Legalize / United Kingdom / Public General Act

Finance Act 2013

Type Public General Act

Publication 2013-07-17

Last updated 2025-12-16

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(1) If the taxpayer has delivered a return in respect of the interest in question for the chargeable period in question, an assessment under paragraph 21 or 22 may only be made in the two cases specified in sub-paragraphs (2) and (3). See also the further restriction in sub-paragraph (7).

(2) The first case is where the situation mentioned in paragraph 21(1) or 22(1) was brought about carelessly or deliberately by—

(a) the taxpayer,

(b) a person acting on behalf of the taxpayer, or

(3) The second case is where it could not reasonably have been expected that an officer of Revenue and Customs in possession of the information made available to HMRC before the relevant time would be aware at the relevant time of the situation mentioned in paragraph 21(1) or 22(1).

(4) In sub-paragraph (3) “the relevant time” means the time HMRC—

(a) ceased to be entitled to give a notice of enquiry into the return, or

(b) completed their enquiries into the return.

(5) For this purpose information is regarded as made available to HMRC if—

(a) it is contained in a return delivered by the taxpayer,

(b) it is contained in any documents produced or information provided to an officer of Revenue and Customs for the purposes of an enquiry into any such return,

(c) it is information the existence and relevance of which officers of Revenue and Customs could reasonably have been expected to infer from information made available as mentioned in paragraph (a) or (b), or

(d) it is information the existence and relevance of which was notified to an officer of Revenue and Customs by the taxpayer or a person acting on the taxpayer's behalf.

(6) In sub-paragraph (5)(c) and (d) “relevance” means relevance as regards the situation mentioned in paragraph 21(1) or 22(1).

(7) No assessment may be made under paragraph 21 or 22 if—

(a) the situation mentioned in paragraph 21(1) or 22(1) is attributable to a mistake in the return as to the basis on which the tax liability ought to have been calculated, and

(b) the return was in fact made on the basis prevailing, or in accordance with the practice generally prevailing, at the time it was made.

Time limit for assessments

25

(1) The general rule is that no assessment may be made more than 4 years after the end of the chargeable period to which the assessment relates.

(2) An assessment of a person to tax in a case involving a loss of tax brought about carelessly by the taxpayer or a related person may be made up to 6 years after the end of the chargeable period to which the assessment relates.

(3) An assessment to which this sub-paragraph applies may be made up to 20 years after the end of the chargeable period to which the assessment relates.

(4) Sub-paragraph (3) applies to an assessment of a person in any case involving a loss of tax—

(a) brought about deliberately by the taxpayer or a related person,

(b) attributable to a failure by the taxpayer to comply with obligations under section 159(1) or 160(1) (duty to make annual tax on enveloped dwellings return or return of adjusted chargeable amount), ...

(c) attributable to arrangements in respect of which the person has failed to comply with an obligation under section 309, 310 or 313 of FA 2004 (obligation of parties to tax avoidance schemes to provide information to HMRC).

, or

(d) attributable to arrangements which were expected to give rise to a tax advantage in respect of which the person was under an obligation to notify the Commissioners for Her Majesty's Revenue and Customs under section 253 of FA 2014 (duty to notify Commissioners of promoter reference number) but failed to do so.

(5) An assessment under paragraph 22 (assessment to recover excessive repayment of tax) is not out of time if it is made—

(a) while an enquiry is in progress into a relevant return, or

(b) within the period of one year beginning with the date on which the repayment in question was made.

(6) In sub-paragraph (5)—

“in progress” is to be read in accordance with paragraph 11(4);

“relevant return” means a return delivered by the taxpayer and relating to the chargeable period and the interest in question.

(7) If the taxpayer has died—

(a) any assessment on the personal representatives must be made within 4 years after the death, and

(b) an assessment is not to be made by virtue of sub-paragraph (2) in respect of a chargeable period that ended more than 6 years before the death.

(8) Any objection to the making of an assessment on the ground that the time limit for making it has expired can only be made on an appeal against the assessment.

(9) In this paragraph “related person”, in relation to the taxpayer, means—

(a) a person acting on the taxpayer's behalf, or

(b) a person who was the partner of the taxpayer at the relevant time.

Losses brought about carelessly or deliberately

26

(1) This paragraph applies for the purposes of paragraphs 24 and 25.

(2) A loss of tax is brought about carelessly by a person if the person fails to take reasonable care to avoid bringing about that loss.

(3) Sub-paragraph (4) applies where—

(a) information is provided to HMRC,

(b) the person who provided the information, or the person on whose behalf the information was provided, discovers some time later that the information was inaccurate, and

(4) Any loss of tax brought about by the inaccuracy is to be treated as having been brought about carelessly by that person.

(5) References to a loss of tax brought about deliberately by a person include a loss of tax brought about as a result of a deliberate inaccuracy in a document given to HMRC by or on behalf of that person.

Assessment procedure

27

(1) Notice of an assessment must be served on the taxpayer.

(2) The notice must state—

(a) the tax due,

(b) the date on which the notice is issued, and

(3) After notice of the assessment has been served on the taxpayer, the assessment may not be altered except in accordance with the express provisions of this Part of this Act.

(4) Where an officer of Revenue and Customs has decided to make an assessment to tax, and has taken all other decisions needed for arriving at the amount of the assessment, the officer may entrust to some other officer of Revenue and Customs the responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment.

PART 6 — Relief in case of overpaid tax or excessive assessment

Relief in case of double assessment

28

(1) A person who believes that tax has been assessed on that person more than once in respect of the same matter may make a claim to the Commissioners for Her Majesty's Revenue and Customs for relief against any double charge.

(2) Schedule 11A to FA 2003 (claims not included in returns) applies in relation to a claim under sub-paragraph (1) as it applies to a claim such as is mentioned in paragraph 1 of that Schedule.

Claim for relief for overpaid tax etc

29

(1) This paragraph applies where—

(a) a person has paid an amount by way of tax but believes the tax was not chargeable, or

(b) a person has been assessed as chargeable to an amount of tax, or a determination has been made that a person is chargeable to an amount of tax but the person believes the tax is not chargeable.

(2) The person may make a claim to the Commissioners for Her Majesty's Revenue and Customs for the amount to be repaid or discharged.

(3) Where this paragraph applies, the Commissioners for Her Majesty's Revenue and Customs are not liable to give relief, except as provided in this Schedule or by or under any other provision of this Part of this Act.

(4) For the purposes of this paragraph and paragraphs 30 to 34, an amount paid by one person on behalf of another is treated as paid by the other person.

Cases in which Commissioners are not liable to give effect to a claim

30

(1) The Commissioners for Her Majesty's Revenue and Customs are not liable to give effect to a claim under paragraph 29 if or to the extent that the claim falls within a case described in this paragraph.

(2) Case A is where the amount of tax paid, or liable to be paid, is excessive because of—

(a) a mistake in a claim, or

(b) a mistake consisting of making, or failing to make, a claim.

(3) Case B is where the claimant is or will be able to seek relief by taking other steps under this Part of this Act.

(4) Case C is where the claimant—

(a) could have sought relief by taking such steps within a period that has now expired, and

(b) knew or ought reasonably to have known, before the end of that period, that such relief was available.

(5) Case D is where the claim is made on grounds that—

(a) have been put to a court or tribunal in the course of an appeal by the claimant relating to the amount paid or liable to be paid, or

(b) have been put to HMRC in the course of an appeal by the claimant relating to that amount that is treated as having been determined by a tribunal by virtue of paragraph 46 (settling of appeals by agreement).

(6) Case E is where the claimant knew, or ought reasonably to have known, of the grounds for the claim before the latest of the following—

(a) the date on which a relevant appeal in the course of which the ground could have been put forward was determined by a court or tribunal (or is treated as having been so determined);

(b) the date on which the claimant withdrew a relevant appeal to a court or tribunal;

In this sub-paragraph “relevant appeal” means an appeal by the claimant relating to the amount paid or liable to be paid.

(7) Case F is where the amount in question was paid or is liable to be paid—

(a) in consequence of proceedings enforcing the payment of that amount brought against the claimant by HMRC, or

(b) in accordance with an agreement between the claimant and HMRC settling such proceedings.

(8) Case G is where—

(a) the amount paid, or liable to be paid, is excessive by reason of a mistake in calculating the claimant's liability to tax, and

(b) liability was calculated in accordance with the practice generally prevailing at the time.

(9) Case G does not apply where the amount paid, or liable to be paid, is tax which has been charged contrary to EU law.

(10) For the purposes of sub-paragraph (9), an amount of tax is charged contrary to EU law if, in the circumstances in question, the charge to tax is contrary to—

(a) the provisions relating to the free movement of goods, persons, services and capital in Titles II and IV of Part 3 of the Treaty on the Functioning of the European Union, or

(b) the provisions of any subsequent treaty replacing the provisions mentioned in paragraph (a).

Making a claim

31

(1) A claim under paragraph 29 must be made within the period of 4 years after the end of the chargeable period to which the payment by way of tax, or the assessment or determination, relates.

(2) A claim under paragraph 29 may not be made by being included in a return.

(3) Schedule 11A to FA 2003 (claims not included in returns) applies in relation to a claim under paragraph 29 as it applies to a claim such as is mentioned in paragraph 1 of that Schedule.

The claimant: partnerships

32

(1) This paragraph is about the application of paragraph 29 in a case where either—

(a) (in a case falling within sub-paragraph (1)(a) of that paragraph) the person paid the amount in question in the capacity of a responsible partner or representative partner, or

(b) (in a case falling within sub-paragraph (1)(b) of that paragraph) the assessment was made on, or the determination related to the liability of, the person in such a capacity.

(2) In such a case, only a relevant person who has been nominated to do so by all of the relevant persons may make a claim under paragraph 29 in respect of the amount in question.

(3) The relevant persons are all the persons who would have been liable as responsible partners to pay the amount in question had the payment been due or (in a case falling within sub-paragraph (1)(b)) had the assessment or determination been correctly made.

Assessment of claimant in connection with claim

33

(1) This paragraph applies where—

(a) a claim is made under paragraph 29 (relief for overpaid tax etc),

(b) the grounds for giving effect to the claim also provide grounds for a discovery assessment on the claimant in respect of single-dwelling interest, and

(2) In a case falling within paragraph 32(1)(a) or (b), the reference to the claimant in sub-paragraph (1)(b) of this paragraph includes any relevant person (as defined in paragraph 32(3)).

(3) The following are relevant restrictions—

(a) the restrictions in paragraph 24 (assessment where return has been delivered);

(b) the expiry of a time limit for making a discovery assessment.

(4) Where this paragraph applies—

(a) the relevant restrictions are to be disregarded, and

(b) the discovery assessment is not out of time if it is made before the final determination of the claim.

(5) A claim is not finally determined until it, or the amount to which it relates, can no longer be varied (whether on appeal or otherwise).

Contract settlements

34

(1) In paragraph 29(1)(a) the reference to an amount paid by a person by way of tax includes an amount paid by a person under a contract settlement in connection with tax believed to be due.

(2) Sub-paragraphs (3) to (6) apply if the person who paid the amount under the contract settlement (“the payer”) and the person from whom the tax was due (“the taxpayer”) are not the same person.

(3) In relation to a claim under paragraph 29 in respect of that amount—

(a) the references to the claimant in paragraph 30(5), (6) and (7) (Cases D, E and F) have effect as if they included the taxpayer,

(b) the reference to the claimant in paragraph 30(8) (case G) has effect as if it were a reference to the taxpayer,

(d) references to tax in Schedule 11A to FA 2003 (as it applies to a claim under paragraph 29) include the amount paid under the contract settlement.

(4) Sub-paragraph (5) applies where the grounds for giving effect to a claim by the payer in respect of the amount also provide grounds for a discovery assessment on the taxpayer in respect of any single-dwelling interest.

(5) The Commissioners for Her Majesty's Revenue and Customs may set any amount repayable to the payer as a result of the claim against any amount payable by the taxpayer as a result of the assessment.

(6) The obligations of the Commissioners for Her Majesty's Revenue and Customs and the taxpayer are discharged to the extent of any set-off under sub-paragraph (5).

(7) “Contract settlement” means an agreement made in connection with any person's liability to make a payment to the Commissioners for Her Majesty's Revenue and Customs under or by virtue of an enactment.

PART 7 — Reviews and appeals

Right of appeal

35

(1) An appeal may be brought against—

(a) an amendment of a self assessment under paragraph 10 (amendment during enquiry to prevent loss of tax),

(b) a conclusion stated or amendment made by a closure notice (see paragraph 16),

(d) a discovery assessment (see paragraph 21), or

(e) an assessment under paragraph 22 (assessment to recover excessive repayment).

(2) If an appeal under sub-paragraph (1)(a) against an amendment of a self assessment is made while an enquiry is in progress none of the steps mentioned in paragraph 38(2)(a) to (c) may be taken in relation to the appeal until the enquiry is completed.

Notice of appeal

36

(1) Notice of an appeal under paragraph 35 must be given—

(a) in writing,

(b) within 30 days after the specified date,

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

(a) in relation to an appeal under paragraph 35(1)(a), the date on which the notice of amendment was issued;

(b) in relation to an appeal under paragraph 35(1)(b), the date on which the closure notice was issued;

(d) in relation to an appeal under paragraph 35(1)(d) or (e), the date on which the notice of assessment was issued.

(3) The notice of appeal must specify the grounds of appeal.

(4) Where a determination has been made under paragraph 18 as to the amount of tax to which a person is chargeable with respect to a single-dwelling interest, the only grounds on which an appeal lies under paragraph 35(1)(c) are—

(a) that the condition in section 94(2)(a) (nature and value of interest) is not met in relation to the interest in question on any day to which the determination relates,

(b) that the person, partnership or scheme that the determination identifies as meeting the ownership condition on one or more days does not meet that condition on any day in the chargeable period,

(c) if the tax is determined to be chargeable by virtue of section 94(5), that a person identified in the determination as one of the responsible partners is not a responsible partner in relation to any tax chargeable for the period in question, or

(d) if the tax is determined to be chargeable by virtue of section 94(6), that the person identified in the determination as the chargeable person in relation to the collective investment scheme concerned is not the chargeable person.

Late notice of appeal

37

(1) This paragraph applies in a case where—

(a) notice of appeal may be given to HMRC under this Schedule, but

(b) no notice is given before the relevant time limit.

(2) Notice may be given after the relevant time limit if—

(a) HMRC agree, or

(b) where HMRC do not agree, the tribunal gives permission.

(3) HMRC must agree to notice being given after the relevant time limit if the appellant has requested in writing that HMRC do so and HMRC are satisfied—

(a) that there was reasonable excuse for not giving the notice before the relevant time limit, and

(b) that the request has been made without unreasonable delay.

(4) If a request of the kind mentioned in sub-paragraph (3) is made, HMRC must notify the appellant whether or not HMRC agree to the request.

(5) In this paragraph “relevant time limit”, in relation to notice of appeal, means the time before which the notice must to be given (disregarding this paragraph).

Steps that may be taken following notice of appeal

38

(1) This paragraph applies if notice of appeal has been given to HMRC.

(2) In such a case—

(a) the appellant may notify HMRC that it requires them to review the matter in question (see paragraph 39),

(b) HMRC may notify the appellant of an offer to review the matter in question (see paragraph 40), or

(3) If the appellant notifies the appeal to the tribunal, the tribunal is to determine the matter in question.

(4) See paragraphs 43 and 44 for provision about the circumstances in which an appeal may be notified to the tribunal after a review has been required by the appellant or offered by HMRC.

(5) This paragraph does not prevent the matter in question from being dealt with in accordance with paragraph 46(1) and (2) (settling of appeals by agreement).

Right of appellant to require review

39

(1) If the appellant notifies HMRC that it requires them to review the matter in question, HMRC must—

(a) notify the appellant of HMRC's view of the matter in question within the relevant period, and

(b) review the matter in question in accordance with paragraph 41.

(2) Sub-paragraph (1) does not apply if—

(a) the appellant has already given a notification under this paragraph in relation to the matter in question,

(b) HMRC have given a notification under paragraph 40 in relation to the matter in question, or

(3) In this paragraph “the relevant period” means—

(a) the period of 30 days beginning with the day on which HMRC receive the notification from the appellant, or

(b) such longer period as is reasonable.

Offer of review by HMRC

40

(1) Sub-paragraphs (2) to (5) apply if HMRC notify the appellant of an offer to review the matter in question.

(2) The notification must include a statement of HMRC's view of the matter in question.

(3) If the appellant notifies HMRC within the acceptance period that it accepts the offer, HMRC must review the matter in question in accordance with paragraph 41.

(4) If the appellant does not accept the offer in accordance with sub-paragraph (3)—

(a) HMRC's view of the matter in question is treated as if it were contained in a settlement agreement (see paragraph 46(1)); but

(b) paragraph 46(3) (right to withdraw from agreement) does not apply in relation to that notional agreement.

(5) Sub-paragraph (4) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal.

(See paragraph 44 for the circumstances in which the appellant may do so after accepting HMRC's offer of a review).

(6) HMRC may not take the action mentioned in sub-paragraph (1) at any time if before that time—

(a) HMRC have given a notification under this paragraph in relation to the matter in question,

(b) the appellant has given a notification under paragraph 39 in relation to the matter in question, or

(7) In this paragraph “acceptance period” means the period of 30 days beginning with the date of the document by which HMRC notify the appellant of the offer to review the matter in question.

Nature of review

41

(1) This paragraph applies if HMRC are required by paragraph 39 or 40 to review the matter in question.

(2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

(3) For the purpose of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

(a) by HMRC in deciding the matter in question, and

(b) by any person in seeking to resolve disagreement about the matter in question.

(4) The review must take account of any representations made by the appellant at a stage which gives HMRC a reasonable opportunity to consider them.

(5) The review may conclude that HMRC's view of the matter in question is to be—

(a) upheld,

(b) varied, or

(6) HMRC must notify the appellant of the conclusions of the review and their reasoning within—

(a) the period of 45 days beginning with the relevant day, or

(b) such other period as may be agreed.

(7) In sub-paragraph (6) “relevant day” means—

(a) in a case where the appellant required the review, the day when HMRC notified the appellant of HMRC's view of the matter in question,

(b) in a case where HMRC offered the review, the day when HMRC received notification of the appellant's acceptance of the offer.

(8) If HMRC do not give notice of the conclusions of the review within the period specified in sub-paragraph (6), the review is treated as having concluded that HMRC's view of the matter in question is upheld.

(9) If sub-paragraph (8) applies, HMRC must notify the appellant of the conclusions which the review is treated as having reached.

Effect of conclusions of review

42

(1) If HMRC give notice of the conclusions of a review (see paragraph 41)—

(a) the conclusions are to be treated as if they were contained in a settlement agreement (see paragraph 46(1)), but

(b) paragraph 46(3) (withdrawal from agreement) does not apply in relation to that notional agreement.

(2) Sub-paragraph (1) does not apply to the matter in question if, or to the extent that, the appellant notifies the appeal to the tribunal (see paragraphs 43 and 44).

Notifying appeal to tribunal after appellant has required review

43

(1) Where HMRC have notified an appellant under paragraph 39(1)(a) of their view of a matter to which an appeal under paragraph 35 relates, the appellant—

(a) may not notify the appeal to the tribunal before the beginning of the post-review period;

(b) may notify the appeal to the tribunal after the end of that period only if the tribunal gives permission.

(2) Except where sub-paragraph (3) applies, the post-review period is the period of 30 days beginning with the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 41(6).

(3) If the period specified in paragraph 41(6) ends without HMRC having given notice of the conclusions of the review, the post-review period is the period that—

(a) begins with the day following the last day of the period specified in paragraph 41(6), and

(b) ends 30 days after the date of the document in which HMRC give notice of the conclusions of the review in accordance with paragraph 41(9).

Notifying appeal to tribunal after HMRC have offered review

44

(1) Where HMRC have offered to review the matter to which a notice of an appeal under paragraph 35 relates, the right of the appellant at any time to notify the appeal to the tribunal depends on whether or not the appellant has accepted the offer at that time.

(2) If the appellant has accepted the offer, the appellant—

(a) may not notify the appeal to the tribunal before the beginning of the post-review period;

(b) may notify the appeal to the tribunal after the end of that period only if the tribunal gives permission.

(3) If the appellant has not accepted the offer, the appellant—

(a) may notify the appeal to the tribunal within the acceptance period;

(b) may notify the appeal to the tribunal after the end of that period only if the tribunal gives permission.

(4) In this paragraph—

“acceptance period” has the same meaning as in paragraph 40;

“post-review period” has the same meaning as in paragraph 43.

Interpretation of paragraphs 38 to 44

45

(1) In paragraphs 38 to 44—

(a) “matter in question” means the matter to which an appeal relates;

(b) a reference to a notification is to a notification in writing.

(2) In paragraphs 38 to 44, a reference to the appellant includes a person acting on behalf of the appellant except in relation to—

(a) notification of HMRC's view under paragraph 39(1)(a),

(b) notification by HMRC of an offer of review (and of their view of the matter) under paragraph 40,

(3) But if a notification falling within any of the paragraphs of sub-paragraph (2) is given to the appellant, a copy of the notification may also be given to a person acting on behalf of the appellant.

Settling of appeals by agreement

46

(1) In relation to an appeal of which notice has been given under paragraph 36, “settlement agreement” means an agreement between the appellant and an officer of Revenue and Customs that is—

(a) entered into before the appeal is determined, and

(b) to the effect that the decision appealed against should be upheld without variation, varied in a particular manner or discharged or cancelled.

(2) Where a settlement agreement is entered into in relation to an appeal, the consequences are to be the same (for all purposes) as if, at the time the agreement was entered into, the tribunal had decided the appeal and had upheld the decision without variation, varied it in that manner or discharged or cancelled it, as the case may be.

(3) Sub-paragraph (2) does not apply if, within 30 days from the date when the settlement agreement was entered into, the appellant gives notice in writing to HMRC that it wishes to withdraw from the agreement.

(4) Where a settlement agreement is not in writing—

(a) sub-paragraph (2) does not apply unless the fact that an agreement was entered into, and the terms agreed, are confirmed by notice in writing given by HMRC to the appellant or by the appellant to the HMRC, and

(b) the references in sub-paragraphs (2) and (3) to the time when the agreement was entered into are to be read as references to the time when the notice of confirmation was given.

(5) Sub-paragraph (6) applies where notice of an appeal has been given under paragraph 36 and—

(a) the appellant notifies HMRC, orally or in writing, that the appellant does not wish to proceed with the appeal, and

(b) HMRC do not, within 30 days after that notification, give the appellant notice in writing indicating that they are unwilling that the appeal should be withdrawn.

(6) Sub-paragraphs (1) to (4) have effect as if, at the date of the appellant's notification, the appellant and an officer of Revenue and Customs had agreed (orally or in writing, as the case may be) that the decision under appeal should be upheld without variation.

(7) References in this paragraph to an agreement being entered into with an appellant, and to the giving of notice or notification by or to the appellant, include references to an agreement being entered into, or notice or notification being given by or to, a person acting on behalf of the appellant in relation to the appeal.

Appeal does not postpone recovery of tax

47

(1) Where there is an appeal under paragraph 35, the tax charged by the amendment or assessment in question remains due and payable as if there had been no appeal.

(2) Sub-paragraph (1) is subject to paragraphs 48 and 49.

Application for payment of tax to be postponed

48

(1) If the appellant has grounds for believing that the amendment or assessment overcharges the appellant to tax, or as a result of the conclusion stated in the closure notice the tax charged on the appellant is excessive, the appellant may—

(a) first apply by notice in writing to HMRC within 30 days of the specified date for a determination by them of the amount of tax the payment of which should be postponed pending the determination of the appeal, and

(b) if the appellant does not agree with a determination made by HMRC under paragraph (a), refer the application for postponement to the tribunal within 30 days from the date of the document notifying HMRC's determination.

(2) An application under sub-paragraph (1)(a) must state the amount believed to be overcharged to tax and the grounds for that belief.

(3) An application may be made more than 30 days after the specified date if there is a change in the circumstances of the case as a result of which the appellant has grounds for believing that it is overcharged to tax by the decision appealed against.

(4) If, after an application under sub-paragraph (1) has been determined, there is a change in the circumstances of the case as a result of which either party has grounds for believing that the amount determined has become either excessive or insufficient, that party may (if the parties cannot agree on a revised determination) apply to the tribunal for a revised determination of that amount.

(5) An application under sub-paragraph (4) may be made at any time before the determination of the appeal.

(6) An application under this paragraph is to be subject to the relevant provisions of Part 5 of the Taxes Management Act 1970 (see, in particular, section 48(2)(b) of that Act).

(7) The amount of tax of which payment is to be postponed pending the determination of the appeal is the amount (if any) by which it appears that there are reasonable grounds for believing that the appellant is overcharged.

(8) Where an application under this paragraph has been determined, section 163 has effect in relation to any tax of which payment is not postponed as if—

(a) the tax were payable in accordance with an assessment under paragraph 22 issued on the date on which the application was determined, and

(b) there was no appeal against that assessment.

(8A) Sub-paragraphs (8B) and (8C) apply where a person has been given an accelerated payment notice under Chapter 3 of Part 4 of FA 2014 and that notice has not been withdrawn.

(8B) Nothing in this paragraph enables the postponement of the payment of (as the case may be)—

(a) the understated tax to which the payment specified in the notice under section 220(2)(b) of that Act relates, or

(b) the disputed tax specified in the notice under section 221(2)(b) of that Act.

(8C) Accordingly, if the payment of an amount of tax within sub-paragraph (8B)(b) is postponed by virtue of this paragraph immediately before the accelerated payment notice is given, it ceases to be so postponed with effect from the time that notice is given, and the tax is due and payable—

(a) if no representations were made under section 222 of that Act in respect of the notice, on or before the last day of the period of 90 days beginning with the day the notice is given, and

(b) if representations were so made, on or before whichever is later of—

(i) the last day of the 90 day period mentioned in paragraph (a), and

(ii) the last day of the period of 30 days beginning with the day on which HMRC's determination in respect of those representations is notified under section 222 of that Act.

(9) In this paragraph “specified date” has the meaning given by paragraph 36.

Agreement to postpone payment of tax

49

(1) If the appellant and an officer of Revenue and Customs agree that payment of an amount of tax should be postponed pending the determination of the appeal, the consequences are to be the same (for all purposes) as if the tribunal had, at the time when the agreement was entered into, made a direction to the same effect as the agreement. This is without prejudice to the making of a further agreement or further direction.

(2) Where the agreement is not in writing—

(a) sub-paragraph (1) does not apply unless the fact that an agreement was entered into, and the terms agreed, are confirmed by notice in writing given by the officer of Revenue and Customs to the appellant or by the appellant to that officer, and

(b) the reference in sub-paragraph (1) to the time when the agreement was entered into is to be read as a reference to the time when notice of confirmation was given.

(3) References in this paragraph to an agreement being entered into with an appellant, and to the giving of notice to or by the appellant, include references to an agreement being entered into, or notice being given to or by, a person acting on behalf of the appellant in relation to the appeal.

(4) Sub-paragraphs (8A) to (8C) of paragraph 48 apply for the purposes of this paragraph as they apply for the purposes of paragraph 48.

Assessments and self assessments

50

(1) This paragraph applies where an appeal under paragraph 35(1) has been notified to the tribunal.

(2) If the tribunal decides that the appellant is overcharged by a self assessment or any other assessment, the assessment must be reduced accordingly.

(3) If the tribunal does not so decide, the assessment is to stand good.

(4) If it appears to the tribunal that the appellant is undercharged to tax by a self assessment or any other assessment, the assessment must be increased accordingly.

Tribunal determinations

51

The determination of the tribunal in relation to any proceedings under this Part of this Schedule is to be final and conclusive except as otherwise provided in—

(a) sections 9 to 14 of the Tribunals, Courts and Enforcement Act 2007, or

(b) this Part of this Act.

Payment of tax where appeal has been determined

52

(1) On the determination of an appeal under paragraph 35 any tax overpaid must be repaid.

(2) On the determination of an appeal under paragraph 35, section 163(payment of tax) has effect in relation to any relevant tax as if—

(a) the tax were payable in accordance with an assessment under paragraph 22 issued on the date on which HMRC issues to the appellant a notice of the total amount payable in accordance with the determination, and

(b) there had been no appeal against that assessment.

(3) The reference in sub-paragraph (2) to “relevant tax” is to any tax payable in accordance with the determination, so far as it is tax—

(a) the payment of which had been postponed, or

(b) which would not have been charged by the amendment or assessment if there had been no appeal.

Payment of tax where there is a further appeal

53

(1) Where a party to an appeal to the tribunal under paragraph 35 makes a further appeal, tax is to be payable or repayable in accordance with the determination of the tribunal or court (as the case may be), even though the further appeal is pending.

(2) But if the amount charged by the assessment is altered by the order or judgment of the Upper Tribunal or court, then—

(a) if too much tax has been paid, the amount overpaid must be refunded, with any interest allowed by the order or judgment, and

(b) if too little tax has been charged, the amount undercharged is due and payable at the end of the 30 days beginning with the date on which HMRC issue to the other party a notice of the total amount payable in accordance with the order or judgment.

(3) Sub-paragraph (4) applies where—

(a) an accelerated payment notice has been given to a party to the appeal under Chapter 3 of Part 4 of FA 2014 (and not withdrawn), and

(b) the assessment to which the appeal relates has effect, or partly has effect, to counteract the whole or part of the asserted advantage (within the meaning of section 219(3) of that Act) by reason of which the notice was given.

(4) If, on the application of HMRC, the relevant court or tribunal considers it necessary for the protection of the revenue, it may direct that sub-paragraph (1) does not apply so far as the tax relates to the counteraction of the whole or part of the asserted advantage, and—

(a) give permission to withhold all or part of any repayment, or

(b) require the provision of adequate security before repayment is made.

(5) “Relevant court or tribunal” means the tribunal or court from which permission or leave to appeal is sought.

References to “the tribunal”

54

(1) In this Part of this Schedule “the tribunal” means—

(a) the First-tier Tribunal, or

(b) where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

(2) Sub-paragraph (1) does not apply so far as sub-paragraph (3) requires otherwise.

(3) Where the question in any dispute on any appeal under paragraph 35(1) is of the market value of any single-dwelling interest, that question is to be determined on a reference by—

(a) the Upper Tribunal, if the land is in England and Wales;

(b) the Lands Tribunal for Scotland, if the land is in Scotland;

PART 8 — Supplementary

Application of Schedule in cases involving joint liability to tax

55

(1) This paragraph applies where—

(a) section 97(2) applies and the other persons mentioned in section 97(1)(b) include a company, or

(b) section 97(4) applies and P is a company.

(2) Any obligation to deliver a return with respect to the single-dwelling interest for the chargeable period concerned is a joint obligation of the persons who are jointly and severally liable under subsection (2) or (as the case may be) (4) of section 97; and a single return is required.

Partnerships

56

In relation to a return delivered by the responsible partners for a partnership, anything required or authorised under section 159 or 160 or this Schedule to be done by the responsible partners is required or authorised to be done by all the responsible partners.

Meaning of “return”

57

In this Schedule “return”, except where the contrary is indicated, means an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount.

Meaning of “filing date”

58

“Filing date”, in relation to a return, means the day by the end of which the return is required to be delivered.

SCHEDULE 34

PART 1 — Information and inspection powers

1

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

2

In paragraph 12A (powers to inspect property for valuation etc), in sub-paragraph (3)—

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

(b) after paragraph (e) insert

, or (f) annual tax on enveloped dwellings.

3

After paragraph 21A insert—

(21B) (1) Where a person has delivered, for a chargeable period with respect to a single-dwelling interest— (a) an annual tax on enveloped dwellings return, or (b) a return of the adjusted chargeable amount, a taxpayer notice may not be given for the purpose of checking the person's annual tax on enveloped dwellings position as regards the matters dealt with in that return. (2) Sub-paragraph (1) does not apply where, or to the extent that, any of conditions A to C is met. (3) Condition A is that notice of enquiry has been given in respect of— (a) the return, or (b) a claim (or an amendment of a claim) made by the person in relation to the chargeable period, and the enquiry has not been completed. (4) In sub-paragraph (3) “notice of enquiry” means a notice under paragraph 8 of Schedule 33 to FA 2013 or paragraph 7 of Schedule 11A to FA 2003 (as applied by paragraphs 28(2) and 31(3) of Schedule 33 to FA 2013). (5) Condition B is that, as regards the person, an officer of Revenue and Customs has reason to suspect that— (a) an amount that ought to have been assessed to annual tax on enveloped dwellings for the chargeable period may not have been assessed, (b) an assessment to annual tax on enveloped dwellings for the chargeable period may be or have become insufficient, or (c) relief from annual tax on enveloped dwellings for the chargeable period may be or have become excessive. (6) Condition C is that the notice is given for the purpose of obtaining any information or document that is also required for the purpose of checking that person's position as regards a tax other than annual tax on enveloped dwellings. (7) In this Schedule references to a “single-dwelling interest” are to be read in accordance with section 108 of FA 2013.

4

In paragraph 37 (partnerships), after sub-paragraph (2A) insert—

(2B) Where, in respect of a single-dwelling interest (see paragraph 21B(7)) to which one or more companies are or were entitled as members of a partnership, any member of the partnership has— (a) delivered an annual tax on enveloped dwellings return or a return of the adjusted chargeable amount under Part 3 of FA 2013, or (b) made a claim under that Part of that Act, paragraph 21B (restrictions where taxpayer has delivered return) has effect as if that return had been delivered, or that claim had been made, by each member of the partnership.

5

In paragraph 63(1) (meaning of “tax” in the Schedule), after paragraph (h) insert—

(ha) annual tax on enveloped dwellings,

PART 2 — Penalties

Errors in returns

6

In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1, after the entry relating to stamp duty reserve tax insert—

Annual tax on enveloped dwellings	Annual tax on enveloped dwellings return.
Annual tax on enveloped dwellings	Return of adjusted chargeable amount.

Failure to make returns

7

(1) In Schedule 55 to FA 2009 (penalty for failure to make returns etc), in the Table in paragraph 1, after item 11 insert—

11A	Annual tax on enveloped dwellings	Annual tax on enveloped dwellings return under section 159 of FA 2013
11B	Annual tax on enveloped dwellings	Return of adjusted chargeable amount under section 160 of FA 2013

(2) That Schedule, as amended by sub-paragraph (1), is taken to have come into force for the purposes of annual tax on enveloped dwellings on the date on which this Act is passed.

Failure to make payments on time

8

Paragraphs 9 to 12 contain amendments and modifications of Schedule 56 to FA 2009 (penalty for failure to make payments on time).

9

(1) The Table in paragraph 1 of that Schedule is amended as follows.

(2) After item 10 insert—

10A	Annual tax on enveloped dwellings	Amount payable under section 163(1) or (2) of FA 2013 (except an amount falling within item 23).	The date falling 30 days after the date specified in section 163(1) or (2) of FA 2013 as the date by which the amount must be paid

(3) After item 15 insert—

15A	Annual tax on enveloped dwellings	Amount shown in determination under paragraph 18 of Schedule 33 to FA 2013	The date falling 30 days after the filing date for the return in question

(4) In item 17, in the second column, for “or 10” substitute “ , 10 or 10A ” and in the third column for “15” substitute “ 15A ”.

10

(1) Until paragraphs 2(13)(a) and 2(14)(a) of Schedule 11 to F(No. 3)A 2010 (which amend items 23 and 24) come into force, paragraph 1 of Schedule 56 to FA 2009 has effect as if—

(a) in item 23 the references in the second and third columns to items 1 to 6, 9 or 10 included item 10A, and

(b) in item 24 the reference in the second column to items 1 to 6, 9 or 10 included item 10A.

(2) With effect from the coming into force of paragraphs 2(13)(a) and 2(14)(a) of Schedule 11 to F(No. 3)A 2010, paragraph 1 of Schedule 56 to FA 2009 is amended as follows—

(a) in item 23, in the second and third columns, for “9, 10” substitute “ 9 to 10A ”;

(b) in item 24, in the second column, for “9, 10” substitute “ 9 to 10A ”.

11

Until paragraph 3 of Schedule 11 to F(No. 3)A 2010 comes into force, paragraph 2(c) has effect as if the reference in that paragraph to items 1 to 10 were to items 1 to 10A.

12

Schedule 56 to FA 2009, as amended by paragraph 9, is taken to have come into force for the purposes of annual tax on enveloped dwellings on the date on which this Act is passed.

SCHEDULE 35

PART 1 — Miscellaneous amendments

Provisional collection of taxes

1

In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions), after “stamp duty land tax,” insert “ annual tax on enveloped dwellings, ”.

Disclosure of tax avoidance schemes

2

In section 318(1) of FA 2004 (disclosure of tax avoidance schemes: interpretation), in the definition of “tax”—

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

(b) after paragraph (g) insert

, or (h) annual tax on enveloped dwellings.

Definitions relating to charities

3

In paragraph 7 of Schedule 6 to FA 2010 (definition of “charity”, “charitable company” and “charitable trust”)—

(a) omit the “and” after paragraph (g), and

(b) after paragraph (h) insert

, and (i) annual tax on enveloped dwellings.

PART 2 — Transitory provision: the first chargeable period

4

In relation to the chargeable period beginning on 1 April 2013, section 159(annual tax on enveloped dwellings return) has effect as if subsections (2) and (3) of that section provided as follows—

(2) A return under subsection (1) must be delivered by the end of 1 October 2013 if the days on which the person is within the charge with respect to the interest include 1 April 2013. (3) If the days on which the person is within the charge with respect to the interest do not include 1 April 2013, the return must be delivered— (a) by the end of 1 October 2013, or (b) by the end of the period of 30 days beginning with the first day in the chargeable period on which the person is within the charge with respect to the interest, whichever is the later.

5

In relation to the chargeable period beginning on 1 April 2013, section 163(payment of tax) has effect as if subsection (1) of that section provided as follows—

(1) Tax charged on a person under section 99 with respect to a single-dwelling interest must be paid— (a) by the end of 31 October 2013, or (b) if later, by the end of the filing date for the return.

SCHEDULE 36

IHTA 1984

1

IHTA 1984 is amended as follows.

2

(1) Section 162 (liabilities) is amended as follows.

(2) In subsection (4), after “possible” insert “ and to the extent that it is not taken to reduce value in accordance with section 162B ”.

(3) In subsection (5), after “possible” insert “ and to the extent that it is not taken to reduce value in accordance with section 162B ”.

3

After section 162 insert—

(162A) (1) To the extent that a liability is attributable to financing (directly or indirectly)— (a) the acquisition of any excluded property, or (b) the maintenance, or an enhancement, of the value of any such property, it may only be taken into account so far as permitted by subsections (2) to (4). (2) Where the property mentioned in subsection (1) has been disposed of, in whole or in part, for full consideration in money or money's worth, the liability may be taken into account up to an amount equal to so much of that consideration as— (a) is not excluded property, and (b) has not been used— (i) to finance (directly or indirectly) the acquisition of excluded property or the maintenance, or an enhancement, of the value of such property, or (ii) to discharge (directly or indirectly) any other liability that, by virtue of this section, would not be taken into account. (3) The liability may be taken into account up to an amount equal to the value of such of the property mentioned in subsection (1) as— (a) has not been disposed of, and (b) is no longer excluded property. (4) To the extent that any remaining liability is greater than the value of such of the property mentioned in subsection (1) as— (a) has not been disposed of, and (b) is still excluded property, it may be taken into account, but only so far as the remaining liability is not greater than that value for any of the reasons mentioned in subsection (7). (5) Subsection (6) applies where— (a) a liability or any part of a liability is attributable to financing (directly or indirectly)— (i) the acquisition of property that was not excluded property, or (ii) the maintenance, or an enhancement, of the value of such property, and (b) the property or part of the property— (i) has not been disposed of, and (ii) has become excluded property. (6) The liability or (as the case may be) the part may only be taken into account to the extent that it exceeds the value of the property, or the part of the property, that has become excluded property, but only so far as it does not exceed that value for any of the reasons mentioned in subsection (7). (7) The reasons are— (a) arrangements the main purpose, or one of the main purposes, of which is to secure a tax advantage, (b) an increase in the amount of the liability (whether due to the accrual of interest or otherwise), or (c) a disposal, in whole or in part, of the property. (8) In this section— - “arrangements” includes any scheme, transaction or series of transactions, agreement or understanding, whether or not legally enforceable, and any associated operations; - “remaining liability” means the liability mentioned in subsection (1) so far as subsections (2) and (3) do not permit it to be taken into account; - “tax advantage” means— 1. the avoidance or reduction of a charge to tax, or 2. the avoidance of a possible determination in respect of tax. (162B) (1) Subsection (2) applies if— (a) the whole or part of any value transferred by a transfer of value is to be treated as reduced, under section 104, by virtue of it being attributable to the value of relevant business property, and (b) the transferor has a liability which is attributable, in whole or in part, to financing (directly or indirectly)— (i) the acquisition of that property, or (ii) the maintenance, or an enhancement, of its value. (2) The liability is, so far as possible, to be taken to reduce the value attributable to the value of the relevant business property, before it is treated as reduced under section 104, but only to the extent that the liability— (a) is attributable as mentioned in subsection (1)(b), and (b) does not reduce the value of the relevant business property by virtue of section 110(b). (3) Subsection (4) applies if— (a) the whole or part of any value transferred by a transfer of value is to be treated as reduced, under section 116, by virtue of it being attributable to the agricultural value of agricultural property, and (b) the transferor has a liability which is attributable, in whole or in part, to financing (directly or indirectly)— (i) the acquisition of that property, or (ii) the maintenance, or an enhancement, of its agricultural value. (4) To the extent that the liability is attributable as mentioned in subsection (3)(b), it is, so far as possible, to be taken to reduce the value attributable to the agricultural value of the agricultural property, before it is treated as reduced under section 116. (5) Subsection (6) applies if— (a) part of the value of a person's estate immediately before death is attributable to the value of land on which trees or underwood are growing, (b) the value of the trees or underwood is to be left out of account, under section 125(2)(a), in determining the value transferred by the chargeable transfer made on the person's death, and (c) the person has a liability which is attributable, in whole or in part, to financing (directly or indirectly)— (i) the acquisition of the land or trees or underwood, (ii) planting the trees or underwood, or (iii) the maintenance, or an enhancement, of the value of the trees or underwood. (6) To the extent that the liability is attributable as mentioned in subsection (5)(c), it is, so far as possible, to be taken to reduce the value of the trees or underwood, before their value is left out of account. (7) Subject to subsection (8), to the extent that a liability is, in accordance with this section, taken to reduce value in determining the value transferred by a chargeable transfer, that liability is not then to be taken into account in determining the value transferred by any subsequent transfer of value by the same transferor. (8) Subsection (7) does not prevent a liability from being taken into account by reason only that the liability has previously been taken into account in determining the amount on which tax is chargeable under section 64. (9) For the purposes of subsections (1) to (4) and (7), references to a transfer of value or chargeable transfer include references to an occasion on which tax is chargeable under Chapter 3 of Part 3 (apart from section 79) and— (a) references to the value transferred by a transfer of value or chargeable transfer include references to the amount on which tax is then chargeable, and (b) references to the transferor include references to the trustees of the settlement concerned. (10) In this section— - “agricultural property” and “agricultural value” have the same meaning as in Chapter 2 of Part 5; - “relevant business property” has the same meaning as in Chapter 1 of Part 5. (162C) (1) This section applies for the purposes of determining the extent to which a liability is attributable as mentioned in section 162A(1) or (5) or 162B(1)(b), (3)(b) or (5)(c). (2) Where a liability was discharged in part before the time in relation to which the question as to whether or how to take it into account arises— (a) any part of the liability that, at the time of discharge, was not attributable as mentioned in subsection (1) is, so far as possible, to be taken to have been discharged first, (b) any part of the liability that, at the time of discharge, was attributable as mentioned in section 162B(1)(b), (3)(b) or (5)(c) is, so far as possible, only to be taken to have been discharged after any part of the liability within paragraph (a) was discharged, and (c) any part of the liability that, at the time of discharge, was attributable as mentioned in section 162A(1) or (5) is, so far as possible, only to be taken to have been discharged after any parts of the liability within paragraph (a) or (b) were discharged.

4

After section 175 (estate on death: liability to make future payments etc) insert—

(175A) (1) In determining the value of a person's estate immediately before death, a liability may be taken into account to the extent that— (a) it is discharged on or after death, out of the estate or from excluded property owned by the person immediately before death, in money or money's worth, and (b) it is not otherwise prevented, under any provision of this Act, from being taken into account. (2) Where the whole or any part of a liability is not discharged in accordance with paragraph (a) of subsection (1), the liability or (as the case may be) the part may only be taken into account for the purpose mentioned in that subsection to the extent that— (a) there is a real commercial reason for the liability or the part not being discharged, (b) securing a tax advantage is not the main purpose, or one of the main purposes, of leaving the liability or part undischarged, and (c) the liability or the part is not otherwise prevented, under any provision of this Act, from being taken into account. (3) For the purposes of subsection (2)(a) there is a real commercial reason for a liability, or part of a liability, not being discharged where it is shown that— (a) the liability is to a person dealing at arm's length, or (b) if the liability were to a person dealing at arm's length, that person would not require the liability to be discharged. (4) Where, by virtue of this section, a liability is not taken into account in determining the value of a person's estate immediately before death, the liability is also not to be taken into account in determining the extent to which the estate of any spouse or civil partner of the person is increased for the purposes of section 18. (5) In subsection (2)(b) “tax advantage” means— (a) a relief from tax or increased relief from tax, (b) a repayment of tax or increased repayment of tax, (c) the avoidance, reduction or delay of a charge to tax or an assessment to tax, or (d) the avoidance of a possible assessment to tax or determination in respect of tax. (6) In subsection (5) “tax” includes income tax and capital gains tax. (7) Where the liability is discharged as mentioned in subsection (1)(a) only in part— (a) any part of the liability that is attributable as mentioned in section 162A(1) or (5) is, so far possible, taken to be discharged first, (b) any part of the liability that is attributable as mentioned in section 162B(1)(b), (3)(b) or (5)(c) is, so far as possible, taken to be discharged only after any part of the liability within paragraph (a) is discharged, and (c) the liability so far as it is not attributable as mentioned in paragraph (a) or (b) is, so far as possible, taken to be discharged only after any parts of the liability within either of those paragraphs are discharged.

Commencement

5

(1) Subject to sub-paragraph (2), the amendments made by this Schedule have effect in relation to transfers of value made, or treated as made, on or after the day on which this Act is passed.

(2) Section 162B of IHTA 1984 (inserted by paragraph 3) only has effect in relation to liabilities incurred on or after 6 April 2013.

(3) For the purposes of sub-paragraph (2), where a liability is incurred under an agreement—

(a) if the agreement was varied so that the liability could be incurred under it, the liability is to be treated as having been incurred on the date of the variation, and

(b) in any other case, the liability is to be treated as having been incurred on the date the agreement was made.

SCHEDULE 37

1

VERA 1994 is amended as follows.

2

(1) Section 19 (rebates) is amended as follows.

(2) In subsection (3), after paragraph (c) insert—

(ca) a qualifying application for a vehicle licence for the vehicle is made,

(3) After that subsection insert—

(3ZA) An application for a vehicle licence is a qualifying application for the purposes of subsection (3)(ca) if— (a) paragraph 1ZA of Schedule 1 applies to the vehicle when the application is made, but (b) that paragraph did not apply to the vehicle when the licence which is unexpired when the application is made was taken out.

3

(1) Section 22ZA (nil licences for vehicles for disabled persons: information) is amended as follows.

(2) In subsection (1)(b), at the beginning insert “ falls within subsection (1A) or ”.

(3) After subsection (1) insert—

(1A) Information falls within this subsection if it is— (a) the name, date of birth or national insurance number of a person who is in receipt of a relevant payment, or would be in receipt of such a payment but for— (i) regulations under section 86(1) of the Welfare Reform Act 2012 (treatment as in-patient in hospital or similar institution), or (ii) corresponding provision having effect in relation to personal independence payment in Northern Ireland; (b) in the case of a person who is or would be in receipt of personal independence payment attributable to entitlement to the mobility component, the rate of the payment to which the person is or would be entitled; (c) in the case of a person who has ceased or will cease to receive a relevant payment, the date on which the person ceased or will cease to receive it and the reason for the person ceasing to receive it. (1B) In subsection (1A) “relevant payment” means— (a) personal independence payment attributable to entitlement to the mobility component, and (b) armed forces independence payment.

(4) In subsections (2) and (4), and in the heading, omit “nil”.

(5) For subsection (5) substitute—

(5) In this section “relevant licence functions” means functions relating to applications for, and the issue of— (a) vehicle licences in respect of vehicles to which paragraph 1ZA of Schedule 1 applies, and (b) nil licences in respect of vehicles that are exempt vehicles under paragraph 19 of Schedule 2 or paragraph 7 of Schedule 4.

4

In section 62(1) (definitions), at the appropriate places insert—

“armed forces independence payment” means armed forces independence payment under a scheme established under section 1 of the Armed Forces (Pensions and Compensation) Act 2004,

, and

“personal independence payment” means personal independence payment under— (a) the Welfare Reform Act 2012, or (b) the corresponding provision having effect in Northern Ireland,

5

In Schedule 1 (annual rates of duty), in Part 1 after paragraph 1 insert—

(1ZA) (1) The annual rate of vehicle excise duty applicable to a vehicle to which this paragraph applies is 50 per cent of the rate which (but for this paragraph) would be applicable. (2) This paragraph applies to a vehicle when it is being used, or kept for use, by or for the purposes of a disabled person who is in receipt of personal independence payment by virtue of entitlement to the mobility component at the standard rate if— (a) the vehicle is registered under this Act in the name of the disabled person, and (b) no other vehicle registered in his or her name under this Act is— (i) a vehicle for which a vehicle licence taken out at a rate of duty reduced in accordance with sub-paragraph (1) is in force, or (ii) an exempt vehicle under paragraph 19 of Schedule 2 or paragraph 7 of Schedule 4. (3) This paragraph has effect as if a person were in receipt of personal independence payment by virtue of entitlement to the mobility component at the standard rate in any case where the person would be in receipt of that payment by virtue of that entitlement but for— (a) regulations under section 86(1) of the Welfare Reform Act 2012 (treatment as in-patient in hospital or similar institution), or (b) corresponding provision having effect in Northern Ireland. (4) For the purposes of sub-paragraph (2), a vehicle is to be treated as registered under this Act in the name of a person in receipt of personal independence payment by virtue of entitlement to the mobility component at the standard rate if it is so registered in the name of— (a) an appointee, or (b) a person nominated for the purposes of this paragraph by the person or an appointee. (5) In sub-paragraph (4) “appointee” means a person appointed pursuant to regulations made under (or having effect as if made under) the Social Security Administration Act 1992 or the Social Security Administration (Northern Ireland) Act 1992 to exercise any of the rights and powers of a person in receipt of personal independence payment.

6

(1) In Schedule 2 (exempt vehicles), paragraph 19 is amended as follows.

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

(b) no other vehicle registered in his or her name under this Act is— (i) a vehicle for which a vehicle licence taken out at a rate of vehicle excise duty reduced in accordance with paragraph 1ZA(1) of Schedule 1 is in force, or (ii) an exempt vehicle under this paragraph or paragraph 7 of Schedule 4.

(3) In sub-paragraph (2), after paragraph (a) insert—

(aa) he or she is in receipt of personal independence payment by virtue of entitlement to the mobility component at the enhanced rate, (ab) he or she is in receipt of armed forces independence payment,

(4) After sub-paragraph (2A) insert—

(2B) This paragraph has effect as if a person were in receipt of personal independence payment by virtue of entitlement to the mobility component at the enhanced rate in any case where the person would be in receipt of that payment by virtue of that entitlement but for— (a) regulations under section 86(1) of the Welfare Reform Act 2012 (treatment as in-patient in hospital or similar institution), or (b) corresponding provision having effect in Northern Ireland.

(5) In sub-paragraph (3), for “person in receipt of a disability living allowance by virtue of entitlement to the mobility component at the higher rate, or of a mobility supplement,” substitute “ disabled person who satisfies sub-paragraph (2) by virtue of paragraph (a), (aa), (ab) or (b) of that sub-paragraph ”.

(6) In sub-paragraph (4)(a), after “disability living allowance,” insert “ personal independence payment or armed forces independence payment, ”.

7

The amendments made by this Schedule are treated as having come into force on 8 April 2013.

SCHEDULE 38

Introductory

1

VATA 1994 is amended as follows.

Valuation of supplies for private use

2

In Schedule 6 (valuation: special cases), before paragraph 1 insert—

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

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