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Finance Act 2014

Type Public General Act

Publication 2014-07-17

Last updated 2024-11-18

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

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(4) The amendments made by this paragraph have effect in relation to chargeable transfers made on or after 6 April 2014.

SCHEDULE 26

Introduction

1

Schedule 19 to FA 2011 (the bank levy) is amended in accordance with this Schedule.

High quality liquid assets etc

2

In paragraph 15 (chargeable equity and liabilities of a UK banking group or a building society group)—

(a) in sub-paragraph (2)(c), for “finally,” substitute “ finally (subject to sub-paragraph (6)) ”, and

(b) for sub-paragraph (6) substitute—

(6) Where any amount (“A”) within sub-paragraph (2)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.

3

In paragraph 17 (chargeable equity and liabilities of foreign banking groups)—

(a) in sub-paragraph (6)(c), for “finally,” substitute “ finally (subject to sub-paragraph (16)) ”,

(b) in sub-paragraph (12)(c), for “finally,” substitute “ finally (subject to sub-paragraph (16)) ”, and

(16) Where any amount (“A”) within sub-paragraph (6)(c) or (12)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.

4

In paragraph 19 (chargeable equity and liabilities of non-banking groups)—

(a) in sub-paragraph (6)(c), for “finally,” substitute “ finally (subject to sub-paragraph (16)) ”,

(b) in sub-paragraph (12)(c), for “finally,” substitute “ finally (subject to sub-paragraph (16)) ”, and

(16) Where an amount (“A”) within sub-paragraph (6)(c) or (12)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.

5

In paragraph 21 (chargeable equity and liabilities of UK resident banks and building societies which are not members of groups)—

(a) in sub-paragraph (2)(c), for “finally,” substitute “ finally (subject to sub-paragraph (6)) ”, and

(b) for sub-paragraph (6) substitute—

(6) Where an amount (“A”) within sub-paragraph (2)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.

6

In paragraph 27 (determination of foreign bank's chargeable equity and liabilities)—

(a) in sub-paragraph (2)(c), for “finally,” substitute “ finally (subject to sub-paragraph (6)) ”, and

(b) for sub-paragraph (6) substitute—

(6) Where an amount (“A”) within sub-paragraph (2)(c) is used to reduce short term liabilities, the amount of the reduction is determined as if A were an amount equal to half of A.

7

The amendments made by paragraphs 2 to 6 have effect in relation to chargeable periods ending on or after 1 January 2015.

Protected deposits

8

(1) Paragraph 29 (“excluded” equity and liabilities: protected deposits) is amended as follows.

(2) Omit sub-paragraphs (4) to (6).

(3) In sub-paragraph (8) omit “, and sub-paragraphs (4), (5) and (6) so far as relating to a scheme within sub-paragraph (2),”.

(4) In sub-paragraph (9) omit “, and sub-paragraphs (4), (5) and (6) so far as relating to a scheme within sub-paragraph (3),”.

(5) The amendments made by this paragraph have effect for chargeable periods ending on or after 1 January 2015.

Tier one capital equity and liabilities

9

(1) Paragraph 30 (“excluded” equity and liabilities: tier one capital equity and liabilities) is amended as follows.

(2) For sub-paragraph (2) substitute—

(2) Tier one capital equity and liabilities” means, in relation to an entity or group of entities, so much of the entity or group's equity and liabilities as is tier one capital within the meaning of Article 25 of the Capital Requirements Regulation (taking account of the transitional provisions in Part Ten of that Regulation). (3) For the purposes of sub-paragraph (2), the Capital Requirements Regulation is to be treated as applying, in relation to all entities and groups of entities, as if— (a) to the extent it would not otherwise be the case, the Prudential Regulation Authority were the competent authority in relation to those entities and groups, (b) the only determinations made, and discretions exercised, by the Prudential Regulation Authority for the purposes of the Capital Requirement Regulation were those published by it in accordance with that Regulation, and (c) those entities and groups (to the extent that it would not otherwise be the case) were subject to the provisions of the PRA Handbook immediately before 1 January 2014. (4) “The Capital Requirements Regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms.

(3) The amendment made by this paragraph has effect in relation to chargeable periods ending on or after 1 January 2014.

Liabilities representing QCP margin in relation to trades executed under clearing agreements

10

(1) After paragraph 38 insert—

(38A) (1) Liabilities are excluded if they represent cash collateral provided as QCP margin in relation to a trade executed or to be executed under a client clearing agreement. (2) Cash collateral is provided as “QCP margin” if, and to the extent that— (a) it exceeds the fair value of the instrument to which the trade relates, and (b) it corresponds to either— (i) an asset held in respect of the qualifying central counterparty which represents cash collateral provided to that qualifying central counterparty, or (ii) cash collateral provided to the qualifying central counterparty which has the effect of reducing a liability of the clearing member to the qualifying central counterparty. (3) In this paragraph— - “clearing member”, in relation to a recognised central counterparty, has the meaning given by Article 2(14) of the EMIR Regulation, - “client” has the meaning given by Article 2(15) of the EMIR Regulation, - “client clearing agreement” means a contract between a clearing member of a qualifying central counterparty and a client, relating to the clearing of transactions with the qualifying central counterparty, - “derivative contract” has the meaning given by international accounting standards, - “the EMIR Regulation” means Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories, - “qualifying central counterparty” means a central counterparty that has been either authorised or recognised under the EMIR Regulation, - “trade” means a transaction relating to the sale and purchase of a financial instrument or to the entering into of a derivative contract.

(2) The amendment made by this paragraph has effect in relation to chargeable periods ending on or after 1 January 2014.

Certain liabilities deemed short term liabilities

11

(1) After paragraph 76 insert—

(76A) (1) Liabilities under derivative contracts are never “long term” (and are therefore always short term). (2) In this paragraph “derivative contract” has the meaning given by international accounting standards.

(2) In paragraph 75 (liabilities not required to be repaid within 12 months etc are long term liabilities), after sub-paragraph (2) insert—

(3) This paragraph is subject to paragraph 76A.

(3) In paragraph 77 (which relates to the calculation of “UK allocated equity and liabilities”), for “76” substitute “ 76A ”.

(4) The amendments made by this paragraph have effect for chargeable periods ending on or after 1 January 2015.

Amendments consequential on regulatory changes

12

In paragraph 81 (power to make consequential amendments), in sub-paragraph (1), omit the “or” at the end of paragraph (b), and after paragraph (c) insert

, or (d) any regulatory requirement, or change to any regulatory requirement, imposed by EU legislation, or by or under any Act (whenever adopted, enacted or made).

Transitional provision

13

(1) This paragraph applies where—

(a) an amount of the bank levy is treated as if it were an amount of corporation tax chargeable on an entity (“E”) for an accounting period of E,

(b) the chargeable period in respect of which the amount of the bank levy is charged falls (or partly falls) on or after 1 January 2014, and

(c) under the Instalment Payment Regulations, one or more instalment payments, in respect of the total liability of E for the accounting period, were treated as becoming due and payable before the commencement date (“pre-commencement instalment payments”).

(2) Paragraphs 9 and 10 of this Schedule are to be ignored for the purpose of determining the amount of any pre-commencement instalment payment.

(3) If there is at least one instalment payment, in respect of the total liability of E for the accounting period, which under the Instalment Payment Regulations is treated as becoming due and payable on or after the commencement date (“post-commencement instalment payments”), the amount of that instalment payment, or the first of them, is to be increased by the adjustment amount.

(4) If there are no post-commencement instalment payments, a further instalment payment, in respect of the total liability of E for the accounting period, of an amount equal to the adjustment amount is to be treated as becoming due and payable at the end of the period of 30 days beginning with the commencement date.

(5) “The adjustment amount” is the difference between—

(a) the aggregate amount of the pre-commencement instalments determined in accordance with sub-paragraph (2), and

(b) the aggregate amount of those instalment payments determined ignoring sub-paragraph (2) (and so taking account of paragraphs 9 and 10).

(6) In the Instalment Payment Regulations—

(a) in regulations 6(1)(a), 7(2), 8(1)(a) and (2)(a), 9(5), 10(1), 11(1) and 13, references to regulation 4A, 4B, 4C, 4D, 5, 5A or 5B of those Regulations are to be read as including a reference to sub-paragraphs (1) to (5) above (and in regulation 7(2) “the regulation in question”, and in regulation 8(2) “that regulation”, are to be read accordingly), and

(b) in regulation 9(3), the reference to those Regulations is to be read as including a reference to sub-paragraphs (1) to (5) above.

(7) In section 59D of TMA 1970 (general rule as to when corporation tax is due and payable), in subsection (5), the reference to section 59E is to be read as including a reference to sub-paragraphs (1) to (6) above.

(8) In this paragraph—

“the chargeable period” is to be construed in accordance with paragraph 4 or (as the case may be) 5 of Schedule 19 to FA 2011;

“the commencement date” means the day on which this Act is passed;

“the Instalment Payment Regulations” means the Corporation Tax (Instalment Payments) Regulations 1998 (S.I. 1998/3175);

and references to the total liability of E for an accounting period are to be construed in accordance with regulation 2(3) of the Instalment Payment Regulations.

SCHEDULE 27

Breach notice

1

(1) The Commissioners may give a breach notice to the holder of a remote operating licence if it appears to them that there has been a breach of—

(a) a requirement to be registered under this Part in respect of an activity authorised by the licence,

(b) any conditions or requirements relating to registration under this Part in respect of such an activity,

(c) a requirement to pay general betting duty, pool betting duty or remote gaming duty in respect of such an activity, or

(d) a requirement imposed in respect of such an activity by a notice given under section 170 (requirement to provide security or further security) or 171 (requirement to appoint UK representative).

(2) The breach notice must specify—

(a) the breach,

(b) the action that must be taken in order to remedy the breach, and

(3) The Commissioners may by regulations—

(a) make provision as to cases in which a breach notice may or may not be given (including provision amending this paragraph);

(b) amend sub-paragraph (2)(c) by substituting for the period for the time being specified there a different period.

Final notice

2

(1) If it appears to the Commissioners that the breach has not been remedied in full within the period specified in the breach notice, they may give the holder of the remote operating licence a final notice.

(2) The final notice must—

(a) specify the breach and the extent to which it has not been remedied since the breach notice was given,

(b) specify the period within which a review may be required or appeal brought, and

(c) state that (unless the breach is remedied and subject to the outcome of any review, appeal or further appeal) the Commissioners will direct the Gambling Commission to suspend the remote operating licence after the end of the period.

(3) The decision to give the final notice is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the final notice must include an offer of a review of the decision under section 15A of that Act.

(4) Only the holder of the remote operating licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (3).

Direction to suspend remote operating licence

3

(1) After the review request period has ended, the Commissioners may direct the Gambling Commission to suspend the remote operating licence if the breach specified in the final notice has not been remedied in full to the satisfaction of the Commissioners.

(2) But if the Commissioners have been required to review the decision, or an appeal has been brought against the decision, a direction may be given under sub-paragraph (1) only if—

(a) the decision to give the final notice has been upheld (in whole or in part) and the period within which any appeal or further appeal may ordinarily be brought has ended,

(b) the proceedings on the review, appeal or any further appeal have been abandoned, withdrawn or discontinued, or

(i) the Commissioners consider that the holder of the remote operating licence usually lives in or, if a body corporate, is legally constituted in a country or territory with which the United Kingdom does not have satisfactory arrangements for the enforcement of liabilities,

(ii) the breach was a failure to pay an amount of general betting duty, pool betting duty or remote gaming duty, and

(iii) the holder of the licence has not given to the Commissioners such security as appears to them adequate for the payment of the amount of duty that remains due.

(3) A direction under this paragraph may include provision directing the Gambling Commission as to how it is to exercise its powers under section 118(4) of the Gambling Act 2005 (time and duration of suspension and saving and transitional provision).

(4) In this paragraph “the review request period” means the period of 30 days beginning with the date of the final notice, subject to any extension given under section 15D of FA 1994.

Reinstatement of remote operating licence

4

(1) The Commissioners may direct the Gambling Commission to reinstate a remote operating licence suspended pursuant to a direction under paragraph 3 if the Commissioners are satisfied that—

(a) the breach specified in the final notice has been remedied in full,

(b) there are no other grounds on which a breach notice could be given in respect of the licence, and

(c) the holder of the licence has given to the Commissioners any security requested by them for the payment of amounts of general betting duty, pool betting duty and remote gaming duty likely to be due in future in respect of any activity authorised by the licence.

(2) Where the holder of a suspended licence requests the Commissioners to give a direction under this paragraph and the Commissioners refuse to give the direction, they must notify the holder of their decision.

(3) That decision is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice under sub-paragraph (2) must include an offer of a review of the decision under section 15A of that Act.

(4) Only the holder of the suspended licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (3).

5

(1) An appeal tribunal may direct the Gambling Commission to reinstate a remote operating licence suspended pursuant to a direction under paragraph 3 if the tribunal gives permission to appeal against a decision to give a final notice under section 16(1F) of FA 1994 (appeal out of time).

(2) The reinstatement of a remote operating licence pursuant to a direction given under sub-paragraph (1) does not prevent the Commissioners from giving a further direction under paragraph 3(1) in reliance on the final notice if—

(a) the decision to give the notice is upheld (in whole or in part) in the proceedings on the appeal or any further appeal, or the proceedings on the appeal or any further appeal have been abandoned, withdrawn or discontinued, and

(b) the period during which any further appeal may ordinarily be brought has ended without an appeal being brought.

(3) In this paragraph “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of FA 1994.

Revocation of remote operating licence

6

(1) The Commissioners may direct the Gambling Commission to revoke a remote operating licence suspended pursuant to a direction under paragraph 3 if the breach specified in the final notice has not been remedied in full to the satisfaction of the Commissioners within the period of 6 months beginning with the day on which the direction under paragraph 3 was given.

(2) A direction under this paragraph may include provision directing the Gambling Commission as to how it is to exercise its powers under section 119(4) of the Gambling Act 2005 (time of revocation and saving and transitional provision).

(3) The Commissioners must notify the holder of the suspended licence of their decision to give the direction.

(4) That decision is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice must include an offer of a review of the decision under section 15A of that Act.

(5) Only the holder of the suspended licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (4).

7

(1) The Gambling Commission requires the consent of the Commissioners to issue a remote operating licence to the holder of a licence—

(a) which is suspended pursuant to a direction under paragraph 3, or

(b) which has been revoked pursuant to a direction under paragraph 6.

(2) The Commissioners must notify the holder of the suspended or revoked licence of any decision—

(a) not to give their consent under this paragraph, or

(b) to give it subject to conditions.

(3) That decision is to be treated as a relevant decision for the purposes of sections 15A and 15C to 16 of FA 1994 (customs and excise reviews and appeals) and, accordingly, the notice under sub-paragraph (2) must include an offer of a review of the decision under section 15A of that Act.

(4) Only the holder of the suspended or revoked licence may bring an appeal under section 16 of FA 1994 as applied by sub-paragraph (3).

Supplementary

8

(1) A notice under this Schedule—

(a) must be in writing, and

(b) may specify more than one breach.

(2) The fact that a breach notice specifying one or more breaches has been given to the holder of a remote operating licence does not prevent a breach notice specifying other breaches being given to the holder of the licence.

9

References in this Schedule to the holder of a remote operating licence are to the person to whom the licence is or was issued.

SCHEDULE 28

PART 1 — Betting and Gaming Duties Act 1981

1

BGDA 1981 is amended as follows.

2

Omit sections 1 to 12 (general betting duty and pool betting duty).

3

In section 17 (bingo duty) for subsection (2A) substitute—

(2A) Bingo duty is not charged on the playing of a game of bingo which is not licensed bingo if every person playing the game participates by the use of— (a) the internet, (b) telephone, (c) television, (d) radio, or (e) any other kind of electronic or other technology for facilitating communication.

4

Omit sections 26A to 26M (remote gaming duty).

5

In section 27 (offences by bodies corporate), omit “paragraph 13(1) or (3) or 14(1) of Schedule 1 or”.

6

In section 31 (protection of officers), for “general betting duty, bingo duty or remote gaming duty” substitute “ bingo duty ”.

7

Omit Schedule A1 (general betting duty and pool betting duty: double taxation relief).

8

Omit Schedule 1 (administration of general betting duty and pool betting duty).

9

Omit Schedule 4B (remote gaming duty: double taxation relief).

PART 2 — Other amendments and repeals

Customs and Excise Management Act 1979

10

CEMA 1979 is amended as follows

11

(1) Section 1(1) (interpretation) is amended as follows.

(2) In the definition of “the revenue trade provisions of the customs and excise Acts”, after paragraph (f) insert—

(g) the provisions of Part 3 of the Finance Act 2014;

(3) In the definition of “revenue trader”—

(a) in paragraph (a)(ic), for “gaming within the meaning of the Betting and Gaming Duties Act 1981 (see section 33(1))” substitute “ any activity that constitutes betting or gaming for the purposes of Part 3 of the Finance Act 2014 (see sections 150, 183 and 188) ”,

(b) after paragraph (a)(id) insert—

(ie) the management or administration of any Chapter 1 stake fund, Chapter 2 stake fund or gaming prize fund within the meaning of Part 3 of the Finance Act 2014 (see sections 134, 143 and 154);

, and

12

After section 118BC insert—

(118BCA) (1) Subsection (2) applies to premises if an officer has reasonable cause to believe that— (a) betting facilities are being provided, have been provided or are to be provided there, (b) a totalisator is being operated, has been operated or is to be operated there, or (c) any business in respect of which a person is or may become liable to remote gaming duty is being carried on, has been carried on or is to be carried on there. (2) The officer may at any reasonable time enter and inspect the premises and inspect— (a) accounts, records and other documents in the custody or control of a relevant person, and (b) any relevant equipment. (3) Subsection (1) does not permit an officer to enter or inspect a particular part of premises if— (a) the officer has no reasonable cause to believe that paragraph (a), (b) or (as the case may be) (c) of that subsection is satisfied with respect to that particular part, and (b) that part is used only as a dwelling. (4) An officer may at any reasonable time (whether or not as part of an inspection under subsection (2)) require a relevant person or anyone acting on such a person's behalf— (a) to open any relevant equipment, and (b) to carry out any other operation that may be necessary to enable the officer to ascertain whether any general betting duty, pool betting duty or remote gaming duty is payable in respect of it and, if so, how much. (5) A “relevant person” is a person— (a) who by virtue of being a bookmaker, being treated by section 133 of the Finance Act 2014 as a bookmaker or providing facilities for making bets is liable to general betting duty, (b) who by virtue of being a bookmaker is liable to pool betting duty, (c) who by virtue of entering into arrangements for chargeable persons to participate in remote gaming is liable to remote gaming duty, or (d) who is reasonably suspected by the officer of being, having been or being about to become liable as mentioned in paragraph (a), (b) or (c). (6) “Relevant equipment” is equipment that is being, or that the officer reasonably suspects of having been or of being intended to be, used on the premises for or in connection with any activity that constitutes betting or gaming for the purposes of Part 3 of the Finance Act 2014 (see sections 150, 183 and 188). (7) Expressions used in this section and Part 3 of the Finance Act 2014 have the same meanings in this section as in that Part.

13

(1) Section 118BD (inspection powers: supplementary provision) is amended as follows.

(2) In subsections (1) and (2), for “or 118BC,” substitute “ , 118BC or 118BCA, ”.

(3) In subsection (3), for “and 118BC” substitute “ , 118BC and 118BCA ”.

14

In section 118G(1) (offence of failing comply with requirements imposed under Part 9A), for “or 118BC(4)” substitute “ , 118BC(4) or 118BCA(4) ”.

Finance Act 1994

15

FA 1994 is amended as follows.

16

In section 12 (assessments to excise duty), in subsection (2)(c)—

(a) omit “1 or”, and

(b) after “2012” insert “ or Part 3 of the Finance Act 2014 ”.

17

Omit section 13A(2)(ga) (relevant decision: double taxation relief repayment).

18

(1) Paragraph 6 of Schedule 5 (decisions subject to review and appeal) is amended as follows.

(2) Omit sub-paragraph (1)(a).

(3) In sub-paragraph (2)—

(a) omit paragraph (a), and

(b) in paragraph (b), for “that Act” substitute “ the Betting and Gaming Duties Act 1981 ”.

(4) Omit sub-paragraph (3).

Value Added Tax Act 1994

19

(1) Section 23A (meaning of “relevant machine game”) of VATA 1994 is amended as follows.

(2) In subsection (2)(f), for “section 26A of the Betting and Gaming Duties Act 1981 (remote gaming duty: interpretation)” substitute “ section 154(1) of the Finance Act 2014 (meaning of remote gaming) ”.

(3) In subsection (3), in the definition of “real game of chance”, for “the Betting and Gaming Duties Act 1981” substitute “ Part 3 of the Finance Act 2014 (see section 188(1)(b)) ”.

Finance Act 1997

20

(1) Schedule 1 to FA 1997 (gaming duty: administration and enforcement) is amended as follows.

(2) In paragraph 12(4), for “the offences” substitute “ the offence ”.

(3) In paragraph 16, for “general betting duty” substitute “ bingo duty ”.

Criminal Justice and Police Act 2001

21

Omit paragraph 27 of Schedule 1 to the Criminal Justice and Police Act 2001 (application of section 50 to power of seizure under paragraph 16(2) of Schedule 1 to BGDA 1981).

Gambling Act 2005

22

The Gambling Act 2005 is amended as follows.

23

In section 67 (remote operating licence), at the end insert—

(4) The power of the Commission to issue a remote operating licence to the holder of a licence suspended or revoked pursuant to a direction given under Schedule 27 to the Finance Act 2014 is subject to paragraph 7 of that Schedule (requirement for HMRC's consent).

24

In section 118 (suspension of operating licence), after subsection (3) insert—

(3A) The Commission must suspend an operating licence if directed to do so under paragraph 3 of Schedule 27 to the Finance Act 2014.

25

After that section insert—

(118A) (1) If an operating licence has been suspended in accordance with section 118(3A), the Commission must reinstate the licence if directed to do so under paragraph 4 or 5 of Schedule 27 to the Finance Act 2014. (2) Where the Commission reinstate an operating licence it— (a) must specify the time when the reinstatement takes effect, and (b) may make the reinstatement subject to conditions.

26

In section 119 (revocation of operating licence), after subsection (3) insert—

(3A) The Commission must revoke an operating licence if directed to do so under paragraph 6 of Schedule 27 to the Finance Act 2014.

Finance Act 2008

27

(1) The Table in paragraph 1 of Schedule 41 to FA 2008 (penalties: failure to notify and certain VAT and excise wrongdoing) is amended as follows.

(2) For the entries relating to general betting duty and pool betting duty substitute—

General betting duty	Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for general betting duty).
Pool betting duty	Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for pool betting duty).

(3) For the entry relating to remote gaming duty substitute—

Remote gaming duty	Obligation to register under section 164(2) of FA 2014 (registration of persons liable etc for remote gaming duty).

Finance Act 2009

28

FA 2009 is amended as follows.

29

The Table in paragraph 1 of Schedule 55 (penalty for failure to make returns etc) is amended as follows—

(a) in item 23 (general betting duty), for “paragraph 2 of Schedule 1 to BGDA 1981” substitute “ section 166 of FA 2014 ”,

(b) in item 24 (pool betting duty), for “paragraph 2A of Schedule 1 to BGDA 1981” substitute “ section 166 of FA 2014 ”, and

30

(1) The Table in paragraph 1 of Schedule 56 (penalty for failure to make payments on time) is amended as follows.

(2) For items 11H and 11I substitute—

11H	General betting duty	Amount payable under section 142 of FA 2014	The date determined—under section 142 of FA 2014, orby or under regulations under section 163 or 167 of that Act,as the date by which the amount must be paid
11I	Pool betting duty	Amount payable under section 151 of FA 2014	The date determined—under section 151 of FA 2014, orby or under regulations under section 163 or 167 of that Act,as the date by which the amount must be paid

(3) For item 11M substitute—

11M	Remote gaming duty	Amount payable under section 162 of FA 2014	The date determined by or under regulations under section 163 or 167 of FA 2014 as the date by which the amount must be paid

Finance Act 2012

31

(1) Schedule 24 to FA 2012 (machine games duty) is amended as follows.

(2) In paragraph 3(2), for “BGDA 1981” substitute “ Part 3 of FA 2014 ”.

(3) In paragraph 37(5), for “the offences” substitute “ the offence ”.

(4) In paragraph 38, for “remote gaming duty” substitute “ bingo duty ”.

SCHEDULE 29

Final accounting periods under BGDA 1981

1

(1) The final accounting period for the purposes of a person's liability to general betting duty, pool betting duty or remote gaming duty under BGDA 1981 ends with 30 November 2014 (whether or not it would otherwise have ended with that day).

(2) The Commissioners may by direction make transitional arrangements for the purposes of the final accounting period, and those arrangements may (in particular)—

(a) make provision about the date on which the period begins, and

(b) combine what would otherwise be more than one accounting period.

(3) A direction under this paragraph—

(a) may apply generally or only to a particular case or class of case, and

(b) must be published unless it applies only to a particular case.

Withdrawal of double taxation relief

2

(1) The final reconciliation period for the purposes of a person's entitlement to a credit under section 5E, 8ZA or 26IA of BGDA 1981 (double taxation relief) ends with 30 November 2014 (whether or not it would otherwise have ended with that day).

(2) The Commissioners are not required to entertain a claim for a repayment made under section 5E, 8ZA or 26IA of BGDA 1981 after 30 November 2015.

Post-commencement receipts etc from pre-commencement general or pool betting

3

(1) In this paragraph “new accounting period” means an accounting period beginning on or after 1 December 2014.

(2) Where a bet to which section 2(1) of BGDA 1981 (general bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, amounts in respect of the bet which fall due to the bookmaker in a new accounting period are to be included among the amounts aggregated at Step 1 in section 131 of this Act in calculating the bookmaker's ordinary profits in respect of general bets for that period.

(3) Where—

(a) a bet to which section 3(1) of BGDA 1981 (spread bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, and

(b) the bet is a financial spread bet for the purposes of section 3 of BGDA 1981,

amounts in respect of the bet which fall due to the bookmaker in a new accounting period are to be included among the amounts aggregated at Step 1 in section 131 of this Act in calculating the bookmaker's ordinary profits in respect of financial spread bets for that period.

(4) Where—

(a) a bet to which section 3(1) of BGDA 1981 (spread bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, and

(b) the bet is not a financial spread bet for the purposes of section 3 of BGDA 1981,

(5) Where a bet by way of pool betting to which section 4(1) of BGDA 1981 applies is made before 1 December 2014 by means of facilities provided by a person, amounts in respect of the bet which fall due to the person in a new accounting period are to be included among the amounts aggregated under section 137(a) of this Act in calculating the person's profits for that period in respect of ordinary Chapter 1 pool bets.

(6) Where a dutiable pool bet (as defined by section 7B of BGDA 1981) is made before 1 December 2014, amounts in respect of the bet which in accordance with section 7D of BGDA 1981 fall due—

(a) to the operator of the totalisator by means of which the bet is made, or

(b) to the promoter,

in a new accounting period are to be included among the amounts aggregated under section 146(a) of this Act in calculating that person's profits for that period in respect of ordinary Chapter 2 pool bets.

(7) Section 5(2), (4) and (5) of BGDA 1981 (amounts due: timing and calculation) apply for the purposes of sub-paragraphs (2) to (5).

Post-commencement winnings paid on pre-commencement general or pool betting

4

(1) In this paragraph “transitional accounting period” means an accounting period—

(a) beginning on or after 1 December 2014, and

(b) ending on or before 30 November 2018.

(2) Where a bet to which section 2(1) of BGDA 1981 (general bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker's ordinary profits in respect of general bets for that period.

(3) Where—

(a) a bet to which section 3(1) of BGDA 1981 (spread bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, and

(b) the bet is a financial spread bet for the purposes of section 3 of BGDA 1981,

amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker's ordinary profits in respect of financial spread bets for that period.

(4) Where—

(a) a bet to which section 3(1) of BGDA 1981 (spread bets with bookmaker in the United Kingdom) applies is made with a bookmaker before 1 December 2014, and

(b) the bet is not a financial spread bet for the purposes of section 3 of BGDA 1981,

(5) Where a bet by way of pool betting to which section 4(1) of BGDA 1981 applies is made before 1 December 2014 by means of facilities provided by a person (“the provider”), amounts paid by the provider in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated under section 137(b) of this Act in calculating the provider's profits for that period in respect of ordinary Chapter 1 pool bets.

(6) Where a dutiable pool bet (as defined by section 7B of BGDA 1981) is made before 1 December 2014, amounts paid—

(a) by the operator of the totalisator by means of which the bet is made, or

(b) by the promoter,

in a transitional accounting period by way of winnings to the person who made the bet are to be included among the amounts aggregated under section 146(b) of this Act in calculating the profits of the operator, or (as the case may be) the promoter, for that period in respect of ordinary Chapter 2 pool bets.

(7) Section 5(6) of BGDA 1981 (meaning of “paid”) applies for the purposes of sub-paragraphs (2) to (5).

(8) Section 7F of BGDA 1981 (meaning of “paid”) applies for the purposes of sub-paragraph (6).

Post-commencement receipts & winnings etc in the case of pre-commencement remote gaming

5

(1) This paragraph applies where—

(a) a person (“the provider”) provides facilities for playing a game of chance,

(b) the playing of the game is remote gaming for the purposes of remote gaming duty charged by BGDA 1981,

(d) the game is begun to be played before 1 December 2014.

(2) In this paragraph—

“new accounting period” means any accounting period beginning on or after 1 December 2014;

“transitional accounting period” means an accounting period—beginning on or after 1 December 2014, andending on or before 30 November 2018.

(3) Amounts due to the provider in a new accounting period in respect of entitlement to use the facilities to play the game are to be included among the amounts aggregated under section 157(1)(a) of this Act in calculating the provider's profits in respect of ordinary gaming.

(4) Amounts in respect of the game that—

(a) are within section 26E(1)(b) of BGDA 1981 as it applies in relation to the provider, and

(b) are staked, or fall due to be paid, in a new accounting period,

are also to be included among the amounts aggregated under section 157(1)(a) of this Act in calculating the provider's profits in respect of ordinary gaming.

(5) In the case of each prize in the game that is a prize—

(a) provided in a transitional accounting period by the provider, and

(b) won by a person using the facilities to play the game,

the value of the prize is to be included among the amounts aggregated under section 157(2) of this Act in calculating the provider's profits for the period in respect of ordinary gaming.

(6) Section 26F(2) to (7) of BGDA 1981 (provision and value of prizes) apply for the purposes of sub-paragraph (5).

Post-commencement relief for unrelieved pre-commencement losses

6

(1) In this paragraph “new accounting period” means an accounting period beginning on or after 1 December 2014.

(2) Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets to which section 2(1) of BGDA 1981 applies, the amount may be carried forward in reduction of the person's profits on general bets for one or more new accounting periods.

(3) Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets—

(a) to which section 3(1) of BGDA 1981 applies, and

(b) which are financial spread bets for the purposes of section 3 of BGDA 1981,

the amount may be carried forward in reduction of the person's profits on financial spread bets for one or more new accounting periods.

(4) Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets—

(a) to which section 3(1) of BGDA 1981 applies, and

(b) which are not financial spread bets for the purposes of section 3 of BGDA 1981,

the amount may be carried forward in reduction of the person's profits on non-financial spread bets for one or more new accounting periods.

(5) Where under section 5 or 5AA(3) of BGDA 1981 a person has a negative amount of net stake receipts for an accounting period ending on 30 November 2014 in respect of bets by way of pool betting to which section 4(1) of BGDA 1981 applies, the amount may be carried forward in reduction of the person's profits on Chapter 1 pool bets for one or more new accounting periods.

(6) Where under section 7ZA(3) or 7A of BGDA 1981 a person has a negative amount of net pool betting receipts for an accounting period ending on 30 November 2014, the amount may be carried forward in reduction of the person's profits on Chapter 2 pool bets for one or more new accounting periods.

(7) Where the amount of a person's remote gaming profits (see section 26C(2) of BGDA 1981) for an accounting period ending on or before 30 November 2014 is a negative amount then that amount, so far as it has not been carried forward under section 26G of BGDA 1981 in reduction of the profits of one or more later accounting periods ending on or before 30 November 2014, may be carried forward in reduction of the person's profits on remote gaming (see section 155(4) of this Act) for one or more new accounting periods.

Post-commencement winnings on non-dutiable pre-commencement general or pool betting

7

(1) In this paragraph “transitional accounting period” means an accounting period—

(a) beginning on or after 1 December 2014, and

(b) ending on or before 30 November 2018.

(2) For the purposes of this paragraph, a bet is “non-dutiable” if—

(a) neither of sections 2(1) and 3(1) of BGDA 1981 applies to it,

(b) it is not a bet by way of pool betting on which general betting duty is charged under section 4(1) of BGDA 1981, and

(3) Where—

(a) a non-dutiable bet is made with a bookmaker before 1 December 2014, and

(b) the bet is a general bet as defined by section 126 of this Act,

amounts paid by the bookmaker in a transitional accounting period by way of winnings to the person who made the bet may be included among the amounts aggregated at Step 2 in section 131 of this Act in calculating the bookmaker's ordinary profits in respect of general bets for that period.

(4) Where—

(a) a non-dutiable bet is made with a bookmaker before 1 December 2014, and

(b) the bet is a financial spread bet as defined by section 128 of this Act,

(5) Where—

(a) a non-dutiable bet is made with a bookmaker before 1 December 2014, and

(b) the bet is a non-financial spread bet as defined by section 128 of this Act,

(6) Where—

(a) a non-dutiable bet is made with a bookmaker before 1 December 2014, and

(b) the bet is a Chapter 1 pool bet as defined by section 134 of this Act,

amounts paid by the bookmaker in a transitional accounting period by way of winnings in respect of the bet may be included among the amounts aggregated under section 137(b) of this Act in calculating the bookmaker's profits for that period in respect of ordinary Chapter 1 pool bets.

(7) Where—

(a) a non-dutiable bet is made with a bookmaker before 1 December 2014, and

(b) the bet is a Chapter 2 pool bet as defined by section 143 of this Act,

amounts paid by or on behalf of the bookmaker in a transitional accounting period by way of winnings in respect of the bet may be included among the amounts aggregated under section 146(b) of this Act in calculating the bookmaker's profits for that period in respect of ordinary Chapter 2 pool bets.

(8) Section 140 of this Act (meaning of “winnings”) applies for the purposes of sub-paragraphs (3) to (6).

(9) Section 149 of this Act (meaning of “winnings”) applies for the purposes of sub-paragraph (7).

Post-commencement winnings on non-dutiable pre-commencement remote gaming

8

(1) In this paragraph “transitional accounting period” means an accounting period—

(a) beginning on or after 1 December 2014, and

(b) ending on or before 30 November 2018.

(2) Sub-paragraph (3) applies where—

(a) under arrangements between a chargeable person (as defined by section 155(2)) and another person (“the provider”), the chargeable person participates in playing a game of chance,

(b) the game is begun to be played before 1 December 2014,

(c) the chargeable person's participation in playing the game under the arrangements is remote gaming (as defined by section 154(1)) which is ordinary gaming (as defined by section 154(3)),

(d) remote gaming duty under section 26B of BGDA 1981 is not charged on the provision of any facilities—

(i) used by the chargeable person to play the game, and

(ii) provided by the provider, and

(e) the condition in paragraph (d) is not met only by virtue of section 26H of BGDA 1981 (exemptions).

(3) The value of any prize—

(a) provided by or on behalf of the provider in a transitional accounting period, and

(b) won by the chargeable person as a result of participating in playing the game under the arrangements,

may be included among the values aggregated under section 157(2) in calculating the provider's expenditure for the period on prizes in respect of ordinary gaming.

(4) Section 160 (provision and value of prizes) applies for the purposes of sub-paragraph (3).

Saving for amendments and repeals made by Schedule 28

9

(1) The amendments and repeals made by Schedule 28 do not affect—

(a) the operation on and after 1 December 2014 of any enactment amended or repealed by that Schedule, as the enactment stood immediately before that date, for the purposes of accounting periods for general betting duty, pool betting duty or remote gaming duty that end before that date, or for the purposes of entitlement to double taxation relief for such accounting periods,

(b) the operation on and after that date of any regulations or orders made, directions given or notices published under BGDA 1981 before that date so far as they relate to any of those duties (but see paragraph (c)),

(c) the exercise on and after that date of any power of the Commissioners or the Treasury under BGDA 1981 as saved by paragraph (a), including (in particular) any such power to make, amend, revoke, publish, revise or replace regulations, orders, directions or notices,

(d) the charges under sections 2(1), 3(1) and 4(1) of BGDA 1981 on bets made before that date,

(e) the charge under section 5AB of BGDA 1981 so far as relating to bets determined before that date,

(f) the charge under section 7 of BGDA 1981 so far as relating to net pool betting receipts for accounting periods ending before that date, or

(g) the charges under sections 17 and 26B of BGDA 1981 so far as relating to games of chance that began to be played before that date.

(2) Sub-paragraph (1)—

(a) has effect subject to the preceding provisions of this Schedule, and

(b) does not prejudice the generality of section 16(1) of the Interpretation Act 1978.

SCHEDULE 30

Introduction

1

This Schedule applies for the purposes of calculating penalties under section 209.

Value of denied advantage: normal rule

2

(1) The value of the denied advantage is the additional amount due or payable in respect of tax as a result of counteracting the denied advantage.

(2) The reference in sub-paragraph (1) to the additional amount due or 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 denied advantage were not counteracted.

(3) The following are ignored in calculating the value of the denied 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) This paragraph is subject to paragraphs 3 and 4.

Value of denied advantage: losses

3

(1) To the extent that the denied advantage has the result that a loss is wrongly recorded for 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 denied advantage is determined in accordance with paragraph 2.

(2) To the extent that the denied advantage has the result that a loss is wrongly recorded 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 denied advantage is—

(a) the value under paragraph 2 of so much of the denied advantage as results from the part (if any) of the loss which is 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 denied 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 a denied advantage creates or increases an aggregate loss recorded for a group of companies—

(a) the value of the denied 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 denied advantage results in a loss, the value of it is nil where, because of the nature of the loss or P's circumstances, there is no reasonable prospect of the loss being used to support a claim to reduce a tax liability (of any person).

Value of denied advantage: deferred tax

4

(1) To the extent that the denied advantage is a deferral of tax, the value of that 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.

SCHEDULE 31

Introduction

1

This Schedule makes special provision about the application of Chapter 2 to partners and partnerships.

Interpretation

2

(1) This paragraph applies for the purposes of this Schedule.

(2) “Partnership follower notice” means a follower notice given by reason of—

(a) a tax enquiry being in progress into a partnership return, or

(b) an appeal having been made in relation to an amendment of a partnership return or against a conclusion stated by a closure notice in relation to a tax enquiry into a partnership return.

(3) “Partnership return” means a return in pursuance of a notice under section 12AA(2) or (3) of TMA 1970.

(4) “The representative partner”, in relation to a partnership return, means the person who was required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver the return.

(5) “Relevant partner”, in relation to a partnership return, means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required.

(6) References to a “successor”, in relation to the representative partner are to be construed in accordance with section 12AA(11) of TMA 1970.

Giving of follower notices in relation to partnership returns

3

(1) If the representative partner in relation to a partnership return is no longer available, then, for the purposes of section 204 the return, or an appeal in respect of the return, is to be regarded as made by the person who is for the time being the successor of that partner (if that would not otherwise be the case).

(2) Where, at any time after a partnership follower notice is given to P, P is no longer available, any reference in this Chapter (other than section 204 and this sub-paragraph) to P is to be read as a reference to the person who is, for the time being, the successor of the representative partner.

(3) For the purposes of Condition B in section 204 a partnership return, or appeal in respect of a partnership return, is made on the basis that a particular tax advantage results from particular tax arrangements if—

(a) it is made on the basis that an increase or reduction in one or more of the amounts mentioned in section 12AB(1) of TMA 1970 (amounts in the partnership statement in a partnership return) results from those tax arrangements, and

(b) that increase or reduction results in that tax advantage for one or more of the relevant partners.

(4) For the purposes of Condition D in section 204—

(a) a notice given to a person in the person's capacity as the representative partner of a partnership, or a successor of that partner, and a notice given to that person otherwise than in that capacity are not to be treated as given to the same person, and

(b) all notices given to the representative partner and successors of that partner, in that capacity, are to be treated as given to the same person.

(5) In this paragraph references to a person being “no longer available” have the same meaning as in section 12AA(11) of TMA 1970.

Penalty if corrective action not taken in response to partnership follower notice

4

(1) Section 208 applies, in relation to a partnership follower notice, in accordance with this paragraph.

(2) Subsection (2) applies as if the reference to P were to each relevant partner.

(3) References to the denied advantage are to be read as references to the increase or reduction in an amount in the partnership statement mentioned in paragraph 3(3) which is denied by the application of the principles laid down or the reasoning given in the judicial ruling identified in the partnership follower notice under section 206(a) or, if only part of any increase or reduction is so denied, that part.

(4) In subsection (6)(b) the words from “and (where different)” to the end are to be ignored, and accordingly subsection (7) does not apply.

Calculation of penalty etc

5

(1) This paragraph applies in relation to a partnership follower notice.

(2) Section 209 applies subject to the following modifications—

(a) the total amount of the penalties under section 208(2) for which the relevant partners are liable is 12% of the value of the denied advantage,

(aa) the total amount of the penalties under section 208A(3) for which the relevant partners are liable is 8% of the value of the denied advantage,

(b) the amount of the penalty under section 208(2) or 208A(3) (as modified by this paragraph) for which each relevant partner is liable is that partner's appropriate share of that total amount, and

(i) in the case of a notice given under section 204(2)(a), the net amount of the amendments required to be made to the partnership return to counteract the denied advantage, and

(ii) in the case of a notice given under section 204(2)(b), the net amount of the amendments that have been made to the partnership return to counteract the denied advantage,

(and, accordingly, Schedule 30 does not apply).

(3) For the purposes of sub-paragraph (2), a relevant partner's appropriate share is—

(a) the same share as the share in which any profits or loss for the period to which the return relates would be apportioned to that partner in accordance with the firm's profit-sharing arrangements, or

(b) if HMRC do not have sufficient information from P to establish that share, such share as is determined for the purposes of this paragraph by an officer of HMRC.

(4) Where—

(a) the relevant partners are liable to pay a penalty under section 208(2) (as modified by this paragraph),

(b) the penalties have not yet been assessed, and

section 210(1) does not apply, but HMRC may reduce the total amount of the penalties determined in accordance with sub-paragraph (2)(a) to reflect the quality of that co-operation.

(5) Nothing in sub-paragraph (4) permits HMRC to reduce the total amount of the penalties under section 208(2) (as modified by this paragraph) to less than 4% of the value of the denied advantage (as determined in accordance with sub-paragraph (2)(c)).

(6) For the purposes of section 212, a penalty imposed on a relevant partner by virtue of paragraph 4(2) or 4A is to be treated as if it were determined by reference to such additional amount of tax as is due and payable by the relevant partner as a result of the counteraction of the denied advantage.

(7) The right of appeal under section 214 extends to—

(a) a decision that penalties under section 208(2) are payable by the relevant partners by virtue of this paragraph, and

(b) a decision as to the total amount of those penalties payable by those partners,

but not to a decision as to the appropriate share of, or the amount of a penalty payable by, a relevant partner.

(8) Section 214(3) applies to an appeal by virtue of sub-paragraph (7)(a) as it applies to an appeal under section 214(1).

(9) Section 214(8) applies to an appeal by virtue of sub-paragraph (7)(a), and section 214(9) to an appeal by virtue of sub-paragraph (7)(b).

(9A) The right of appeal under section 214A extends to—

(a) a decision that penalties under section 208A(3) are payable by the relevant partners by virtue of this paragraph, and

(b) a decision as to the total amount of those penalties payable by those partners,

but not to a decision as to the appropriate share of, or the amount of a penalty payable by, a relevant partner.

(9B) Section 214A(3) applies to an appeal by virtue of sub-paragraph (9A)(a) as it applies to an appeal under section 214A(1).

(9C) Section 214A(5) applies to an appeal by virtue of sub-paragraph (9A)(a), and section 214A(6) to an appeal by virtue of sub-paragraph (9A)(b).

(10) An appeal by virtue of sub-paragraph (7) may be brought only by the representative partner or, if that partner is no longer available, the person who is for the time being the successor of that partner.

(11) The Treasury may by order made by statutory instrument vary the rates for the time being specified in sub-paragraphs (2)(a) and (aa) and (5).

(12) Any statutory instrument containing an order under sub-paragraph (10) is subject to annulment in pursuance of a resolution of the House of Commons.

SCHEDULE 32

Interpretation

1

(1) This paragraph applies for the purposes of this Schedule.

(2) “Partnership return” means a return in pursuance of a notice under section 12AA(2) or (3) of TMA 1970.

(3) “The representative partner”, in relation to a partnership return, means the person who was required by a notice served under or for the purposes of section 12AA(2) or (3) of TMA 1970 to deliver the return.

(4) “Relevant partner”, in relation to a partnership return, means a person who was a partner in the partnership to which the return relates at any time during the period in respect of which the return was required.

(5) References to a “successor”, in relation to the representative partner, are to be construed in accordance with section 12AA(11) of TMA 1970.

Restriction on circumstances when accelerated payment notices can be given

2

(1) This paragraph applies where—

(a) a tax enquiry is in progress in relation to a partnership return, or

(b) an appeal has been made in relation to an amendment of such a return or against a conclusion stated by a closure notice in relation to a tax enquiry into such a return.

(2) No accelerated payment notice may be given to the representative partner of the partnership, or a successor of that partner, by reason of that enquiry or appeal.

(3) But this Schedule makes provision for partner payment notices and accelerated partner payments in such cases.

Circumstances in which partner payment notices may be given

3

(1) Where a partnership return has been made in respect of a partnership, HMRC may give a notice (a “partner payment notice”) to each relevant partner of the partnership if Conditions A to C are met.

(2) Condition A is that—

(a) a tax enquiry is in progress in relation to the partnership return, or

(b) an appeal has been made in relation to an amendment of the return or against a conclusion stated by a closure notice in relation to a tax enquiry into the return.

(3) Condition B is that the return or, as the case may be, appeal is made on the basis that a particular tax advantage (“the asserted advantage”) results from particular arrangements (“the chosen arrangements”).

(4) Paragraph 3(3) of Schedule 31 applies for the purposes of sub-paragraph (3) as it applies for the purposes of Condition B in section 204(3).

(5) Condition C is that one or more of the following requirements are met—

(a) HMRC has given (or, at the same time as giving the partner payment notice, gives) the representative partner, or a successor of that partner, a follower notice under Chapter 2—

(i) in relation to the same return or, as the case may be, appeal, and

(ii) by reason of the same tax advantage and the chosen arrangements;

(b) the chosen arrangements are DOTAS arrangements (within the meaning of section 219(5) and (6));

(c) the relevant partner in question has been given a GAAR counteraction notice in respect of any tax advantage resulting from the asserted advantage or part of it and the chosen arrangements (or is given such a notice at the same time as the partner payment notice) in a case where the stated opinion of at least two of the members of the sub-panel of the GAAR Advisory Panel which considered the matter under paragraph 10 of Schedule 43 to FA 2013 was as set out in paragraph 11(3)(b) of that Schedule (entering into tax arrangements not reasonable course of action etc).

(d) the relevant partner in question has been given a notice under paragraph 8(2) or 9(2) of Schedule 43A to FA 2013 (notice of final decision after considering Panel's opinion about referred or counteracted arrangements) in respect of any tax advantage resulting from the asserted advantage or part of it and the chosen arrangements (or is given such a notice at the same time as the partner payment notice) in a case where the stated opinion of at least two of the members of the sub-panel of the GAAR Advisory Panel about the other arrangements (see sub-paragraph (7)) was as set out in paragraph 11(3)(b) of Schedule 43 to FA 2013;

(e) the relevant partner in question has been given a notice under paragraph 8(2) of Schedule 43B to FA 2013 (GAAR: generic referral of arrangements) in respect of any tax advantage resulting from the asserted advantage or part of it and the chosen arrangements (or is given such a notice at the same time as the partner payment notice) in a case where the stated opinion of at least two of the members of the sub-panel of the GAAR Advisory Panel which considered the generic referral in respect of those arrangements was as set out in paragraph 6(4)(b) of that Schedule.

(6) “GAAR counteraction notice” has the meaning given by section 219(7).

(7) “Other arrangements” means—

(a) in relation to a notice under paragraph 8(2) of Schedule 43A to FA 2013, the referred arrangements (as defined in that paragraph);

(b) in relation to a notice under paragraph 9(2) of that Schedule, the counteracted arrangements (as defined in paragraph 2 of that Schedule).

Content of partner payment notices

4

(1) The partner payment notice given to a relevant partner must—

(a) specify the paragraph or paragraphs of paragraph 3(5) by virtue of which the notice is given,

(b) specify the payment (if any) required to be made under paragraph 6, ...

(c) explain the effect of paragraphs 5 and 6, and of the amendments made by sections 224 and 225 (so far as relating to the relevant tax in relation to which the partner payment notice is given), and

(d) if the denied advantage consists of or includes an asserted surrenderable amount, specify that amount and any action which is required to be taken in respect of it under paragraph 6A.

(2) The payment required to be made under paragraph 6 is an amount equal to the amount which a designated HMRC officer determines, to the best of the officer's information and belief, as the understated partner tax (and disregarding any dispute which has been referred to a tribunal under section 12ABZB(3) of TMA 1970 but not yet determined).

(3) “The understated partner tax” means the additional amount that would become due and payable by the relevant partner in respect of tax if—

(a) in the case of a notice given by virtue of paragraph 3(5)(a) (case where a partnership follower notice is given)—

(i) it were assumed that the explanation given in the follower notice in question under section 206(b) is correct, and

(ii) what the officer may determine to the best of the officer's information and belief as the denied advantage is counteracted to the extent that it is reflected in a return or claim of the relevant partner;

(b) in the case of a notice given by virtue of paragraph 3(5)(b) (cases where the DOTAS arrangements are met), such adjustments were made as are required to counteract so much of what the designated HMRC officer so determines as the denied advantage as is reflected in a return or claim of the relevant partner;

(c) in the case of a notice given by virtue of paragraph 3(5)(c) (cases involving counteraction under the general anti-abuse rule), such of the adjustments set out in the GAAR counteraction notice are made as have effect to counteract so much of the denied advantage as is reflected in a return or claim of the relevant partner.

(4) “The denied advantage”—

(a) in the case of the notice given by virtue of paragraph 3(5)(a), has the meaning given by paragraph 4(3) of Schedule 31,

(b) in the case of a notice given by virtue of paragraph 3(5)(b), means so much of the asserted advantage as is not a tax advantage which results from the chosen arrangements or otherwise, and

(c) in the case of a notice given by virtue of paragraph 3(5)(c), means so much of the asserted advantage as would be counteracted by making the adjustments set out in the GAAR counteraction notice.

(4A) Asserted surrenderable amount” means so much of a surrenderable loss which the relevant partner asserts to have as a designated HMRC officer determines, to the best of that officer's information and belief, to be an amount—

(a) which would not be a surrenderable loss of that partner if the position were as stated in paragraphs (a), (b) or (c) of sub-paragraph (3), and

(b) which is not the subject of a claim by the relevant partner to relief from corporation tax which is reflected in the amount of the understated partner tax of that partner (and hence in the payment required to be made under paragraph 6).

(4B) “Surrenderable loss” means a loss or other amount within section 99(1) of CTA 2010 (or part of such a loss or other amount).

(5) If a notice is given by reason of two or all of the requirements of paragraph 3(5) being met, any payment specified under sub-paragraph (1)(b) or amount specified under sub-paragraph (1)(d) is to be determined as if the notice were given by virtue of such one of them as is stated in the notice as being used for this purpose.

Representations about a partner payment notice

5

(1) This paragraph applies where a partner payment notice has been given to a relevant partner under paragraph 3 (and not withdrawn).

(2) The relevant partner has 90 days beginning with the day that notice is given to send written representations to HMRC—

(a) objecting to the notice on the grounds that Condition A, B or C in that paragraph was not met, ...

(b) objecting to the amount specified in the notice under paragraph 4(1)(b), or

(3) HMRC must consider any representations made in accordance with sub-paragraph (2).

(4) Having considered the representations, HMRC must—

(a) if representations were made under sub-paragraph (2)(a), determine whether—

(i) to confirm the partner payment notice (with or without amendment), or

(ii) to withdraw the partner payment notice, ...

(b) if representations were made under sub-paragraph (2)(b) (and the notice is not withdrawn under paragraph (a)), determine whether a different amount (or no amount) ought to have been specified as the understated partner tax, and then—

(i) confirm the amount specified in the notice, ...

(ii) amend the notice to specify a different amount, or

(iii) remove from the notice the provision made under paragraph 4(1)(b),, and

(c) if representations were made under sub-paragraph (2)(c) (and the notice is not withdrawn under paragraph (a)), determine whether a different amount (or no amount) ought to have been specified under paragraph 4(1)(d), and then—

(i) confirm the amount specified in the notice,

(ii) amend the notice to specify a different amount, or

(iii) remove from the notice the provision made under paragraph 4(1)(d),

and notify P accordingly.

Effect of partner payment notice

6

(1) This paragraph applies where—

(a) a partner payment notice has been given to a relevant partner (and not withdrawn), and

(b) an amount is stated in the notice in accordance with paragraph 4(1)(b).

(2) The relevant partner must make a payment (“the accelerated partner payment”) to HMRC of that amount.

(3) The accelerated partner payment is to be treated as a payment on account of the understated partner tax (see paragraph 4).

(4) The accelerated partner payment must be made before the end of the payment period.

(5) “The payment period” means—

(a) if the relevant partner made no representations under paragraph 5, the period of 90 days beginning with the day on which the partner payment notice is given;

(b) if the relevant partner made such representations, whichever of the following ends later—

(i) the 90 day period mentioned in paragraph (a);

(ii) the period of 30 days beginning with the day on which the relevant partner is notified under paragraph 5 of HMRC's determination.

(6) If the relevant partner pays any part of the understated partner tax before the accelerated partner payment in respect of it, the accelerated partner payment is treated to that extent as having been paid at the same time.

(7) Subsections (8) and (9) of section 223 apply in relation to a payment under this paragraph as they apply to a payment under that section.

Penalty for failure to comply with partner payment notice

7

Section 226 (penalty for failure to make accelerated payment on time) applies to accelerated partner payments as if—

(a) references in that section to the accelerated payment were to the accelerated partner payment,

(b) references to P were to the relevant partner, ...

(ba) the reference in section 226(8) to an amendment to an accelerated payment notice made under section 227(7A) were to an amendment to a partner payment notice made under that section as applied by paragraph 8 of this Schedule, and

Withdrawal, suspension or modification of partner payment notices

8

(1) Section 227 (withdrawal, modification or suspension of accelerated payment notice) applies in relation to a relevant partner, a partner payment notice, Condition C in paragraph 3 and an accelerated partner payment as it applies in relation to P, an accelerated payment notice, Condition C in section 219 and an accelerated payment.

(2) Accordingly, for this purpose—

(za) section 227(2)(d), (12A) and (16) has effect as if the references to section 220(2)(d) or 221(2)(d) were to paragraph 4(1)(d) of this Schedule,

(a) section 227(6)(b) and (7)(a) has effect as if the references to section 220(6) were to paragraph 4(5) of this Schedule, ...

(aa) section 227(7A) has effect as if the reference to a section 12AA partnership return to which the accelerated payment notice relates were a reference to the section 12AA partnership return in relation to which the partner payment notice is given;

(b) the provisions listed in section 227(9) are to be read as including paragraph 6(5) of this Schedule, ...

(d) section 227(13A) has effect as if the reference to section 223(2) were to paragraph 6(2) of this Schedule and the reference to section 223(5) were to paragraph 6(5) of this Schedule.

SCHEDULE 33

Taxes Management Act 1970

1

In section 9B of TMA 1970 (amendment of return by relevant person during enquiry), in subsection (1), after “taxpayer)” insert “ , or in accordance with Chapter 2 of Part 4 of the Finance Act 2014 (amendment of return after follower notice), ”.

2

In section 103ZA of that Act (disapplication of sections 100 to 103 (penalty provisions) in the case of certain penalties)—

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

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

, or (h) Part 4 of the Finance Act 2014 (follower notices and accelerated payments).

Finance Act 2007

3

In paragraph 12 of Schedule 24 to FA 2007 (penalties for errors: interaction with other penalties), after sub-paragraph (2) insert—

(2A) In sub-paragraph (2) “any other penalty” does not include a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc).

Finance Act 2008

4

In paragraph 15 of Schedule 41 to FA 2008 (penalties: failure to notify: interaction with other penalties), after sub-paragraph (1) insert—

(1A) In sub-paragraph (1) “any other penalty” does not include a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc).

Finance Act 2009

5

In paragraph 17 of Schedule 55 to FA 2009 (penalty for failure to make returns etc: interaction with other penalties), after sub-paragraph (2)(b) insert

, or (c) a penalty under Part 4 of FA 2014 (penalty where corrective action not taken after follower notice etc).

SCHEDULE 34

PART 1 — Meeting the threshold conditions: general

Meaning of “threshold condition”

1

Each of the conditions described in paragraphs 2 to 12 is a “threshold condition”.

Deliberate tax defaulters

2

A person meets this condition if the Commissioners publish information about the person in reliance on section 94 of FA 2009 (publishing details of deliberate tax defaulters).

Breach of the Banking Code of Practice

3

A person meets this condition if the person is named in a report under section 285 as a result of the Commissioners determining that the person breached the Code of Practice on Taxation for Banks by reason of promoting arrangements which the person cannot have reasonably believed achieved a tax result which was intended by Parliament.

Dishonest tax agents

4

A person meets this condition if the person is given a conduct notice under paragraph 4 of Schedule 38 to FA 2012 (tax agents: dishonest conduct) and either—

(a) the time period during which a notice of appeal may be given in relation to the notice has expired, or

(b) an appeal against the notice has been made and the tribunal has confirmed the determination referred to in sub-paragraph (1) of paragraph 4 of that Schedule.

Non-compliance with Part 7 of FA 2004

5

(A1) A person meets this condition if the person fails to comply with any of the following provisions of—

(a) Part 7 of FA 2004 (disclosure of tax avoidance schemes);

(b) Schedule 17 to F(No. 2)A 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).

(1) The provisions of Part 7 of FA 2004 are—

(a) section 308(1) and (3) (duty of promoter in relation to notifiable proposals and notifiable arrangements);

(b) section 309(1) (duty of person dealing with promoter outside the United Kingdom);

(ca) section 310C (duty of promoter to provide updated information);

(cb) section 312(2) (duty of promoter to notify client of reference number);

(d) section 313ZA (duty of promoter to provide details of clients).

(e) section 316A (duty to provide additional information).

(1A) The provisions of Schedule 17 to F(No.2)A 2017 are—

(a) paragraph 11(1) (duty of promoter in relation to notifiable proposals);

(b) paragraph 21(3) (duty of promoter to provide updated information);

(d) paragraph 27(3) (duty of promoter to provide details of clients);

(e) paragraph 33 (duty to provide additional information).

(2) For the purposes of sub-paragraphs (1) and (1A), a person (“P”) fails to comply with a provision mentioned in any of those sub-paragraphs if and only if any of conditions A to C are met.

(3) Condition A is met if—

(a) the tribunal has determined that P has failed to comply with the provision concerned,

(b) the appeal period has ended, and

(4) Condition B is met if—

(a) the tribunal has determined for the purposes of section 118(2) of TMA 1970 or paragraph 48 of Schedule 17 to F(No.2)A 2017 that P is to be deemed not to have failed to comply with the provision concerned as P had a reasonable excuse for not doing the thing required to be done,

(b) the appeal period has ended, and

(5) Condition C is met if P has admitted in writing to HMRC that P has failed to comply with the provision concerned.

(6) The “appeal period” means—

(a) the period during which an appeal could be brought against the determination of the tribunal, or

(b) where an appeal mentioned in paragraph (a) has been brought, the period during which that appeal has not been finally determined, withdrawn or otherwise disposed of.

Criminal offences

6

(1) A person meets this condition if the person is charged with a relevant offence.

(2) The fact that a person has been charged with an offence is disregarded for the purposes of this paragraph if—

(a) the person has been acquitted of the offence, or

(b) the charge has been dismissed or the proceedings have been discontinued.

(3) An acquittal is not taken into account for the purposes of sub-paragraph (2) if an appeal has been brought against the acquittal and has not yet been disposed of.

(4) “Relevant offence” means any of the following—

(a) an offence at common law of cheating in relation to the public revenue;

(b) in Scotland, an offence at common law of—

(i) fraud;

(ii) uttering;

(c) an offence under section 17(1) of the Theft Act 1968 or section 17 of the Theft Act (Northern Ireland) 1969 (c. 16 (N.I.)) (false accounting);

(d) an offence under section 106A of TMA 1970 (fraudulent evasion of income tax);

(e) an offence under section 107 of TMA 1970 (false statements: Scotland);

(f) an offence under any of the following provisions of CEMA 1979—

(i) section 50(2) (improper importation of goods with intent to defraud or evade duty);

(ii) section 167 (untrue declarations etc);

(iii) section 168 (counterfeiting documents etc);

(iv) section 170 (fraudulent evasion of duty);

(v) section 170B (taking steps for the fraudulent evasion of duty);

(g) an offence under any of the following provisions of VATA 1994—

(i) section 72(1) (being knowingly concerned in the evasion of VAT);

(ii) section 72(3) (false statement etc);

(iii) section 72(8) (conduct involving commission of other offence under section 72);

(h) an offence under section 1 of the Fraud Act 2006 (fraud);

(i) an offence under any of the following provisions of CRCA 2005—

(i) section 30 (impersonating a Commissioner or officer of Revenue and Customs);

(ii) section 31 (obstruction of officer of Revenue and Customs etc);

(iii) section 32 (assault of officer of Revenue and Customs);

(j) an offence under regulation 86(1) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017;

(k) an offence under section 49(1) of the Criminal Justice and Licensing (Scotland) Act 2010 (asp 13) (possession of articles for use in fraud).

Opinion notice of GAAR Advisory Panel

7

(1) A person meets this condition if one or more of sub-paragraphs (2) to (4) apply in respect of the person.

(2) This sub-paragraph applies in respect of a person if —

(a) arrangements in relation to which the person is a promoter —

(i) have been referred to the GAAR Advisory Panel under Schedule 43 to FA 2013 (referrals of single schemes),

(ii) are in a pool in respect of which a referral has been made to that Panel under Schedule 43B to that Act (generic referrals), or

(iii) have been referred to that Panel under paragraph 26 of Schedule 16 to F(No. 2)A 2017 (referrals in relation to penalties for enablers of defeated tax avoidance),

(b) one or more opinion notices are given in respect of the referral under (as the case may be)—

(i) paragraph 11(3)(b) of Schedule 43 to FA 2013,

(ii) paragraph 6(4)(b) of Schedule 43B to that Act, or

(iii) paragraph 34(3)(b) of Schedule 16 to F(No. 2)A 2017,

(opinion of sub-panel of GAAR Advisory Panel that arrangements are not reasonable), and

(i) state the joint opinion of all the members of the sub-panel arranged under ... that Schedule, or

(ii) state the opinion of two or more members of that sub-panel.

(3) This sub-paragraph applies in respect of a person (“P”) if—

(a) another person has been given, in respect of arrangements in relation to which P is a promoter (“the promoted arrangements”)—

(i) a pooled arrangements opinion notice, under paragraph 6(2) of Schedule 43A to FA 2013, or

(ii) a bound arrangements opinion notice under paragraph 6(4) of that Schedule,

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Finance Act 2014

SCHEDULE 26

Introduction

1

High quality liquid assets etc

2

3

4

5

6

7

Protected deposits

8

Tier one capital equity and liabilities

9

Liabilities representing QCP margin in relation to trades executed under clearing agreements

10

Certain liabilities deemed short term liabilities

11

Amendments consequential on regulatory changes

12

Transitional provision

13

SCHEDULE 27

Breach notice

1

Final notice

2

Direction to suspend remote operating licence

3

Reinstatement of remote operating licence

4

5

Revocation of remote operating licence

6

Consent requirement for grant of new remote operating licence

7

Supplementary

8

9

SCHEDULE 28

PART 1 — Betting and Gaming Duties Act 1981

1

2

3

4

5

6

7

8

9

PART 2 — Other amendments and repeals

Customs and Excise Management Act 1979

10

11

12

13

14

Finance Act 1994

15

16

17

18

Value Added Tax Act 1994

19

Finance Act 1997

20

Criminal Justice and Police Act 2001

21

Gambling Act 2005

22

23

24

25

26

Finance Act 2008

27

Finance Act 2009

28

29