means the agreement dated 26 October 2004 between the European Community and the Swiss Confederation providing for measures equivalent to those laid down in Council Directive 2003/48/EC on taxation on savings income in the form of interest payments;

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

“qualifying amount” is defined in paragraph 4;

“remitted to the United Kingdom” means remitted to the United Kingdom within the meaning of Chapter A1 of Part 14 of ITA 2007;

“the value transferred”, in relation to a chargeable transfer, has the meaning given in section 3 of IHTA 1984;

“taxable amount” is defined in paragraph 2;

“VAT” means value added tax charged in accordance with VATA 1994.

(2) An expression used in relation to a tax has the same meaning as in enactments relating to that tax.

(3) A reference to a person being “liable” includes being liable jointly with others.

(4) A reference to the most beneficial outcome for P is a reference to the most beneficial outcome for P with respect to P's liability to tax.

(5) A reference to the tax due “taking account of” a qualifying amount is—

(a) if the amount is an amount of income or a chargeable gain, a reference to the income tax or capital gains tax due for the tax year in which the amount is required to be brought into account (calculated with that amount brought into account),

(b) if the amount is the value of property forming part of the value transferred by a chargeable transfer, a reference to the inheritance tax due on the value transferred by the chargeable transfer (calculated with that amount brought into account),

(c) if the amount is the value of a supply on which VAT is charged, a reference to the VAT payable for the prescribed accounting period in which output tax on the supply is required to be brought into account (calculated with that output tax brought into account), and

(d) if the amount is the value of a supply to which Part 2 applies by virtue of paragraph 26, a reference to the amount otherwise recoverable under paragraph 5(3) of Schedule 11 to VATA 1994 in respect of that supply.

SCHEDULE 37

FA 1960

1

(1) Section 74A of FA 1960 (visiting forces and allied headquarters: stamp duty land tax exemptions) is amended as follows.

(2) In subsection (4)—

(a) for “allied”, in the first place, substitute “ international military ”, and

(b) omit paragraph (c).

(3) In subsection (5)—

(a) omit paragraph (a),

(b) in paragraph (b), after “Council” insert “ made for giving effect to an international agreement ”, and

(4) Accordingly, in the heading for that section for “allied” substitute “international military”.

IHTA 1984

2

In section 6 of IHTA 1984 (excluded property), in subsection (4), after “section 155(1)” insert “ or (5A) ”.

3

(1) Section 155 of that Act (visiting forces and allied headquarters: residence, etc) is amended as follows.

(2) In subsection (4) for “allied” substitute “ international military ”.

(3) After subsection (5) insert—

(5A) Section 6(4) also applies to— (a) the emoluments paid by the Government of any designated country to a person belonging to the EU civilian staff, not being a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen, and (b) any tangible movable property the presence of which in the United Kingdom is due solely to the presence in the United Kingdom of such a person serving as part of that staff. (5B) A period during which any such person belonging to the EU civilian staff as is referred to in subsection (5A) is in the United Kingdom by reason solely of that person belonging to that staff is not to be treated for the purposes of this Act as a period of residence in the United Kingdom or as creating a change of that person's residence or domicile.

(4) In subsection (6), at the end insert—

“the EU civilian staff” means— (a) civilian personnel seconded by a member State to an EU institution for the purposes of activities (including exercises) relating to the preparation for, and execution of, tasks mentioned in Article 43(1) of the Treaty on European Union (tasks relating to a common security and defence policy), as amended from time to time, and (b) civilian personnel (other than locally hired personnel)— (i) made available to the EU by a member State to work with designated international military headquarters or a force of a designated country, or (ii) otherwise made available to the EU by a member State for the purposes of activities of the kind referred to in paragraph (a).

ITEPA 2003

4

(1) Section 303 of ITEPA 2003 (visiting forces and staff of designated allied headquarters: relief from income tax) is amended as follows.

(2) In subsection (2)(a) for “allied” substitute “ international military ”.

(3) After subsection (4) insert—

(4A) No liability to income tax arises in respect of earnings if— (a) they are paid by the government of a designated country to a person belonging to the EU civilian staff, and (b) that person is not a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen.

(4) In subsection (6)—

(a) omit the “and” before the definition of “designated”, and

(b) after that definition insert

, and the EU civilian staff” means— (a) civilian personnel seconded by a member State to an EU institution for the purposes of activities (including exercises) relating to the preparation for, and execution of, tasks mentioned in Article 43(1) of the Treaty on European Union (tasks relating to a common security and defence policy), as amended from time to time, and (b) civilian personnel (other than locally hired personnel)— (i) made available to the EU by a member State to work with designated international military headquarters or a force of a designated country, or (ii) otherwise made available to the EU by a member State for the purposes of activities of the kind referred to in paragraph (a).

(5) Accordingly, in the heading for that section for “and staff of designated allied headquarters” substitute “ etc ”.

ITA 2007

5

(1) Section 833 of ITA 2007 (visiting forces and staff of designated allied headquarters: residence, etc) is amended as follows.

(2) In subsection (2), in paragraph (a) for “allied” substitute “ international military ”.

(3) After that subsection insert—

(2A) This section also applies to an individual within subsection (3) or (3A).

(4) In subsection (3), for “This section also applies to an individual who—” substitute “ An individual is within this subsection if the individual— ”.

(5) After that subsection insert—

(3A) An individual is within this subsection if the individual— (a) belongs to the EU civilian staff, (b) is in the United Kingdom, but only because of serving as part of that staff, and (c) is not a British citizen, a British overseas territories citizen, a British National (Overseas) or a British Overseas citizen.

(6) In subsection (7)—

(a) omit the “and” before the definition of “designated”, and

(b) after that definition insert

, and the EU civilian staff” means— (a) civilian personnel seconded by a member State to an EU institution for the purposes of activities (including exercises) relating to the preparation for, and execution of, tasks mentioned in Article 43(1) of the Treaty on European Union (tasks relating to a common security and defence policy), as amended from time to time, and (b) civilian personnel (other than locally hired personnel)— (i) made available to the EU by a member State to work with designated international military headquarters or a force of a designated country, or (ii) otherwise made available to the EU by a member State for the purposes of activities of the kind referred to in paragraph (a).

(7) Accordingly, in the heading for that section for “and staff of designated allied headquarters” substitute “ etc ”.

SCHEDULE 38

PART 1 — Introduction

Overview

1

This Schedule is arranged as follows—

(a) this Part explains who is a tax agent and what it means to engage in dishonest conduct,

(b) Part 2 sets out the process for establishing whether someone is engaging in or has engaged in dishonest conduct,

(d) Part 4 sets out sanctions for engaging in dishonest conduct,

(e) Part 5 provides for assessment of and appeals against penalties, and

(f) Parts 6 and 7 contain miscellaneous provisions and consequential amendments.

Tax agent

2

(1) A “tax agent” is an individual who, in the course of business, assists other persons (“clients”) with their tax affairs.

(2) Individuals can be tax agents even if they (or the organisations for which they work) are appointed—

(a) indirectly, or

(b) at the request of someone other than the client.

(3) Assistance with a client's tax affairs includes—

(a) advising a client in relation to tax, and

(b) acting or purporting to act as agent on behalf of a client in relation to tax.

(4) Assistance with a client's tax affairs also includes assistance with any document that is likely to be relied on by HMRC to determine a client's tax position.

(5) Assistance given for non-tax purposes counts as assistance with a client's tax affairs if it is given in the knowledge that it will be, or is likely to be, used by a client in connection with the client's tax affairs.

Dishonest conduct

3

(1) An individual “engages in dishonest conduct” if, in the course of acting as a tax agent, the individual does something dishonest with a view to bringing about a loss of tax revenue.

(2) It does not matter whether a loss is actually brought about.

(3) Nor does it matter whether the individual is acting on the instruction of clients.

(4) A loss of tax revenue would be brought about for these purposes if clients were to—

(a) account for less tax than they are required to account for by law,

(b) obtain more tax relief than they are entitled to obtain by law,

(d) obtain tax relief earlier than they are entitled to obtain it by law.

(5) “Tax” is defined in Part 6 of this Schedule.

(6) “Tax relief” includes—

(a) any exemption from or deduction or credit against or in respect of tax, and

(b) any repayment of tax.

(7) A reference in this paragraph to doing something dishonest includes—

(a) dishonestly omitting to do something, and

(b) advising or assisting a client to do something that the individual knows to be dishonest.

PART 2 — Establishing dishonest conduct

Conduct notice

4

(1) This paragraph applies if HMRC determine that an individual is engaging in or has engaged in dishonest conduct.

(2) An authorised officer (or an officer of Revenue and Customs with the approval of an authorised officer) may notify the individual of that determination.

(3) The notice must state the grounds on which the determination was made.

(4) For the effect of notifying the individual, see paragraphs 7(2) and 29(2).

(5) A notice under this paragraph is referred to as a “conduct notice”.

(6) In relation to a conduct notice, a reference to “the determination” is to the determination forming the subject of the notice.

Appeal against determination

5

(1) An individual to whom a conduct notice is given may appeal against the determination.

(2) Notice of appeal must be given—

(a) in writing to the officer who gave the conduct notice, and

(b) within the period of 30 days beginning with the day on which the conduct notice was given.

(3) It must state the grounds of appeal.

(4) On an appeal that is notified to the tribunal, the tribunal may confirm or set aside the determination.

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

(6) Setting aside a determination does not prevent a further conduct notice being given in respect of the same conduct if further evidence emerges.

Offence of concealment etc in connection with conduct notice

6

(1) A person (“P”) commits an offence if, after a relevant event has occurred, P—

(a) conceals, destroys or otherwise disposes of a material document, or

(b) arranges for the concealment, destruction or disposal of a material document.

(2) A “relevant event” occurs if—

(a) a conduct notice is given to an individual, or

(b) an individual is informed by an officer of Revenue and Customs that a conduct notice will be or is likely to be given to the individual.

(3) A “material document” is any document that could be sought under paragraph 8 as a result of the giving of the conduct notice.

(4) If P acts after the event described in sub-paragraph (2)(a), no offence is committed if P acts—

(a) after the determination has been set aside,

(b) more than 4 years after the conduct notice was given, or

(5) If P acts before that event but after the event described in sub-paragraph (2)(b), no offence is committed if P acts—

(a) more than 2 years after the individual was, or was last, so informed, or

(b) without knowledge of the event described in sub-paragraph (2)(b).

(6) P acts without knowledge of an event if P—

(a) is not the individual with respect to whom the event has occurred, and

(b) does not know, and could not reasonably be expected to know, that the event has occurred.

(7) A person guilty of an offence under this paragraph is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, and

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.

PART 3 — Power to obtain tax agent's files etc

Circumstances in which power is exercisable

7

(1) The power in paragraph 8 is exercisable only in case A or case B and only with the approval of the tribunal.

(2) Case A is where a conduct notice has been given to an individual and either—

(a) the time allowed for giving notice of appeal against the determination has expired without any such notice being given, or

(b) notice of appeal against the determination was given within that time, but the appeal has been withdrawn or the determination confirmed.

(3) Case B is where—

(a) an individual has been convicted of an offence relating to tax that involves fraud or dishonesty,

(b) the offence was committed after the individual became a tax agent (whether or not the individual was still a tax agent when it was committed and regardless of the capacity in which it was committed),

(i) the time allowed for appealing against the conviction has expired without any such appeal being brought, or

(ii) an appeal against the conviction was brought within that time, but the appeal has been withdrawn or the conviction upheld, and

(d) no more than 12 months have elapsed since the date on which paragraph (c) was satisfied.

(4) For the purposes of this paragraph, a determination or conviction that is appealed is not considered to have been confirmed or upheld until—

(a) the time allowed for bringing any further appeal has expired, or

(b) if a further appeal is brought within that time, that further appeal has been withdrawn or determined.

(5) In this Schedule, a reference to “the tax agent” is—

(a) in a case falling within case A, a reference to the individual mentioned in sub-paragraph (2), and

(b) in a case falling within case B, a reference to the individual mentioned in sub-paragraph (3).

(6) It does not matter whether the individual is still a tax agent when the power in paragraph 8 is to be exercised.

File access notice

8

(1) Subject to paragraph 7, an officer of Revenue and Customs may by notice in writing require any person mentioned in sub-paragraph (2) to provide relevant documents.

(2) The persons are—

(a) the tax agent, and

(b) any other person the officer believes may hold relevant documents.

(3) “Relevant documents” is defined in paragraph 9.

(4) A notice under this paragraph is referred to as a “file access notice”.

(5) The person to whom a file access notice is given is referred to as “the document-holder”.

Relevant documents

9

(1) “Relevant documents” means the tax agent's working papers (whenever acting as a tax agent) and any other documents received, created, prepared or used by the tax agent for the purposes of or in the course of assisting clients with their tax affairs.

(2) It does not matter who owns the papers or other documents.

(3) The reference in sub-paragraph (1) to clients—

(a) includes former clients, and

(b) is not limited to the clients with respect to whom the tax agent is engaging in or has engaged in dishonest conduct.

Content of notice

10

(1) A file access notice may require the provision of—

(a) particular relevant documents specified in the notice, or

(b) all relevant documents in the document-holder's possession or power.

(2) A file access notice does not need to identify the clients of the tax agent.

(3) A file access notice addressed to anyone other than the tax agent must name the tax agent.

Compliance

11

A file access notice may require documents to be provided—

(a) within such period,

(b) by such means and in such form, and

as is reasonably specified in the notice or in a document referred to in the notice.

12

Unless otherwise specified in the notice, a file access notice may be complied with by providing copies of the relevant documents.

Approval by tribunal

13

(1) The tribunal may not approve the giving of a file access notice unless—

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

(b) the tribunal is satisfied that the case falls within case A or case B (see paragraph 7),

(d) the document-holder and (where different) the tax agent have been told that relevant documents are to be required and given a reasonable opportunity to make representations to an officer of Revenue and Customs, and

(e) the tribunal has been given a summary of any representations so made.

(2) Nothing in sub-paragraph (1) requires the tribunal to determine whether an individual is engaging in or has engaged in dishonest conduct.

(3) 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).

Documents not in person’s possession or power

14

A file access notice only requires the document-holder to provide a document if it is in the document-holder's possession or power.

Types of information

15

(1) A file access notice does not require the document-holder to provide—

(a) parts of a document that contain information relating to the conduct of a pending appeal relating to tax, or

(b) journalistic material (as defined in section 13 of the Police and Criminal Evidence Act 1984).

(2) A file access notice does not require the document-holder to provide personal records (as defined in section 12 of the Police and Criminal Evidence Act 1984).

(3) But a file access notice may require the document-holder to provide documents that are personal records, omitting any information whose inclusion (whether alone or with other information) makes the original documents personal records.

Old documents

16

(1) A file access notice does not require the document-holder to provide a relevant document if—

(a) the whole of the document originated before the back-stop day, and

(b) no part of it has a bearing on tax periods ending on or after that day.

(2) “The back-stop day” is the first day of the period of 20 years ending with the day on which the file access notice is given.

Privileged communications between professional legal advisers and clients

17

(1) A file access notice does not require the document-holder to provide any part of a document that is privileged.

(2) For the purposes of this paragraph a document is privileged if it is a document in respect of which a claim to legal professional privilege, or (in Scotland) to confidentiality of communications between client and professional legal adviser, could be maintained in legal proceedings.

(3) Regulations under paragraph 23 of Schedule 36 to FA 2008 (information powers: privileged communications) apply (with any necessary modifications) to disputes under this paragraph as to whether a document is privileged.

Power to copy documents

18

If a document is provided pursuant to a file access notice, an officer of Revenue and Customs may take copies of or make extracts from the document.

Power to retain documents

19

(1) If a document is provided pursuant to a file access notice, HMRC may retain the document for a reasonable period if an officer of Revenue and Customs thinks it necessary to do so.

(2) While a document is retained—

(a) the document-holder may, if the document is reasonably required for any purpose, request a copy of it, and

(b) an officer of Revenue and Customs must comply with such a request without charge.

(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.

Appeal against file access notice

20

(1) If the document-holder is a person other than the tax agent, the document-holder may appeal against the file access notice, or any requirement in it, on the ground that it would be unduly onerous to comply with the notice or requirement.

(2) Notice of appeal must be given—

(a) in writing to the officer by whom the file access notice was given, and

(b) within the period of 30 days beginning with the day on which the file access notice was given.

(3) It must state the grounds of appeal.

(4) On an appeal that is notified to the tribunal, the tribunal may confirm, vary or set aside the file access notice or a requirement in it.

(5) If the tribunal confirms or varies the notice or a requirement in it, the document-holder must comply with the notice or requirement—

(a) within such period as is specified by the tribunal, or

(b) if the tribunal does not specify a period, within such period as is reasonably specified in writing by an officer of Revenue and Customs following the tribunal's decision.

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

Offence of concealment etc in connection with file access notice

21

(1) A person (“P”) commits an offence if P—

(a) conceals, destroys or otherwise disposes of a required document, or

(b) arranges for the concealment, destruction or disposal of a required document.

(2) A “required document” is a document within sub-paragraph (3) or sub-paragraph (4).

(3) A document is within this sub-paragraph if at the time when P acts—

(a) P is required to provide the document by a file access notice, and

(b) either—

(i) the notice has not been complied with, or

(ii) it has been complied with, but P has been notified in writing by an officer of Revenue and Customs that P must continue to preserve the document (and the notification has not been withdrawn).

(4) A document is within this sub-paragraph if at the time when P acts—

(a) P is not required to provide the document by a file access notice,

(b) P has been informed by an officer of Revenue and Customs that P will be or is likely to be so required, and

(5) A person guilty of an offence under this paragraph is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, and

(b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or to a fine, or both.

Penalty for failure to comply

22

(1) A person who fails to comply with a file access notice is liable to a penalty of £300.

(2) Failing to comply with a file access notice also includes—

(a) concealing, destroying or otherwise disposing of a required document, or

(b) arranging for any such concealment, destruction or disposal.

(3) “Required document” has the same meaning as in paragraph 21.

Daily penalty for failure to comply

23

If the failure continues after notification of a penalty under paragraph 22 has been issued, the person is liable to a further penalty, for each subsequent day on which the failure continues, of an amount not exceeding £60 for each such day.

Failure to comply with time limit

24

A failure to do anything required to be done within a limited period of time does not give rise to liability to a penalty under paragraph 22 or 23 if the thing was done within such further time (if any) as an officer of Revenue and Customs may have allowed.

Reasonable excuse

25

(1) Liability to a penalty under paragraph 22 or 23 does not arise if the person satisfies HMRC or (on an appeal notified to the tribunal) the tribunal that there is a reasonable excuse for the failure.

(2) For the purposes of this paragraph—

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

(b) if the person relies on another person to do anything, that is not a reasonable excuse unless the first person took reasonable care to avoid the failure,

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

PART 4 — Sanctions for dishonest conduct

Penalty for dishonest conduct

26

(1) An individual who engages in dishonest conduct is liable to a penalty.

(2) Subject to paragraph 27, the penalty to which the individual is liable is to be—

(a) no less than £5,000, and

(b) no more than £50,000.

(3) In assessing the amount of the penalty, regard must be had to—

(a) whether the individual disclosed the dishonest conduct,

(b) whether that disclosure was prompted or unprompted,

(d) the quality of the individual's compliance with any file access notice in connection with the dishonest conduct.

(4) An individual “discloses” dishonest conduct by—

(a) telling HMRC about it,

(b) giving HMRC reasonable help in identifying the client or clients concerned and in quantifying the loss of tax revenue (if any) brought about by it, and

(c) allowing HMRC access to records for the purpose of ensuring that any such loss is recovered or otherwise properly accounted for.

(5) A disclosure is “unprompted” if it is made at a time when the individual has no reason to believe that HMRC have discovered or are about to discover the dishonest conduct.

(6) Otherwise, a disclosure is “prompted”.

(7) In relation to disclosure or compliance, “quality” includes timing, nature and extent.

Special reduction

27

(1) This paragraph applies if HMRC propose to assess an individual to a penalty under paragraph 26 of £5,000.

(2) If they think it right because of special circumstances, HMRC may take one or more of the following steps—

(a) reduce the penalty to an amount below £5,000 (which may be nil),

(b) stay the penalty, or

(3) “Special circumstances” does not include—

(a) ability to pay, or

(b) the fact that a loss of tax revenue from a client is balanced by an over-payment by another person (whether or not a client).

Power to publish details

28

(1) The Commissioners may publish information about an individual if the individual incurs a penalty under paragraph 26.

(2) The information that may be published is—

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

(b) the individual's address,

(d) the amount of the penalty,

(e) the periods or times to which the dishonest conduct relates,

(f) any other information the Commissioners consider it appropriate to publish in order to make clear the individual's identity, and

(g) the link (if there is one) between the dishonest conduct and any inaccuracy, failure or action as a result of which information is published under section 94 of FA 2009 (which relates to deliberate tax defaulters).

(3) No information may be published under this paragraph if the penalty incurred by the individual is £5,000 or less.

(4) Subsections (5) to (9) and (11) of section 94 of FA 2009 apply to publishing information about an individual under this paragraph as they apply to publishing information about a person under that section.

(5) If, in acting as a tax agent, the individual works or worked for an organisation, sub-paragraph (2)(f) includes power to publish such information about that organisation as the Commissioners consider appropriate in order to make clear the individual's identity.

(6) Before publishing information about the organisation, the Commissioners must—

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

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

PART 5 — Penalties: assessment etc

Assessment of penalties

29

(1) If a person becomes liable to a penalty under Part 3 or 4 of this Schedule, HMRC may assess the penalty.

(2) But, in the case of a penalty under Part 4, they may only do so if a conduct notice has been given to the person and either—

(a) the time allowed for giving notice of appeal against the determination has expired without notice of appeal being given, or

(b) notice of appeal against the determination was given within the time allowed, but the appeal has been withdrawn or the determination confirmed.

(3) Paragraph 7(4) applies for the purposes of sub-paragraph (2)(b).

(4) If HMRC assess a penalty, they must notify the person.

30

(1) HMRC may not assess a penalty under this Schedule after the applicable deadline.

(2) For a penalty under Part 3, the applicable deadline is the end of the period of 12 months beginning with the day on which the person became liable to the penalty.

(3) For a penalty under Part 4, the applicable deadline is the end of the period of 12 months beginning with the later of—

(a) the first day on which HMRC may assess the penalty (see paragraph 29(2)), and

(b) day X.

(4) If a loss of tax revenue is brought about by the dishonest conduct, day X is—

(a) the day immediately following the end of the appeal period for the assessment or determination of the tax revenue lost (or, if more than one client is involved, the end of the last such period), or

(b) if there is no such assessment or determination, the day on which the amount of tax revenue lost is ascertained.

(5) Otherwise, day X is the day on which HMRC ascertain that no loss of tax revenue has been brought about by the dishonest conduct.

(6) In sub-paragraph (4), “appeal period” means the period during which—

(a) an appeal could be brought, or

(b) an appeal that has been brought has not been withdrawn or determined.

Appeal against penalty

31

(1) A person may appeal against a decision of HMRC—

(a) that a penalty is payable under Part 3 of this Schedule, or

(b) as to the amount of a penalty payable under Part 3 or 4 of this Schedule.

(2) Notice of appeal must be given—

(a) in writing to HMRC, and

(b) before the end of the period of 30 days beginning with the day on which notification of the penalty was issued.

(3) It must state the grounds of appeal.

(4) On an appeal under sub-paragraph (1)(a) that is notified to the tribunal, the tribunal may confirm or cancel the decision.

(5) On an appeal under sub-paragraph (1)(b) that is notified to the tribunal, the tribunal may—

(a) confirm the decision, or

(b) substitute for the decision another decision that HMRC had power to make.

(6) If, in the case of an appeal against a penalty under Part 4, the tribunal substitutes its decision for HMRC's, the tribunal may rely on paragraph 27 (special reduction)—

(a) to the same extent as HMRC (which may mean applying the same reduction as HMRC to a different starting point), or

(b) to a different extent, but only if the tribunal thinks that HMRC's decision in respect of the application of that paragraph was flawed (when considered in the light of the principles applicable in proceedings for judicial review).

(7) Subject to this paragraph and paragraph 32, the provisions of Part 5 of TMA 1970 relating to appeals have effect in relation to an appeal under this paragraph as they have effect in relation to an appeal against an assessment to income tax.

Enforcement of penalty

32

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

(a) before the end of the period of 30 days beginning with the day on which notification of the penalty was issued, or

(b) if a notice of appeal under paragraph 31 is given, before the end of the period of 30 days beginning with the day on which the appeal is withdrawn or determined.

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

Double jeopardy

33

A person is not liable to a penalty under this Schedule in respect of anything in respect of which the person has been convicted of an offence.

34

(1) A person is not liable to a penalty under this Schedule in respect of anything in respect of which the person is personally liable to a penalty under—

(a) Schedule 24 to FA 2007 (penalties for errors),

(b) Schedule 41 to FA 2008 (penalties for failure to notify etc), or

(d) Schedule 24 (penalties for failure to make returns etc) or Schedule 25 (penalties for deliberately withholding information) to FA 2021.

(2) Sub-paragraph (1) applies where, for example, the person is personally liable by virtue of section 48(3) of VATA 1994 (VAT representatives).

Power to change amount of penalties

35

(1) If it appears to the Treasury that there has been a change in the value of money since the last relevant day, they may by regulations substitute for the sums for the time being specified in paragraphs 22(1), 23, 26(2), 27(1) and (2)(a) and 28(3) such other sums as appear to them to be justified by the change.

(2) “Relevant day”, in relation to a specified sum, means—

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

(b) each day on which the power conferred by sub-paragraph (1) has been exercised in relation to that sum.

(3) Regulations under this paragraph do not apply to a failure or conduct that began before the day on which they come into force.

(4) The power to make regulations under this paragraph is exercisable by statutory instrument.

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

PART 6 — Miscellaneous provision and interpretation

Application of provisions of TMA 1970

36

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

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

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

Tax

37

(1) “Tax” means—

(a) income tax,

(b) capital gains tax,

(d) construction industry deductions,

(e) VAT,

(f) insurance premium tax,

(g) inheritance tax,

(h) stamp duty land tax,

(i) stamp duty reserve tax,

(j) petroleum revenue tax,

(k) aggregates levy,

(l) climate change levy,

(la) apprenticeship levy,

(m) landfill tax, and

(n) any duty of excise other than vehicle excise duty.

(2) “Construction industry deductions” means construction industry deductions under Chapter 3 of Part 3 of FA 2004.

(3) “Corporation tax” includes an amount assessable or chargeable as if it were corporation tax.

(4) “VAT” means—

(a) value added tax charged in accordance with VATA 1994,

(b) amounts recoverable under paragraph 5(2) of Schedule 11 to that Act (amounts shown on invoices as VAT), and

General interpretation

38

In this Schedule—

“appointed” includes engaged;

“client” (except in paragraph 17)—has the meaning given in paragraph 2(1), andin relation to a particular tax agent, means a client of that tax agent;

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

“conduct notice” has the meaning given in paragraph 4;

“the document-holder” has the meaning given in paragraph 8;

“document” includes a copy of a document (see also section 114 of FA 2008);

“file access notice” has the meaning given in paragraph 8;

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

“organisation” includes any person or firm carrying on a business;

“specify” includes describe;

“tax period” means a tax year, accounting period or other period in respect of which tax is charged;

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

39

(1) A reference in this Schedule to clients of a tax agent (or to a tax agent's clients) is a reference to the persons whom the agent assists with their tax affairs.

(2) Sub-paragraph (1) applies even if—

(a) the agent works for an organisation, and

(b) it is the organisation that is appointed to give the assistance.

40

A loss of tax revenue is taken for the purposes of this Schedule to be (or to be capable of being) brought about by dishonest conduct despite the fact that the loss can be recovered or properly accounted for (following discovery of the conduct or otherwise).

41

A reference in this Schedule to working for an organisation includes being a partner or member of an organisation.

42

A reference in a provision of this Schedule to an authorised officer is to 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 that provision.

Relationship with other enactments

43

Nothing in this Schedule limits—

(a) any liability a person may have under any other enactment in respect of conduct in respect of which a person is liable to a penalty under this Schedule, or

(b) any power a person may have under any other enactment to obtain relevant documents.

PART 7 — Consequential provisions

TMA 1970

44

TMA 1970 is amended as follows.

45

Omit—

(a) section 20A (power to call for papers of tax accountant),

(b) section 20B (restrictions on powers under section 20A), and

46

(1) Section 20BB (falsification etc of documents) is amended as follows.

(2) In subsection (1)—

(a) for “subsections (2) to (4)” substitute “ subsections (2) and (3) ”,

(b) in paragraph (a), omit “a notice under section 20A above or”,

(d) omit paragraph (b).

(3) In subsection (2)—

(a) in paragraph (a), omit “, the inspector”,

(b) at the end of that paragraph, insert “ or ”,

(d) omit paragraph (c).

(4) In subsection (3), for the words from “the notice is given” to the end substitute “ the order is made, unless before the end of that period an officer of Revenue and Customs has notified the person in writing that the order has not been complied with to the officer's satisfaction ”.

(5) Omit subsection (4).

47

In section 20D (interpretation of sections 20 to 20CC)—

(a) in subsection (1), for “sections 20A and 20BA” substitute “ section 20BA ”, and

(b) omit subsection (2).

48

In section 103 (time limits for penalties)—

(a) omit subsection (3), and

(b) in subsection (4), for “neither subsection (1) nor subsection (3) above applies” substitute “ subsection (1) does not apply ”.

49

In section 103ZA (disapplication of sections 100 to 103)—

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

(b) at the end of paragraph (f) insert

, or (g) Schedule 38 to FA 2012 (tax agents: dishonest conduct).

50

In section 118 (interpretation), in the definition of “tax”, omit the words from “except that” to the end.

OTA 1975

51

In Schedule 2 to OTA 1975 (management and collection of petroleum revenue tax), in the Table in paragraph 1(1), omit the entry relating to section 99 of TMA 1970.

IHTA 1984

52

In section 247 of IHTA 1984 (provision of incorrect information), omit subsection (4).

53

In section 16 of the Social Security Contributions and Benefits Act 1992 (applications of Income Tax Acts and destination of Class 4 contributions), in subsection (1)(c), after “2009” insert “ and of Schedule 38 to the Finance Act 2012 ”.

54

In paragraph 7B of Schedule 1 to that Act (collection of contributions other than through PAYE system), the reference in sub-paragraph (5A) to Part 10 of TMA 1970 includes a reference to this Schedule.

55

In paragraph 7B of Schedule 1 to the Social Security Contributions and Benefits (Northern Ireland) Act 1992 (collection of contributions other than through PAYE system), the reference in sub-paragraph (5A) to Part 10 of TMA 1970 includes a reference to this Schedule.

56

In section 110ZA of the Social Security Administration Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents etc), after subsection (2) insert—

(2A) Part 3 of Schedule 38 to the Finance Act 2012 (power to obtain tax agent's files etc) applies in relation to relevant contributions as in relation to tax and, accordingly— (a) the cases described in paragraph 7 of that Schedule (case A and case B) include cases involving conduct or an offence relating to relevant contributions, (b) (whether the case involves conduct or an offence relating to tax or relevant contributions) the papers and other documents that may be sought under that Part include ones relating to relevant contributions, and (c) the other Parts of that Schedule apply so far as necessary to give effect to the application of Part 3 by virtue of this subsection.

57

In section 104ZA of the Social Security Administration (Northern Ireland) Act 1992 (Class 1, 1A, 1B or 2 contributions: powers to call for documents etc), after subsection (2) insert—

(2A) Part 3 of Schedule 38 to the Finance Act 2012 (power to obtain tax agent's files etc) applies in relation to relevant contributions as in relation to tax and, accordingly— (a) the cases described in paragraph 7 of that Schedule (case A and case B) include cases involving conduct or an offence relating to relevant contributions, (b) (whether the case involves conduct or an offence relating to tax or relevant contributions) the papers and other documents that may be sought under that Part include ones relating to relevant contributions, and (c) the other Parts of that Schedule apply so far as necessary to give effect to the application of Part 3 by virtue of this subsection.

FA 2003

58

(1) FA 2003 is amended as follows.

(2) In section 93 (information powers)—

(a) in subsection (2), omit the entries relating to Parts 3 and 4 of Schedule 13, and

(b) omit subsections (3) to (6).

(3) Omit section 96 (penalty for assisting in preparation of incorrect return etc).

(4) In Schedule 13 (stamp duty land tax: information powers)—

(a) omit Parts 3 and 4, and

(b) for paragraph 53 substitute—

(53) (1) A person commits an offence if the person intentionally— (a) falsifies, conceals, destroys or otherwise disposes of a relevant document, or (b) causes or permits the falsification, concealment, destruction or disposal of a relevant document. (2) A relevant document is a document that the person has been required by an order under Part 6 of this Schedule to deliver. (3) A person does not commit an offence under this paragraph if the person acts— (a) with the written permission of the tribunal or an officer of Revenue and Customs, or (b) after the document has been delivered. (4) A person does not commit an offence under this paragraph if the person acts after the end of the period of 2 years beginning with the date on which the order is made, unless before the end of that period an officer of Revenue and Customs has notified the person in writing that the order has not been complied with to the officer's satisfaction. (5) A person guilty of an offence under this paragraph is liable— (a) on summary conviction, to a fine not exceeding the statutory maximum; (b) on conviction on indictment, to imprisonment for a term not exceeding 2 years or a fine or to both.

SCHEDULE 39

PART 1 — Stamp duty and stamp duty land tax

Nationalisation schemes

1

(1) Section 52 of FA 1946 (exemption from stamp duty of documents connected with nationalisation schemes) is repealed.

(2) In consequence of the provision made by sub-paragraph (1)—

(a) section 67 of that Act (short title, construction, etc) is repealed,

(b) in section 41(1) of the Transport Act 1962 (exemptions from stamp duty), omit the words from “, or in section fifty-two” to “schemes),”, and

Visiting forces and allied headquarters

2

Section 74 of FA 1960 (visiting forces and allied headquarters: stamp duty exemptions) is repealed.

Shared ownership transactions

3

(1) The following provisions are repealed—

(a) section 97 of FA 1980,

(b) section 108 of FA 1981, and

(2) In consequence of the provision made by sub-paragraph (1), omit the following provisions—

(a) in Schedule 2 to the Housing (Consequential Provisions) Act 1985, paragraph 43;

(b) in FA 1988, section 142(1);

Instruments subject to duty of fixed amount

4

(1) Section 87 of FA 1985 (certificates) is amended as follows.

(2) Omit subsection (2) (power to exempt instruments chargeable to stamp duty of a fixed amount).

(3) In subsection (5), omit “or Treasury (as the case may be)”.

Acquisitions

5

(1) The following provisions are repealed—

(a) section 76 of FA 1986 (rate of stamp duty payable on acquisitions), and

(b) section 113 of, and Schedule 35 to, FA 2002 (withdrawal of relief for company acquisitions).

(2) In consequence of the provision made by sub-paragraph (1), omit the following provisions—

(a) in section 98(5) of TMA 1970, in the Table—

(i) in the first column, the entry relating to paragraph 11 of Schedule 35 to FA 2002, and

(ii) in the second column, the entry relating to paragraph 7 of that Schedule;

(b) in Schedule 14 to FA 1999, paragraph 15;

(d) in FA 2002, section 112;

(e) in FA 2003—

(i) section 127, and

(ii) in Schedule 19, paragraph 6(3);

(f) in Schedule 21 to the Legal Services Act 2007, paragraph 136;

(g) in Schedule 1 to CTA 2010, paragraphs 196, 372 and 376.

6

(1) Section 130 of FA 2000 (transfers to registered social landlords etc) is repealed.

(2) In consequence of the provision made by sub-paragraph (1), in section 131 of that Act (relief for certain instruments executed before 28 July 2000), omit subsection (1)(b).

Land in disadvantaged areas

7

(1) Sections 92 to 92B of, and Schedule 30 to, FA 2001 (exemption for land in disadvantaged areas) are repealed.

(2) In consequence of the provision made by sub-paragraph (1), omit the following provisions—

(a) in FA 2002, section 110;

(b) in Schedule 9 to FA 2005, paragraphs 2, 3 and 5;

(3) Despite the repeal of section 92 of FA 2001, any regulations made under subsection (4) of that section continue to have effect for the purposes of section 72DA of the Insolvency Act 1986 (exception from prohibition of appointment of administrative receiver in respect of urban regeneration projects).

8

(1) Section 57 of, and Schedule 6 to, FA 2003 (disadvantaged areas relief) are repealed.

(2) In consequence of the provision made by sub-paragraph (1), omit the following provisions—

(a) in section 360C of CAA 2001, subsection (2)(b) (and the “or” before it);

(b) in FA 2003—

(i) section 112(2),

(ii) in Schedule 15, paragraph 26, and

(iii) in paragraph 18A of Schedule 17A, sub-paragraph (5)(b) (and the “or” before it);

(d) in FA 2005—

(i) section 96, and

(ii) in Schedule 9, paragraphs 1 and 4;

(e) in FA 2008—

(i) section 95(6),

(ii) in Schedule 30, paragraph 6, and

(iii) in Schedule 31, paragraphs 4 and 9;

(f) in Schedule 22 to FA 2011, paragraph 4.

(3) In Schedule 15 to FA 2003, in paragraph 25(2), for “paragraphs 26 to 28” substitute “ paragraphs 27 and 28 ”.

9

(1) In Part 5 of FA 2003 (stamp duty), the following provisions are repealed—

(a) section 128 (exemption of certain leases granted by registered social landlords);

(b) section 129 (relief for certain leases granted before section 128 had effect);

(c) in section 130 (registered social landlords: treatment of certain leases granted between 1 January 1990 and 27 March 2000), subsections (3) to (6) and (9).

(2) In consequence of the provision made by sub-paragraph (1), in Schedule 4 to CRCA 2005, omit paragraphs 125 to 127.

Application and transitional provision

10

(1) The amendments made by paragraphs 1 to 5, 6(1), 7 and 9(1)(a) of this Schedule have effect in relation to instruments executed on or after 6 April 2013.

(2) The amendments made by—

(a) paragraphs 6(2) and 9(1)(b) of this Schedule, and

(b) paragraph 9(1)(c) and (2) of this Schedule, so far as relating to the repeal of section 129 of FA 2003,

have effect in relation to instruments stamped on or after 6 April 2013.

(3) The amendments made by paragraph 9(1)(c) and (2), so far as not relating to that repeal, come into force on 6 April 2013.

(4) The amendments made by paragraph 8 of this Schedule have effect in relation to transactions of which the effective date is on or after 6 April 2013.

(5) This paragraph is subject to paragraphs 11 and 12.

11

The amendments made by paragraph 7 do not have effect in relation to an instrument giving effect to a contract entered into on or before 16 March 2005, unless—

(a) the instrument is made in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(b) the instrument transfers the property in question to, or vests it in, a person other than the purchaser under the contract, because of an assignment (or assignation) or further contract made after that date.

12

(1) The amendments made by paragraph 8 do not have effect in relation to—

(a) any transaction that is effected in pursuance of a contract entered into and substantially performed on or before 16 March 2005, or

(b) (subject to sub-paragraph (2)) any other transaction that is effected in pursuance of a contract entered into on or before that date.

(2) The exclusion by sub-paragraph (1)(b) of transactions effected in pursuance of any contract entered into on or before 16 March 2005 does not apply if—

(a) there is any variation of the contract or assignment of rights under the contract after that date,

(b) the transaction is effected in consequence of the exercise after that date of any option, right of pre-emption or similar right, or

(c) after that date there is an assignment, subsale 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.

13

(1) Any claim for relief under Schedule 6 to FA 2003 (disadvantaged areas relief) which is made in respect of a transaction of which the effective date is on or before 5 April 2013 must be made before 6 May 2014.

(2) Sub-paragraph (1) applies—

(a) whether or not the claim is made in a land transaction return or an amendment of such a return, and

(b) whether the effective date of the transaction is before or after the day on which this Act comes into force.

PART 2 — Repeal of harbour reorganisation scheme reliefs

14

Section 45 of FA 1966 (harbour reorganisation schemes: stamp duty) is repealed.

15

Section 221 of TCGA 1992 (harbour reorganisation schemes: transfer of assets) is repealed.

16

Sections 991 to 995 of CTA 2010 (harbour reorganisation schemes) are repealed.

17

In consequence of the provision made by paragraph 15—

(a) in section 288(3A)(a) of TCGA 1992, for “221” substitute “ 220 ”, and

(b) in Schedule 1 to CTA 2010, omit paragraph 251.

18

(1) The amendment made by paragraph 14 has effect in relation to instruments executed on or after 1 April 2013.

(2) The amendments made by paragraphs 15 to 17 have effect in relation to any transfer occurring on or after 1 April 2013.

PART 3 — Payments relating to reductions in pool betting duty

19

(1) Section 126 of FA 1990 (capital allowances and IHT: pools payments for football ground improvements) is repealed.

(2) Accordingly, the following are also repealed—

(a) paragraph 72 of Schedule 2 to CAA 2001;

(b) paragraph 416 of Schedule 1 to ITTOIA 2005.

(3) The repeals made by this paragraph—

(a) for corporation tax purposes, have effect in relation to payments made on or after 1 April 2013,

(b) for income tax purposes, have effect in relation to payments made on or after 6 April 2013, and

(c) for inheritance tax purposes, come into force on 6 April 2013 (and have effect in relation to payments whenever made).

20

(1) Section 121 of FA 1991 (inheritance tax: pools payments to support games etc) is repealed.

(2) The repeal made by this paragraph comes into force on 6 April 2013 (and has effect in relation to payments whenever made).

21

(1) In ITTOIA 2005, the following provisions are repealed—

(a) section 162 (deductions in respect of payments by persons liable to pool betting duty);

(b) section 748 (exemption for payments by persons liable to pool betting duty).

(2) Accordingly, section 683(4)(g) of that Act is also repealed.

(3) The repeals made by this paragraph have effect in relation to payments made on or after 6 April 2013.

22

(1) In CTA 2009, the following provisions are repealed—

(a) section 138 (deductions in respect of payments by companies liable to pool betting duty);

(b) section 978 (exemption for payments by persons liable to pool betting duty).

(2) Accordingly, section 976(1)(b) of that Act (and the “and” before it) are also repealed.

(3) The repeals made by this paragraph have effect in relation to payments made on or after 1 April 2013.

PART 4 — Life assurance

Abolition of income tax relief for life assurance premiums under section 266 of ICTA

23

Section 266 of ICTA (income tax relief for life assurance premiums paid by eligible individuals) applies in relation to a premium or part of a premium only if the premium or part of a premium—

(a) becomes due and payable before 6 April 2015, and

(b) is actually paid before 6 July 2015.

24

No claim for relief may be made under paragraph 6 of Schedule 14 to ICTA (provisions ancillary to section 266) after 5 April 2016.

25

(1) The Income Tax (Life Assurance Premium Relief) Regulations 1978 (S.I. 1978/1159) (“the 1978 Regulations”) have effect in accordance with this paragraph.

(2) Subject to sub-paragraph (3), an annual claim for the financial year of a life office must be made no later than—

(a) the end of the six-year period allowed by regulation 9(1), or

(b) if earlier, the end of the relevant 6-month period,

and regulation 9(8) has effect accordingly.

(3) An annual claim which a life office is required to make under regulation 9(2) must be made no later than—

(a) the end of the one-year period specified in regulation 9(2), or

(b) if earlier, the end of the relevant 6-month period,

and regulation 9(6) has effect accordingly.

(4) In sub-paragraphs (2) and (3) “the relevant 6-month period” means the period of 6 months after the end of the life office's first financial year to end after 5 April 2015.

(5) The Board must decide all claims made under the 1978 Regulations no later than 5 April 2017.

(6) Terms used in this paragraph have the same meaning as they have in the 1978 Regulations.

26

(1) In this paragraph—

(a) “the 1980 Regulations” means the Friendly Societies (Life Assurance Premium Relief) (Change of Rate) Regulations 1980 (S.I. 1980/1947), and

(b) terms have the same meaning as they have in the 1980 Regulations.

(2) This paragraph applies in relation to a friendly society which has adopted the prescribed scheme or an approved scheme in accordance with the provisions of the 1977 Regulations.

(3) The prescribed scheme or the approved scheme, and the 1977 Regulations and the 1980 Regulations, have effect in relation to the friendly society on the following basis.

(4) That basis is—

(a) paragraph 23 above does not remove any person's entitlement to relief under section 266 of ICTA but does change the authorised percentage to 0%,

(b) the effective date in relation to that change is 6 April 2015,

(c) as well as having effect in relation to gross contributions due and payable on or after 6 April 2015, that change has effect in relation to gross contributions due and payable before that date so far as they are actually paid on or after 6 July 2015 (and, in particular, regulations 3(1) and 4(1) of the 1980 Regulations are to be read accordingly), and

(d) a resolution under regulation 3(1) of the 1980 Regulations may be passed in relation to that change at any time before 6 April 2015.

(5) For regulation 5 of the 1980 Regulations substitute—

(5) (1) This regulation applies if a gross contribution is amended under regulation 4. (2) The friendly society may notify the Financial Services Authority of a proposal to amend the sum assured or guaranteed by the contract by an amount determined in accordance with rules which have been certified by an actuary to be fair in relation to the gross contribution payable. (3) The proposed amendment may be made at any time after the expiry of the period of 3 months beginning with the day on which the proposal is notified to the Financial Services Authority.

(6) For regulation 8 of the 1980 Regulations substitute—

(8) (1) This regulation applies if a friendly society adopted an approved scheme under regulation 7 of the 1977 Regulations. (2) The friendly society may notify the Financial Services Authority of a proposal to amend the approved scheme in consequence of any prospective change in the authorised percentage. (3) The proposed amendment— (a) may be made at any time after the expiry of the period of 3 months beginning with the day on which the proposal is notified to the Financial Services Authority, but (b) must be made before 6 April 2015.

27

(1) In this paragraph—

(a) “the 1980 Regulations” means the Industrial Assurance (Life Assurance Premium Relief) (Change of Rate) Regulations 1980 (S.I. 1980/1948), and

(b) terms have the same meaning as they have in the 1980 Regulations.

(2) This paragraph applies in relation to an industrial assurance company or collecting society which has adopted the prescribed scheme or an approved scheme in accordance with the provisions of the 1977 Regulations.

(3) The prescribed scheme or the approved scheme, and the 1977 Regulations and the 1980 Regulations, have effect in relation to the industrial assurance company or collecting society on the following basis.

(4) That basis is—

(a) paragraph 23 above does not remove any person's entitlement to relief under section 266 of ICTA but does change the authorised percentage to 0%,

(b) the effective date in relation to that change is 6 April 2015,

(c) as well as having effect in relation to gross premiums due and payable on or after 6 April 2015, that change has effect in relation to gross premiums due and payable before that date so far as they are actually paid on or after 6 July 2015 (and, in particular, regulations 3(1) and 4(1) of the 1980 Regulations are to be read accordingly), and

(d) a resolution under regulation 3(1) of the 1980 Regulations may be passed in relation to that change at any time before 6 April 2015.

(5) For regulation 5 of the 1980 Regulations substitute—

(5) (1) This regulation applies if a gross premium is amended under regulation 4. (2) The industrial assurance company or collecting society may notify the Financial Services Authority of a proposal to amend the sum assured or guaranteed by the policy or contract by an amount determined in accordance with rules which have been certified by an actuary to be fair in relation to the gross premium payable. (3) The proposed amendment may be made at any time after the expiry of the period of 3 months beginning with the day on which the proposal is notified to the Financial Services Authority.

(6) For regulation 8 of the 1980 Regulations substitute—

(8) (1) This regulation applies if an industrial assurance company or collecting society adopted an approved scheme under regulation 7 of the 1977 Regulations. (2) The industrial assurance company or collecting society may notify the Financial Services Authority of a proposal to amend the approved scheme in consequence of any prospective change in the authorised percentage. (3) The proposed amendment— (a) may be made at any time after the expiry of the period of 3 months beginning with the day on which the proposal is notified to the Financial Services Authority, but (b) must be made before 6 April 2015.

28

(1) The following repeals are made in consequence of the provision made by paragraph 23 above.

Act	Provision repealed
ICTA	Sections 266, 266A and 274.
ICTA	Section 824(2D)(b) and (3)(ad).
ICTA	Schedule 14.
ICTA	In paragraph 8 of Schedule 15, the words from “but” (in the second place it occurs) to the end.
FA 1988	Section 29.
FA 1988	Paragraph 9 of Schedule 3.
FA 1996	Section 167(5) and (6).
FA 1996	Paragraph 11 of Schedule 18.
FA 1996	Paragraph 20 of Schedule 20.
ITEPA 2003	Paragraphs 36 and 119 of Schedule 6.
FA 2004	Paragraphs 9 and 10 of Schedule 35.
ITA 2007	Section 811(6)(e) and the “and” before it.
ITA 2007	Paragraph 232 of Schedule 1.
FA 2009	Paragraphs 3 to 5 of Schedule 1.
FA 2009	Paragraph 9D of Schedule 54.

(2) In section 989 of ITA 2007 (definitions for the purposes of the Income Tax Acts) for the definition of “qualifying policy” substitute—

“qualifying policy” is to be read in accordance with Schedule 15 to ICTA,

(3) The amendments made by sub-paragraphs (1) and (2) come into force on the day appointed by the Treasury by order made by statutory instrument.

(4) An order under sub-paragraph (3) may make transitional provision and savings.

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