Finance Act 2013

[^key-7bededce2150bbef62af55b1d1610fbf]: Words in Sch. 43C para. 1 substituted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(3)

[^key-e959398db709bca7d3de50ffe309fc7f]: Sch. 43C para. 2(1) substituted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(4)(a)

[^key-6c6df099efdf6520c39e64976f577aa9]: Word in Sch. 43C para. 2(5) substituted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(4)(c)

[^key-1149dfd45518e2154c0134c64b453c27]: Words in Sch. 43C para. 3(1) omitted (with effect in accordance with s. 124(2) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 32 para. 13(5)

[^key-cc9a5a7728879cda653ad179e6cc3b01]: Words in Sch. 43C para. 4(1) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(6)

[^key-9eb12bcc972fbe31fbdb472110a1843b]: Words in Sch. 43C para. 5(1) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(7)(a)

[^key-0deac6e679f4b3e5e72f647f6ba71648]: Sch. 43C para. 5(2)(a) substituted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(7)(b)

[^key-ca1e7c9102cd8478dabcb99f2b254cfe]: Words in Sch. 43C para. 5(5) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(7)(c)

[^key-02d47bc5233268e4bf3041a247490dba]: Words in Sch. 43C para. 8(1)(b) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(8)(a)

[^key-094b9a90e3c5537911a61242259028f1]: Words in Sch. 43C para. 8(4) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(8)(b)

[^key-2b9ace196a5f9f23c71db69166b70e16]: Words in Sch. 43C para. 9(1)(a) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(9)(a)

[^key-3cdb562bf185c4b5532cc2c80483fbf6]: Sch. 43C para. 9(1A) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(9)(b)

[^key-eb93ecb323f7a0be61f290af8a3598c2]: Words in Sch. 43C para. 10(1) inserted (with effect in accordance with s. 124(2) of the amending Act) by Finance Act 2021 (c. 26), Sch. 32 para. 13(10)

[^key-36851915aa6f9e1ab3bc01a14dea9c5e]: S. 30 omitted (with effect in accordance with Sch. 4 para. 5(1) of the amending Act) by virtue of Finance Act 2022 (c. 3), Sch. 4 para. 2

[^key-c0e41db012c335041fb7f5312562c651]: Words in Sch. 22 para. 1(3) inserted (with effect for the tax year 2023-24 and subsequent tax years) by Finance (No. 2) Act 2023 (c. 30), s. 23(6)(8)

[^key-89028c8e520cf36b458c57bc96d91c2a]: Pt. 3 modified (temp.) (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 24 para. 2

[^key-51251c692b2e717ad2c396417cb1a6d8]: S. 222 repealed (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 349(11)(a)

[^key-d9175c39135ae388bbbbb9f414419dd2]: S. 206(3)(h) inserted (31.12.2023 in relation to accounting periods commencing on or after that date) by Finance (No. 2) Act 2023 (c. 30), s. 264, Sch. 14 para. 68(4)

[^key-a2ede2211b4fd12d511f404dce11f8c9]: S. 206(3)(i) inserted (31.12.2023 in relation to accounting periods commencing on or after that date) by Finance (No. 2) Act 2023 (c. 30), s. 278, Sch. 18 para. 7(4)

[^key-a0edfacf02ca301d443037242f970388]: Sch. 4 para. 3 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(a), 47 (with Sch. 10 paras. 48-50)

[^key-9180f303aa96ab214d000ac5834aedf7]: Sch. 4 para. 4 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(a), 47 (with Sch. 10 paras. 48-50)

[^key-2b66e6036db6b8ebbc233ecebac9a447]: Sch. 4 para. 10 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(a), 47 (with Sch. 10 paras. 48-50)

[^key-286ca141cf184be98004ac7ce6c33340]: Sch. 4 para. 14 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(a), 47 (with Sch. 10 paras. 48-50)

[^key-9ca5eecc8f27efe8fe0696090e90209a]: Sch. 4 para. 15 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(a), 47 (with Sch. 10 paras. 48-50)

[^key-c1b95273a6665f1362a4c56e61102e5c]: Sch. 4 para. 39(3) omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(a), 47 (with Sch. 10 paras. 48-50)

[^key-70f9fc9822309ee26717471d77f11047]: Sch. 4 para. 44 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(b), 47 (with Sch. 10 paras. 48-50)

[^key-0f8509165a13a2396d3d402c7de9d18d]: Sch. 4 para. 54 omitted (with effect for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2024 (c. 3), Sch. 10 paras. 46(b), 47 (with Sch. 10 paras. 48-50)

[^key-97359ade3114251261f78fceabd5e135]: Words in Sch. 22 para. 1(1)(b) substituted (with effect for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 91(2), 124 (with Sch. 9 paras. 125-132)

[^key-b84cac40de3979289d311fe7ce92acf3]: Words in Sch. 43C para. 8(3)(b) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(a); S.I. 2024/440, reg. 2

[^key-7bb50f8b7f96487ad1c6e2e941d05191]: Word in Sch. 43C para. 8(5) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(b)(i); S.I. 2024/440, reg. 2

[^key-64c04b00dc0add22c2d62e2269033557]: Sch. 43C para. 8(5)(e) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(b)(ii); S.I. 2024/440, reg. 2

[^key-94ad27ac6284292f47a5b6ad8d477c8b]: Word in Sch. 43C para. 8(6)(a)(ii) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(i)(a); S.I. 2024/440, reg. 2

[^key-5edf307aad353f4eac5999743e03aa43]: Sch. 43C para. 8(6)(a)(iv) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(i)(b); S.I. 2024/440, reg. 2

[^key-911cb87a20d78c041c5ac9375f5d0723]: Word in Sch. 43C para. 8(6)(b)(ii) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(ii)(a); S.I. 2024/440, reg. 2

[^key-9118376750355451622904bc4a1e38b4]: Sch. 43C para. 8(6)(b)(iv) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(ii)(b); S.I. 2024/440, reg. 2

[^key-892b046144a6610133d0b9e04689c75f]: Word in Sch. 43C para. 8(6)(c)(ii) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(iii)(a); S.I. 2024/440, reg. 2

[^key-f162e672f021c28ae8219ef2d6a10011]: Sch. 43C para. 8(6)(c)(iv) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(iii)(b); S.I. 2024/440, reg. 2

[^key-8dd1f78861bedffe0af292a335388c79]: Word in Sch. 43C para. 8(6)(d)(ii) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(iv)(a); S.I. 2024/440, reg. 2

[^key-9c51978d16c30a442862a7a49c2a2bf7]: Words in Sch. 43C para. 8(6)(d)(iv) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 42(c)(iv)(b); S.I. 2024/440, reg. 2

[^M_F_57a06ded-6ccf-4946-ffa3-7b296e7947ee]: Words in s. 150(2)(a) omitted (retrospective to 6.3.2024) by virtue of Finance (No. 2) Act 2024 (c. 12), s. 9(13)(a)(ii)(14)

[^M_F_b1a11981-3e43-4314-9c3c-951c5357160f]: Word in s. 150(3) substituted (retrospective to 6.3.2024) by Finance (No. 2) Act 2024 (c. 12), s. 9(13)(b)(14)

[^M_F_2a9c595f-62e9-42af-c83e-cd23f8d87bde]: S. 150(4)(a)-(d) substituted for s. 150(4)(a)-(c) (retrospective to 6.3.2024) by Finance (No. 2) Act 2024 (c. 12), s. 9(13)(c)(14)

[^M_F_a6999bfb-b308-40e8-8995-eaf303c4362c]: Word in s. 150(2)(a) substituted (retrospective to 6.3.2024) by Finance (No. 2) Act 2024 (c. 12), s. 9(13)(a)(i)(14)

[^M_F_1ad71223-1ce5-4a53-e226-0902200b34d2]: Words in Sch. 43C para. 11(e)(ii) substituted (with effect in relation to accounting periods beginning on or after 1.4.2024) by Finance Act 2024 (c. 3), Sch. 1 paras. 15, 16; S.I. 2024/286, reg. 2

[^key-28799737cbb02b79c7ea2d20b09b4330]: Sch. 22 para. 1(2)(3) substituted for Sch. 22 para. 1(2) (18.11.2024 for the tax year 2024-25 and subsequent tax years) by The Pensions (Abolition of Lifetime Allowance Charge etc) (No. 2) Regulations 2024 (S.I. 2024/1012), regs. 1(2)(3), 14

[^key-17eec8816fb1db20fffaf6a77d7a76e6]: Words in Sch. 45 para. 145 substituted (17.1.2025) by Neonatal Care (Leave and Pay) Act 2023 (c. 20), s. 3(3), Sch. para. 58; S.I. 2025/41, reg. 2

[^M_F_2ad305fd-2c7e-4505-e0d6-a02fa6754547]: Word in s. 157(1)(b) omitted (30.10.2024) by virtue of Finance Act 2025 (c. 8), s. 55(1)(3)

[^M_F_94f42450-7881-4c77-ba30-e8474b0ffde4]: Words in s. 157A(11) inserted (30.10.2024) by Finance Act 2025 (c. 8), s. 54(2)(c)(3)

[^M_F_c7d9bef6-aef0-495d-e1a6-c75bd92f833b]: Words in s. 157(9) inserted (30.10.2024) by Finance Act 2025 (c. 8), s. 54(1)(c)(3)

[^M_F_6a76c51c-41fe-4db4-e2c6-ac303285eada]: Words in s. 157(4) inserted (30.10.2024) by Finance Act 2025 (c. 8), s. 54(1)(b)(3)

[^M_F_862765c4-6ada-44b6-8725-6408104ee5d6]: Word in s. 157 heading omitted (30.10.2024) by virtue of Finance Act 2025 (c. 8), s. 55(1)(3)

[^M_F_8d2b2c34-c5bf-47b3-b255-18ae2ac62790]: Words in s. 157A(4) substituted (30.10.2024) by Finance Act 2025 (c. 8), s. 54(2)(a)(3)

[^M_F_7dfd175d-812f-49f0-8878-7970e54d1463]: Words in s. 157A(6) inserted (30.10.2024) by Finance Act 2025 (c. 8), s. 54(2)(b)(3)

[^M_F_2c951446-475b-4ef6-cd89-0caab8d7064a]: S. 157B inserted (30.10.2024) by Finance Act 2025 (c. 8), s. 55(2)(3)

[^M_F_f14e8e11-0f37-4d7d-8a7b-8b71a4e70249]: Words in s. 157(2) substituted (30.10.2024) by Finance Act 2025 (c. 8), s. 54(1)(a)(3)

[^key-3cee5952b8329d1f5b3fa2a1ac66575b]: Words in s. 130(6) renumbered as s. 130(6)(a) (16.12.2025) by The Infrastructure (Wales) Act 2024 (Consequential Amendments) Order 2025 (S.I. 2025/1330), arts. 1(3), 4(b)(i)

[^key-65350958443fb3d0632f9a8e68f8a2db]: Words in s. 130(3) substituted (16.12.2025) by The Infrastructure (Wales) Act 2024 (Consequential Amendments) Order 2025 (S.I. 2025/1330), arts. 1(3), 4(a)

[^key-218b3c3fa73740ac01f1c8b4ea64f331]: S. 130(6)(b) inserted (16.12.2025) by The Infrastructure (Wales) Act 2024 (Consequential Amendments) Order 2025 (S.I. 2025/1330), arts. 1(3), 4(b)(ii)

[^M_F_da6238f4-aeec-44e0-df28-1d7ab204e86b]: S. 106(6) omitted (retrospectively) by virtue of Finance Act 2026 (c. 11), s. 114

Interpretation

Interpretation

Power to detain goods

Penalty instead of forfeiture of larger ships

Data-gathering from merchant acquirers etc

Short title

Interpretation

Data-gathering from merchant acquirers etc

Corporation tax: deferral of payment of exit charge

Restrictions on interim payments in proceedings relating to taxation matters

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

Arrangements for transfers of companies

Corporation tax: tax mismatch schemes

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

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

Bridging pensions

Bridging pensions

Overseas pension schemes: information and inspection powers

Overseas pension schemes: information and inspection powers

SEIS: re-investment relief

SEIS: re-investment relief

Disincorporation relief

Charge on certain high value disposals by companies etc

First-year allowance to be available for ships and railway assets

Decommissioning relief agreements

Gas refuelling stations: extension of time limit for capital allowance

Miscellaneous amendments relating to decommissioning

Decommissioning expenditure taken into account for PRT purposes

Decommissioning expenditure taken into account for PRT purposes

Miscellaneous amendments relating to decommissioning

Expenditure on decommissioning certain redundant plant or machinery

Indexation of annual chargeable amounts

Interim relief

Adjustment of amount chargeable

Adjustment of amount chargeable

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 tobacco products duty

Air passenger duty: miscellaneous provision

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

Not exhibiting licence: period of grace

Valuation of certain supplies of fuel

Pre-completion transactions

Climate change levy: main rates

Bank levy: rates from 1 January 2013

Bank levy: rates from 1 January 2014

High quality liquid assets

Interpretation of Part 5

Data-gathering from merchant acquirers etc

Power to detain goods

Self assessment: withdrawal of notice to file etc

Interpretation

159A

• (1) “Relief declaration return” means an annual tax on enveloped dwellings return which—

• (a) states that it is a relief declaration return,

• (b) relates to one (and only one) of the types of relief listed in the table in subsection (9), and

• (c) specifies which type of relief it relates to.

• (2) A relief declaration return may be made in respect of one or more single-dwelling interests.

• (3) A relief declaration return delivered to an officer of Revenue and Customs on a particular day (“the day of the claim”) is treated as made in respect of any single-dwelling interest in relation to which the conditions in subsection (4) are met (but need not contain information which identifies the particular single-dwelling interest or interests concerned).

• (4) The conditions are that—

• (a) the person making the return is within the charge with respect to the single-dwelling interest on the day of the claim;

• (b) the day of the claim is relievable in relation to the single-dwelling interest by virtue of a provision which relates to the type of relief specified in the return (see subsection (9));

• (c) none of the days in the pre-claim period is a taxable day.

• (5) The statement under subsection (1)(a) in a relief declaration return is treated as a claim for interim relief (see section 100) with respect to the single-dwelling interest (or interests) in respect of which the return is made.

• (6) Subsection (7) applies where—

• (a) a person has delivered to an officer of Revenue and Customs on any day a relief declaration return for a chargeable period with respect to one or more single-dwelling interests (“the existing return”), and

• (b) there is a subsequent day (“day S”) in the same chargeable period on which the relevant conditions are met in relation to another single-dwelling interest.

• (7) The existing return is treated as also made with respect to that other single-dwelling interest.

• (8) For the purposes of subsection (6)(b), the “relevant conditions” are the same as the conditions in subsection (4), except that for this purpose references in subsection (4) to the day of the claim are to be read as references to day S.

• (9) This table sets out the numbered types of relief to which the provisions specified in the left hand column relate—

Provision	Type of relief to which it relates
Section 133 or 134 (property rental business)	1
Section 137 (dwellings opened to the public)	2
Section 138 or 139 (property developers)	3
Section 141 (property traders)	4
Section 143 (financial institutions acquiring dwellings)	5
144A (regulated home reversion plans)	5A
Section 145 or 147A (occupation by certain employees etc)	6
Section 148 (farmhouses)	7
Section 150 (providers of social housing)	8

• (10) Where a person—

• (a) has failed to make annual tax on enveloped dwellings returns in respect of two or more single-dwelling interests, and

• (b) could have discharged the duties in question by making a single relief declaration return in respect of all the interests,

the failure may be taken, for the purposes of Schedule 55 to FA 2009, to be a failure to make a single annual tax on enveloped dwellings return.

• (11) In this section—

• “pre-claim period” has the same meaning as in section 100;

• “taxable day”, in relation to a person and a single-dwelling interest, means a day on which the person is within the charge with respect to the interest, other than a day which is relievable in relation to the interest.

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

Rates of alcoholic liquor duties

Meaning of “tobacco products”

Not exhibiting licence: period of grace

Valuation of certain supplies of fuel

Bank levy: rates from 1 January 2013

Reduced rate for energy-saving materials

Climate change levy: main rates

High quality liquid assets

Power to detain goods

No deductions for UK or foreign bank levies

Trusts with vulnerable beneficiary

Unauthorised unit trusts

Self assessment: withdrawal of notice to file etc

Penalty instead of forfeiture of larger ships

Corporation tax: deferral of payment of exit charge

Restrictions on interim payments in proceedings relating to taxation matters

Short title

Overseas pension schemes: information and inspection powers

SEIS: re-investment relief

Qualifying business transfer

EMI options and entrepreneurs' relief etc

First-year allowance to be available for ships and railway assets

Decommissioning relief agreements

Decommissioning expenditure taken into account for PRT purposes

First-year allowance to be available for ships and railway assets

Miscellaneous amendments relating to decommissioning

Decommissioning relief agreements

Miscellaneous amendments relating to decommissioning

Interim relief

Restrictions on allowances for certain oil-related expenditure

Interim relief

Different interests held in the same dwelling: effect of reliefs etc

144A

• (1) A day in a chargeable period is relievable in relation to a single dwelling interest held by a person (“P”) who is an authorised plan provider if—

• (a) P has, as plan provider, entered into a regulated home reversion plan relating to the single dwelling interest, and

• (b) the occupation condition is met on that day.

• (2) If no qualifying termination event has occurred, the “occupation condition” is that a person who was originally entitled to occupy the dwelling (or any part of it) under the regulated home reversion plan is still entitled to do so.

• (3) If a qualifying termination event has occurred, the “occupation condition” is that—

• (a) the single dwelling interest is being held with the intention that it will be sold without delay (except so far as delay is justified by commercial considerations or cannot be avoided), and

• (b) no non-qualifying individual is permitted to occupy the dwelling (or any part of it).

• (4) In this section—

• “authorised plan provider” means a person authorised under the Financial Services and Markets Act 2000 to carry on in the United Kingdom the regulated activity specified in article 63B(1) of the Regulated Activities Order (entering into regulated home reversion plan as plan provider);

• “qualifying termination event” is to be interpreted in accordance with article 63B of the Regulated Activities Order;

• “the Regulated Activities Order” means the Financial Services and Markets (Regulated Activities) Order 2001 (S.I. 2001/544);

• “regulated home reversion plan” means an arrangement which is a regulated home reversion plan for the purposes of Chapter 15A of Part 2 of the Regulated Activities Order (but see also subsection (6)).

• (5) In this section references to entering into a regulated home reversion plan “as plan provider” are to be interpreted as if the references were in the Regulated Activities Order (but see also subsection (6)).

• (6) For the purposes of this section—

• (a) an arrangement which P entered into before 6 April 2007 is treated for the purposes of this section as a regulated home reversion plan entered into by P as plan provider if that arrangement would have been so treated for the purposes of article 63B(1) of the Regulated Activities Order had P entered into that arrangement on the day mentioned in subsection (1);

• (b) an arrangement in relation to which P acquired rights or obligations before 6 April 2007 is treated for the purposes of this section as a regulated home reversion plan entered into by P as plan provider if that arrangement would have been so treated for the purposes of article 63B(1) of the Regulated Activities Order had P acquired those rights or obligations on the day mentioned in subsection (1).

• (7) Section 136 (meaning of “non-qualifying individual”) applies in relation to this section as in relation to sections 133 and 135.

147A

• (1) A day in a chargeable period is relievable in relation to a single-dwelling interest if the dwelling in question is a flat in relation to which the conditions in subsection (2) are met.

• (2) The conditions are that on that day—

• (a) a company (“the management company”) holds the single-dwelling interest for the purpose of making the flat available as caretaker accommodation,

• (b) the flat is contained in premises which also contain two or more other flats,

• (c) the tenants of at least two of the other flats in the premises are members of the management company,

• (d) the management company owns the freehold of the premises, and

• (e) the management company is not carrying on a trade or property rental business.

• (3) For the purposes of subsection (2), the management company makes a flat available “as caretaker accommodation” if it makes it available to an individual for use as living accommodation in connection with the individual's employment as caretaker of the premises.

• (4) In this section “premises” means premises constituting the whole or part of a building.

157A

• (1) This section applies where Conditions A and B are met.

• (2) Condition A is that arrangements are entered into between a person (“the lessee”) and a financial institution under which the institution—

• (a) purchases a major interest in land (“the first transaction”),

• (b) grants to the lessee out of that interest a lease (if the interest acquired is the interest of the owner) or a sub-lease (if the interest acquired is the tenant's right over or interest in a property subject to a lease) (“the second transaction”), and

• (c) enters into an agreement under which the lessee has a right to require the institution to transfer the major interest purchased by the institution under the first transaction.

• (3) Condition B is that the land in which the institution purchases a major interest under the first transaction is in Scotland and consists of or includes one or more dwellings or parts of a dwelling.

• (4) This Part has effect in relation to times when the arrangements are in operation (see subsection (5)) as if—

• (a) the interest held by the financial institution as mentioned in subsection (5)(b) were held by the lessee (and not by the financial institution), and

• (b) the lease or sub-lease granted under the second transaction had not been granted.

• (5) The reference in subsection (4) to times when the arrangements are in operation is to times when—

• (a) the lessee holds the interest granted to it under the second transaction, and

• (b) the interest purchased under the first transaction is held by a financial institution.

• (6) A company or individual treated under subsection (4)(a) as holding an interest at a particular time is treated as holding it as a member of a partnership if at the time in question the company or individual holds the interest granted to it under the second transaction as a member of the partnership (and this Part has effect accordingly in relation to the other members of the partnership).

• (7) In relation to times when the arrangements operate for the benefit of a collective investment scheme (see subsection (8)), this Part has effect as if—

• (a) the interest held by the financial institution as mentioned in subsection (8)(b) were held by the lessee for the purposes of a collective investment scheme (and were not held by the financial institution), and

• (b) the lease or sub-lease granted under the second transaction had not been granted.

• (8) The reference in subsection (7) to times when the arrangements operate for the benefit of a collective investment scheme is to times when—

• (a) the lessee holds the interest granted to it under the second transaction for the purposes of a collective investment scheme, and

• (b) the interest purchased under the first transaction is held by a financial institution.

• (9) In this section “financial institution” has the same meaning as in section 71A of FA 2003 (see section 73BA of that Act).

• (10) References in this section to a “major interest” in land are to—

• (a) ownership of land, or

• (b) the tenant's right over or interest in land subject to a lease.

• (11) Where the lessee is an individual, references in subsections (4), (5), (7) and (8) to the lessee are to be read, in relation to times after the death of the lessee, as references to the lessee's personal representatives.

Rates of alcoholic liquor duties

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

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

Not exhibiting licence: period of grace

Climate change levy: main rates

Interpretation of Part 5

Bank levy: rates from 1 January 2014

High quality liquid assets

209A

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

209B

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

209C

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

209D

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

209E

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

209F

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

212A

• (1) A person (P) is liable to pay a penalty if—

• (a) P has been given a notice under—

• (i) paragraph 12 of Schedule 43,

• (ii) paragraph 8 or 9 of Schedule 43A, or

• (iii) paragraph 8 of Schedule 43B,

stating that a tax advantage arising from particular tax arrangements is to be counteracted,

• (b) a tax document has been given to HMRC on the basis that the tax advantage arises to P from those arrangements,

• (c) that document was given to HMRC—

• (i) by P, or

• (ii) by another person in circumstances where P knew, or ought to have known, that the other person gave the document on the basis mentioned in paragraph (b), and

• (d) the tax advantage has been counteracted by the making of adjustments under section 209.

• (2) The penalty is 60% of the value of the counteracted advantage.

• (3) Schedule 43C—

• (a) gives the meaning of “the value of the counteracted advantage”, and

• (b) makes other provision in relation to penalties under this section.

• (4) In this section “tax document” means any return, claim or other document submitted in compliance (or purported compliance) with any provision of, or made under, an Act.

• (5) In this section the reference to giving a tax document to HMRC is to be interpreted in accordance with paragraph 11(g) and (h) of Schedule 43C.

Interpretation of Part 5

Penalty instead of forfeiture of larger ships

Interpretation

Meaning of “tax appeal”

1A

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

Corrective action by taxpayer

4A

• (1) If the taxpayer takes the relevant corrective action before the beginning of the closed period mentioned in section 209(8), the matter is not to be referred to the GAAR Advisory Panel.

• (2) For the purposes of this Schedule the “relevant corrective action” is taken if (and only if) the taxpayer takes the steps set out in sub-paragraphs (3) and (4).

• (3) The first step is that—

• (a) the taxpayer amends a return or claim to counteract the tax advantage specified in the notice under paragraph 3, or

• (b) ... the taxpayer takes all necessary action to enter into an agreement with HMRC (in writing) for the purpose of relinquishing that advantage.

• (4) The second step is that the taxpayer notifies HMRC—

• (a) that the taxpayer has taken the first step, and

• (b) of any additional amount which has or will become due and payable in respect of tax by reason of the first step being taken.

• (5) Where the taxpayer takes the first step described in sub-paragraph (3)(b), HMRC may proceed as if the taxpayer had not taken the relevant corrective action if the taxpayer fails to enter into the written agreement.

• (6) In determining the additional amount which has or will become due and payable in respect of tax for the purposes of sub-paragraph (4)(b), it is to be assumed that, where the taxpayer takes the necessary action as mentioned in sub-paragraph (3)(b), the agreement is then entered into.

• (7) Where a tax enquiry is in progress, no enactment limiting the time during which amendments may be made to returns or claims operates to prevent the taxpayer taking the first step mentioned in sub-paragraph (3)(a) before the tax enquiry is closed ....

• (8) No appeal may be brought, by virtue of a provision mentioned in sub-paragraph (9), against an amendment made by a closure notice in respect of a tax enquiry to the extent that the amendment takes into account an amendment made by the taxpayer to a return or claim in taking the first step mentioned in sub-paragraph (3)(a).

• (9) The provisions are—

• (a) section 31(1)(b) or (c) of TMA 1970,

• (b) paragraph 9 of Schedule 1A to TMA 1970,

• (c) paragraph 34(3) of Schedule 18 to FA 1998,

• (d) paragraph 35(1)(b) of Schedule 10 to FA 2003, and

• (e) paragraph 35(1)(b) of Schedule 33 to FA 2013.

4B

Paragraphs 5 and 6 apply if the taxpayer does not take the relevant corrective action (see paragraph 4A) by the beginning of the closed period mentioned in section 209(8).

SCHEDULE 43A

Pooling notices

1

• (1) This paragraph applies where a person has been given a notice under paragraph 3 of Schedule 43 , or paragraph 5 of Schedule 43D, in relation to any tax arrangements (the “lead arrangements”) and the condition in sub-paragraph (2) is met.

• (2) The condition is that the period of 45 days mentioned in paragraph 4(1) of Schedule 43 has expired but no notice under paragraph 12 of Schedule 43 or paragraph 8 of Schedule 43B has yet been given in respect of the matter.

• (3) If a designated HMRC officer considers—

• (a) that a tax advantage has arisen to a person (“R”) from tax arrangements (other than the lead arrangements) that are abusive,

• (b) that those tax arrangements (“R's arrangements”) are equivalent to the lead arrangements, and

• (c) that the advantage ought to be counteracted under section 209,

the officer may give R a notice (a “pooling notice”) to that effect.

• (3A) For the purposes of this Schedule and Schedule 43B, all the tax arrangements in relation to which pooling notices have been served in respect of the same lead arrangements are to be regarded as being in a “pool” together.

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

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) The officer may not give R a pooling notice if R has been given in respect of R's arrangements a notice under paragraph 3 of Schedule 43.

Notice of proposal to bind arrangements to counteracted arrangements

2

• (1) This paragraph applies where a counteraction notice has been given to a person in relation to any tax arrangements (the “counteracted arrangements”) ....

• (2) If a designated HMRC officer considers—

• (a) that a tax advantage has arisen to a person (“R”) from tax arrangements (other than the counteracted arrangements) that are abusive,

• (b) that those tax arrangements (“R's arrangements”) are equivalent to the counteracted arrangements, and

• (c) that the advantage ought to be counteracted under section 209,

the officer may give R a notice (a “notice of binding”) in relation to R's arrangements.

• (3) The officer may not give R a notice of binding if R has been given in respect of R's arrangements a notice under—

• (a) paragraph 1, or

• (b) paragraph 3 of Schedule 43.

• (4) In this paragraph “counteraction notice” means a notice such as is mentioned in sub-paragraph (2) of paragraph 12 of Schedule 43 or sub-paragraph (3) of paragraph 8 of Schedule 43B (notice of final decision to counteract).

3

• (1) The decision of a designated HMRC officer whether or not to give R a pooling notice or notice of binding must be taken, and any notice must be given, as soon as is reasonably practicable after the officer becomes aware of the relevant facts.

• (2) A pooling notice or notice of binding must—

• (a) specify the tax arrangements in relation to which the notice is given and the tax advantage,

• (b) explain why the officer considers R's arrangements to be equivalent to the lead arrangements or the counteracted arrangements (as the case may be),

• (c) explain why the officer considers that a tax advantage has arisen to R from tax arrangements that are abusive,

• (d) set out the counteraction that the officer considers ought to be taken, and

• (e) explain the effect of—

• (i) paragraphs 4 to 10,

• (ii) subsection (9) of section 209, and

• (iii) section 212A.

• (3) A pooling notice or notice of binding may set out steps that R may (subject to subsection (9) of section 209) take to avoid the proposed counteraction.

Corrective action by a notified taxpayer

4

• (1) If a person to whom a pooling notice or notice of binding has been given takes the relevant corrective action in relation to the tax arrangements and tax advantage specified in the notice before the beginning of the closed period mentioned in section 209(9), the person is to be treated for the purposes of paragraphs 6 to 9 and Schedule 43B (generic referral of tax arrangements) as not having been given the notice in question (and accordingly the tax arrangements in question are no longer in the pool).

• (2) For the purposes of this Schedule the “relevant corrective action” is taken if (and only if) the person takes the steps set out in sub-paragraphs (3) and (4).

• (3) The first step is that—

• (a) the person amends a return or claim to counteract the tax advantage specified in the pooling notice or notice of binding, or

• (b) ... the person takes all necessary action to enter into an agreement with HMRC (in writing) for the purpose of relinquishing that advantage.

• (4) The second step is that the person notifies HMRC—

• (a) that the first step has been taken, and

• (b) of any additional amount which has or will become due and payable in respect of tax by reason of the first step being taken.

• (5) Where a person takes the first step described in sub-paragraph (3)(b), HMRC may proceed as if the person had not taken the relevant corrective action if the person fails to enter into the written agreement.

• (6) In determining the additional amount which has or will become due and payable in respect of tax for the purposes of sub-paragraph (4)(b), it is to be assumed that, where the person takes the necessary action as mentioned in sub-paragraph (3)(b), the agreement is then entered into.

• (7) Where a tax enquiry is in progress, no enactment limiting the time during which amendments may be made to returns or claims operates to prevent the person taking the first step mentioned in sub-paragraph (3)(a) before the tax enquiry is closed.

• (8) No appeal may be brought, by virtue of a provision mentioned in sub-paragraph (9), against an amendment made by a closure notice in respect of a tax enquiry to the extent that the amendment takes into account an amendment made by the taxpayer to a return or claim in taking the first step mentioned in sub-paragraph (3)(a).

• (9) The provisions are—

• (a) paragraph 35(1)(b) of Schedule 33,

• (b) section 31(1)(b) or (c) of TMA 1970,

• (c) paragraph 9 of Schedule 1A to TMA 1970,

• (d) paragraph 34(3) of Schedule 18 to FA 1998, and

• (e) paragraph 35(1)(b) of Schedule 10 to FA 2003.

Corrective action by lead taxpayer

5

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

Opinion notices and right to make representations

6

• (1) Sub-paragraph (2) applies where—

• (a) a pooling notice is given to a person in relation to any tax arrangements, and

• (b) an opinion notice (or opinion notices) under paragraph 11(2) of Schedule 43 about another set of tax arrangements in the pool or the lead arrangements (“the referred arrangements”) is subsequently given to a designated HMRC officer.

• (2) The officer must give the person a pooled arrangements opinion notice.

• (3) No more than one pooled arrangements opinion notice may be given to a person in respect of the same tax arrangements.

• (4) Where a designated HMRC officer gives a person a notice of binding, the officer must, at the same time, give the person a bound arrangements opinion notice.

7

• (1) In relation to a person who is, or has been, given a pooling notice, “pooled arrangements opinion notice” means a written notice which—

• (a) sets out a report prepared by HMRC of any opinion of the GAAR Advisory Panel about the referred arrangements,

• (b) explains the person's right to make representations falling within sub-paragraph (3), and

• (c) sets out the period in which those representations may be made.

• (2) In relation to a person who is given a notice of binding “bound arrangements opinion notice” means a written notice which—

• (a) sets out a report prepared by HMRC of any opinion of the GAAR Advisory Panel about the counteracted arrangements (see paragraph 2(1)),

• (b) explains the person's right to make representations falling within sub-paragraph (3), and

• (c) sets out the period in which those representations may be made.

• (3) A person who is given a pooled arrangements opinion notice or a bound arrangements opinion notice has 30 days beginning with the day on which the notice is given to make representations in any of the following categories—

• (a) representations that no tax advantage has arisen to the person from the arrangements to which the notice relates;

• (b) representations as to why the arrangements to which the notice relates are or may be materially different from—

• (i) the referred arrangements (in the case of a pooled arrangements opinion notice), or

• (ii) the counteracted arrangements (in the case of a bound arrangements opinion notice).

• (4) In sub-paragraph (3)(b) references to “arrangements” include any circumstances which would be relevant in accordance with section 207 to a determination of whether the tax arrangements in question are abusive.

Notice of final decision

8

• (1) This paragraph applies where—

• (a) further to a pooling notice given under paragraph 1(3), a set of tax arrangements is in a pool relating to any lead arrangements, and

• (b) a designated HMRC officer has given a notice under paragraph 12 of Schedule 43 in relation to any other arrangements in the pool or the lead arrangements (the “referred arrangements”).

• (2) The officer must, having considered any opinion of the GAAR Advisory Panel about the referred arrangements and any representations made under paragraph 7(3) in relation to the arrangements mentioned in sub-paragraph (1)(a), give the person a written notice setting out whether the tax advantage arising from those arrangements is to be counteracted under the general anti-abuse rule.

9

• (1) This paragraph applies where—

• (a) a person has been given a notice of binding under paragraph 2, and

• (b) the period of 30 days for making representations under paragraph 7(3) has expired.

• (2) A designated HMRC officer must, having considered any opinion of the GAAR Advisory Panel about the counteracted arrangements and any representations made under paragraph 7(3) in relation to the arrangements specified in the notice of binding, give the person a written notice setting out whether the tax advantage arising from the arrangements specified in the notice of binding is to be counteracted under the general anti-abuse rule.

10

If a notice under paragraph 8(2) or 9(2) states that a tax advantage is to be counteracted, it must also set out—

• (a) the adjustments required to give effect to the counteraction, and

• (b) if relevant, any steps the person concerned is required to take to give effect to it.

“Equivalent arrangements”

11

• (1) ... Tax arrangements are “equivalent” to one another if they are substantially the same as one another having regard to—

• (a) their substantive results,

• (b) the means of achieving those results, and

• (c) the characteristics on the basis of which it could reasonably be argued, in each case, that the arrangements are abusive tax arrangements under which a tax advantage has arisen to a person.

Notices may be given on assumption that tax advantage does arise

12

• (1) A designated HMRC officer may give a notice, or do anything else, under this Schedule where the officer considers that a tax advantage might have arisen ....

• (2) Accordingly, any notice given by a designated HMRC officer under this Schedule may be expressed to be given on the assumption that a tax advantage does arise (without conceding that it does).

Power to amend

13

• (1) The Treasury may by regulations amend this Schedule (apart from this paragraph).

• (2) Regulations under sub-paragraph (1) may include—

• (a) any amendment of this Part that is appropriate in consequence of an amendment by virtue of sub-paragraph (1);

• (b) transitional provision.

• (3) Regulations under sub-paragraph (1) are to be made by statutory instrument.

• (4) A statutory instrument containing regulations under sub-paragraph (1) is subject to annulment in pursuance of a resolution of the House of Commons.

SCHEDULE 43B

Notice of proposal to make generic referral of tax arrangements

1

• (1) Sub-paragraph (2) applies if—

• (a) further to pooling notices given under paragraph 1(3) of Schedule 43A, two or more sets of tax arrangements are in a pool relating to any lead arrangements,

• (b) the person to whom the notice mentioned in paragraph 1(1) of Schedule 43A was given takes the relevant corrective action (as defined in paragraph 4A of Schedule 43) before—

• (i) the end of the period of 75 days beginning with the day on which that notice was given, or

• (ii) such later time as that person and HMRC may agree, and

• (c) no referral under paragraph 5 or 6 of Schedule 43 has been made in respect of any arrangements in the pool.

• (2) A designated HMRC officer may determine that, in respect of each of the tax arrangements that are in the pool, there is to be given (to the person to whom the pooling notice in question was given) a written notice of a proposal to make a generic referral to the GAAR Advisory Panel in respect of the arrangements in the pool.

• (3) Only one determination under sub-paragraph (2) may be made in relation to any one pool.

• (4) The persons to whom those notices are given are “the notified taxpayers”.

• (5) A notice given to a person (“T”) under sub-paragraph (2) must—

• (a) specify the arrangements (the “specified arrangements”) and the tax advantage (the “specified advantage”) to which the notice relates,

• (b) inform T of the period under paragraph 2 for making a proposal.

2

• (1) T has 30 days beginning with the day on which the notice under paragraph 1 is given to propose to HMRC that it—

• (a) should give T a notice under paragraph 3 of Schedule 43 or paragraph 5 of Schedule 43D (as the case may be) in respect of the arrangements to which the notice under paragraph 1 relates, and

• (b) should not proceed with the proposal to make a generic referral to the GAAR Advisory Panel in respect of those arrangements.

• (2) If a proposal is made in accordance with sub-paragraph (1) a designated HMRC officer must consider it.

Generic referral

3

• (1) This paragraph applies where a designated HMRC officer has given notices to the notified taxpayers in accordance with paragraph 1(2).

• (2) If none of the notified taxpayers has made a proposal under paragraph 2 by the end of the 30 day period mentioned in that paragraph, the officer must make a referral to the GAAR Advisory Panel in respect of the notified taxpayers and the arrangements which are specified arrangements in relation to them.

• (3) If at least one of the notified taxpayers makes a proposal in accordance with paragraph 2, the designated HMRC officer must, after the end of that 30 day period, decide whether to—

• (a) give a notice under paragraph 3 of Schedule 43 or paragraph 5 of Schedule 43D (as the case may be) in respect of one set of tax arrangements in the relevant pool in relation to which such a proposal has been made, or

• (b) make a referral to the GAAR Advisory Panel in respect of the tax arrangements in the relevant pool.

• (3A) If under sub-paragraph (3)(a) a notice is given under paragraph 3 of Schedule 43 or paragraph 5 of Schedule 43D in respect of one set of tax arrangements but ... the matter is not referred to the GAAR Advisory Panel, a designated officer must make a referral to the GAAR Advisory Panel in respect of the notified taxpayers and the arrangements which are specified arrangements in relation to them.

• (4) A referral under this paragraph is a “generic referral”.

4

• (1) If a generic referral is made to the GAAR Advisory Panel, the designated HMRC officer must at the same time provide it with—

• (a) a general statement of the material characteristics of the specified arrangements, and

• (b) a declaration that—

• (i) the statement under paragraph (a) is applicable to all the specified arrangements, and

• (ii) as far as HMRC is aware, nothing which is material to the GAAR Advisory Panel's consideration of the matter has been omitted.

• (2) The general statement under sub-paragraph (1)(a) must—

• (a) contain a factual description of the tax arrangements;

• (b) set out HMRC's view as to whether the tax arrangements accord with established practice (when the arrangements were entered into);

• (c) explain why it is the designated HMRC officer's view that a tax advantage of the nature described in the statement and arising from tax arrangements having the characteristics described in the statement would be a tax advantage arising from arrangements that are abusive;

• (d) set out any matters the designated officer is aware of which may suggest that any view of HMRC or the designated HMRC officer expressed in the general statement is not correct;

• (e) set out any other matters which the designated officer considers are required for the purposes of the exercise of the GAAR Advisory Panel's functions under paragraph 6.

5

If a generic referral is made the designated HMRC officer must at the same time give each of the notified taxpayers a notice which—

• (a) specifies that a generic referral is being made, and

• (b) is accompanied by a copy of the statement given to the GAAR Advisory Panel in accordance with paragraph 4(1)(a).

Decision of GAAR Advisory Panel and opinion notices

6

• (1) If a generic referral is made to the GAAR Advisory Panel under paragraph 3, the Chair must arrange for a sub-panel consisting of 3 members of the GAAR Advisory Panel (one of whom may be the Chair) to consider it.

• (2) The sub-panel must produce—

• (a) one opinion notice stating the joint opinion of all the members of the sub-panel, or

• (b) two or three opinion notices which taken together state the opinions of all the members.

• (3) The sub-panel must give a copy of the opinion notice or notices to the designated HMRC officer.

• (4) An opinion notice is a notice which states that in the opinion of the members of the sub-panel, or one or more of those members—

• (a) the entering into and carrying out of tax arrangements such as are described in the general statement under paragraph 4(1)(a) is a reasonable course of action in relation to the relevant tax provisions,

• (b) the entering into or carrying out of such tax arrangements is not a reasonable course of action in relation to the relevant tax provisions, or

• (c) it is not possible, on the information available, to reach a view on that matter,

and the reasons for that opinion.

• (5) In forming their opinions for the purposes of sub-paragraph (4) members of the sub-panel must—

• (a) have regard to all the matters set out in the statement under paragraph 4(1)(a),

• (b) assume (unless the contrary is stated in the statement under paragraph 4(1)(a)) that the tax arrangements do not form part of any other arrangements,

• (c) have regard to the matters mentioned in paragraphs (a) to (c) of section 207(2), and

• (d) take account of subsections (4) to (6) of section 207.

• (6) For the purposes of the giving of an opinion under this paragraph, the arrangements are to be assumed to be tax arrangements.

• (7) In this Part, a reference to any opinion of the GAAR Advisory Panel in respect of a generic referral of any tax arrangements is a reference to the contents of any opinion notice given in relation to a generic referral in respect of the arrangements.

Notice of right to make representations

7

• (1) Where a designated HMRC officer is given an opinion notice (or opinion notices) under paragraph 6, the officer must give each of the notified taxpayers a copy of the opinion notice (or notices) and a written notice which—

• (a) explains the notified taxpayer's right to make representations falling within sub-paragraph (2), and

• (b) sets out the period in which those representations may be made.

• (2) A notified taxpayer (“T”) who is given a notice under sub-paragraph (1) has 30 days beginning with the day on which the notice is given to make representations in any of the following categories—

• (a) representations that no tax advantage has arisen from the specified arrangements;

• (b) representations that T has already been given a notice under paragraph 6 of Schedule 43A in relation to the specified arrangements;

• (c) representations that any matter set out in the statement under paragraph 4(1)(a) is materially inaccurate as regards the specified arrangements (having regard to all circumstances which would be relevant in accordance with section 207 to a determination of whether the tax arrangements in question are abusive).

Notice of final decision after considering opinion of GAAR Advisory Panel

8

• (1) A designated HMRC officer who has received a copy of a notice or notices under paragraph 6(3) in respect of a generic referral must consider the case of each notified taxpayer in accordance with sub-paragraph (2).

• (2) The officer must, having considered—

• (a) any opinion of the GAAR Advisory Panel about the matters referred to it, and

• (b) any representations made by the notified taxpayer under paragraph 7,

give to the notified taxpayer a written notice setting out whether the specified advantage is to be counteracted under the general anti-abuse rule.

• (3) If the notice states that a tax advantage is to be counteracted, it must also set out—

• (a) the adjustments required to give effect to the counteraction, and

• (b) if relevant, any steps that the taxpayer is required to take to give effect to it.

Notices may be given on assumption that tax advantage does arise

9

• (1) A designated HMRC officer may give a notice, or do anything else, under this Schedule where the officer considers that a tax advantage might have arisen ....

• (2) Accordingly, any notice given by a designated HMRC officer under this Schedule may be expressed to be given on the assumption that a tax advantage does arise (without conceding that it does).

Power to amend

10

• (1) The Treasury may by regulations amend this Schedule (apart from this paragraph).

• (2) Regulations under sub-paragraph (1) may include—

• (a) any amendment of this Part that is appropriate in consequence of an amendment by virtue of sub-paragraph (1);

• (b) transitional provision.

• (3) Regulations under sub-paragraph (1) are to be made by statutory instrument.

• (4) A statutory instrument containing regulations under sub-paragraph (1) is subject to annulment in pursuance of a resolution of the House of Commons.

SCHEDULE 43C

Value of the counteracted advantage: introduction

1

Paragraphs 2 to 4 set out how to calculate the “value of the counteracted advantage” for the purposes of sections 212A and 212B.

Value of the counteracted advantage: basic rule

2

• (1) The “value of the counteracted tax advantage” is—

• (a) for a penalty under section 212A, the additional amount due or payable in respect of tax as a result of the counteraction mentioned in subsection (1)(d) of that section, and

• (b) for a penalty under section 212B, the additional amount due or payable in respect of tax (by the partner in question) as a result of the counteraction mentioned in subsection (1)(b) of that section.

• (2) The reference in sub-paragraph (1) to the additional amount due and payable includes a reference to—

• (a) an amount payable to HMRC having erroneously been paid by way of repayment of tax, and

• (b) an amount which would be repayable by HMRC if the counteraction were not made.

• (3) The following are ignored in calculating the value of the counteracted advantage—

• (a) group relief, and

• (b) any relief under section 458 of CTA 2010 (relief in respect of repayment etc of loan) which is deferred under subsection (5) of that section.

• (4) For the purposes of this paragraph consequential adjustments under section 210 are regarded as part of the counteraction in question.

• (5) If the counteraction affects a person's liability to two or more taxes, the taxes concerned are to be considered together for the purpose of determining the value of the counteracted advantage.

• (6) This paragraph is subject to paragraphs 3 and 4.

Value of counteracted advantage: losses

3

• (1) To the extent that the tax advantage ... resulted in the wrong recording of a loss for the purposes of direct tax and the loss has been wholly used to reduce the amount due or payable in respect of tax, the value of the counteracted advantage is determined in accordance with paragraph 2.

• (2) To the extent that the tax advantage resulted in the wrong recording of a loss for purposes of direct tax and the loss has not been wholly used to reduce the amount due or payable in respect of tax, the value of the counteracted advantage is—

• (a) the value under paragraph 2 of so much of the tax advantage as results (or would in the absence of the counteraction result) from the part (if any) of the loss which was used to reduce the amount due or payable in respect of tax, plus

• (b) 10% of the part of the loss not so used.

• (3) Sub-paragraphs (1) and (2) apply both—

• (a) to a case where no loss would have been recorded but for the tax advantage, and

• (b) to a case where a loss of a different amount would have been recorded (but in that case sub-paragraphs (1) and (2) apply only to the difference between the amount recorded and the true amount).

• (4) To the extent that the tax advantage creates or increases (or would in the absence of the counteraction create or increase) an aggregate loss recorded for a group of companies—

• (a) the value of the counteracted advantage is calculated in accordance with this paragraph, and

• (b) in applying paragraph 2 in accordance with sub-paragraphs (1) and (2), group relief may be taken into account (despite paragraph 2(3)).

• (5) To the extent that the tax advantage results (or would in the absence of the counteraction result) in a loss, the value of it is nil where, because of the nature of the loss or the person's circumstances, there was no reasonable prospect of the loss being used to support a claim to reduce a tax liability (of any person).

Value of counteracted advantage: deferred tax

4

• (1) To the extent that the tax advantage mentioned in section 212A or 212B (as the case may be) is a deferral of tax, the value of the counteracted advantage is—

• (a) 25% of the amount of the deferred tax for each year of the deferral, or

• (b) a percentage of the amount of the deferred tax, for each separate period of deferral of less than a year, equating to 25% per year,

or, if less, 100% of the amount of the deferred tax.

• (2) This paragraph does not apply to a case to the extent that paragraph 3 applies.

Assessment of penalty

5

• (1) Where a person is liable for a penalty under section 212A or 212B (as the case may be), HMRC must assess the penalty.

• (2) Where HMRC assess the penalty, HMRC must—

• (a) notify—

• (i) where the penalty is under section 212A, the person who is liable for it;

• (ii) where the penalty is under section 212B, the person who is liable for it and the responsible partner.

• (b) state in the notice a tax period in respect of which the penalty is assessed.

• (3) A penalty under this paragraph must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

• (4) An assessment—

• (a) is to be treated for procedural purposes as if it were an assessment to tax,

• (b) may be enforced as if it were an assessment to tax, and

• (c) may be combined with an assessment to tax.

• (5) An assessment of a penalty under this paragraph must be made before the end of the period of 12 months beginning with the date (or the latest of the dates) on which the counteraction mentioned in section 212A(1)(d) or section 212B(1)(b) (as the case may be) becomes final (within the meaning of section 210(8)).

Alteration of assessment of penalty

6

• (1) After notification of an assessment has been given to a person under paragraph 5(2), the assessment may not be altered except in accordance with this paragraph or paragraph 7, or on appeal.

• (2) A supplementary assessment may be made in respect of a penalty if an earlier assessment operated by reference to an underestimate of the value of the counteracted advantage.

• (3) An assessment may be revised as necessary if it operated by reference to an overestimate of the value of the counteracted advantage.

Revision of assessment following consequential relieving adjustment

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• (1) Sub-paragraph (2) applies where a person—

• (a) is notified under section 210(7) of a consequential adjustment relating to a counteraction under section 209, and

• (b) an assessment to a penalty in respect of that counteraction of which the person has been notified under paragraph 5(2) does not take account of that consequential adjustment.

• (2) HMRC must make any alterations of the assessment that appear to HMRC to be just and reasonable in connection with the consequential amendment.

• (3) Alterations under this paragraph may be made despite any time limit imposed by or under an enactment.

Aggregate penalties

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• (1) Sub-paragraph (3) applies where—

• (a) two or more penalties are incurred by the same person and fall to be determined by reference to an amount of tax to which that person is chargeable,

• (b) one of those penalties is incurred under section 212A or 212B (as the case may be), and

• (c) one or more of the other penalties are incurred under a relevant penalty provision.

• (2) But sub-paragraph (3) does not apply if section 212(2) of FA 2014 (follower notices: aggregate penalties) applies in relation to the amount of tax in question.

• (3) The aggregate of the amounts of the penalties mentioned in subsection (1)(b) and (c), so far as determined by reference to that amount of tax, must not exceed—

• (a) the relevant percentage of that amount, or

• (b) in a case where at least one of the penalties is under paragraph 5(2)(b) of, or sub-paragraph (3)(b), (4)(b) or (5)(b) of paragraph 6 of, Schedule 55 to FA 2009 , or sub-paragraph (3)(b) or (5)(b) of paragraph 3 or paragraph 20(4) of Schedule 25 to FA 2021, £300 (if greater).

• (4) In the application of section 97A of TMA 1970 (multiple penalties) no account shall be taken of a penalty under section 212A or 212B.

• (5) “Relevant penalty provision” means—

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

• (b) Schedule 41 to FA 2008 (penalties: failure to notify etc),

• (c) Schedule 55 to FA 2009 (penalties for failure to make returns etc), or

• (d) Part 5 of Schedule 18 to FA 2016 (penalty under serial tax avoidance regime), or

• (e) Schedule 25 to FA 2021 (penalties for deliberately withholding information).

• (6) “The relevant percentage” means—

• (a) 200% in a case where at least one of the penalties is determined by reference to the percentage in—

• (i) paragraph 4(4)(c) of Schedule 24 to FA 2007,

• (ii) paragraph 6(4)(a) of Schedule 41 to FA 2008, or

• (iii) paragraph 6(3A)(c) of Schedule 55 to FA 2009, or

• (iv) paragraph 3(4)(c) of Schedule 25 to FA 2021,

• (b) 150% in a case where paragraph (a) does not apply and at least one of the penalties is determined by reference to the percentage in—

• (i) paragraph 4(3)(c) of Schedule 24 to FA 2007,

• (ii) paragraph 6(3)(a) of Schedule 41 to FA 2008, or

• (iii) paragraph 6(3A)(b) of Schedule 55 to FA 2009, or

• (iv) paragraph 3(4)(b) of Schedule 25 to FA 2021,

• (c) 140% in a case where neither paragraph (a) nor paragraph (b) applies and at least one of the penalties is determined by reference to the percentage in—

• (i) paragraph 4(4)(b) of Schedule 24 to FA 2007,

• (ii) paragraph 6(4)(b) of Schedule 41 to FA 2008, or

• (iii) paragraph 6(4A)(c) of Schedule 55 to FA 2009, or

• (iv) paragraph 3(6)(c) of Schedule 25 to FA 2021,

• (d) 105% in a case where at none of paragraphs (a), (b) and (c) applies and at least one of the penalties is determined by reference to the percentage in—

• (i) paragraph 4(3)(b) of Schedule 24 to FA 2007,

• (ii) paragraph 6(3)(b) of Schedule 41 to FA 2008, or

• (iii) paragraph 6(4A)(b) of Schedule 55 to FA 2009, and or