Finance Act 2015

[^key-d2ce1990066c0047f59dc820069f87fa]: Sch. 6 para. 12 modified (30.11.2015) by The Finance Act 2015 (Paragraphs 10 to 12 of Schedule 6) Regulations 2015 (S.I. 2015/1836), regs. 1, 2(c)

[^key-af6a28370be43171a5fe2c0c5098535e]: S. 23 in force at 1.1.2016 for the purposes of the amendment made by that section in so far as not already in force by S.I. 2015/2035, reg. 2

[^key-96624aadf2822301808e6bac74b463b8]: Sch. 20 para. 4 in force at 1.4.2016 and the amendments therein have effect in accordance with art. 3(2) of the commencing S.I. by S.I. 2016/456, art. 3(1)

[^key-967728934ad4d4a6ba161fa0036542df]: Sch. 20 para. 8 in force at 1.4.2016 and the amendments therein have effect in accordance with art. 3(2) of the commencing S.I. by S.I. 2016/456, art. 3(1)

[^key-bde87d5748f6f1232472270adec0c58b]: Sch. 20 para. 16(3)-(9) in force at 1.4.2016 and the amendments therein have effect in accordance with art. 5(2) of the commencing S.I. by S.I. 2016/456, art. 5(1)

[^key-007d320ea416afcb5e40df50236ef76e]: Sch. 20 para. 17 in force at 1.4.2016 and the amendments therein have effect in accordance with art. 5(2) of the commencing S.I. by S.I. 2016/456, art. 5(1)

[^key-b7805fbcbd765412655e4c61f827010d]: Sch. 20 para. 3(3)-(7) in force at 1.4.2016 and the amendments therein have effect in accordance with art. 3(2) of the commencing S.I. by S.I. 2016/456, art. 3(1)

[^key-970ff840e965508f9758083bb428c97d]: Sch. 20 para. 11(3)-(9) in force at 1.4.2016 and the amendments therein have effect in accordance with art. 4(2) of the commencing S.I. by S.I. 2016/456, art. 4(1)

[^key-a5f77013141e99c8bddf9ced329120d7]: Sch. 20 para. 12 in force at 1.4.2016 and the amendments therein have effect in accordance with art. 4(2) of the commencing S.I. by S.I. 2016/456, art. 4(1)

[^key-a880e578aa831a66bc0f7543b260b2e0]: S. 100 heading substituted (with effect in accordance with s. 43(7) of the amending Act) by Finance Act 2016 (c. 24), s. 43(4)

[^key-a0539c47ed8b37eff487af1d948ceafd]: Sch. 20 para. 20 and cross-heading inserted (with effect in accordance with s. 158(15) of the amending Act) by Finance Act 2016 (c. 24), s. 158(14)

[^key-76724b93175eea987f2abf6ca1ca103e]: Word in s. 4(1)(b) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 2(1)

[^key-9e24e82a894c9a547f5a34077e7dcb25]: Word in s. 5(1)(b) substituted (15.9.2016) by Finance Act 2016 (c. 24), s. 3(1)

[^key-8aebbe36fe92465a5d95d49b5bdce144]: Words in s. 19(1) substituted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by Finance Act 2016 (c. 24), Sch. 1 para. 72(a)

[^key-8bbe6f641e2f1010f8cac461f597ecb0]: S. 19(5)(6) omitted (with effect in accordance with Sch. 1 para. 73 of the amending Act) by virtue of Finance Act 2016 (c. 24), Sch. 1 para. 72(b)

[^key-2235ebbbc6b40114da2d0b7889b208c3]: S. 28(4)(o)(p) omitted (with effect in accordance with s. 47(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 47(14)(b)

[^key-88eb96b2b789b2c0b9ab20741df008b6]: S. 79(6) inserted (with effect in accordance with s. 43(7) of the amending Act) by Finance Act 2016 (c. 24), s. 43(2)

[^key-0fcac1bd68e359e1d9b59cae1a17512a]: S. 88(5)(5A) substituted for s. 88(5) (with effect in accordance with s. 43(7) of the amending Act) by Finance Act 2016 (c. 24), s. 43(3) (with s. 43(8))

[^key-a04ee169f5be1b85c0e97ac76f97c0a6]: S. 100(2A) inserted (with effect in accordance with s. 43(7) of the amending Act) by Finance Act 2016 (c. 24), s. 43(5)

[^key-085c68ce076a2a90c99dc7069881c5bb]: S. 100(4A)-(4E) inserted (with effect in accordance with s. 43(7) of the amending Act) by Finance Act 2016 (c. 24), s. 43(6)

[^key-c6c8ed93182f3996fdb6fad0193efc54]: Word in s. 120(1) omitted (with effect in accordance with s. 158(15) of the amending Act) by virtue of Finance Act 2016 (c. 24), s. 158(13)

[^key-b7a513b9fccabf0fb5c373f3b78d8d9b]: S. 120(1)(d) and preceding word inserted (with effect in accordance with s. 158(15) of the amending Act) by Finance Act 2016 (c. 24), s. 158(13)

[^key-2c17f3b6e46e18a1b468d1caf3950f3b]: S. 20(3) has effect as specified by The Finance Act 2015, Section 20(2) and (3) and the Finance Act 2016, Section 173(1) (Appointed Days) Regulations 2016 (S.I. 2016/1010), reg. 2

[^key-c293d2c580583300bc84b4de6da68d98]: S. 20(2) has effect as specified by The Finance Act 2015, Section 20(2) and (3) and the Finance Act 2016, Section 173(1) (Appointed Days) Regulations 2016 (S.I. 2016/1010), reg. 4

[^key-9803c61ac657990c211d9297900cf257]: Sch. 21 para. 4(2)-(4) applied (1.1.2017) by Finance Act 2016 (c. 24), s. 162(2), Sch. 20 para. 2(7); S.I. 2016/1249, reg. 2

[^key-09e526a14131158a66e773f38d4cb1bb]: S. 54(3) in force at 1.4.2017 for specified purposes by S.I. 2017/494, reg. 2

[^key-3155b6bbfdc8128dfcffd2e94c29ff87]: Word in Sch. 21 para. 2 omitted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 27(2)

[^key-4dd7d9dd3a24f46dda2ab468a08fa4b4]: Sch. 21 para. 2(d) and word inserted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 27(2)

[^key-dd12c960e4377909c654087139d1eaf2]: Sch. 21 para. 3(d) and words inserted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 27(3)

[^key-f04faa0d25cfef9bf59bde91eccd448c]: Sch. 21 para. 5(5) inserted (with effect in accordance with Sch. 18 paras. 2-13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 18 para. 27(4)

[^key-22a49689adcf14e32f7369697601ae5c]: Sch. 6 para. 13 omitted (16.11.2017) by virtue of Finance (No. 2) Act 2017 (c. 32), Sch. 1 para. 12

[^key-d4d9c6ef4e0814daaa442057f6cb92f2]: S. 85(7) inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 5(4)

[^key-0b041208c5a69bf36efc98be9eab666e]: S. 85(4)(a) substituted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 5(2)

[^key-5fb1566dfac04578557c02841a694c0b]: Words in s. 85(6) omitted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 6 para. 5(3)(a)

[^key-bfb9f5f779874e730b202e7bdf48c10d]: Word in s. 85(6)(a) inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 5(3)(b)

[^key-6629c8a802752164529f6c6e154ce909]: Word in s. 85(6)(a) substituted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 5(3)(c)

[^key-b64e191542177bd89bfe902f85d3ddb9]: Words in s. 85(6)(b)(i) substituted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 5(3)(d)

[^key-f87681156b98b4532d9ba56a7ff7446e]: S. 82(7A) inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 2(4)

[^key-97d724dc418383086b8fff8a26a3e511]: S. 82(10) inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 2(5)

[^key-e26eacfda9c7280cad7f4f726cf12f95]: Word in s. 82(3) substituted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 2(2)

[^key-deff814138ac2bfd08eacc2a8e4e7530]: Words in s. 82(7)(a) omitted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 6 para. 2(3)

[^key-98ce48b939809e371134133aa1a59ef1]: Ss. 101A, 101B inserted (12.2.2019) by Finance Act 2019 (c. 1), Sch. 6 para. 12

[^key-3edd0c8471758d7194381e4178daed7d]: S. 100A inserted (with effect in accordance with Sch. 6 para. 10(2) of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 10(1)

[^key-f83067981669636540b0158feba1ab39]: S. 111A inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 7

[^key-09115c4893c0637fd60d13c4c53a0c67]: Words in s. 101(2) substituted (with effect in accordance with Sch. 6 para. 11(2) of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 11(1)(a)

[^key-e45ae0d717bea4e8568c23bde46392ac]: Words in s. 101(13) substituted (with effect in accordance with Sch. 6 para. 11(2) of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 11(1)(b)

[^key-27364405e1cd4008119f821f0c71fcce]: S. 83(2) omitted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 6 para. 3

[^key-768bc60fd0a2070f22bd178424d228d6]: S. 88(5B)(5C) inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 6(2)

[^key-b74a1647214d6c30b9c357bbabdc68c0]: S. 88(9A) inserted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 6(4)

[^key-7b599231844c3f79ba0126b333b737bb]: Words in s. 88(9)(a) omitted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by virtue of Finance Act 2019 (c. 1), Sch. 6 para. 6(3)

[^key-33a97667e788b62230015c44d5596724]: S. 93(5A) inserted (with effect in accordance with Sch. 6 para. 9(4) of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 9(3)

[^key-3d03292267b4a936149727d70adb15b5]: Words in s. 93(5) substituted (with effect in accordance with Sch. 6 para. 9(4) of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 9(2)

[^key-65aa07058dbac952260b658b11d4c442]: Words in s. 84(2) substituted (with effect in accordance with Sch. 6 para. 8 of the amending Act) by Finance Act 2019 (c. 1), Sch. 6 para. 4

[^key-ddd6fc57f55980312f6509e018e9529f]: S. 120(2) modified (10.6.2021) by Finance Act 2021 (c. 26), Sch. 28 para. 16

[^key-6d48e4a83151463527dd9c41bafbbcc2]: Sch. 20 para. 21 and cross-heading inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 28 para. 14

[^key-7c393436fa1013b2b868980e62314965]: Word in s. 79(2)(a) substituted (with effect in accordance with s. 8(2) of the amending Act) by Finance Act 2021 (c. 26), s. 8(1)(a)

[^key-5e7d3ab8a4d234dc13b58fab3da05fa4]: Word in s. 79(3) substituted (with effect in accordance with s. 8(2) of the amending Act) by Finance Act 2021 (c. 26), s. 8(1)(b)

[^key-410d292d0374e4dac8485353a3e5b240]: Word in s. 79(3A) substituted (with effect in accordance with s. 8(2) of the amending Act) by Finance Act 2021 (c. 26), s. 8(1)(b)

[^key-5c8a8f78714d65100323b8f7cb8b420a]: S. 100(4E) omitted (with effect in accordance with s. 34(8) of the amending Act) by virtue of Finance Act 2021 (c. 26), s. 34(5)(b)

[^key-adbfeb25b8a9bf4b41f8346d0d9c0c24]: Words in s. 100(4C)(c) substituted (with effect in accordance with s. 34(8) of the amending Act) by Finance Act 2021 (c. 26), s. 34(5)(a)

[^key-2fd8df3c7cd86f6aaac26c1d91f4c2d1]: S. 101C inserted (with effect in accordance with s. 28(5) of the amending Act) by Finance Act 2022 (c. 3), s. 28(4)

[^key-e2425560152b1d6411e4d3dd84a0a425]: S. 114A inserted (with application in accordance with s. 27(3) of the amending Act) by Finance Act 2022 (c. 3), s. 27(1)

[^key-5b1f18a4f5dce52422459cff27b22f7c]: S. 101A(3) inserted (with effect in accordance with s. 28(5) of the amending Act) by Finance Act 2022 (c. 3), s. 28(2)(b)

[^key-c2596dde447203841a73fcfe791f2fd7]: Words in s. 101A(2) omitted (with effect in accordance with s. 28(5) of the amending Act) by virtue of Finance Act 2022 (c. 3), s. 28(2)(a)(i)

[^key-4bb3dbcf7d3d1cf8ad116a8640692fd6]: Words in s. 101A(2) inserted (with effect in accordance with s. 28(5) of the amending Act) by Finance Act 2022 (c. 3), s. 28(2)(a)(ii)

[^key-f2861e403a8cbeee4dca9ecddc2aa7ab]: S. 101B(3) inserted (with effect in accordance with s. 28(5) of the amending Act) by Finance Act 2022 (c. 3), s. 28(3)(b)

[^key-375ed4f95856a0248d6cb9c2bad200fe]: Words in s. 101B(2) omitted (with effect in accordance with s. 28(5) of the amending Act) by virtue of Finance Act 2022 (c. 3), s. 28(3)(a)(i)

[^key-19c93f9da6aac6b652e721219fbac166]: Words in s. 101B(2) inserted (with effect in accordance with s. 28(5) of the amending Act) by Finance Act 2022 (c. 3), s. 28(3)(a)(ii)

[^key-7eb642ed2a77a241514d6a41dd713312]: S. 66(6) omitted (1.7.2022) by virtue of Health and Care Act 2022 (c. 31), s. 186(6), Sch. 7 para. 30; S.I. 2022/734, reg. 2(a), Sch. (with regs. 13, 29, 30)

[^key-c44bf579fcabc7b277b54412cc143b77]: S. 122 repealed (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 349(11)(b)

Expenditure on research and development: consumable items

Film tax relief

Reliefs for makers of children's television programmes

Tax avoidance involving carried-forward losses

Deferred entrepreneurs' relief on invested gains

Extension of ring fence expenditure supplement

Supplementary charge: cluster area allowance

Reduction in rate of petroleum revenue tax

Rates of alcoholic liquor duties

Wholesaling of controlled liquor

Excise duty on tobacco: anti-forestalling restrictions

Air passenger duty: exemption for children in standard class

VED rates for light passenger vehicles and motorcycles

VED: extension of old vehicles exemption from 1 April 2016

Tax credit in Northern Ireland

Combined heat and power stations

Landfill tax: rates from 1 April 2016

VAT: refunds to certain charities

VAT: refunds to strategic highways companies

SDLT: multiple dwellings relief

ATED: returns

Inheritance tax: exemption for emergency service personnel etc

The bank levy: rates from 1 April 2015

Overview of Part 3

Representations

Provision supplementing section 107

Treatment of a person who is a member of a partnership

“The insufficient economic substance condition”

Adjustment required to be made to the material provision

Interpretation

Non-UK company: involvement of entities or transactions lacking economic substance

Representations

Provision supplementing section 107

Accelerated payments and group relief

Interpretation

General anti-abuse rule: aggregate penalties

20

• (1) In Schedule 43C to FA 2013 (general anti-abuse rule: supplementary provision about penalty), sub-paragraph (6) of paragraph 8 is amended as follows.

• (2) After paragraph (b) insert—

(ba) 125% in a case where neither paragraph (a) nor paragraph (b) applies and at least one of the penalties is determined by reference to the percentage in— (i) paragraph 4(2)(c) of Schedule 24 to FA 2007 , (ii) paragraph 6(2)(a) of Schedule 41 to FA 2008 , (iii) paragraph 6(3A)(a) of Schedule 55 to FA 2009 ,

.

• (3) In sub-paragraph (c) for “neither paragraph (a) nor paragraph (b) applies” substitute “none of paragraphs (a) to (ba) applies.

• (4) In sub-paragraph (d) for “none of paragraphs (a), (b) and (c) applies” substitute “none of paragraphs (a) to (c) applies.

100A

• (1) This section applies where a charging notice or supplementary charging notice is issued to a company for an accounting period and any of the following events occurs—

• (a) the period of 30 days mentioned in subsection (2) of section 102 ends without notice of an appeal against the notice being given in accordance with that subsection,

• (b) an appeal against the notice is finally determined otherwise than by the notice being cancelled, or

• (c) an appeal against the notice is withdrawn.

• (2) The company is not chargeable to corporation tax for the accounting period in respect of any amount within subsection (3).

• (3) An amount is within this subsection if—

• (a) the company failed before the end of the review period to take the amount into account in an assessment to corporation tax included in the company tax return for the accounting period, and

• (b) that failure gave rise to, or to any of, the taxable diverted profits in respect of which the notice imposes a charge to diverted profits tax.

101A

• (1) This section applies where a charging notice is issued to a company by reason of section 80 or 81 applying in relation to it for an accounting period.

• (2) At any time during ... the review period except the last 30 days of that period, the company may amend its company tax return for the accounting period so as to reduce the taxable diverted profits arising to it in the accounting period.

• (3) Paragraph 31(3) of Schedule 18 to FA 1998 (amendment not to take effect during enquiry) does not apply in relation to an amendment made under subsection (2).

101B

• (1) This section applies where a charging notice is issued to a company (“the foreign company”) by reason of section 86 applying in relation to it for an accounting period.

• (2) At any time during ... the review period except the last 30 days of that period, the avoided PE may amend a company tax return made by it so as to reduce the taxable diverted profits arising to the foreign company in the accounting period.

• (3) Paragraph 31(3) of Schedule 18 to FA 1998 (amendment not to take effect during enquiry) does not apply in relation to an amendment made under subsection (2).

111A

A reference in section 82 or 88 to an adjustment required to be made under Part 4 of TIOPA 2010 (transfer pricing) to the results of any provision includes a reference to an adjustment required to be made under any other enactment to the results of the provision if and to the extent that, but for that other enactment, the adjustment would have been required to be made under that Part.

Follower notices: aggregate penalties

21

• (1) Section 212(5) of FA 2014 (follower notices: aggregate penalties) is amended as follows.

• (2) After paragraph (b) insert—

(ba) 125% in a case where neither paragraph (a) nor paragraph (b) applies and at least one of the penalties is determined by reference to the percentage in— (i) paragraph 4(2)(c) of Schedule 24 to FA 2007, (ii) paragraph 6(2)(a) of Schedule 41 to FA 2008, or (iii) paragraph 6(3A)(a) of Schedule 55 to FA 2009,

.

• (3) In paragraph (c), for “neither paragraph (a) nor paragraph (b) applies” substitute “ none of paragraphs (a) to (ba) applies ”.

• (4) In paragraph (d), for “none of paragraphs (a), (b) and (c) applies” substitute “ none of paragraphs (a) to (c) applies ”.

101C

• (1) This section applies where—

• (a) a charging notice is issued to a company for an accounting period, and

• (b) the review period for that charging notice has not ended.

• (2) In relation to a relevant enquiry—

• (a) a final closure notice may not be given under paragraph 32 of Schedule 18 to FA 1998, and

• (b) a partial closure notice may not be given under that paragraph in relation to any matter which is, or could be, relevant to the charging notice mentioned in subsection (1)(a).

• (3) Accordingly, a relevant tribunal direction has no effect until the review period has ended.

• (4) In subsection (2), “relevant enquiry” means—

• (a) an enquiry into the company tax return for the accounting period mentioned in subsection (1)(a);

• (b) where the charging notice mentioned in subsection (1)(a) is issued to a company (“the foreign company”) for an accounting period by reason of section 86 applying in relation to it for that accounting period, an enquiry into any company tax return for the avoided PE (within the meaning of section 86) that may be amended by virtue of section 101B(2) so as to reduce the taxable diverted profits arising to the foreign company in that accounting period.

• (5) In subsection (3) “relevant tribunal direction” means a direction given—

• (a) under paragraph 33 of Schedule 18 to FA 1998,

• (b) in relation to a closure notice that may not be given by virtue of subsection (2), and

• (c) during the review period mentioned in subsection (1)(b).

114A

A solution or mutual agreement mentioned in subsection (1)(b) of section 124 of TIOPA 2010 (giving effect to solutions to cases and mutual agreements resolving cases) may include provision related to diverted profits tax (and, accordingly, the duty in subsection (2) of that section includes a duty to make any such adjustment as is appropriate in relation to diverted profits tax).