Finance Act 2013

SCHEDULE 3ZB (1) (1) This Part of this Schedule and Part 3 of this Schedule apply where an eligible company— (a) ceases to be resident in the United Kingdom, (b) on ceasing to be so resident, becomes resident in another EEA state, and (c) is liable to pay qualifying corporation tax in respect of the migration accounting period. (2) The company may defer payment of some or all of the qualifying corporation tax if it enters into an exit charge payment plan in respect of it in accordance with this Schedule. (3) The company may enter into an exit charge payment plan only if conditions A to C are met. (4) Condition A is that before the end of the period of 9 months beginning immediately after the migration accounting period— (a) an application to enter into the exit charge payment plan is made to Her Majesty's Revenue and Customs, and (b) the application contains details of all the matters which are required by Part 3 of this Schedule to be specified in the plan. (5) Condition B is that on ceasing to be resident in the United Kingdom, the company carries on a business in an EEA state. (6) Condition C is that, on becoming resident in the other EEA state, the company is not treated as resident in a territory outside the European Economic Area for the purposes of any double taxation arrangements. (7) In this paragraph— - “double taxation arrangements” means arrangements which are made by two or more territories with a view to affording relief from double taxation and which have effect at the time when the company ceases to be resident in the United Kingdom; - “eligible company” means a company that has a right to freedom of establishment protected by Article 49 of the Treaty on the functioning of the European Union or established by Article 31 of the Agreement on the European Economic Area. (8) In this Part of this Schedule— (a) references to the migration accounting period are to— (i) in a case where an accounting period comes to an end on the company ceasing to be resident in the United Kingdom, that accounting period, and (ii) in a case not falling within sub-paragraph (i), the accounting period during which the company ceases to be resident in the United Kingdom, (b) references to a Part 1 company are to a company in relation to which this Part of this Schedule applies, and (c) references to Part 3 of this Schedule are to Part 3 of this Schedule as it applies to a Part 1 company. (2) (1) The company is liable to pay qualifying corporation tax in respect of the migration accounting period if CT1 is greater than CT2 where— - CT1 is the corporation tax which the company is liable to pay for the accounting period, and - CT2 is the corporation tax which the company would be liable to pay for the accounting period if any income, profits, gains, losses or debits arising only by virtue of the exit charge provisions were ignored, (CT2 will be zero if the company would not be liable to pay any corporation tax for the period). (2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2. (3) “Exit charge provisions” means— (a) section 185 of the 1992 Act, (b) section 187(4) of that Act, where that subsection applies by virtue of section 187(4)(c), (c) section 162 of CTA 2009, where that section applies by virtue of section 41(2)(b) of that Act, (d) section 333 of that Act, (e) section 609 of that Act, (f) section 859 of that Act, where that section applies by virtue of section 859(2)(a), and (g) section 862 of that Act, where that section applies by virtue of section 862(1)(c). (4) References in this Part of this Schedule and Part 3 of this Schedule to qualifying corporation tax are to be read in accordance with this paragraph. (3) (1) This paragraph applies for the purposes of this Part of this Schedule and Part 3 of this Schedule. (2) “Exit charge assets” and “exit charge liabilities” means assets or liabilities (as the case may be) in respect of which income, profits or gains arise in the migration accounting period by virtue of the exit charge provisions, and in particular— (a) “TCGA or trading stock exit charge assets” means those exit charge assets, other than pre-FA 2002 intangible fixed assets, in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(a), (b) or (c), (b) “financial exit charge assets or liabilities” means those exit charge assets or liabilities in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(d) or (e), (c) “intangible exit charge assets” means— (i) those exit charge assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(f) or (g), and (ii) those exit charge assets which are pre-FA 2002 intangible fixed assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 2(3)(a) or (b). (3) In sub-paragraph (2)— (a) “exit charge provisions” has the meaning given in paragraph 2(3); (b) “pre-FA 2002 intangible fixed asset” means an intangible fixed asset which is a pre-FA 2002 asset (as defined in section 881 of CTA 2009). (4) (1) This Part of this Schedule and Part 3 of this Schedule apply where— (a) at any time during an accounting period (“the migration accounting period”) an eligible company which is not resident in the United Kingdom carries on a trade in the United Kingdom through a permanent establishment there, (b) one or more PE qualifying events occurs in respect of any assets or liabilities of the company as mentioned in sub-paragraph (4), and (c) the company is liable to pay qualifying corporation tax in respect of the migration accounting period. (2) The company may defer payment of some or all of the qualifying corporation tax if it enters into an exit charge payment plan in respect of it in accordance with this Schedule. (3) The company may enter into an exit charge payment plan only if before the end of the period of 9 months beginning immediately after the migration accounting period— (a) an application to enter into the exit charge payment plan is made to Her Majesty's Revenue and Customs, and (b) the application contains details of all the matters which are required by Part 3 of this Schedule to be specified in the plan. (4) For the purposes of this Part of this Schedule, a “PE qualifying event” occurs in respect of an asset or liability of a company if— (a) an event occurs which triggers— (i) a deemed disposal and reacquisition of the asset or liability under the exit charge provision mentioned in paragraph 5(3)(a), (c), (d) or (e), or (ii) a valuation of the asset under the exit charge provision mentioned in paragraph 5(3)(b), (b) the event— (i) occurs during the migration accounting period, or (ii) causes the migration accounting period to come to an end, and (c) at the time of the event, the company is not treated as resident in a territory outside the European Economic Area for the purposes of any double taxation arrangements. (5) In this Part of this Schedule, references to a PE qualifying asset or liability are to an asset or liability in respect of which a PE qualifying event occurs. (6) In this paragraph “double taxation arrangements” and “eligible company” have the meanings given in paragraph 1(7). (7) In this Part of this Schedule— (a) references to the migration accounting period are to be read in accordance with this paragraph; (b) references to a Part 2 company are to a company in relation to which this Part of this Schedule applies, (c) references to Part 3 of this Schedule are to Part 3 of this Schedule as it applies to a Part 2 company, and (d) “permanent establishment”, in relation to a company, is to be read in accordance with Chapter 2 of Part 24 of CTA 2010. (5) (1) The company is liable to pay qualifying corporation tax in respect of the migration accounting period if CT1 is greater than CT2 where— - CT1 is the corporation tax which the company is liable to pay for the accounting period, and - CT2 is the corporation tax which the company would be liable to pay for the accounting period if any income, profits, gains, losses or debits arising as a result of any PE qualifying events, and arising only by virtue of the exit charge provisions, were ignored, (CT2 will be zero if the company would not be liable to pay any corporation tax for the period). (2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2. (3) Exit charge provisions means— (a) section 25 of the 1992 Act, (b) section 162 of CTA 2009, where that section applies by virtue of section 41(2)(b) of that Act, (c) section 334 of that Act, (d) section 610 of that Act, and (e) section 859 of that Act, where that section applies by virtue of section 859(2)(b). (4) References in this Part of this Schedule and Part 3 of this Schedule to qualifying corporation tax are to be read in accordance with this paragraph. (6) (1) This paragraph applies for the purposes of this Part of this Schedule and Part 3 of this Schedule. (2) “Exit charge assets” and “exit charge liabilities” means any PE qualifying assets or liabilities (as the case may be) in respect of which income, profits or gains arise in the migration accounting period by virtue of the exit charge provisions, and in particular— (a) “TCGA or trading stock exit charge assets” means those exit charge assets, other than pre-FA 2002 intangible fixed assets, in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(a) or (b); (b) “financial exit charge assets or liabilities” means those exit charge assets or liabilities in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(c) or (d); (c) “intangible exit charge assets” means— (i) those exit charge assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(e), and (ii) those exit charge assets which are pre-FA 2002 intangible fixed assets in respect of which income, profits or gains arise by virtue of the exit charge provision mentioned in paragraph 5(3)(a). (3) In sub-paragraph (2)— (a) “exit charge provisions” has the meaning given in paragraph 5(3); (b) “pre-FA 2002 intangible fixed asset” means an intangible fixed asset which is a pre-FA 2002 asset (as defined in section 881 of CTA 2009). (7) (1) As to when this Part of this Schedule applies, see— (a) Part 1 of this Schedule (companies ceasing to be resident in the United Kingdom), and (b) Part 2 of this Schedule (companies with permanent establishments in the United Kingdom). (2) In this Part of this Schedule, as it applies to a company in relation to which Part 1 of this Schedule applies, terms and expressions which are used in this Part and in that Part have the same meanings in this Part as in that Part. (3) In this Part of this Schedule, as it applies to a company in relation to which Part 2 of this Schedule applies, terms and expressions which are used in this Part and in that Part have the same meanings in this Part as in that Part. (8) (1) A Part 1 company or a Part 2 company enters into an exit charge payment plan in respect of qualifying corporation tax in accordance with this Schedule if— (a) the company agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the tax in accordance with the standard instalment method (see paragraph 13) or the realisation method (see paragraphs 14 to 17) or a combination of the two methods, (b) the company agrees to pay interest on the tax in accordance with paragraph 9(3), and (c) the plan meets the requirements set out in paragraphs 10 to 12 as to the matters that must be specified in it. (2) The exit charge payment plan may, in the circumstances mentioned in sub-paragraph (3), contain appropriate provision regarding security for Her Majesty's Revenue and Customs in respect of the deferred payment of the tax. (3) Those circumstances are where an officer of Her Majesty's Revenue and Customs considers that agreeing to accept payment of qualifying corporation tax in accordance with the plan would present a serious risk as to collection of the tax in the absence of provision regarding security in respect of that tax. (4) An exit charge payment plan is void if any information furnished by the company in connection with the plan does not fully and accurately disclose all facts and considerations material to the decision of the officer of Revenue and Customs to accept payment of qualifying corporation tax in accordance with the plan. (9) (1) This paragraph applies where an exit charge payment plan is entered into by a company in respect of qualifying corporation tax in accordance with this Schedule. (2) As regards when the tax is payable— (a) the plan does not prevent the tax becoming due and payable under section 59D or 59E, but (b) the Commissioners for Her Majesty's Revenue and Customs— (i) may not seek payment of the tax otherwise than in accordance with the plan; (ii) may make repayments in respect of any amount of the tax paid, or any amount paid on account of the tax, before the plan is entered into. (3) As regards interest— (a) the tax carries interest in accordance with Part 9 as if the plan had not been entered into, and (b) each time a payment is made under the plan, it is to be paid together with any interest payable on it. (4) As regards penalties, the company will be liable to penalties for late payment of the tax only if it fails to make payments in accordance with the plan (see item 6ZA of the Table at the end of paragraph 1 of Schedule 56 to the Finance Act 2009). (5) Qualifying corporation tax payable in accordance with an exit charge payment plan which is for the time being unpaid may be paid at any time before it becomes payable under the plan together with interest payable on it to the date of payment. (10) (1) An exit charge payment plan entered into by a Part 1 company must specify— (a) the date on which the company ceased to be resident in the United Kingdom, and (b) the EEA state in which the company has become resident. (2) An exit charge payment plan entered into by a Part 2 company must specify— (a) the EEA state in which the company is resident, and (b) if the company has ceased to carry on a trade in the United Kingdom through a permanent establishment there, the date on which it ceased to do so. (3) In either case an exit charge payment plan entered into by a company must also specify— (a) the amount of qualifying corporation tax which, in the company's opinion, is payable by it in respect of the migration accounting period, (b) the amount of that qualifying corporation tax which the company wishes to defer paying under the exit charge payment plan (“ECPP tax”), and (c) whether the ECPP tax is to be paid in accordance with— (i) the standard instalment method (see paragraph 13), (ii) the realisation method (see paragraphs 14 to 17), or (iii) a combination of the two methods. (4) If the ECPP tax is to be paid in accordance with a combination of the two methods, the exit charge payment plan must also specify— (a) in the case of each of the company's exit charge assets or liabilities (see paragraphs 3(2) or 6(2), as the case may be), the method in accordance with which the amount of ECPP tax attributable to the asset or liability (see sub-paragraph (6)) is to be paid, and (b) the amount of the ECPP tax specified under sub-paragraph (3)(b) that is to be paid in accordance with each method. (5) But an exit charge payment plan may specify that any ECPP tax is to be paid in accordance with the standard instalment method only if— (a) in the case of a plan entered into by a Part 1 company, the company's ceasing to be resident in the United Kingdom is not part of arrangements the main purpose of which, or one of the main purposes of which, is to defer the payment of any qualifying corporation tax payable by it; (b) in the case of a plan entered into by a Part 2 company, none of the PE qualifying events occurring during the migration accounting period, or bringing that period to an end, is part of arrangements the main purpose of which, or one of the main purposes of which, is to defer the payment of any qualifying corporation tax payable by it. (6) The amount of ECPP tax attributable to each exit charge asset or liability is— $$A B × T$where—“A” is the income, profits or gains arising in respect of the asset or liability in the migration accounting period by virtue of the relevant exit charge provision only,“B” is the total income, profits or gains arising in respect of all the exit charge assets and liabilities in the migration accounting period by virtue of the exit charge provisions only, and“T” is the ECPP tax.$ (11) (1) This paragraph applies if, under an exit charge payment plan, the amount of ECPP tax attributable to any exit charge asset or liability is to be paid in accordance with the realisation method. (2) The plan must specify— (a) each such asset or liability (so far as not already specified under paragraph 10(4)(a)), and (b) the amount of ECPP tax attributable to the asset or liability, calculated in accordance with paragraph 10(6). (3) The plan must also include requirements as to the ongoing provision of information by the company to Her Majesty's Revenue and Customs in relation to the asset or liability. (12) (1) This paragraph applies if, under an exit charge payment plan, the amount of ECPP tax attributable to an exit charge asset or liability is to be paid in accordance with the realisation method. (2) The plan must specify any additional information required by this paragraph in relation to the asset or liability. (3) Sub-paragraph (4) applies in the case of a financial exit charge asset or liability if, immediately after the migration accounting period, the remaining term of the loan relationship or derivative contract in question is less than 10 years. (4) The plan must specify, in relation to the asset or liability, how many years of the term of the loan relationship or derivative contract remain (rounded up to the nearest whole year). (5) Sub-paragraph (6) applies in the case of an intangible exit charge asset if, immediately after the migration accounting period, the remaining useful life of the asset for accountancy purposes is less than 10 years. (6) The plan must specify, in relation to the asset, how many years of the useful life of the asset remain (rounded up to the nearest whole year). (13) (1) This paragraph applies if, under an exit charge payment plan, some or all of the ECPP tax is to be paid in accordance with the standard instalment method. (2) The amount of the ECPP tax that is to be paid in accordance with the standard instalment method is payable in 6 instalments of equal amounts as follows— (a) the first instalment is due on the first day after the period of 9 months beginning immediately after the migration accounting period, and (b) the other 5 instalments are due one on each of the first 5 anniversaries of that day. (3) But if a relevant event occurs, the outstanding balance of the ECPP tax that is payable in accordance with the standard instalment method is payable on the date on which the next instalment of that tax would otherwise have been due under the plan. (4) A “relevant event” means— (a) the company becoming insolvent or entering into administration, (b) the appointment of a liquidator, (c) any event under the law of an EEA state outside the United Kingdom corresponding to an event specified in paragraph (a) or (b), or (d) the company ceasing to be resident in an EEA state and, on so ceasing, not becoming resident in any other EEA state. (14) (1) This paragraph applies if— (a) under an exit charge payment plan, the amount of ECPP tax attributable to an exit charge asset is to be paid in accordance with the realisation method, and (b) the asset is a TCGA or trading stock exit charge asset (see paragraph 3(2)(a) or 6(2)(a), as the case may be). (2) The amount of ECPP tax attributable to the asset under paragraph 10(6) is payable in relation to whichever is the first to occur of the following events— (a) the disposal of that asset at any time after— (i) the company ceases to be resident in the United Kingdom (in the case of a Part 1 company), or (ii) the occurrence of the PE qualifying event in respect of the asset (in the case of a Part 2 company), (b) the tenth anniversary of the end of the migration accounting period, or (c) a relevant event (as defined in paragraph 13(4)). (3) The date on which the amount is payable is— (a) in a case falling within sub-paragraph (2)(a) or (b), the date of the event referred to, and (b) in a case falling within sub-paragraph (2)(c), the relevant date or, if that date has already passed, the next anniversary of that date. (4) In sub-paragraph (3)(b), “relevant date” means the first day after the period of 9 months beginning immediately after the migration accounting period. (5) Section 21(2) of the 1992 Act (part disposals of assets) applies for the purposes of sub-paragraph (2)(a) as it applies for the purposes of that Act. (6) Where part of an asset is disposed of at any time after the event mentioned in sub-paragraph (2)(a), the amount of ECPP tax attributable to the asset under paragraph 10(6) is to be apportioned on a just and reasonable basis for the purpose of applying this paragraph to the part of the asset disposed of and the part which remains undisposed of. (15) (1) This paragraph applies if— (a) under an exit charge payment plan, the ECPP tax attributable to an exit charge asset or liability is to be paid in accordance with the realisation method, and (b) the asset or liability is— (i) a financial exit charge asset or liability, or (ii) an intangible exit charge asset, (see paragraph 3(2)(b) and (c) or 6(2)(b) and (c), as the case may be). (2) The amount of ECPP tax attributable to any such asset or liability under paragraph 10(6) is payable in a number of annual instalments of equal amounts. (3) The number of annual instalments is— (a) in a case where a number of years is specified in the plan in relation to the asset or liability by virtue of paragraph 12(4) or (6), that number, and (b) otherwise, 10. (4) The instalments are due as follows— (a) the first instalment is due on the first day after the period of 9 months beginning immediately after the migration accounting period, and (b) the other instalments are due one on each of the subsequent anniversaries of that day (until they are all paid). (5) But see paragraphs 16 and 17 for circumstances in which all or part of the outstanding balance of the amount of ECPP tax attributable to the asset or liability under paragraph 10(6) (“the outstanding balance in respect of the asset or liability”) becomes payable. (16) (1) This paragraph applies where the amount of ECPP tax attributable to an asset or liability under paragraph 10(6) is payable in instalments in accordance with paragraph 15. (2) All of the outstanding balance in respect of the asset or liability (as defined in paragraph 15(5)) is payable in accordance with sub-paragraph (3) if— (a) a trigger event occurs in relation to the asset or liability (see sub-paragraph (4)), or (b) a relevant event occurs (as defined in paragraph 13(4)), before the last instalment is payable in accordance with paragraph 15. (3) The outstanding balance is payable— (a) in a case falling within sub-paragraph (2)(a), on the date of the trigger event, and (b) in a case falling within sub-paragraph (2)(b), on the date on which the next instalment would otherwise have been due under the plan. (4) For the purposes of this paragraph, a trigger event occurs in relation to an asset or liability if— (a) in the case of a financial exit charge asset or liability, the company ceases to be party to the loan relationship or derivative contract in question, or (b) in the case of an intangible fixed asset, the asset is disposed of. (17) (1) This paragraph applies where— (a) the amount of ECPP tax attributable to an asset or liability under paragraph 10(6) is payable in instalments in accordance with paragraph 15, and (b) a partial trigger event occurs in relation to the asset or liability (see sub-paragraph (4)) before the last instalment is payable. (2) On the occurrence of that event, part of the outstanding balance in respect of the asset or liability (as defined in paragraph 15(5)) is payable. (3) The part payable under sub-paragraph (2) is so much of the outstanding balance in respect of the asset or liability as is attributable to the transaction mentioned in sub-paragraph (4)(a) or (b). (4) For the purposes of sub-paragraph (2), a partial trigger event occurs in relation to an asset or liability if— (a) in the case of a financial exit charge asset or liability— (i) there is a disposal of rights or liabilities under the loan relationship or derivative contract in question which amounts to a related transaction (as defined in section 304 or 596 of CTA 2009 as the case may be), but (ii) the transaction does not result in the company ceasing to be party to the relationship or contract, and (b) in the case of an intangible exit charge asset, there is a transaction which— (i) results in a reduction in the accounting value of the asset, but (ii) does not result in the asset ceasing to be recognised in the company's balance sheet. (5) Where part of the outstanding balance in respect of an asset or liability is paid in accordance with sub-paragraphs (2) and (3), the remaining instalments due under paragraph 15 in respect of the asset or liability continue to be payable so far as they relate to the remaining asset or liability (subject to paragraph 16 and this paragraph). (6) In sub-paragraph (5), the “remaining asset or liability” means— (a) in a case within sub-paragraph (4)(a), the loan relationship or derivative contract as it exists following the related transaction, (b) in a case within sub-paragraph (4)(b), the asset as it continues to be recognised on the balance sheet following the transaction mentioned in that sub-paragraph. (7) For the purposes of sub-paragraphs (3) and (5)— (a) the outstanding balance in respect of the asset or liability, and (b) the remaining instalments due under paragraph 15 in respect of the asset or liability, are to be apportioned on a just and reasonable basis between the transaction mentioned in sub-paragraph (4)(a) or (b) and the remaining asset or liability. (8) In relation to an intangible exit charge asset that has no balance sheet value (or no longer has a balance sheet value), sub-paragraph (4)(b) applies as if, immediately before the transaction, it did have a balance sheet value.

Amendments of FA 2009

7

In Schedule 56 to FA 2009 (penalty for failure to make payments on time), in the Table at the end of paragraph 1, after entry 6 insert—

6ZA	Corporation tax	Amount payable under an exit charge payment plan entered into in accordance with Schedule 3ZB to TMA 1970	The later of—the first day after the period of 12 months beginning immediately after the migration accounting period (as defined in Part 1 or 2 of Schedule 3ZB to TMA 1970, as the case may be), andthe date on which the amount is payable under the plan.

Commencement

8

• (1) The amendments made by this Schedule are treated as having come into force on 11 December 2012 in relation to an accounting period if the relevant day, in relation to that period, falls on or after 11 December 2012.

• (2) In sub-paragraph (1) “the relevant day”, in relation to an accounting period, means the first day after the period of 9 months beginning immediately after the accounting period.

• (3) But if the relevant day falls between 11 December 2012 and 31 March 2013 (inclusive), paragraphs 1(4) and 4(3) of Schedule 3ZB to TMA 1970 (inserted by this Schedule) have effect as if, in each case, for “before the end of the period of 9 months beginning immediately after the migration accounting period” there were substituted “ on or before 31 March 2013 ”.

SCHEDULE 50

Amendments to Schedule 24 to FA 2007: penalties for errors

1

• (1) In Schedule 24 to FA 2007 (penalties for errors), paragraph 13 (procedure: assessment) is amended as follows.

• (2) In sub-paragraph (1)(c), after “assessed” insert “ (subject to sub-paragraph (1ZB)) ”.

• (3) After sub-paragraph (1) insert—

(1ZA) Sub-paragraph (1ZB) applies where— (a) a person is at any time liable for two or more penalties relating to PAYE returns, or for two or more penalties relating to CIS returns, and (b) the penalties (“the relevant penalties”) are assessed in respect of more than one tax period (“the relevant tax periods”). (1ZB) A notice under sub-paragraph (1) in respect of any of the relevant penalties may, instead of stating the tax period in respect of which the penalty is assessed, state the tax year or the part of a tax year to which the penalty relates. (1ZC) For that purpose, a relevant penalty relates to the tax year or the part of a tax year in which the relevant tax periods fall. (1ZD) For the purposes of sub-paragraph (1ZA)— - “a PAYE return” means a return for the purposes of PAYE regulations; - “a CIS return” means a return for the purposes of regulations under section 70(1)(a) of FA 2004 in connection with deductions on account of tax under the Construction Industry Scheme.

Amendments to Schedule 55 to FA 2009: penalty for failure to make returns

2

Schedule 55 (penalty for failure to make returns etc) to FA 2009 is amended in accordance with paragraphs 3 to 9.

3

In paragraph 1 (returns etc in respect of which penalties are to be paid under that Schedule)—

• (a) in the definition of “penalty date” in sub-paragraph (4), after “document” insert “ falling within any of items 1 to 3 and 5 to 13 in the Table ”;

• (b) after sub-paragraph (4) insert—

(4A) The Treasury may by order make such amendments to item 4 in the Table as they think fit in consequence of any amendment, revocation or re-enactment of the regulations mentioned in that item.

4

In the Table at the end of paragraph 1, in item 4 (annual return of payments for purposes of PAYE regulations etc), for the words in the third column substitute—

Return under any of the following provisions of the Income Tax (PAYE) Regulations 2003 (S.I. 2003/2682)—regulation 67B (real time returns)regulation 67D (exceptions to regulation 67B)

.

5

In paragraph 2 (amount of penalty: occasional returns and returns for periods of 6 months or more), for “1 to 5” substitute “ 1 to 3, 5 ”.

6

After paragraph 6A insert—

(6B) Paragraphs 6C and 6D apply in the case of a return falling within item 4 in the Table. (6C) (1) If P fails during a tax month to make a return on or before the filing date, P is liable to a penalty under this paragraph in respect of that month. (2) But this is subject to sub-paragraphs (3) and (4). (3) P is not liable to a penalty under this paragraph in respect of a tax month as a result of any failure to make a return on or before the filing date which occurs during the initial period. (4) P is not liable to a penalty under this paragraph in respect of a tax month falling in a tax year if the month is the first tax month in that tax year during which P fails to make a return on or before the filing date (disregarding for this purpose any failure which occurs during the initial period). (5) In sub-paragraphs (3) and (4) “the initial period” means the period which— (a) begins with the day in the first tax year on which P is first required to make a return, and (b) is of such duration as is specified in regulations made by the Commissioners, and for this purpose “the first tax year” means the first tax year in which P is required to make returns. (6) P may be liable under this paragraph to no more than one penalty in respect of each tax month. (7) The penalty under this paragraph is to be calculated in accordance with regulations made by the Commissioners. (8) Regulations under sub-paragraph (7) may provide for a penalty under this paragraph in respect of a tax month to be calculated by reference to either or both of the following matters— (a) the number of persons employed by P, or treated as employed by P for the purposes of PAYE regulations; (b) the number of previous penalties incurred by P under this paragraph in the same tax year. (9) The Commissioners may by regulations disapply sub-paragraph (3) or (4) in such circumstances as are specified in the regulations. (10) If P has elected under PAYE regulations to be treated as different employers in relation to different groups of employees, this paragraph applies to P as if— (a) in respect of each group P were a different person, and (b) each group constituted all of P's employees. (11) Regulations made by the Commissioners under this paragraph may— (a) make different provision for different cases, and (b) include incidental, consequential and supplementary provision. (6D) (1) P may be liable to one or more penalties under this paragraph in respect of extended failures. (2) In this paragraph an “extended failure” means a failure to make a return on or before the filing date which continues after the end of the period of 3 months beginning with the day after the filing date. (3) P is liable to a penalty or penalties under this paragraph if (and only if)— (a) HMRC decide at any time that such a penalty or penalties should be payable in accordance with sub-paragraph (4) or (6), and (b) HMRC give notice to P specifying the date from which the penalty, or each penalty, is payable. (4) HMRC may decide under sub-paragraph (3)(a) that a separate penalty should be payable in respect of each unpenalised extended failure in the tax year to date. (5) In that case the amount of the penalty in respect of each failure is 5% of any liability to make payments which would have been shown in the return in question. (6) HMRC may decide under sub-paragraph (3)(a) that a single penalty should be payable in respect of all the unpenalised extended failures in the tax year to date. (7) In that case the amount of the penalty in respect of those failures is 5% of the sum of the liabilities to make payments which would have been shown in each of the returns in question. (8) For the purposes of this paragraph, an extended failure is unpenalised if a penalty has not already been imposed in respect of it under this paragraph (whether in accordance with sub-paragraph (4) or (6)). (9) The date specified in the notice under sub-paragraph (3)(b) in relation to a penalty— (a) may be earlier than the date on which the notice is given, but (b) may not be earlier than the end of the period mentioned in sub-paragraph (2) in relation to the relevant extended failure. (10) In sub-paragraph (9)(b) “the relevant extended failure” means— (a) the extended failure in respect of which the penalty is payable, or (b) if the penalty is payable in respect of more than one extended failure (in accordance with sub-paragraph (6)), the extended failure with the latest filing date.

7

In paragraph 18 (assessment), for sub-paragraph (5) substitute—

(5) Sub-paragraph (6) applies if— (a) an assessment in respect of a penalty is based on a liability to tax that would have been shown in a return, and (b) that liability is found by HMRC to be excessive. (6) HMRC may by notice to P amend the assessment so that it is based upon the correct amount. (7) An amendment under sub-paragraph (6)— (a) does not affect when the penalty must be paid; (b) may be made after the last day on which the assessment in question could have been made under paragraph 19.

8

• (1) Paragraph 19 (assessment) is amended as follows.

• (2) In sub-paragraph (2) after “Date A is” insert

— (a) in the case of an assessment of a penalty under paragraph 6C, the last day of the period of 2 years beginning with the end of the tax month in respect of which the penalty is payable, (b) in the case of an assessment of a penalty under paragraph 6D, the last day of the period of 2 years beginning with the filing date for the relevant extended failure (as defined in paragraph 6D(10)), and (c) in any other case,

.

• (3) In sub-paragraph (3)(a), after “return” insert “ or returns (as the case may be in relation to penalties under section 6C or 6D) ”.

9

• (1) Paragraph 27 (interpretation) is amended as follows.

• (2) After sub-paragraph (2) insert—

(2A) The Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

• (3) After sub-paragraph (3) insert—

(3A) Tax month” means the period beginning with the 6th day of a month and ending with the 5th day of the following month.

Amendments to Schedule 56 to FA 2009: penalty for failure to make payments on time

10

Schedule 56 (penalty for failure to make payments on time) to FA 2009 is amended in accordance with paragraphs 11 to 14.

11

In paragraph 1 (penalty for failure to pay tax), in sub-paragraph (4), for the words from “the date on which” to the end substitute “ the day after the date specified in or for the purposes of column 4 of the Table in relation to that amount. ”

12

• (1) Paragraph 6 (amount of penalty: PAYE and CIS amounts) is amended as follows.

• (2) For sub-paragraph (1) substitute—

(1) P is liable to a penalty under this paragraph, in relation to each tax, each time that P makes a default in relation to a tax year.

• (3) In sub-paragraph (2)—

• (a) in the opening words, after “default” insert “ in relation to a tax year ”;

• (b) in paragraph (a), at the end insert “ of tax payable in relation to the tax year ”;

• (c) in paragraph (b), at the end insert “ payable in relation to the tax year ”;

• (d) in paragraph (c), at the end insert “ payable in relation to the tax year ”;

• (e) in paragraph (d), at the end insert “ and due for the tax year ”.

• (4) For sub-paragraphs (3) to (7) substitute—

(3) But where a failure to make one of those payments (or to pay an amount comprising two or more of those payments) would, apart from this sub-paragraph, constitute the first default in relation to a tax year, that failure does not count as a default in relation to that year for the purposes of a penalty under this paragraph. (4) The amount of the penalty for a default made in relation to a tax year is determined by reference to— (a) the amount of the tax comprised in the default, and (b) the number of previous defaults that P has made in relation to the same tax year. (5) If the default is P's 1st, 2nd or 3rd default in relation to the tax year, P is liable, at the time of the default, to a penalty of 1% of the amount of tax comprised in the default. (6) If the default is P's 4th, 5th or 6th default in relation to the tax year, P is liable, at the time of the default, to a penalty of 2% of the amount of tax comprised in the default. (7) If the default is P's 7th, 8th or 9th default in relation to the tax year, P is liable, at the time of the default, to a penalty of 3% of the amount of tax comprised in the default. (7A) If the default is P's 10th or subsequent default in relation to the tax year, P is liable, at the time of the default, to a penalty of 4% of the amount of tax comprised in the default.

• (5) In sub-paragraph (8), for paragraph (b) substitute—

(b) a previous default counts for the purposes of sub-paragraphs (5) to (7A) even if it is remedied before the time of the default giving rise to the penalty.

• (6) After sub-paragraph (8) insert—

(8A) Regulations made by the Commissioners for Her Majesty's Revenue and Customs may specify— (a) circumstances in which, for the purposes of sub-paragraph (2), a payment of less than the full amount may be treated as a payment in full; (b) circumstances in which sub-paragraph (3) is not to apply. (8B) Regulations under sub-paragraph (8A) may— (a) make different provision for different cases, and (b) include incidental, consequential and supplementary provision.

13

After paragraph 9 insert—

(9A) In the application of the following provisions, no account shall be taken of a penalty under this Schedule— (a) section 97A of TMA 1970 (multiple penalties), (b) paragraph 12(2) of Schedule 24 to FA 2007 (interaction with other penalties), and (c) paragraph 15(1) of Schedule 41 to FA 2008 (interaction with other penalties).

14

• (1) Paragraph 11 (assessment of penalty) is amended as follows.

• (2) For sub-paragraph (4A) substitute—

(4A) If an assessment in respect of a penalty is based on an amount of tax due or payable that is found by HMRC to be excessive, HMRC may by notice to P amend the assessment so that it is based upon the correct amount. (4B) An amendment made under sub-paragraph (4A)— (a) does not affect when the penalty must be paid; (b) may be made after the last day on which the assessment in question could have been made under paragraph 12.

• (3) Omit sub-paragraph (5).

Consequential amendment

15

In consequence of paragraph 7, paragraph 10 of Schedule 10 to the Finance (No. 3) Act 2010 is repealed.

Commencement

16

• (1) The amendments made by paragraph 1 have effect in relation to any assessment of a penalty under Schedule 24 to FA 2007 made on or after the day on which this Act is passed.

• (2) The amendments made by paragraphs 2 to 9 and 15 have effect for the tax year 2014-15 and subsequent tax years in relation to failures to make returns with a filing date (as defined in paragraph 1(4) of Schedule 55 to FA 2009) on or after 6 April 2014.

• (3) The amendments made by paragraphs 10 to 14 have effect for defaults made in relation to the tax year 2014-15 and subsequent tax years (see paragraph 6(2) of Sch.56 to FA 2009 (as amended by paragraph 12(3) of this Schedule) as to when a default is made in relation to a tax year).

SCHEDULE 51

TMA 1970

1

TMA 1970 is amended in accordance with paragraphs 2 to 5.

2

• (1) Section 7 (notice of liability to income tax and capital gains tax) is amended as follows.

• (2) In subsection (1)—

• (a) for paragraph (b) substitute—

(b) falls within subsection (1A) or (1B),

, and

• (b) for “six months from the end of that year” substitute “ the notification period ”.

• (3) After subsection (1) insert—

(1A) A person falls within this subsection if the person has not received a notice under section 8 requiring a return for the year of assessment of the person's total income and chargeable gains. (1B) A person falls within this subsection if the person— (a) has received a notice under section 8 requiring a return for the year of assessment of the person's total income and chargeable gains, and (b) has received a notice under section 8B withdrawing the notice under section 8. (1C) In subsection (1) “the notification period” means— (a) in the case of a person who falls within subsection (1A), the period of 6 months from the end of the year of assessment, or (b) in the case of a person who falls within subsection (1B)— (i) the period of 6 months from the end of the year of assessment, or (ii) the period of 30 days beginning with the day after the day on which the notice under section 8 was withdrawn, whichever ends later.

• (4) In subsection (2), for the words from “shall have effect” to the end substitute “ and subsections (1A) to (1C) have effect as if references to a notice under section 8 were references to a notice under section 8A. ”

3

After section 8A insert—

(8B) (1) This section applies to a person who is given a notice under section 8 or 8A. (2) Before the end of the withdrawal period, the person may request HMRC to withdraw the notice. (3) But no request may be made if— (a) the person has made a return under section 8 or 8A in pursuance of the notice under that section, or (b) the person has been served with notice of a determination under section 28C by virtue of the notice under section 8 or 8A having been given to the person. (4) If, on receiving a request, HMRC decide to withdraw the notice under section 8 or 8A they must do so by giving the person a notice under this section. (5) A notice under this section must specify the date on which the notice under section 8 or 8A is withdrawn. (6) For the purposes of subsection (2) “the withdrawal period” means— (a) the period of 2 years beginning with the end of the year of assessment to which the notice under section 8 or 8A relates, or (b) in exceptional circumstances, such extended period as HMRC may agree with the person. (7) Withdrawal of a notice given to a person under section 8 or 8A in relation to a year of assessment does not prevent HMRC from giving the person a further notice under that section in relation to that year. (8) See paragraph 17A of Schedule 55 to FA 2009 as to the cancellation of liability to a penalty under any paragraph of that Schedule by including provision in a notice under this section.

4

After section 12AA insert—

(12AAA) (1) This section applies to a partner who is required by a notice under section 12AA to deliver a return. (2) Before the end of the withdrawal period, the partner may request HMRC to withdraw the notice. (3) But no request may be made if the partner has delivered a return under section 12AA in pursuance of the notice. (4) If, on receiving a request, HMRC decide to withdraw the notice under section 12AA they must do so by giving the partner a notice under this section. (5) A notice under this section must specify the date on which the notice under section 12AA is withdrawn. (6) For the purposes of subsection (2) “the withdrawal period” means— (a) in the case of a partnership which includes one or more companies, the period of 2 years beginning with the end of the period in respect of which the return under section 12AA was required by the notice under that section, (b) in the case of any other partnership, the period of 2 years beginning with the end of the year of assessment to which the notice under section 12AA relates, or (c) in the case of any partnership, such extended period as HMRC may agree with the partner in exceptional circumstances. (7) Withdrawal of a notice under section 12AA in relation to the period in respect of which the return under that section was required or year of assessment (as the case may be) does not prevent HMRC from serving a further notice under section 12AA requiring a partner to deliver a return in relation to that period or year. (8) References in subsections (2) to (6) to the partner include references to a successor of the partner (see section 12AA(11)). (9) See paragraph 17B of Schedule 55 to FA 2009 as to the cancellation of liability to a penalty under any paragraph of that Schedule by including provision in a notice under this section.

5

In section 59B (payment of income and capital gains tax), after subsection (4) insert—

(4ZA) In a case in which the notice required by section 7 was given following the receipt of a notice under section 8B, subsections (3) and (4) apply as if— (a) the reference to the notice required by section 7 were a reference to the original notice required by that section, and (b) the references to notice under section 8 or 8A were references to the original notice under that section. (4ZB) In subsection (4ZA) the references to original notices are to notices given before the notice under section 8B.

FA 2008

6

• (1) Paragraph 7 of Schedule 41 to FA 2008 (potential lost revenue in respect of failure to comply with relevant obligation) is amended as follows.

• (2) After sub-paragraph (1) insert—

(1A) In the case of an obligation under section 7 of TMA 1970 which arises by virtue of subsection (1B) of that section, the potential lost revenue is so much of any income tax or capital gains tax to which P is liable in respect of the tax year in question as is, by reason of the failure to comply with the obligation— (a) where the period specified in subsection (1C)(b)(ii) of that section applies and ends after the relevant date, unpaid at the end of that period, or (b) in any other case, unpaid on the relevant date. (1B) For the purposes of sub-paragraph (1A) the relevant date is— (a) 31 January following the tax year, or (b) if, after that date, HMRC refund a payment on account in respect of the tax year to P, the day after the refund is issued.

• (3) In sub-paragraph (2), after “and a tax year” insert “ (not falling within sub-paragraph (1A)) ”.

FA 2009

7

• (1) Paragraph 3 of Schedule 53 to FA 2009 (late payment interest start date: amendments and discovery assessments etc) is amended as follows.

• (2) In sub-paragraph (3)—

• (a) for “as required” substitute “ in accordance with a requirement ”, and

• (b) after “tax)” insert “ that arose by virtue of subsection (1A) of that section ”.

• (3) After that sub-paragraph insert—

(3A) In the case of a person (“P”) who failed to give notice in accordance with a requirement under section 7 of TMA 1970 that arose by virtue of subsection (1B) of that section, the reference in sub-paragraph (1)(c) to an assessment which ought to have been made by P is a reference to the assessment which P would have been required to make if no notice relating to the year of assessment concerned had been withdrawn under section 8B of that Act.

8

In Schedule 55 to that Act (penalty for failure to make returns etc), after paragraph 17 insert—

(17A) (1) This paragraph applies where— (a) P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 1 or 2 in the Table, and (b) P makes a request under section 8B of TMA 1970 for HMRC to withdraw a notice under section 8 or 8A of that Act. (2) The notice under section 8B of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice. (17B) (1) This paragraph applies where— (a) P is liable for a penalty under any paragraph of this Schedule in relation to a failure to make a return falling within item 3 in the Table, and (b) a request is made under section 12AAA of TMA 1970 for HMRC to withdraw a notice under section 12AA of that Act. (2) The notice under section 12AAA of TMA 1970 may include provision under this paragraph cancelling liability to the penalty from the date specified in the notice.

Commencement

9

• (1) The amendments made by this Schedule have effect—

• (a) in relation to a return under section 12AA of TMA 1970 for a partnership which includes one or more companies, in respect of a return for a relevant period beginning on or after 6 April 2012, and

• (b) in relation to a return under that section for any other partnership, or a return under section 8 or 8A of that Act, in respect of a return for a year of assessment beginning on or after 6 April 2012.

• (2) In sub-paragraph (1)(a), “relevant period” means a period in respect of which a return is required.

Personal allowance for 2013-14 for those born after 5 April 1948

Basic rate limit for 2013-14

Small profits rate and fractions for financial year 2013

Glasgow Commonwealth Games

Childcare exemptions: meaning of disabled child

Tax advantaged employee share schemes

Taxable benefit of cars: the appropriate percentage

Qualifying insurance policies

Arrangements for transfers of companies

Change in company ownership: shell companies

Tier two capital

Lifetime allowance charge: power to amend the transitional provision in Part 2 of Schedule 18 to FA 2011 etc

Lifetime allowance charge: new standard lifetime allowance for the tax year 2014-15 and subsequent tax years

Annual allowance: new annual allowance for the tax year 2014-15 and subsequent tax years

Drawdown pensions and dependants' drawdown pensions

Bridging pensions

Overseas pension schemes: general

Overseas pension schemes: information and inspection powers

SEIS: income tax relief

SEIS: re-investment relief

EMI options and entrepreneurs' relief etc

Attribution of gains to members of non-resident companies

Heritage maintenance settlements

Charge on certain high value disposals by companies etc

Cars with low carbon dioxide emissions

Gas refuelling stations: extension of time limit for capital allowance

Expenditure on decommissioning certain redundant plant or machinery

Restrictions on allowances for certain oil-related expenditure

Interim relief

Indexation of annual chargeable amounts

Expenditure on decommissioning onshore installations

Open- ended investment companies and authorised unit trusts

Demolition of a dwelling

Open- ended investment companies and authorised unit trusts

Fuel duties: rates of duty and rebates from 1 April 2013

Rates of alcoholic liquor duties

Rates of alcoholic liquor duties

Demolition without replacement

Treatment of liabilities for inheritance tax purposes

Rates of alcoholic liquor duties

Air passenger duty: miscellaneous provision

Air passenger duty: miscellaneous provision

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

Pre-completion transactions

Bank levy: rates from 1 January 2014

Trusts with vulnerable beneficiary

Trusts with vulnerable beneficiary

Bank levy: rates from 1 January 2013

Power to detain goods

Self assessment: withdrawal of notice to file etc

Power to detain goods

General anti-abuse rule

Interpretation of Part 5

Trusts with vulnerable beneficiary

Self assessment: withdrawal of notice to file etc

Penalty instead of forfeiture of larger ships

Data-gathering from merchant acquirers etc

Self assessment: withdrawal of notice to file etc

Interpretation

Chargeable periods which straddle 1 January 2013

Straddling period beginning before the relevant date

First straddling period beginning on or after the relevant date

Chargeable periods which straddle 1 January 2015

Operation of annual investment allowance where restrictions apply

Introduction

Share incentive plans

SAYE option schemes

CSOP schemes

Transitional provision

Introduction

Share incentive plans

SAYE option schemes

CSOP schemes

Enterprise management incentives

Introduction

Share incentive plans

SAYE option schemes

CSOP schemes

Introduction

Share incentive plans

SAYE option schemes

CSOP schemes

Introduction

Company's power to direct reinvestment of cash dividends

Removal of limit on amount reinvested

Amounts to be carried forward

The limit

Consequential amendments

Commencement and transitional provision

Introductory

Eligibility to calculate profits on cash basis

Rules restricting deductions

Rules allowing deductions

Receipts

Amounts not reflecting commercial transactions

Herd basis rules

Sound recordings

Telecommunication rights

Long funding leases

Specific trades

Changes in trading stock

Unremittable amounts

Disposal and acquisition of know-how

Averaging profits of farmers and creative artists

Compensation for compulsory slaughter of animal

Oil activities

Adjustment income

Adjustments for capital allowances

Post-cessation receipts

Rent-a-room relief

Qualifying care relief

TMA 1970

TCGA 1992

CAA 2001

ITTOIA 2005

ITA 2007

Main provision

Commencement and transitional provision

Deduction from interest payable on compensation

Deduction from yearly interest: specialties

Payment of interest in kind

Commencement

Key amendments to Part 4 of ITTOIA 2005

Consequential amendments

TCGA 1992

ITTOIA 2005

FA 2007

ITA 2007

CTA 2010

FA 2010

Commencement and transitional provision

Amendments of Part 14 of CTA 2010

Consequential amendments

Commencement

New Part 14A of CTA 2010

Consequential amendments

Commencement and transitional provision

FA 1998

FA 2007

CTA 2010

Amendments of Part 13 of CTA 2009

Consequential amendments

ICTA

FA 1998

CAA 2001

FA 2007

CTA 2009

FA 2009

CTA 2010

Consequential renumbering

Commencement

Introductory

Meaning of “open to the whole community”

Meaning of “organised on an amateur basis”

Clubs consisting mainly of social members

Exemptions

Power to specify income condition

Commencement

Entrepreneurs' relief to apply to shares acquired under EMI option

Identification of shares acquired under EMI option

Commencement and transitional provision

Corporation Tax Act 2009

Corporation Tax Act 2010

Introductory

Restrictions where certain conditions met

Extension of restrictions to other qualifying activities

Commencement

Income tax: carry forward of relief

Corporation tax: carry forward of relief

Corporation tax: limit on State aid

Income tax

Corporation tax

Introductory

TCGA 1992

FA 2004

ITTOIA 2005

ITA 2007

FA 2008

CTA 2009

FA 2009

CTA 2010

TIOPA 2010

FA 2011

FA 2012

Taxes Management Act 1970

Finance Act 1998

Income Tax (Trading and Other Income) Act 2005

Expenditure on abandonment guarantees

Expenditure under abandonment guarantees

Reimbursement by defaulter in respect of abandonment expenditure

Consequential amendments

Calculation of profits chargeable to corporation tax and supplementary charge

Calculation of profits chargeable to income tax

Contents of return

Amendment of return by chargeable person

Correction of return by HMRC

Duty to keep and preserve records

Preservation of information etc

Penalty for failure to keep and preserve records

Notice of enquiry

Scope of enquiry

Amendment of self assessment during enquiry to prevent loss of tax

Referral of questions to tribunal during enquiry

Withdrawal of notice of referral

Effect of referral on enquiry

Effect of determination

Tribunal to which referrals are made

Completion of enquiry

Direction to complete enquiry

Determination of tax chargeable if no return delivered

Determination to have effect as a self assessment

Determination superseded by actual self assessment

Assessment where loss of tax discovered

Assessment to recover excessive repayment of tax

References to “the taxpayer”

Conditions for making assessment where return has been delivered

Time limit for assessments

Losses brought about carelessly or deliberately

Assessment procedure

Relief in case of double assessment

Claim for relief for overpaid tax etc

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

Making a claim

The claimant: partnerships

Assessment of claimant in connection with claim

Contract settlements

Right of appeal

Notice of appeal

Late notice of appeal

Steps that may be taken following notice of appeal

Right of appellant to require review

Offer of review by HMRC

Nature of review

Effect of conclusions of review

Notifying appeal to tribunal after appellant has required review

Notifying appeal to tribunal after HMRC have offered review

Interpretation of paragraphs 38 to 44

Settling of appeals by agreement

Appeal does not postpone recovery of tax

Application for payment of tax to be postponed

Agreement to postpone payment of tax

Assessments and self assessments

Tribunal determinations

Payment of tax where appeal has been determined

Payment of tax where there is a further appeal

References to “the tribunal”

Application of Schedule in cases involving joint liability to tax

Partnerships

Meaning of “return”

Meaning of “filing date”

Errors in returns

Failure to make returns

Failure to make payments on time

Provisional collection of taxes

Disclosure of tax avoidance schemes

Definitions relating to charities

IHTA 1984

Commencement

Introductory

Valuation of supplies for private use

Supplies to employees etc at less than open market value

Commencement and transitional provision

Amendments of FA 2003

Minor and consequential amendments

Application of amendments

Transactions to which section 29 of the Scotland Act 2012 applies

Introduction

Leases that continue after a fixed term

Agreement for lease and assignment of agreement for lease

Abnormal rent increases

Commencement

New provision

Commencement

The GAAR Advisory Panel

Meaning of “designated HMRC officer”

Notice to taxpayer of proposed counteraction of tax advantage

Referral to GAAR Advisory Panel

Decision of GAAR Advisory Panel and opinion notices

Notice of final decision after considering opinion of GAAR Advisory Panel

Notices may be given on assumption that tax advantage does arise

Inheritance Tax Act 1984

Taxation of Chargeable Gains Act 1992

Finance Act 2005

Interpretation: relevant settlement

Introduction

Interpretation of enactments

The basic rule

The automatic residence test

The automatic UK tests

The automatic overseas tests

The sufficient ties test

Sufficient UK ties

Introduction

Days spent

Days spent “in” a period

Home

Work

Location of work

Rules for calculating the reference period

Significant breaks from UK or overseas work

Relevant jobs on board vehicles, aircraft or ships

UK ties

Family tie

Accommodation tie

Work tie

90-day tie

Country tie

Introduction

Definition of a “split year”

Case 1: starting full-time work overseas

Case 2: the partner of someone starting full-time work overseas

Case 3: ceasing to have a home in the UK

Case 4: starting to have a home in the UK only

Case 5: starting full-time work in the UK

Case 6: ceasing full-time work overseas

Case 7: the partner of someone ceasing full-time work overseas

Case 8: starting to have a home in the UK

General rules for construing Cases 1 to 8

The overseas part

Priority between Cases 1 to 3

Priority between Cases 4 to 8

The UK part

Special charging rules for employment income

Special charging rules for pension income

PAYE income

Special charging rules for trading income

Special charging rules for property income

Special charging rules for savings and investment income

Special charging rules for miscellaneous income

Special charging rules for relevant foreign income charged on remittance basis

Special charging rules for capital gains

Trustees of a settlement

Definitions in enactments relating to income tax and CGT

Introduction

Meaning of temporarily non-resident

Residence periods

Sole UK residence

Temporary period of non-residence

Year of departure

Period of return

Consequential amendments: income tax

Consequential amendments: capital gains tax

New special rule: lump sum payments under pension schemes etc

New special rule: distributions to participators in close companies etc

New special rule: chargeable event gains

Interpretation

Consequential amendments

Commencement

Transitional and saving provision

Remittance basis restricted to non-doms

Treatment of relevant foreign earnings

Consequential amendments

Commencement

Savings

Interpretation

ICTA

ITEPA 2003

ITTOIA 2005

ITA 2007

Commencement

Savings

TCGA 1992

Commencement

FA 1916

F(No.2)A 1931

TMA 1970

IHTA 1984

FA 2004

FA 2005

F(No.2)A 2005

CTA 2009

CTA 2010

TIOPA 2010

Constitutional Reform and Governance Act 2010

Relevant finance leases etc

Limit on double taxation relief in cases involving qualifying loan relationships of CFCs

Miscellaneous

Commencement and transitional provision

Proceeds of Crime Act 2002

Commissioners for Revenue and Customs Act 2005

Relationship of provisions of 2005 Act with provisions of 2002 Act

Consequential amendments

Amendments of TMA 1970

Amendments of FA 2009

Commencement

Amendments to Schedule 24 to FA 2007: penalties for errors

Amendments to Schedule 55 to FA 2009: penalty for failure to make returns

Amendments to Schedule 56 to FA 2009: penalty for failure to make payments on time

Consequential amendment

Commencement

TMA 1970

FA 2008

FA 2009

Commencement

Editorial notes

[^key-b8e33f96fbb4dbcfcf90acfa126c6be3]: Sch. 21 para. 2 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-62e192f91a77b84b444e91f3a44c1a18]: Sch. 21 para. 3 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-415a03f5db569b31df7567fe8089d6ec]: Sch. 21 para. 4 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-aca2c01a70e32e721a74f1eb9c9c5542]: Sch. 21 para. 5 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-4b4741cdb0f258bd7e817d1a818ab66e]: Sch. 21 para. 6 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-6f16c0f60cbdae79adabe891512ca79e]: Sch. 21 para. 7 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-bb3136a1bfe6601c1c4fa82e7ae04dd1]: Sch. 21 para. 8 in force at 1.4.2010 for the purposes of the amendments made by that paragraph so far as not already in force by S.I. 2015/674, art. 2

[^key-3102f546138f6caec16e1acf3aa30986]: S. 147 applied by 2003 c. 14, Sch. 4A para. 5E(9) (as inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(4))

[^key-c106ca7794698953f49e478f7182fbd1]: S. 172(2)-(7) applied by 2003 c. 14, Sch. 4A para. 5A(10)(b) (as inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2013 (c. 29), Sch. 40 para. 2(4))

[^key-e76740ec37e7bb3fcc5b9e9cb8bb1595]: Sch. 16 para. 1 in force at 19.7.2013 for the purposes of the amendment made by that paragraph, so far as it is not already in force by S.I. 2013/1817, art. 2(1)

[^key-1c4fc655e23ae274fbe9a7c6ace07850]: Sch. 18 para. 1 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-20dd97b135a1c5bbe62f878cc88afe81]: Sch. 18 para. 3 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-db2c99ed4d9f51c840e0260a54c425c4]: Sch. 18 para. 4 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-f10708ca51f6494f6c4988c0d9df9487]: Sch. 18 para. 5 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-4263e7ac1f3a873b2fd29f4ad4756e55]: Sch. 18 para. 7 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-2565009d4263fa5660751084dc3d44fd]: Sch. 18 para. 8 in force at 19.7.2013 for the purposes of the amendment made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-726d750f22c331fe1e289d4a5dc1c850]: Sch. 18 para. 9 in force at 19.7.2013 for the purposes of the amendment made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-14660595c8893116bfcc30800f76e591]: Sch. 18 para. 10 in force at 19.7.2013 for the purposes of the amendment made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-9e3ed6d3a17ce8d72abde20684ae9a79]: Sch. 18 para. 12 in force at 19.7.2013 for the purposes of the amendment made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-48ef7dbf3a70fd77dcb9dfb95cef2659]: Sch. 18 para. 13 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-512608cbd060ae1f3084b41d5cb05bcd]: Sch. 18 para. 14 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-87561dc0a8089abf6c17fc309c1abdfc]: Sch. 18 para. 15 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-8f756830e83c9fb06566bb085d22e49e]: Sch. 18 para. 16 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-ef439afeedfdb1c392d4b6e730f5c192]: Sch. 18 para. 18 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-a792553b670849a1cdbe665e0e6134cf]: Sch. 18 para. 19 in force at 19.7.2013 for the purposes of the amendment made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-749ab360b053d0efbd4f5a7fdf44cca9]: Sch. 18 para. 20 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-749ebfd32a89c0ee353e653d343f00ea]: Sch. 18 para. 21 in force at 19.7.2013 for the purposes of the amendments made by that paragraph, so far as relating to television tax relief by S.I. 2013/1817, art. 2(2)

[^key-51c8114e2be0f9a12cdfd34b46c2ffa4]: Sch. 23 para. 2 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-e15e3059cebdc41cb0f83f561f482dda]: Sch. 23 para. 3 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-a3fc588792fa8fc29df585730f1e4bfb]: Sch. 23 para. 4 in force at 1.9.2013 for the purposes of the amendments made by that paragraph by S.I. 2013/1755, art. 2

[^key-051030766d647e5ffa3255a32114fccb]: Sch. 23 para. 5 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-36c9ff9d7ddff4df21d66ff1a512e9f9]: Sch. 23 para. 6 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-f0c0c53e1067e4bd980a0770d2142775]: Sch. 23 para. 7 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-6d9285839a4fdd2d592739729a9bba2d]: Sch. 23 para. 8 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-7e24342fd06bd1e2bdf70cea31c98a6c]: Sch. 23 para. 9 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-eddc54b71087f776294b400b398cb3ef]: Sch. 23 para. 10 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2

[^key-eafc5646374af5316637a2d9398203d9]: Sch. 23 para. 11 in force at 1.9.2013 for the purposes of the amendment made by that paragraph by S.I. 2013/1755, art. 2