Finance Act 2014

[^key-26c53d2ed383a87022c3fedd909d601c]: Sch. 35 para. 2(1)(b) and word inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(a)(iii)

[^key-0ef40afcc22adfd30842de4d10050fe3]: Words in Sch. 35 para. 2(1) Table inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(b)

[^key-1b591241bfe7289aff6a06937d931006]: Words in Sch. 35 para. 2(1) Table inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(c)

[^key-7918da1280957ae5f2703540bc961e27]: Words in Sch. 35 para. 2(1) Table inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(d)(i)

[^key-49400241978e57c59b8a40f45aacfc58]: Words in Sch. 35 para. 2(1) Table omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(d)(ii)

[^key-c3517c7e70cac6cedf27017c5c7aa519]: Words in Sch. 35 para. 2(2) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(f)

[^key-519b52047088c019adbf3bbc834da552]: Words in Sch. 35 para. 2(4)(a) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(i)(a)

[^key-f919abd78bb8a1c10050fa0c00013cca]: Words in Sch. 35 para. 2(4)(a) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(i)(b)

[^key-bfbc7dbc89b32e4340fcda53970aae18]: Words in Sch. 35 para. 2(4)(b) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(i)(ii)(a)

[^key-1f49c552a702cd63cc004229ecba0420]: Words in Sch. 35 para. 2(4)(b) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(i)(ii)(b)

[^key-be6dfd036ef194dd3182b6749e9b9267]: Word in Sch. 35 para. 2(4)(b) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(i)(ii)(c)

[^key-42709ab96ee9c78c49c132b1d4514184]: Words in Sch. 35 para. 2(4)(b) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(3)(i)(ii)(d)

[^key-636d2d84d0181d5ede9bd5bf7188ffac]: S. 214(8A) inserted (with effect in accordance with Sch. 28 para. 15 of the amending Act) by Finance Act 2021 (c. 26), Sch. 28 para. 7

[^key-5fc02df518dcd46767e0d80a8004cf18]: S. 227(5) substituted (with application in accordance with Sch. 31 paras. 45, 46 of the amending Act) by Finance Act 2021 (c. 26), Sch. 31 paras. 43(3), 44

[^key-c2ef8132546b8a60132b19d0eddc821a]: S. 252(4A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 15(2)

[^key-7a35f5a80e68aaf40e200cb60ffc3bf2]: Words in s. 252(5) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 15(3)

[^key-30c0eb0a4aed5615fd63ef80a0e79698]: Words in Sch. 35 para. 7(1) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(7)(a)

[^key-ef76e147587bfac0c4ea233dc3b80d13]: Words in Sch. 35 para. 7(2)(b) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(7)(b)

[^key-72408ce9f535165508bb81062f4f00d1]: Sch. 35 paras. 10(b)(ii)-(v) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(8)(b)

[^key-ec00a6bd75a76f81b807dd90fa6f745d]: Words in Sch. 35 para. 10(b) renumbered as Sch. 35 para. 10(b)(i) (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(8)(a)

[^key-749b89ccd2b746edca89af9a2ae19f70]: Words in Sch. 34 para. 10(1) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 31(a)

[^key-d20511cb0bc2a657903e4f0264ecc871]: Words in Sch. 34 para. 10(2) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 31(b)

[^key-49914db727a2a2bda38408478a31e670]: S. 235(1A) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 9

[^key-cb839fa304ed400c3ee5e2b28a7eb2ee]: S. 238(3)(h) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 23

[^key-7c3ed44aa4afb653aafd399c1e8d03cd]: Words in s. 241A(4) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 26

[^key-5359bccbfba96fa3b3193fef82c1963a]: Words in s. 248(2)(c) substituted (with effect in accordance with Sch. 30 para. 21(3) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 21(2)

[^key-106d11a57eaa21cbe9c9891116d9904d]: Word in s. 258(3)(a) omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 16(a)

[^key-1813ee674810c1e0fb3dd63f1ef145d0]: S. 258(3)(aa) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 16(b)

[^key-925075795a2fa9e745bfb6cd7649e73f]: S. 262 omitted (with effect in accordance with s. 121(6) of the amending Act) by virtue of Finance Act 2021 (c. 26), Sch. 30 para. 3

[^key-8fe372789627bc44064b07c848568db6]: Sch. 34 para. 12 substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 7(b)

[^key-2420256bdf40a0a6fb4c3ad680ea9dda]: Words in Sch. 34 para. 13B(5) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 19

[^key-ad50332ea03900f15fb8f014c9cebee0]: Words in Sch. 35 para. 3(1) inserted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(4)

[^key-76c0139958876d2c0adb0855115cac4a]: Words in Sch. 35 para. 6(1) substituted (with effect in accordance with s. 121(6) of the amending Act) by Finance Act 2021 (c. 26), Sch. 30 para. 8(6)

[^key-dec00f9af761f795d476200e9475d71c]: S. 174(3A) inserted (E.W.) (7.2.2023 at 12.00 p.m.) by The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 30(2)

[^key-d1b38896966e8a503fa6df9563a172f8]: S. 174(4)(a) omitted (E.W.) (7.2.2023 at 12.00 p.m.) by virtue of The Judicial Review and Courts Act 2022 (Magistrates’ Court Sentencing Powers) Regulations 2023 (S.I. 2023/149), regs. 1(2), 30(3)

[^key-1b933fc22bbedb5e2e6044247f31cddd]: Ss. 227A, 227B inserted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(1) (with s. 34(3)(4))

[^key-a7d215a9544e0078b2bc107e61805c90]: Word in s. 174(3)(a) substituted (22.2.2024) by Finance Act 2024 (c. 3), s. 32(1) (with s. 32(6))

[^key-6f1d5ca0033f828445639ba8f0e66cea]: Word in s. 236B(7) substituted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(5)

[^key-a6509743631cbcf8696f3aa54a084c75]: Word in s. 280(1) inserted (22.2.2024) by Finance Act 2024 (c. 3), s. 34(2)

[^key-b362266259564166c8dc1e4571839acb]: S. 212(4)(f) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(b)(ii); S.I. 2024/440, reg. 2

[^key-c15ddda36bd63249da3b6b0469b83e95]: Word in s. 212(4)(d) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(b)(i); S.I. 2024/440, reg. 2

[^key-20a094ace9668fb24a85ae695c79b225]: Words in s. 212(2)(b) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(a); S.I. 2024/440, reg. 2

[^key-b3c052145e26addd0eef29ca9bc2f533]: Word in s. 212(5)(a)(ii) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(i); S.I. 2024/440, reg. 2

[^key-755e5efe8fad26ae4fc2ee4cc77347a7]: S. 212(5)(a)(iv) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(ii); S.I. 2024/440, reg. 2

[^key-61a038f4b4cce3bc4b4e2235875106ab]: Word in s. 212(5)(b)(ii) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(iii); S.I. 2024/440, reg. 2

[^key-5a485570455f81b9ef3cb8963cc91ace]: S. 212(5)(b)(iv) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(iv); S.I. 2024/440, reg. 2

[^key-43603baa5978ebbe139855ca46768220]: S. 212(5)(c)(iv) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(v); S.I. 2024/440, reg. 2

[^key-a49179a1ddd9ca85523fdbe9d2cc55a5]: Words in s. 212(5)(d) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 43(c)(vi); S.I. 2024/440, reg. 2

[^key-8444ee1e4e021ce369a255119769b3d9]: Words in Sch. 6 para. 1(1)(c) substituted (for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 92(2), 124 (with Sch. 9 paras. 125-132)

[^key-3ac87fac0d0850146333865a18f597dd]: Sch. 6 para. 1(2)-(2B) substituted for Sch. 6 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), 15(3)

[^key-0e35f8d187fc4ab8f1e2a3c06b662f11]: Words in Sch. 6 para. 1(3) substituted (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), 15(4)

[^key-5b321efc925233b648e2d70021fbb9e4]: Words in Sch. 6 para. 1(1) substituted (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), 15(2)

Penalties

Offences relating to stop notices

Disclosure of tax avoidance schemes: information powers

Companies owned by employee-ownership trusts

Controlled foreign companies: qualifying loan relationships (1)

Tax consequences of financial sector regulation

The starting rate for savings and the savings rate limit

Indexation of limits and allowances under ITA 2007

Annual exempt amount for 2015-16 onwards

Recommended medical treatment

Relief for loan interest: loan to buy interest in close company

Restrictions on remittance basis

Employment intermediaries: information powers and related penalties

PAYE obligations of UK intermediary in cases involving non-UK employer

Taxable benefits: cars, vans and related benefits

Television tax relief: activities to be treated as separate trade

Video games development

Community amateur sports clubs

Changes in company ownership

Transfer of deductions: research and development allowances

Pension flexibility: taking low-value pension rights as lump sum

Pension schemes

Exclusion of incentivised electricity or heat generation activities

Remittance basis and split year treatment

Capital gains roll-over relief: relevant classes of assets

Extension of capital allowances

Avoidance involving losses

Mineral extraction allowances: activities not within charge to tax

Rates of alcoholic liquor duties

Air passenger duty: rates of duty from 1 April 2014

Air passenger duty: adjustments to Part 3 of Schedule 5A to FA 1994

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

VED rates: rigid goods vehicle with trailers

VED rates: use for exceptional loads, rigid goods vehicles and tractive units

VED: extension of old vehicles exemption from 1 April 2014

VED: extension of old vehicles exemption from 1 April 2015

Vehicle excise and registration: other provisions

HGV road user levy: rates tables

Aggregates levy: removal of certain exemptions

Penalties under section 26 of FA 2003: extension to excise duty

VAT: supply of services through agents

VAT: refunds to health service bodies

SDLT: threshold for higher rate applying to certain transactions

ATED: further reduction in threshold from 1 April 2016

Abolition of SDRT on certain dealings in collective investment schemes

Bank levy: miscellaneous changes

Withdrawal, modification or suspension of accelerated payment notice

Withdrawal, modification or suspension of accelerated payment notice

Accelerated partner payments

Prevention of surrender of losses

225A

• (1) This section applies where—

• (a) an accelerated payment notice is given (and not withdrawn), and

• (b) an amount is specified in the notice in accordance with section 220(2)(d) or 221(2)(d).

• (2) P may not consent to any claim for group relief in respect of the amount so specified.

• (3) Subject to subsection (2), paragraph 75 (other than sub-paragraphs (7) and (8)) of Schedule 18 to FA 1998 (reduction in amount available for surrender) has effect as if the amount so specified ceased to be an amount available for surrender at the time the notice was given to P.

• (4) For the purposes of subsection (3), paragraph 75 of that Schedule has effect as if, in sub-paragraph (2) of that paragraph for “within 30 days” there were substituted “ before the end of the payment period (within the meaning of section 223(5) of the Finance Act 2014) ”.

• (5) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made in accordance with paragraph 75(6) of Schedule 18 to FA 1998 where, pursuant to subsection (3), a claimant company receives—

• (a) notice of the withdrawal of consent under paragraph 75(3) of that Schedule, or

• (b) a copy of a notice containing directions under paragraph 75(4) of that Schedule.

• (6) Subsection (7) applies where—

• (a) a company makes such an amendment to its company tax return at a time when an enquiry is in progress into the return, and

• (b) paragraph 31(3) of that Schedule prevents the amendment from taking effect until the enquiry is completed.

• (7) Section 219 (circumstances in which an accelerated payment notice may be given) has effect, in its application to that company in a case where section 219(2)(a) applies (tax enquiry in progress), as if—

• (a) for the purposes of section 219(3), that amendment to the return had not been made,

• (b) in section 219(4), after paragraph (c) there were inserted—

(d) P has amended its company tax return, in accordance with paragraph 75(6) of Schedule 18 to FA 1998, in circumstances where pursuant to section 225A(3), P has received— (i) notice of the withdrawal of consent under paragraph 75(3) of that Schedule, or (ii) a copy of a notice containing directions under paragraph 75(4) of that Schedule, but paragraph 31(3) of that Schedule prevents that amendment having effect.

,

• (c) in section 220(4), after paragraph (c) there were inserted—

(d) in the case of a notice given by virtue of section 219(4)(d) (cases involving withdrawal of consent for losses claimed), it were assumed that P had never made the claim to group relief to which the amendment to its company tax return relates.

, and

• (d) in section 227(10), for “or (c)” there were substituted “ , (c) or (d) ”.

• (8) Subsections (2) and (3) are subject to—

• (a) section 227(14) to (16) (provision about claims for group relief, and consents to claims, following amendment or withdrawal of an accelerated payment notice), and

• (b) section 227A (provision about claims for group relief, and consents to claims, once tax position finally determined).

Group relief claims after accelerated payment notices

227A

• (1) This section applies where as a result of an accelerated payment notice given to P—

• (a) P was prevented from consenting to a claim for group relief in respect of an amount under section 225A(2), or

• (b) pursuant to section 225A(3), a consent given by P to a claim for group relief in respect of an amount was ineffective.

• (2) If a final determination establishes that the amount P has available to surrender consists of or includes the amount referred to in subsection (1)(a) or (b) or a part of it (“the allowed amount”)—

• (a) section 225A(2) and (3) (which prevents consent being given to group relief claims) ceases to apply in relation to the allowed amount, and

• (b) a claim for group relief in respect of any part of the allowed amount may be made within the period of 30 days after the relevant time.

• (3) The time limits otherwise applicable to amendment of a company tax return do not apply to an amendment to the extent that it makes a claim for group relief in respect of any part of the allowed amount within the time limit allowed by subsection (2)(b).

• (4) In this section—

• “final determination” means—a conclusion stated in a closure notice under paragraph 34 of Schedule 18 to FA 1998 against which no appeal is made;the final determination of a tax appeal within paragraph (d) or (e) of section 203;

• “relevant time” means—in a case within paragraph (a) above, the end of the period during which the appeal could have been made;in the case within paragraph (b) above, the end of the day on which the final determination occurs.

Judicial ruling upholding asserted tax advantage: effect on conduct notice which is provisional

Disclosure of tax avoidance schemes: information powers

The Code of Practice on Taxation for Banks: HMRC to publish reports

Amounts allowed by way of double taxation relief

Controlled foreign companies: qualifying loan relationships (1)

Interpretation

6A

• (1) This paragraph applies where—

• (a) an accelerated payment notice is given (and not withdrawn), and

• (b) an amount is specified in the notice in accordance with paragraph 4(1)(d).

• (2) The relevant partner may not at any time when the notice has effect consent to any claim for group relief in respect of the amount so specified.

• (3) Subject to sub-paragraph (2), paragraph 75 (other than sub-paragraphs (7) and (8)) of Schedule 18 to FA 1998 (reduction in amount available for surrender) has effect at any time when the notice has effect as if that specified amount ceased to be an amount available for surrender at the time the notice was given to the relevant partner.

• (4) For the purposes of sub-paragraph (3), paragraph 75 of that Schedule has effect as if, in sub-paragraph (2) of that paragraph for “within 30 days” there were substituted “ before the end of the payment period (within the meaning of paragraph 6(5) of Schedule 32 to the Finance Act 2014) ”.

• (5) The time limits otherwise applicable to amendment of a company tax return do not prevent an amendment being made in accordance with paragraph 75(6) of Schedule 18 to FA 1998 where the relevant partner withdraws consent by virtue of sub-paragraph (3).

Interpretation

13A

• (1) This paragraph contains definitions for the purposes of this Part of this Schedule.

• (2) Each of the following is a “relevant body”—

• (a) a body corporate, and

• (b) a partnership.

• (3) “Relevant time” means the time referred to in section 237(1A) (duty to give conduct notice to person treated as meeting threshold condition).

• (4) “Relevant threshold condition” means a threshold condition specified in any of the following paragraphs of this Schedule—

• (a) paragraph 2 (deliberate tax defaulters);

• (b) paragraph 4 (dishonest tax agents);

• (c) paragraph 6 (criminal offences);

• (d) paragraph 7 (opinion notice of GAAR advisory panel);

• (e) paragraph 8 (disciplinary action against a member of a trade or profession);

• (f) paragraph 9 (disciplinary action by regulatory authority);

• (g) paragraph 10 (failure to comply with information notice).

• (5) A person controls a body corporate if the person has power to secure that the affairs of the body corporate are conducted in accordance with the person's wishes—

• (a) by means of the holding of shares or the possession of voting power in relation to the body corporate or any other relevant body,

• (b) as a result of any powers conferred by the articles of association or other document regulating the body corporate or any other relevant body, or

• (c) by means of controlling a partnership.

• (6) Two or more persons together control a body corporate if together they have the power to secure that the affairs of the body corporate are conducted in accordance with their wishes in any way specified in sub-paragraph (5)(a) to (c).

• (7) A person controls a partnership if the person is a member of the partnership and—

• (a) has the right to a share of more than half the assets, or more than half the income, of the partnership, or

• (b) directs, or is on a day-to-day level in control of, the management of the business of the partnership.

• (8) Two or more persons together control a partnership if they are members of the partnership and together they—

• (a) have the right to a share of more than half the assets, or of more than half the income, of the partnership, or

• (b) direct, or are on a day-to-day level in control of, the management of the business of the partnership.

• (9) Paragraph 19(2) to (5) of Schedule 36 (connected persons etc) applies to a person referred to in sub-paragraph (7) or (8) as if references to “P” were to that person.

• (10) A person has significant influence over a body corporate or partnership if the person—

• (a) does not control the body corporate or partnership, but

• (b) is able to, or actually does, exercise significant influence over it (whether or not as the result of a legal entitlement).

• (11) Two or more persons together have significant influence over a body corporate or partnership if together those persons—

• (a) do not control the body corporate or partnership, but

• (b) are able to, or actually do, exercise significant influence over it (whether or not as the result of a legal entitlement).

• (12) References to a person being a promoter are to the person carrying on business as a promoter.

Relevant bodies controlled etc by other persons treated as meeting a threshold condition

13B

• (1) A relevant body is treated as meeting a threshold condition at the relevant time if any of Conditions A to C is met.

• (2) Condition A is that—

• (a) a person met the threshold condition at a time when the person was a promoter, and

• (b) the person controls or has significant influence over the relevant body at the relevant time.

• (3) Condition B is that—

• (a) a person met the threshold condition at a time when the person controlled or had significant influence over the relevant body,

• (b) the relevant body was a promoter at that time, and

• (c) the person controls or has significant influence over the relevant body at the relevant time.

• (4) Condition C is that—

• (a) two or more persons together controlled or had significant influence over the relevant body at a time when one of those persons met the threshold condition,

• (b) the relevant body was a promoter at that time, and

• (c) those persons together control or have significant influence over the relevant body at the relevant time.

• (5) Where the person referred to in sub-paragraph (2)(a) or (3)(a) or (4)(a) as meeting a threshold condition is an individual who does not fall within the case described in paragraph 4 or 5 of Schedule 33A, sub-paragraph (1) only applies if the threshold condition is a relevant threshold condition.

• (6) For the purposes of sub-paragraph (2) it does not matter whether the relevant body existed at the time referred to in sub-paragraph (2)(a).

Persons who control etc a relevant body treated as meeting a threshold condition

13C

• (1) If at a time when a person controlled or had significant influence over a relevant body—

• (a) the relevant body met a threshold condition, and

• (b) the relevant body, or another relevant body which the person controlled or had significant influence over, was a promoter,

the person is treated as meeting the threshold condition at the relevant time.

• (2) It does not matter whether any relevant body referred to sub-paragraph (1) exists at the relevant time.

Relevant bodies controlled etc by the same person treated as meeting a threshold condition

13D

• (1) If—

• (a) a person controlled or had significant influence over a relevant body at a time when it met a threshold condition, and

• (b) at that time that body, or another relevant body which the person controlled or had significant influence over, was a promoter,

any relevant body which the person controls or has significant influence over at the relevant time is treated as meeting the threshold condition at the relevant time.

• (2) If—

• (a) two or more persons together controlled or had significant influence over a relevant body at a time when it met a threshold condition, and

• (b) at that time that body, or another relevant body which those persons together controlled or had significant influence over, was a promoter,

any relevant body which those persons together control or have significant influence over at the relevant time is treated as meeting the threshold condition at the relevant time.

• (3) It does not matter whether—

• (a) a relevant body referred to in sub-paragraph (1)(a) or (b) or (2)(a) or (b) exists at the relevant time, or

• (b) a relevant body existing at the relevant time existed at the time referred to in sub-paragraph (1)(a) or (2)(a).

Penalties under section 26 of FA 2003: extension to excise duty

VAT: supply of services through agents

VAT: refunds to health service bodies

SDLT: exercise of collective rights by tenants of flats

SDLT: charities relief

Temporary statutory effect of House of Commons resolution

Gifts to the nation: estate duty

Appeal against a section 208 penalty

Restriction on powers to postpone tax payments pending initial appeal

Representations about a notice

Indexation of limits and allowances under ITA 2007

Recommended medical treatment

Relief for loan interest: loan to buy interest in close company

Relief for loan interest: loan to buy interest in employee-controlled company

Recovery under PAYE regulations from certain company officers

Payments by employer on account of tax where deduction not possible

Threshold for benefit of loan to be treated as earnings

Cars and vans: payments for private use

Holdings treated as rights under loan relationships

De-grouping charges (loan relationships etc)

Film tax relief

Community amateur sports clubs

Tax relief for theatrical production

Transfer of deductions: research and development allowances

Tax treatment of financing costs and income

Pension flexibility: drawdown

Pension flexibility: further amendments

Share incentive plans: power to adjust maximum annual awards etc

Mineral extraction allowances: activities not within charge to tax

Extended ring fence expenditure supplement for onshore activities

Rates of tobacco products duty

Air passenger duty: adjustments to Part 3 of Schedule 5A to FA 1994

VED rates: rigid goods vehicle with trailers

VED rates: use for exceptional loads, rigid goods vehicles and tractive units

VED: extension of old vehicles exemption from 1 April 2014

VED: extension of old vehicles exemption from 1 April 2015

Abolition of reduced VED rates for meeting reduced pollution requirements

Payment of vehicle excise duty by direct debit

Definition of “revenue weight”

HGV road user levy: disclosure of information by HMRC

Climate change levy: carbon price support rates for 2016-17

Goods carried as stores

VAT: place of supply orders: disapplication of transitional provision

VAT: refunds to health service bodies

ATED: further reduction in threshold from 1 April 2016

SDLT: threshold for higher rate applying to certain transactions

Abolition of stamp duty and SDRT: securities on recognised growth markets

Inheritance tax

Content of notice given pending an appeal

237A

• (1) If an authorised officer becomes aware at any time (“the relevant time”) that a person ( “ P ”) who is carrying on a business as a promoter meets any of the conditions in subsections (11) to (13), the officer must determine whether or not P's meeting of that condition should be regarded as significant in view of the purposes of this Part.

But see also subsection (14).

• (2) An authorised officer must make the determination set out in subsection (3) if the officer becomes aware at any time ( “ the section 237A(2) relevant time ”) that—

• (a) a person meets a condition in subsection (11), (12) or (13), and

• (b) at the section 237A(2) relevant time another person (“P”), who is carrying on a business as a promoter, meets that condition by virtue of Part 4 of Schedule 34A (meeting the section 237A conditions: bodies corporate and partnerships).

• (3) The authorised officer must determine whether or not—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) P's meeting of the condition as mentioned in subsection (2)(b),

should be regarded as significant in view of the purposes of this Part.

• (3A) In determining under subsection (3) whether or not P's meeting of the condition should be regarded as significant, the authorised officer must determine whether the meeting of that condition by the person mentioned in subsection (2)(a) should be regarded as significant in view of the purposes of this Part.

• (3B) If the officer determines that the meeting of the condition by that person should be regarded as significant, the officer must determine that P's meeting of that condition should be regarded as significant.

• (3C) If a person meets a condition in subsection (11), (12) or (13) and the person falls within the case described in paragraph 2 of Schedule 33A (multiple entity promoter), the authorised officer must determine (whether under subsection (1) or (3)(a) or (b)) that the meeting of the condition should be regarded as significant.

• (4) Subsections (1) and (2) do not apply if a conduct notice or monitoring notice already has effect in relation to P.

• (5) Subsection (1) does not apply if, at the relevant time, an authorised officer is under a duty to make a determination under section 237(5) in relation to P.

• (6) Subsection (2) does not apply if, at the section 237A(2) relevant time, an authorised officer is under a duty to make a determination under section 237(5) in relation to P.

• (7) But in a case where subsection (1) does not apply because of subsection (5), or subsection (2) does not apply because of subsection (6), subsection (5) of section 237 has effect as if—

• (a) the references in paragraph (a) of that subsection to “subsection (1)”, and “subsection (1)(a)” included subsection (1) of this section, and

• (b) in paragraph (b) of that subsection the reference to “subsection (1A)(a)” included a reference to subsection (2)(a) of this section and the reference to subsection (1A)(b) included a reference to subsection (2)(b) of this section.

• (8) If the authorised officer determines under subsection (1) that P's meeting of the condition in question should be regarded as significant, the officer must give P a conduct notice, unless subsection (10) applies.

• (9) If the authorised officer determines under subsection (3) that—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) P's meeting of the condition as mentioned in subsection (2)(b),

should be regarded as significant in view of the purposes of this Part, the officer must give P a conduct notice, unless subsection (10) applies.

• (10) This subsection applies if the authorised officer determines that, having regard to the extent of the impact that P's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give P a conduct notice.

• (11) The condition in this subsection is that in the period of 3 years ending with the relevant time at least 3 relevant defeats have occurred in relation to P.

• (12) The condition in this subsection is that at least two relevant defeats have occurred in relation to P at times when a single defeat notice under section 241A(2) or (6) had effect in relation to P.

• (13) The condition in this subsection is that at least one relevant defeat has occurred in relation to P at a time when a double defeat notice under section 241A(3) had effect in relation to P.

• (14) A determination that the condition in subsection (12) or (13) is met cannot be made unless—

• (a) the defeat notice in question still has effect when the determination is made, or

• (b) the determination is made on or before the 90th day after the day on which the defeat notice in question ceased to have effect.

• (15) Schedule 34A sets out the circumstances in which a “relevant defeat” occurs in relation to a person and includes provision limiting what can amount to a further relevant defeat in relation to a person (see paragraph 6).

237B

• (1) An authorised officer must give a conduct notice to a person (“P”) who is carrying on a business as a promoter if—

• (a) a conduct notice given to P under section 237A(8)—

• (i) has ceased to have effect otherwise than as a result of section 237D(2) or 241(3) or (4), and

• (ii) was provisional immediately before it ceased to have effect,

• (b) the officer determines that P had failed to comply with one or more conditions in the conduct notice,

• (c) the conduct notice relied on a Case 3 relevant defeat,

• (d) since the time when the conduct notice ceased to have effect, one or more relevant defeats falling within subsection (2) have occurred in relation to—

• (i) P, and

• (ii) any arrangements to which the Case 3 relevant defeat also relates, and

• (e) had that relevant defeat or (as the case may be) those relevant defeats, occurred before the conduct notice ceased to have effect, an authorised officer would have been required to notify the person under section 237C(3) that the notice was no longer provisional.

• (2) A relevant defeat falls within this subsection if it occurs by virtue of Case 1 or Case 2 in Schedule 34A.

• (3) Subsection (1) does not apply if the authorised officer determines that, having regard to the extent of the impact that the person's activities as a promoter are likely to have on the collection of tax, it is inappropriate to give the person a conduct notice.

• (4) Subsection (1) does not apply if a conduct notice or monitoring notice already has effect in relation to the person.

• (5) For the purposes of this Part a conduct notice “relies on a Case 3 relevant defeat” if it could not have been given under the following condition.

The condition is that paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.

237C

• (1) This section applies to a conduct notice which—

• (a) is given to a person under section 237A(8), and

• (b) relies on a Case 3 relevant defeat.

• (2) The notice is “provisional” at all times when it has effect, unless an authorised officer notifies the person that the notice is no longer provisional.

• (3) An authorised officer must notify the person that the notice is no longer provisional if subsection (4) or (5) applies.

• (4) This subsection applies if—

• (a) the condition in subsection (5)(a) is not met, and

• (b) a full relevant defeat occurs in relation to P.

• (5) This subsection applies if—

• (a) two, or all three, of the relevant defeats by reference to which the conduct notice is given would not have been relevant defeats if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and

• (b) the same number of full relevant defeats occur in relation to P.

• (6) A “full relevant defeat” occurs in relation to P if—

• (a) a relevant defeat occurs in relation to P otherwise than by virtue of Case 3 in paragraph 9 of Schedule 34A, or

• (b) circumstances arise which would be a relevant defeat in relation to P by virtue of paragraph 9 of Schedule 34A if that paragraph had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”.

• (7) In determining under subsection (6) whether a full relevant defeat has occurred in relation to P, assume that in paragraph 6 of Schedule 34A (provision limiting what can amount to a further relevant defeat in relation to a person) the first reference to a “relevant defeat” does not include a relevant defeat by virtue of Case 3 in paragraph 9 of Schedule 34A.

237D

• (1) Subsection (2) applies if at any time—

• (a) a conduct notice which relies on a Case 3 relevant defeat (see section 237B(5)) is provisional, and

• (b) a court or tribunal upholds a corresponding tax advantage which has been asserted in connection with any of the related arrangements to which that relevant defeat relates (see paragraph 5(2) of Schedule 34A).

• (2) The conduct notice ceases to have effect when that judicial ruling becomes final.

• (3) An authorised officer must give the person to whom the conduct notice was given a written notice stating that the conduct notice has ceased to have effect.

• (4) For the purposes of this section, a tax advantage is “asserted” in connection with any arrangements if a person makes a return, claim or election on the basis that the tax advantage arises from those arrangements.

In relation to the arrangements mentioned in paragraph (b) of subsection (1) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph.

• (5) For the purposes of this section a court or tribunal “upholds” a tax advantage if—

• (a) the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and

• (b) that judicial ruling is final.

• (6) For the purposes of this Part a judicial ruling is “final” if it is—

• (a) a ruling of the Supreme Court, or

• (b) a ruling of any other court or tribunal in circumstances where—

• (i) no appeal may be made against the ruling,

• (ii) if an appeal may be made against the ruling with permission, the time limit for applications has expired and either no application has been made or permission has been refused,

• (iii) if such permission to appeal against the ruling has been granted or is not required, no appeal has been made within the time limit for appeals, or

• (iv) if an appeal was made, it was abandoned or otherwise disposed of before it was determined by the court or tribunal to which it was addressed.

• (7) In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.

Defeat notices

241A

• (1) This section applies in relation to a person (“P”) only if P is carrying on a business as a promoter.

• (2) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give P a notice if the officer concerned has become aware of one (and only one) relevant defeat which has occurred in relation to P in the period of 3 years ending with the day on which the notice is given.

• (3) An authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, may give P a notice if the officer concerned has become aware of two (but not more than two) relevant defeats which have occurred in relation to P in the period of 3 years ending with the day on which the notice is given.

• (4) A notice under this section must be given by the end of the 90 days beginning with the day on which the matters mentioned in subsection (2) or (as the case may be) (3) first come to the attention of an authorised officer.

• (5) Subsection (6) applies if—

• (a) a single defeat notice which had been given to P (under subsection (2) or (6)) ceases to have effect as a result of section 241B(1), and

• (b) in the period when the defeat notice had effect a relevant defeat (“the further relevant defeat”) occurred in relation to P.

• (6) An authorised officer or an officer of Revenue and Customs with the approval of an authorised officer may give P a notice in respect of the further relevant defeat (regardless of whether or not it occurred in the period of 3 years ending with the day on which the notice is given).

• (7) In this Part—

• (a) “single defeat notice” means a notice under subsection (2) or (6);

• (b) “double defeat notice” means a notice under subsection (3);

• (c) “defeat notice” means a single defeat notice or a double defeat notice.

• (8) A defeat notice must—

• (a) set out the dates on which the look-forward period for the notice begins and ends;

• (b) in the case of a single defeat notice, explain the effect of section 237A(12);

• (c) in the case of a double defeat notice, explain the effect of section 237A(13).

• (9) HMRC may specify what further information must be included in a defeat notice.

• (10) “Look-forward period”—

• (a) in relation to a defeat notice under subsection (2) or (3), means the period of 5 years beginning with the day after the day on which the notice is given;

• (b) in relation to a defeat notice under subsection (6), means the period beginning with the day after the day on which the notice is given and ending at the end of the period of 5 years beginning with the day on which the further relevant defeat mentioned in subsection (6) occurred in relation to P.

• (11) A defeat notice has effect throughout its look-forward period unless it ceases to have effect earlier in accordance with section 241B(1) or (4).

When a conduct notice given under section 237A(8) is “provisional”

241B

• (1) If the relevant defeat to which a single defeat notice relates is overturned (see subsection (5)), the notice has no further effect on and after the day on which it is overturned.

• (2) Subsection (3) applies if one (and only one) of the relevant defeats in respect of which a double defeat notice was given is overturned.

• (3) The notice is to be treated for the purposes of this Part (including this section) as if it had always been a single defeat notice given (in respect of the other of the two relevant defeats) on the date on which the notice was in fact given.

The look-forward period for the notice is accordingly unchanged.

• (4) If both the relevant defeats to which a double defeat notice relates are overturned (on the same date), that notice has no further effect on and after that date.

• (5) A relevant defeat specified in a defeat notice is “overturned” if—

• (a) the notice could not have specified that relevant defeat if paragraph 9 of Schedule 34A had effect with the substitution of “ 100% of the tested arrangements ” for “75% of the tested arrangements”, and

• (b) at a time when the notice has effect a court or tribunal upholds a corresponding tax advantage which has been asserted in connection with any of the related arrangements to which the relevant defeat relates (see paragraph 5(2) of Schedule 34A).

Accordingly the relevant defeat is overturned on the day on which the judicial ruling mentioned in paragraph (b) becomes final.

• (6) If a defeat notice ceases to have effect as a result of subsection (1) or (4) an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, must notify the person to whom the notice was given that it has ceased to have effect.

• (7) If subsection (3) has effect in relation to a defeat notice, an authorised officer, or an officer of Revenue and Customs with the approval of an authorised officer, must notify the person of the effect of that subsection.

• (8) For the purposes of this section, a tax advantage is “asserted” in connection with any arrangements if a person makes a return, claim or election on the basis that the tax advantage arises from those arrangements.

• (9) In relation to the arrangements mentioned in paragraph (b) of subsection (5) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which contributed to the relevant defeat mentioned in that paragraph.

• (10) For the purposes of this section a court or tribunal “upholds” a tax advantage if—

• (a) the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and

• (b) that judicial ruling is final.

• (11) In this section references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16 of Schedule 34A.

Judicial ruling upholding asserted tax advantage: effect on conduct notice which is provisional

Offence of concealing etc documents

281A

• (1) In the provisions mentioned in subsection (2)—

• (a) “tax” includes value added tax and other indirect taxes, and

• (b) “tax advantage” has the meaning given by section 234(3) and also includes a tax advantage as defined for VAT in paragraph 6, and for other indirect taxes in paragraph 7, of Schedule 17 to FA 2017 (disclosure of tax avoidance schemes: VAT and other indirect taxes).

• (2) Those provisions are—

• (a) section 237D;

• (b) section 241B;

• (c) Schedule 34A.

• (3) Other references in this Part to “tax” are to be read as including value added tax or other indirect taxes so far as that is necessary for the purposes of sections 237A to 237D, 241A and 241B and Schedule 34A; but “tax” does not include value added tax or other indirect taxes in section 237A(10) or 237B(3).

• (4) In this section “indirect tax” has the same meaning as in Schedule 17 to FA 2017.

The Code of Practice on Taxation for Banks: HMRC to publish reports

The Code of Practice on Taxation for Banks: operation & breaches of the Code

The Code of Practice on Taxation for Banks: “participating” groups or entities

The Code of Practice on Taxation for Banks: documents relating to the Code

Controlled foreign companies: qualifying loan relationships (1)

Controlled foreign companies: qualifying loan relationships (1)

Tax consequences of financial sector regulation

Power to update indexes of defined terms

SCHEDULE 34A

PART 1 — Introduction

1

In this Schedule—

• (a) Part 2 is about the meaning of “relevant defeat”;

• (b) Part 3 contains provision about when a relevant defeat is treated as occurring in relation to a person;

• (c) Part 4 contains provision about when a person is treated as meeting a condition in subsection (11), (12) or (13) of section 237A;

• (d) Part 5 contains definitions and other supplementary provisions.

PART 2 — Meaning of “relevant defeat”

“Related” arrangements

2

• (1) For the purposes of this Part of this Act, separate arrangements which persons have entered into are “related” to one another if (and only if) they are substantially the same.

• (2) Sub-paragraphs (3) to (6) set out cases in which arrangements are to be treated as being “substantially the same” (if they would not otherwise be so treated under sub-paragraph (1)).

• (3) Arrangements to which the same reference number has been allocated under Part 7 of FA 2004 (disclosure of tax avoidance schemes) are treated as being substantially the same.

For this purpose arrangements in relation to which information relating to a reference number has been provided in compliance with section 312 of FA 2004 are treated as arrangements to which that reference number has been allocated under Part 7 of that Act.

• (4) Arrangements to which the same reference number has been allocated under paragraph 9 of Schedule 11A to VATA 1994 (disclosure of avoidance schemes) or paragraph 22 of Schedule 17 to FA 2017 (disclosure of avoidance schemes: VAT and other indirect taxes) are treated as being substantially the same.

• (5) Any two or more sets of arrangements which are the subject of follower notices given by reference to the same judicial ruling are treated as being substantially the same.

• (6) Where a notice of binding has been given in relation to any arrangements (“the bound arrangements”) on the basis that they are, for the purposes of Schedule 43A to FA 2013, equivalent arrangements in relation to another set of arrangements (the “lead arrangements”)—

• (a) the bound arrangements and the lead arrangements are treated as being substantially the same, and

• (b) the bound arrangements are treated as being substantially the same as any other arrangements which, as a result of this sub-paragraph, are treated as substantially the same as the lead arrangements.

“Promoted arrangements”

3

• (1) For the purposes of this Schedule arrangements are “promoted arrangements” in relation to a person if—

• (a) they are relevant arrangements or would be relevant arrangements under the condition stated in sub-paragraph (2), and

• (b) the person is carrying on a business as a promoter and—

• (i) the person is or has been a promoter in relation to the arrangements, or

• (ii) that would be the case if the condition in sub-paragraph (2) were met.

• (2) That condition is that the definition of “tax” in section 283 includes, and has always included, value added tax.

Relevant defeat of single arrangements

4

• (1) A defeat of arrangements (entered into by any person) which are promoted arrangements in relation to a person (“the promoter”) is a “relevant defeat” in relation to the promoter if the condition in sub-paragraph (2) is met.

• (2) The condition is that the arrangements are not related to any other arrangements which are promoted arrangements in relation to the promoter.

• (3) For the meaning of “defeat” see paragraphs 10 to 16.

Relevant defeat of related arrangements

5

• (1) This paragraph applies if arrangements (entered into by any person) (“Set A”)—

• (a) are promoted arrangements in relation to a person (“P”), and

• (b) are related to other arrangements which are promoted arrangements in relation to P.

• (2) If Case 1, 2 or 3 applies (see paragraphs 7 to 9) a relevant defeat occurs in relation to P and each of the related arrangements.

• (3) “The related arrangements” means Set A and the arrangements mentioned in sub-paragraph (1)(b).

Limit on number of separate relevant defeats in relation to the same, or related, arrangements

6

In relation to a person, if there has been a relevant defeat of arrangements (whether under paragraph 4 or 5) there cannot be a further relevant defeat of—

• (a) those particular arrangements, or

• (b) arrangements which are related to those arrangements.

Case 1: counteraction upheld by judicial ruling

7

• (1) Case 1 applies if—

• (a) any of Conditions A to E is met in relation to any of the related arrangements, and

• (b) in the case of those arrangements the decision to make the relevant counteraction has been upheld by a judicial ruling (which is final).

• (2) In sub-paragraph (1) “the relevant counteraction” means the counteraction mentioned in paragraph 11(d), 12(1)(b), 13(1)(d), 14(1)(d) or 15(1)(d) (as the case requires).

Case 2: judicial ruling that avoidance-related rule applies

8

Case 2 applies if Condition F is met in relation to any of the related arrangements.

Case 3: proportion-based relevant defeat

9

• (1) Case 3 applies if—

• (a) at least 75% of the tested arrangements have been defeated, and

• (b) no final judicial ruling in relation to any of the related arrangements has upheld a corresponding tax advantage which has been asserted in connection with any of the related arrangements.

• (2) In this paragraph “the tested arrangements” means so many of the related arrangements (as defined in paragraph 5(3)) as meet the condition in sub-paragraph (3) or (4).

• (3) Particular arrangements meet this condition if a person has made a return, claim or election on the basis that a tax advantage results from those arrangements and—

• (a) there has been an enquiry or investigation by HMRC into the return, claim or election, or

• (b) HMRC assesses the person to tax on the basis that the tax advantage (or any part of it) does not arise, or

• (c) a GAAR counteraction notice has been given in relation to the tax advantage or part of it and the arrangements.

• (4) Particular arrangements meet this condition if HMRC takes other action on the basis that a tax advantage which might be expected to arise from those arrangements, or is asserted in connection with them, does not arise.

• (5) For the purposes of this paragraph a tax advantage has been “asserted” in connection with particular arrangements if a person has made a return, claim or election on the basis that the tax advantage arises from those arrangements.

• (6) In sub-paragraph (1)(b) “corresponding tax advantage” means a tax advantage corresponding to any tax advantage the counteraction of which is taken into account by HMRC for the purposes of sub-paragraph (1)(a).

• (7) For the purposes of this paragraph a court or tribunal “upholds” a tax advantage if—

• (a) the court or tribunal makes a ruling to the effect that no part of the tax advantage is to be counteracted, and

• (b) that judicial ruling is final.

• (8) In this paragraph references to “counteraction” include anything referred to as a counteraction in any of Conditions A to F in paragraphs 11 to 16.

• (9) In this paragraph “GAAR counteraction notice” means—

• (a) a notice such as is mentioned in sub-paragraph (2) of paragraph 12 of Schedule 43 to FA 2013 (notice of final decision to counteract),

• (b) a notice under paragraph 8(2) or 9(2) of Schedule 43A to that Act (pooling or binding of arrangements) stating that the tax advantage is to be counteracted under the general anti-abuse rule, or

• (c) a notice under paragraph 8(2) of Schedule 43B to that Act (generic referrals) stating that the tax advantage is to be counteracted under the general anti-abuse rule.

“Defeat” of arrangements

10

For the purposes of this Part of this Act a “defeat” of arrangements occurs if any of Conditions A to F (in paragraphs 11 to 16) is met in relation to the arrangements.

11

Condition A is that—

• (a) a person has made a return, claim or election on the basis that a tax advantage arises from the arrangements,

• (b) a notice given to the person under paragraph 12 of Schedule 43 to, paragraph 8(2) or 9(2) of Schedule 43A to or paragraph 8(2) of Schedule 43B to FA 2013 stated that the tax advantage was to be counteracted under the general anti-abuse rule,

• (c) the tax advantage has been counteracted (in whole or in part) under the general anti-abuse rule, and

• (d) the counteraction is final.

12

• (1) Condition B is that a follower notice has been given to a person by reference to the arrangements (and not withdrawn) and—

• (a) the person has complied with subsection (2) of section 208 of FA 2014 by taking the action specified in subsections (4) to (6) of that section in respect of the denied tax advantage (or part of it), or

• (b) the denied tax advantage has been counteracted (in whole or in part) otherwise than as mentioned in paragraph (a) and the counteraction is final.

• (2) In this paragraph “the denied tax advantage” is to be interpreted in accordance with section 208(3) of FA 2014.

• (3) In this Schedule “follower notice” means a follower notice under Chapter 2 of Part 4 of FA 2014.

13

• (1) Condition C is that—

• (a) the arrangements are DOTAS arrangements,

• (b) a person (“the taxpayer”) has made a return, claim or election on the basis that a relevant tax advantage arises,

• (c) the relevant tax advantage has been counteracted, and

• (d) the counteraction is final.

• (2) For the purposes of sub-paragraph (1) “relevant tax advantage” means a tax advantage which the arrangements might be expected to enable the taxpayer to obtain.

• (3) For the purposes of this paragraph the relevant tax advantage is “counteracted” if adjustments are made in respect of the taxpayer's tax position on the basis that the whole or part of that tax advantage does not arise.

14

• (1) Condition D is that—

• (a) the arrangements are disclosable VAT or other indirect tax arrangements to which a ... person is a party,

• (b) the ... person has made a return or claim on the basis that a relevant tax advantage arises,

• (c) the relevant tax advantage has been counteracted, and

• (d) the counteraction is final.

• (2) For the purposes of sub-paragraph (1) “relevant tax advantage” means a tax advantage which the arrangements might be expected to enable the ... person to obtain.

• (3) For the purposes of this paragraph the relevant tax advantage is “counteracted” if adjustments are made in respect of the ... person's tax position on the basis that the whole or part of that tax advantage does not arise.

15

• (1) Condition E is that the arrangements are disclosable VAT arrangements to which a taxable person (“T”) is a party and—

• (a) the arrangements relate to the position with respect to VAT of a person other than T (“S”) who has made supplies of goods or services to T,

• (b) the arrangements might be expected to enable T to obtain a tax advantage in connection with those supplies of goods or services,

• (c) the arrangements have been counteracted, and

• (d) the counteraction is final.

• (2) For the purposes of this paragraph the arrangements are “counteracted” if—

• (a) HMRC assess S to tax or take any other action on a basis which prevents T from obtaining (or obtaining the whole of) the tax advantage in question, or

• (b) adjustments are made on a basis such as is mentioned in paragraph (a).

16

• (1) Condition F is that—

• (a) a person has made a return, claim or election on the basis that a relevant tax advantage arises,

• (b) the tax advantage, or part of the tax advantage would not arise if a particular avoidance-related rule (see paragraph 25) applies in relation to the person's tax affairs,

• (c) it is held in a judicial ruling that the relevant avoidance-related rule applies in relation to the person's tax affairs, and

• (d) the judicial ruling is final.

• (2) For the purposes of sub-paragraph (1) “relevant tax advantage” means a tax advantage which the arrangements might be expected to enable the person to obtain.

PART 3 — Relevant defeats: associated persons

Attribution of relevant defeats

17

• (1) Sub-paragraph (2) applies if—

• (a) there is (or has been) a person (“Q”),

• (b) arrangements (“the defeated arrangements”) have been entered into,