Legalize / United Kingdom / Public General Act

Finance Act 2015

Type Public General Act

Publication 2015-03-26

Last updated 2023-07-11

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

After section 316 of FA 2004 insert— (316A) (1) This section applies where a person is required to provide information under section 312(2) or 312A(2) or (2A). (2) HMRC may specify additional information which must be provided by that person to the recipients under section 312(2) or 312A(2) or (2A) at the same time as the information referred to in subsection (1). (3) HMRC may specify the form and manner in which the additional information is to be provided. (4) For the purposes of this section “additional information” means information supplied by HMRC which relates to notifiable proposals or notifiable arrangements in general.

15

In section 98C of TMA 1970 (notification under Part 7 of FA 2004), in subsection (2), omit the “and” at the end of paragraph (e) and after paragraph (f) insert

, and (g) section 316A (duty to provide additional information).

Protection of persons making voluntary disclosures

16

After section 316A of FA 2004 insert— (316B) No duty of confidentiality or other restriction on disclosure (however imposed) prevents the voluntary disclosure by any person to HMRC of information or documents which the person has reasonable grounds for suspecting will assist HMRC in determining whether there has been a breach of any requirement imposed by or under this Part.

Publication of DOTAS information

17

After section 316B of FA 2004 insert—

(316C) (1) HMRC may publish information about— (a) any notifiable arrangements, or proposed notifiable arrangements, to which a reference number is allocated under section 311; (b) any person who is a promoter in relation to the notifiable arrangements or, in the case of proposed notifiable arrangements, the notifiable proposal. (2) The information that may be published is (subject to subsection (4))— (a) any information relating to arrangements within subsection (1)(a), or a person within subsection (1)(b), that is prescribed information for the purposes of section 308, 309 or 310; (b) any ruling of a court or tribunal relating to any such arrangements or person (in that person's capacity as a promoter in relation to a notifiable proposal or arrangements); (c) the number of persons in any period who enter into transactions forming part of notifiable arrangements within subsection (1)(a); (d) whether arrangements within subsection (1)(a) are APN relevant (see subsection (7)); (e) any other information that HMRC considers it appropriate to publish for the purpose of identifying arrangements within subsection (1)(a) or a person within subsection (1)(b). (3) The information may be published in any manner that HMRC considers appropriate. (4) No information may be published under this section that identifies a person who enters into a transaction forming part of notifiable arrangements within subsection (1)(a). (5) But where a person who is a promoter within subsection (1)(b) is also a person mentioned in subsection (4), nothing in subsection (4) is to be taken as preventing the publication under this section of information so far as relating to the person's activities as a promoter. (6) Before publishing any information under this section that identifies a person as a promoter within subsection (1)(b), HMRC must— (a) inform the person that they are considering doing so, and (b) give the person reasonable opportunity to make representations about whether it should be published. (7) Arrangements are “APN relevant” for the purposes of subsection (2)(d) if HMRC has indicated in a publication that it may exercise (or has exercised) its power under section 219 of the Finance Act 2014 (accelerated payment notices) by virtue of the arrangements being DOTAS arrangements within the meaning of that section. (316D) (1) This section applies if— (a) information about notifiable arrangements, or proposed notifiable arrangements, is published under section 316C, (b) at any time after the information is published, a ruling of a court or tribunal is made in relation to tax arrangements, and (c) HMRC is of the opinion that the ruling is relevant to the arrangements mentioned in paragraph (a). (2) A ruling is “relevant” to the arrangements if— (a) the principles laid down, or reasoning given, in the ruling would, if applied to the arrangements, allow the purported advantage arising from the arrangements in relation to tax, and (b) the ruling is final. (3) HMRC must publish information about the ruling. (4) The information must be published in the same manner as HMRC published the information mentioned in subsection (1)(a) (and may also be published in any other manner that HMRC considers appropriate). (5) A 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. (6) Where a ruling is final by virtue of sub-paragraph (ii), (iii) or (iv) of subsection (5)(b), the ruling is to be treated as made at the time when the sub-paragraph in question is first satisfied. (7) In this section “tax arrangements” means arrangements in respect of which it would be reasonable to conclude (having regard to all the circumstances) that the obtaining of an advantage in relation to tax was the main purpose, or one of the main purposes.

Increase in penalties for failure to comply with section 313 of FA 2004

18

In section 98C of TMA 1970 (notification under Part 7 of FA 2004)—

(a) in subsection (3) for “penalty of the relevant sum” substitute “ penalty not exceeding the relevant sum ”, and

(b) in subsection (4)—

(i) in paragraph (a) for “£100” substitute “ £5,000 ”,

(ii) in paragraph (b) for “£500” substitute “ £7,500 ”, and

(iii) in paragraph (c) for “£1,000” substitute “ £10,000 ”.

Transitional provisions

19

(1) Section 310C of FA 2004 applies in relation to notifiable arrangements, or proposed notifiable arrangements, only if a reference number under section 311 of that Act is allocated to the arrangements on or after the day on which this Act is passed.

(2) But section 310C of FA 2004 does not apply in relation to notifiable arrangements, or proposed notifiable arrangements, where prescribed information relating to the arrangements was provided to HMRC before that day in compliance with section 308 of that Act.

20

Any notice given by HMRC under section 312A(4) of FA 2004 (notice that section 312A(2) duty does not apply) before the day on which this Act is passed is treated on and after that day as given also in relation to the duty under section 312A(2A) of that Act.

21

(1) Section 316C of FA 2004 applies in relation to notifiable arrangements, or proposed notifiable arrangements, only if a reference number under section 311 of that Act is allocated to the arrangements on or after the day on which this Act is passed.

(2) But section 316C of FA 2004 does not apply in relation to notifiable arrangements, or proposed notifiable arrangements, where prescribed information relating to the arrangements was provided to HMRC before that day in compliance with section 308, 309 or 310 of that Act.

(3) Section 316C(2)(b) of FA 2004 applies in relation to a ruling of a court or tribunal only if the ruling is given on or after the day on which this Act is passed.

SCHEDULE 18

Amendments of Part 4 of FA 2014

1

Part 4 of FA 2014 (accelerated payments etc) is amended as follows.

2

In section 199 (overview of Part 4), in paragraph (c) omit the “and” at the end of sub-paragraph (ii), and after sub-paragraph (iii) insert

, and (iv) provision restricting the surrender of losses and other amounts for the purposes of group relief.

3

(1) Section 220 (content of notice given while a tax enquiry is in progress) is amended as follows.

(2) In subsection (2)—

(a) in paragraph (b), after “the payment” insert “ (if any) ”, and

(b) omit the “and” at the end of that paragraph, and after paragraph (c) insert

, 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 section 225A.

(3) After subsection (4) insert—

(4A) Asserted surrenderable amount” means so much of a surrenderable loss 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 P if the position were as stated in paragraphs (a), (b) or (c) of subsection (4), and (b) which is not the subject of a claim by P for relief from corporation tax reflected in the understated tax amount (and hence in the payment required to be made under section 223). (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).

(4) In subsection (6), for “the payment specified under subsection (2)(b)” substitute “ any payment specified under subsection (2)(b) or amount specified under subsection (2)(d) ”.

4

(1) Section 221 (content of notice given pending an appeal) is amended as follows.

(2) In subsection (2)—

(a) in paragraph (b), after “the disputed tax” insert “ (if any) ”, and

(b) omit the “and” at the end of paragraph (b) and after paragraph (c) insert

, and (d) if the denied advantage consists of or includes an asserted surrenderable amount (within the meaning of section 220(4A)), specify that amount and any action which is required to be taken in respect of it under section 225A.

5

(1) Section 222 (representations about a notice) is amended as follows.

(2) In subsection (2) omit the “or” at the end of paragraph (a), and after paragraph (b) insert

, or (c) objecting to the amount specified in the notice under section 220(2)(d) or section 221(2)(d).

(3) In subsection (4)—

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

(b) in paragraph (b), after “different amount” insert “ (or no amount) ”, and

, or (iii) remove from the notice the provision made under section 220(2)(b) or section 221(2)(b), and (c) if representations were made under subsection (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 section 220(2)(d) or 221(2)(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 section 220(2)(d) or section 221(2)(d),

6

(1) Section 223 (effect of notice given while tax enquiry is in progress) is amended as follows.

(2) For subsection (1) substitute—

(1) This section applies where— (a) an accelerated payment notice is given by virtue of section 219(2)(a) (notice given while a tax enquiry is in progress) (and not withdrawn), and (b) an amount is stated in the notice in accordance with section 220(2)(b).

(3) In subsection (2), for “the amount specified in the notice in accordance with section 220(2)(b)” substitute “ that amount ”.

(4) Accordingly, in the heading for that section after “progress” insert “ : accelerated payment ”.

7

After section 225 insert—

(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. (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).

8

(1) Section 227 (withdrawal, modification or suspension of accelerated payment notice) is amended as follows.

(2) In subsection (2) omit the “or” after paragraph (b) and after paragraph (c) insert

, or (d) reduce the amount specified in the accelerated payment notice under section 220(2)(d) or 221(2)(d).

(3) In subsection (4), after “(2)(c)” insert “ or (d) ”.

(4) In subsection (6)(b), after “advantage” insert “ etc ”.

(5) In subsection (7), omit the “and” after paragraph (a) and after paragraph (b) insert

, and (c) if the amount of the asserted surrenderable amount is less than the amount specified in the notice, amend the notice under subsection (2)(d) to substitute the lower amount.

(6) After subsection (12) insert—

(12A) Where, as a result of an accelerated payment notice specifying an amount under section 220(2)(d) or 221(2)(d), a notice of consent by P to a claim for group relief in respect of the amount specified (or part of it) became ineffective by virtue of section 225A(3), nothing in subsection (12) operates to revive that notice.

(7) After subsection (13) insert—

(14) If the accelerated payment notice is amended under subsection (2)(d) or withdrawn— (a) section 225A(2) and (3) (which prevents consent being given to group relief claims) cease to apply in relation to the released amount, and (b) a claim for group relief may be made in respect of any part of the released amount within the period of 30 days after the day on which the notice is amended or withdrawn. (15) The time limits otherwise applicable to amendment of a company tax return do not apply to the extent that it makes a claim for group relief within the time allowed by subsection (14). (16) “The released amount” means— (a) in a case where the accelerated payment notice is amended under subsection (2)(d), the amount represented by the reduction, and (b) in a case where the accelerated payment notice is withdrawn, the amount specified under section 220(2)(d) or 221(2)(d).

9

After section 227 insert—

(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— 1. a conclusion stated in a closure notice under paragraph 34 of Schedule 18 to FA 1998 against which no appeal is made; 2. the final determination of a tax appeal within paragraph (d) or (e) of section 203; - “relevant time” means— 1. in a case within paragraph (a) above, the end of the period during which the appeal could have been made; 2. in the case within paragraph (b) above, the end of the day on which the final determination occurs.

10

(1) Schedule 32 (accelerated payments and partnerships) is amended as follows.

(2) In paragraph 4 (content of partner payment notice)—

(a) in sub-paragraph (1), in paragraph (b), after “the payment” insert “ (if any) ”,

(b) in that sub-paragraph omit the “and” at the end of paragraph (b) and after paragraph (c) insert

, 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.

(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).

, and

(d) in sub-paragraph (5), for “the payment specified under sub-paragraph (1)(b)” substitute “ any payment specified under sub-paragraph (1)(b) or amount specified under sub-paragraph (1)(d) ”.

(3) In paragraph 5 (representations about a partner payment notice)—

(a) in sub-paragraph (2) omit the “or” at the end of paragraph (a), and after paragraph (b) insert

, or (c) objecting to the amount specified in the notice under paragraph 4(1)(d).

(b) in sub-paragraph (4), omit the “and” at the end of paragraph (a),

(d) in that paragraph, omit the “or” at the end of sub-paragraph (i) and after sub-paragraph (ii) insert

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

, and

(e) after that paragraph insert

, 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),

(4) In paragraph 6 (effect of partner payment notice)—

(a) for sub-paragraph (1) substitute—

(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).

, and

(b) in sub-paragraph (2) for “the amount specified in the notice in accordance with paragraph 4(1)(b)” substitute “ that amount ”.

(5) After paragraph 6 insert—

(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).

(6) In paragraph 8 (withdrawal, suspension or modification of partner payment notices), in sub-paragraph (2)—

(a) before paragraph (a) insert—

(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,

, and

(b) omit the “and” after paragraph (a) and after paragraph (b) insert

, and (c) section 227(12A) has effect as if the reference to section 225A(3) were to paragraph 6A(3) of this Schedule.

Consequential amendment

11

In section 55 of TMA 1970 (recovery of tax not postponed), in subsection (8C) omit the “or” after paragraph (b) and after paragraph (c) insert

, or (d) the amount of tax specified in an assessment under paragraph 76 of Schedule 18 to the Finance Act 1998 where— (i) an asserted surrenderable amount is specified in the notice under section 220(2)(d) of the Finance Act 2014 or under paragraph 4(1)(d) of Schedule 32 to that Act, and (ii) the claimant company has failed to act in accordance with paragraph 75(6) of Schedule 18 to the Finance Act 1998.

Transitional provision

12

(1) Section 225A(3) of FA 2014 (effect of notices: surrender of losses ineffective) (inserted by paragraph 7 of this Schedule) has effect in relation to an amount specified in a notice in accordance with section 220(2)(d) or 221(2)(d) of that Act (inserted by paragraphs 3(2) and 4(2) of this Schedule) whether the consent to a claim for group relief was given, or the claim itself was made, before or on or after the day on which this Act is passed.

(2) Paragraph 6A(3) of Schedule 32 to FA 2014 (partnerships: effect of notices: surrender of losses ineffective) (inserted by paragraph 10(5) of this Schedule) has effect in relation to an amount specified in a notice in accordance with paragraph 4(1)(d) of that Schedule (inserted by paragraph 10(2) of this Schedule) whether the consent to a claim for group relief was given, or the claim itself was made, before or on or after the day on which this Act is passed.

SCHEDULE 19

1

Part 5 of FA 2014 (promoters of tax avoidance schemes) is amended as follows.

Treating persons as meeting a threshold condition

2

(1) Section 237 (duty to give conduct notice) is amended as follows.

(2) After subsection (1) insert—

(1A) Subsections (5) to (9) also apply if an authorised officer becomes aware at any time (“the relevant time”) that— (a) a person has, in the period of 3 years ending with the relevant time, met one or more threshold conditions, (b) at the relevant time another person (“P”) meets one or more of those conditions by virtue of Part 2 of Schedule 34 (meeting the threshold conditions: bodies corporate and partnerships), and (c) P is, at the relevant time, carrying on a business as a promoter.

(3) In subsection (3), for the words from “the” to the end substitute “ when a person is treated as meeting a threshold condition ”.

(4) For subsection (5) substitute—

(5) The authorised officer must determine— (a) in a case within subsection (1), whether or not P's meeting of the condition mentioned in subsection (1)(a) (or, if more than one condition is met, the meeting of all of those conditions, taken together) should be regarded as significant in view of the purposes of this Part, or (b) in a case within subsection (1A), whether or not— (i) the meeting of the condition by the person as mentioned in subsection (1A)(a) (or, if more than one condition is met, the meeting of all of those conditions, taken together), and (ii) P's meeting of the condition (or conditions) as mentioned in subsection (1A)(b), should be regarded as significant in view of those purposes.

(5) In subsection (7), for “subsection (5)” substitute “ subsection (5)(a) ”.

(6) After subsection (7) insert—

(7A) If the authorised officer determines under subsection (5)(b) that both— (a) the meeting of the condition or conditions by the person as mentioned in subsection (1A)(a), and (b) P's meeting of the condition or conditions as mentioned in subsection (1A)(b), should be regarded as significant, the officer must give P a conduct notice, unless subsection (8) applies.

(7) In subsection (9), omit “mentioned in subsection (1)(a)”.

(8) After subsection (9) insert—

(10) If, as a result of subsection (1A), subsections (5) to (9) apply to a person, this does not prevent the giving of a conduct notice to the person mentioned in subsection (1A)(a).

3

In section 283 (interpretation of Part 5), in the definition of “conduct notice”, after “section 237(7)” insert “ or (7A) ”.

4

(1) Part 2 of Schedule 34 (meeting the threshold conditions) is amended as follows.

(2) In the heading, at the end insert “ and partnerships ”.

(3) For paragraph 13 substitute—

(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) A person controls a partnership if the person is a controlling member or the managing partner of the partnership. (7) “Controlling member” has the same meaning as in Schedule 36 (partnerships). (8) “Managing partner”, in relation to a partnership, means the member of the partnership who directs, or is on a day-to-day level in control of, the management of the business of the partnership. (13B) (1) A relevant body (“RB”) is treated as meeting a threshold condition at the relevant time if— (a) the threshold condition was met by a person (“C”) at a time when— (i) C was carrying on a business as a promoter, or (ii) RB was carrying on a business as a promoter and C controlled RB, and (b) RB is controlled by C at the relevant time. (2) Where C is an individual sub-paragraph (1) applies only if the threshold condition mentioned in sub-paragraph (1)(a) is a relevant threshold condition. (3) For the purposes of determining whether the requirements of sub-paragraph (1) are met by reason of meeting the requirement in sub-paragraph (1)(a)(i), it does not matter whether RB existed at the time when the threshold condition was met by C. (13C) (1) A person other than an individual is treated as meeting a threshold condition at the relevant time if— (a) a relevant body (“A”) met the threshold condition at a time when A was controlled by the person, and (b) at the time mentioned in paragraph (a) A, or another relevant body (“B”) which was also at that time controlled by the person, carried on a business as a promoter. (2) For the purposes of determining whether the requirements of sub-paragraph (1) are met it does not matter whether A or B (or neither) exists at the relevant time. (13D) (1) A relevant body (“RB”) is treated as meeting a threshold condition at the relevant time if— (a) RB or another relevant body met the threshold condition at a time (“time T”) when it was controlled by a person (“C”), (b) at time T, there was a relevant body controlled by C which carried on a business as a promoter, and (c) RB is controlled by C at the relevant time. (2) For the purposes of determining whether the requirements of sub-paragraph (1) are met it does not matter whether— (a) RB existed at time T, or (b) any relevant body (other than RB) by reason of which the requirements of sub-paragraph (1) are met exists at the relevant time.

5

In Schedule 36 (partnerships)—

(a) omit paragraph 4 (threshold conditions: actions of partners in a personal capacity) and the italic heading before it,

(b) omit paragraph 20 (definition of “managing partner”) and the italic heading before it, and

Failure to comply with Part 7 of FA 2004

6

In Schedule 34 (threshold conditions), in paragraph 5 (non-compliance with Part 7 of FA 2004), for sub-paragraph (2) substitute—

(2) For the purposes of sub-paragraph (1), a person (“P”) fails to comply with a provision mentioned in that sub-paragraph 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 (c) the determination has not been overturned on appeal. (4) Condition B is met if— (a) the tribunal has determined for the purposes of section 118(2) of TMA 1970 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 (c) the determination has not been overturned on appeal. (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.

Disciplinary action in relation to professionals etc

7

(1) In Schedule 34 (threshold conditions), paragraph 8 (disciplinary action: professionals etc) is amended as follows.

(2) For sub-paragraph (1) substitute—

(1) A person who carries on a trade or profession that is regulated by a professional body meets this condition if all of the following conditions are met— (a) the person is found guilty of misconduct of a prescribed kind, (b) action of a prescribed kind is taken against the person in relation to that misconduct, and (c) a penalty of a prescribed kind is imposed on the person as a result of that misconduct.

(3) In the heading, for “by a professional body” substitute “ against a member of a trade or profession ”.

(4) In sub-paragraph (3), in paragraph (h), for “for” substitute “ of ”.

Power to amend Schedule 34

8

In Part 3 of Schedule 34 (power to amend), at the end of paragraph 14(2) insert—

(c) vary any of the circumstances described in paragraphs 13B to 13D in which a person is treated as meeting a threshold condition (including by amending paragraph 13A); (d) add new circumstances in which a person will be so treated.

Commencement

9

The amendments made by paragraphs 2 to 7 have effect for the purposes of determining whether a person meets a threshold condition in a period of three years ending on or after the day on which this Act is passed.

SCHEDULE 20

Penalties for errors

1

Schedule 24 to FA 2007 is amended as follows.

2

(1) Paragraph 4 (penalties payable under paragraph 1) is amended as follows.

(2) After sub-paragraph (1) insert—

(1A) If the inaccuracy is in category 0, the penalty is— (a) for careless action, 30% of the potential lost revenue, (b) for deliberate but not concealed action, 70% of the potential lost revenue, and (c) for deliberate and concealed action, 100% of the potential lost revenue.

(3) In sub-paragraph (2)—

(a) in paragraph (a), for “30%” substitute “ 37.5% ”,

(b) in paragraph (b), for “70%” substitute “ 87.5% ”, and

(4) In sub-paragraph (5), for “3” substitute “ 4 ”.

3

(1) Paragraph 4A (categorisation of inaccuracies) is amended as follows.

(2) For sub-paragraph (1) substitute—

(A1) An inaccuracy is in category 0 if— (a) it involves a domestic matter, (b) it involves an offshore matter or an offshore transfer, the territory in question is a category 0 territory and the tax at stake is income tax, capital gains tax or inheritance tax, or (c) it involves an offshore matter and the tax at stake is a tax other than income tax, capital gains tax or inheritance tax. (1) An inaccuracy is in category 1 if— (a) it involves an offshore matter or an offshore transfer, (b) the territory in question is a category 1 territory, and (c) the tax at stake is income tax, capital gains tax or inheritance tax.

(3) In sub-paragraph (2)—

(a) in paragraph (a), after “matter” insert “ or an offshore transfer ”, and

(b) in paragraph (c), for “or capital gains tax” substitute “ , capital gains tax or inheritance tax ”.

(4) In sub-paragraph (3)—

(a) in paragraph (a), after “matter” insert “ or an offshore transfer ”, and

(b) in paragraph (c), for “or capital gains tax” substitute “ , capital gains tax or inheritance tax ”.

(5) After sub-paragraph (4) insert—

(4A) Where the tax at stake is inheritance tax, assets are treated for the purposes of sub-paragraph (4) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable. (4B) An inaccuracy “involves an offshore transfer” if— (a) it does not involve an offshore matter, (b) it is deliberate (whether or not concealed) and results in a potential loss of revenue, (c) the tax at stake is income tax, capital gains tax or inheritance tax, and (d) the applicable condition in paragraph 4AA is satisfied.

(6) In sub-paragraph (5), for the words following “revenue” substitute “ and does not involve either an offshore matter or an offshore transfer ”.

(7) In sub-paragraph (6)(a), after “matters” insert “ or transfers ”.

(8) In sub-paragraph (7), for “ “Category 1” substitute “ “Category 0 territory”, “category 1”.

4

After paragraph 4A insert—

(4AA) (1) This paragraph makes provision in relation to offshore transfers. (2) Where the tax at stake is income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income— (a) is received in a territory outside the UK, or (b) is transferred before the filing date to a territory outside the UK. (3) Where the tax at stake is capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds— (a) are received in a territory outside the UK, or (b) are transferred before the filing date to a territory outside the UK. (4) Where the tax at stake is inheritance tax, the applicable condition is satisfied if— (a) the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and (b) after that disposition but before the filing date the assets, or any part of the assets, are transferred to a territory outside the UK. (5) In the case of a transfer falling within sub-paragraph (2)(b), (3)(b) or (4)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets. (6) In relation to an offshore transfer, the territory in question for the purposes of paragraph 4A is the highest category of territory by virtue of which the inaccuracy involves an offshore transfer. (7) “Filing date” means the date when the document containing the inaccuracy is given to HMRC. (8) “Assets” has the same meaning as in paragraph 4A.

5

In paragraph 10 (standard percentage reductions for disclosure), in the Table in sub-paragraph (2), at the appropriate places insert—

37.5%	18.75%	0%

87.5%	43.75%	25%

, and

“125%	62.5%	40%

6

In paragraph 12(5) (interaction with other penalties and late payment surcharges: the relevant percentage)—

(a) before paragraph (a) insert—

(za) if the penalty imposed under paragraph 1 is for an inaccuracy in category 0, 100%,

, and

(b) in paragraph (a), for “100%” substitute “ 125% ”.

7

(1) Paragraph 21A (classification of territories) is amended as follows.

(2) Before sub-paragraph (1) insert—

(A1) A category 0 territory is a territory designated as a category 0 territory by order made by the Treasury.

(3) For sub-paragraph (2) substitute—

(2) A category 2 territory is a territory that is not any of the following— (a) a category 0 territory; (b) a category 1 territory; (c) a category 3 territory.

(4) For sub-paragraph (7) substitute—

(7) An instrument containing (whether alone or with other provisions) the first order to be made under sub-paragraph (A1) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

8

(1) Paragraph 21B (location of assets etc) is amended as follows.

(2) After sub-paragraph (1) insert—

(1A) The Treasury may by regulations make provision for determining for the purposes of paragraph 4AA where— (a) income is received or transferred, (b) the proceeds of a disposal are received or transferred, or (c) assets are transferred.

(3) In sub-paragraph (2), for “and capital gains tax” substitute “ , capital gains tax and inheritance tax ”.

Penalties for failure to notify

9

Schedule 41 to FA 2008 is amended as follows.

10

(1) Paragraph 6 (amount of penalty: standard amount) is amended as follows.

(2) After sub-paragraph (1) insert—

(1A) If the failure is in category 0, the penalty is— (a) for a deliberate and concealed failure, 100% of the potential lost revenue, (b) for a deliberate but not concealed failure, 70% of the potential lost revenue, and (c) for any other case, 30% of the potential lost revenue.

(3) In sub-paragraph (2)—

(a) in paragraph (a), for “100%” substitute “ 125% ”,

(b) in paragraph (b), for “70%” substitute “ 87.5% ”, and

(4) In sub-paragraph (5), for “3” substitute “ 4 ”.

11

(1) Paragraph 6A (categorisation of failures) is amended as follows.

(2) For sub-paragraph (1) substitute—

(A1) A failure is in category 0 if— (a) it involves a domestic matter, (b) it involves an offshore matter or an offshore transfer, the territory in question is a category 0 territory and the tax at stake is income tax or capital gains tax, or (c) it involves an offshore matter and the tax at stake is a tax other than income tax or capital gains tax. (1) A failure is in category 1 if— (a) it involves an offshore matter or an offshore transfer, (b) the territory in question is a category 1 territory, and (c) the tax at stake is income tax or capital gains tax.

(3) In sub-paragraph (2)(a), after “matter” insert “ or an offshore transfer ”.

(4) In sub-paragraph (3)(a), after “matter” insert “ or an offshore transfer ”.

(5) After sub-paragraph (4) insert—

(4A) A failure “involves an offshore transfer” if— (a) it does not involve an offshore matter, (b) it is deliberate (whether or not concealed) and results in a potential loss of revenue, (c) the tax at stake is income tax or capital gains tax, and (d) the applicable condition in paragraph 6AA is satisfied.

(6) In sub-paragraph (5), for the words following “revenue” substitute “ and does not involve either an offshore matter or an offshore transfer ”.

(7) In sub-paragraph (6)(a), after “matters” insert “ or transfers ”.

(8) Omit sub-paragraph (8).

(9) In sub-paragraph (9), after “paragraph” insert “ and paragraph 6AA ”.

12

After paragraph 6A insert—

(6AA) (1) This paragraph makes provision in relation to offshore transfers. (2) Where the tax at stake is income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income— (a) is received in a territory outside the UK, or (b) is transferred before the calculation date to a territory outside the UK. (3) Where the tax at stake is capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds— (a) are received in a territory outside the UK, or (b) are transferred before the calculation date to a territory outside the UK. (4) In the case of a transfer falling within sub-paragraph (2)(b) or (3)(b), references to the income or proceeds transferred are to be read as including references to any assets derived from or representing the income or proceeds. (5) In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the failure involves an offshore transfer. (6) In this paragraph “calculation date” means the date by reference to which the potential lost revenue is to be calculated (see paragraph 7). (6AB) Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.

13

In paragraph 13 (standard percentage reductions for disclosure), in the Table in sub-paragraph (3), at the appropriate places insert—

37.5%	case A: 12.5%	case A: 0%
37.5%	case B: 25%	case B: 12.5%

87.5%	43.75%	25%

, and

125%	62.5%	40%

Penalties for failure to make returns etc

14

Schedule 55 to FA 2009 is amended as follows.

15

(1) Paragraph 6 (penalty for failure continuing 12 months after penalty date) is amended as follows.

(2) In sub-paragraph (3A)—

(a) before paragraph (a) insert—

(za) for the withholding of category 0 information, 100%,

, and

(b) in paragraph (a), for “100%” substitute “ 125% ”.

(3) In sub-paragraph (4A)—

(a) before paragraph (a) insert—

(za) for the withholding of category 0 information, 70%,

, and

(b) in paragraph (a), for “70%” substitute “ 87.5% ”.

(4) In sub-paragraph (6), for “3” substitute “ 4 ”.

16

(1) Paragraph 6A (categorisation of information) is amended as follows.

(2) For sub-paragraph (1) substitute—

(A1) Information is category 0 information if— (a) it involves a domestic matter, (b) it involves an offshore matter or an offshore transfer, the territory in question is a category 0 territory and it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax, or (c) it involves an offshore matter and it is information which would enable or assist HMRC to assess P's liability to a tax other than income tax, capital gains tax or inheritance tax. (1) Information is category 1 information if— (a) it involves an offshore matter or an offshore transfer, (b) the territory in question is a category 1 territory, and (c) it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax.

(3) In sub-paragraph (2)—

(a) in paragraph (a), after “matter” insert “ or an offshore transfer ”, and

(b) in paragraph (c), for “or capital gains tax” substitute “ , capital gains tax or inheritance tax ”.

(4) In sub-paragraph (3)—

(a) in paragraph (a), after “matter” insert “ or an offshore transfer ”, and

(b) in paragraph (c), for “or capital gains tax” substitute “ , capital gains tax or inheritance tax ”.

(5) After sub-paragraph (4) insert—

(4A) If the liability to tax which would have been shown in the return is a liability to inheritance tax, assets are treated for the purposes of sub-paragraph (4) as situated or held in a territory outside the UK if they are so situated or held immediately after the transfer of value by reason of which inheritance tax becomes chargeable. (4B) Information “involves an offshore transfer” if— (a) it does not involve an offshore matter, (b) it is information which would enable or assist HMRC to assess P's liability to income tax, capital gains tax or inheritance tax, (c) by failing to make the return, P deliberately withholds the information (whether or not the withholding of the information is also concealed), and (d) the applicable condition in paragraph 6AA is satisfied.

(6) In sub-paragraph (5), for the words following “if” substitute “ it does not involve an offshore matter or an offshore transfer ”.

(7) In sub-paragraph (6)(a), after “matters” insert “ or transfers ”.

(8) Omit sub-paragraph (8).

(9) In sub-paragraph (9), after “paragraph” insert “ and paragraph 6AA ”.

17

After paragraph 6A insert—

(6AA) (1) This paragraph makes provision in relation to offshore transfers. (2) Where the liability to tax which would have been shown in the return is a liability to income tax, the applicable condition is satisfied if the income on or by reference to which the tax is charged, or any part of the income— (a) is received in a territory outside the UK, or (b) is transferred before the relevant date to a territory outside the UK. (3) Where the liability to tax which would have been shown in the return is a liability to capital gains tax, the applicable condition is satisfied if the proceeds of the disposal on or by reference to which the tax is charged, or any part of the proceeds— (a) are received in a territory outside the UK, or (b) are transferred before the relevant date to a territory outside the UK. (4) Where the liability to tax which would have been shown in the return is a liability to inheritance tax, the applicable condition is satisfied if— (a) the disposition that gives rise to the transfer of value by reason of which the tax becomes chargeable involves a transfer of assets, and (b) after that disposition but before the relevant date the assets, or any part of the assets, are transferred to a territory outside the UK. (5) In the case of a transfer falling within sub-paragraph (2)(b), (3)(b) or (4)(b), references to the income, proceeds or assets transferred are to be read as including references to any assets derived from or representing the income, proceeds or assets. (6) In relation to an offshore transfer, the territory in question for the purposes of paragraph 6A is the highest category of territory by virtue of which the information involves an offshore transfer. (7) “Relevant date” means the date on which P becomes liable to a penalty under paragraph 6. (6AB) Regulations under paragraph 21B of Schedule 24 to FA 2007 (location of assets etc) apply for the purposes of paragraphs 6A and 6AA of this Schedule as they apply for the purposes of paragraphs 4A and 4AA of that Schedule.

18

In paragraph 15 (standard percentage reductions for disclosure), in the Table in sub-paragraph (2), at the appropriate places insert—

87.5%	43.75%	25%

, and

125%	62.5%	40%

19

In paragraph 17(4) (interaction with other penalties and late payment surcharges), omit the “and” at the end of paragraph (b) and after that paragraph insert—

(ba) if one of the penalties is a penalty under paragraph 6(3) or (4) and the information withheld is category 1 information, 125%, and

SCHEDULE 21

Penalty linked to offshore asset moves

1

(1) A penalty is payable by a person (“P”) where Conditions A, B and C are met.

(2) Condition A is that—

(a) P is liable for a penalty specified in paragraph 2 (“the original penalty”), and

(b) the original penalty is for a deliberate failure (see paragraph 3).

(3) Condition B is that there is a relevant offshore asset move (see paragraph 4) which occurs after the relevant time (see paragraph 5).

(4) Condition C is that—

(a) the main purpose, or one of the main purposes, of the relevant offshore asset move is to prevent or delay the discovery by Her Majesty's Revenue and Customs (“HMRC”) of a potential loss of revenue, and

(b) the original penalty relates to an inaccuracy or failure which relates to the same potential loss of revenue.

Original penalties triggering penalties under this Schedule

2

The penalties referred to in paragraph 1(2) are—

(a) a penalty under paragraph 1 of Schedule 24 to FA 2007 (penalty for error in taxpayer's document) in relation to an inaccuracy in a document of a kind listed in the Table in paragraph 1 of that Schedule, where the tax at stake is income tax, capital gains tax or inheritance tax,

(b) a penalty under paragraph 1 of Schedule 41 to FA 2008 (penalty for failure to notify etc) in relation to the obligation under section 7 of TMA 1970 (obligation to give notice of liability to income tax or capital gains tax), ...

(c) a penalty under paragraph 6 of Schedule 55 to FA 2009 (penalty for failures to make return etc where failure continues after 12 months), where the tax at stake is income tax, capital gains tax or inheritance tax, and

(d) a penalty under paragraph 1 of Schedule 18 to FA 2017 (requirement to correct relevant offshore tax non-compliance).

“Deliberate failure”

3

The original penalty is for a “deliberate failure” if—

(a) in the case of a penalty within paragraph 2(a), the inaccuracy to which it relates was deliberate on P's part (whether or not concealed);

(b) in the case of a penalty within paragraph 2(b), the failure by P was deliberate (whether or not concealed);

(c) in the case of a penalty within paragraph 2(c), the withholding of the information, resulting from the failure to make the return, is deliberate (whether or not concealed).

(d) in the case of a penalty within paragraph 2(d), P was aware at any time during the RTC period that at the end of the 2016-17 tax year P had relevant offshore tax non-compliance to correct;

and terms used in paragraph (d) have the same meaning as in Schedule 18 to FA 2017.

“Relevant offshore asset move”

4

(1) There is a “relevant offshore asset move” if, at a time when P is the beneficial owner of an asset (“the qualifying time”)—

(a) the asset ceases to be situated or held in a specified territory and becomes situated or held in a non-specified territory,

(b) the person who holds the asset ceases to be resident in a specified territory and becomes resident in a non-specified territory, or

and P remains the beneficial owner of the asset, or any part of it, immediately after the qualifying time.

(2) Whether a territory is a “specified territory” or “non-specified territory” is to be determined, for the purposes of sub-paragraph (1), as at the qualifying time.

(3) Where—

(a) an asset of which P is the beneficial owner (“the original asset”) is disposed of, and

(b) all or part of any proceeds from the sale of the asset are (directly or indirectly) reinvested in another asset of which P is also the beneficial owner (“the new asset”),

the original asset and the new asset are to be treated as the same asset for the purposes of determining whether there is a relevant offshore asset move.

(4) “Asset” has the meaning given in section 21(1) of TCGA 1992, but also includes sterling.

(5) “Specified territory” means a territory specified in regulations made by the Treasury by statutory instrument; and references to “non-specified territory” are to be construed accordingly.

(6) Regulations under sub-paragraph (5) are subject to annulment in pursuance of a resolution of the House of Commons.

“Relevant time”

5

(1) “The relevant time” has the meaning given by this paragraph.

(2) Where the original penalty is under Schedule 24 to FA 2007, the relevant time is—

(a) if the tax at stake as a result of the inaccuracy is income tax or capital gains tax, the beginning of the tax year to which the document containing the inaccuracy relates, and

(b) if the tax at stake as a result of the inaccuracy is inheritance tax, the time when liability to the tax first arises.

(3) Where the original penalty is for a failure to comply with an obligation specified in the table in paragraph 1 of Schedule 41 of FA 2008, the relevant time is the beginning of the tax year to which that obligation relates.

(4) Where the original penalty is for a failure to make a return or deliver a document specified in the table in paragraph 1 of Schedule 55 to FA 2009, the relevant time is—

(a) if the tax at stake is income tax or capital gains tax, the beginning of the tax year to which the return or document relates, and

(b) if the tax at stake is inheritance tax, the time when liability to the tax first arises.

(5) Where the original penalty is under paragraph 1 of Schedule 18 to FA 2017, the relevant time is the time when that Schedule comes into force.

Amount of the penalty

6

(1) The penalty payable under paragraph 1(1) is 50% of the amount of the original penalty payable by P.

(2) The penalty payable under paragraph 1(1) is not a penalty determined by reference to a liability to tax (despite the fact that the original penalty by reference to which it is calculated may be such a penalty).

Assessment

7

(1) Where a person becomes liable for a penalty under paragraph 1(1), HMRC must—

(a) assess the penalty,

(b) notify the person, and

(2) A penalty under paragraph 1(1) must be paid before the end of the period of 30 days beginning with the day on which notification of the penalty is issued.

(3) An assessment—

(a) is to be treated for procedural purposes in the same way as an assessment to tax (except in respect of a matter expressly provided for by this Schedule),

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

(4) An assessment of a penalty under paragraph 1(1) must be made within the same period as that allowed for the assessment of the original penalty.

(5) If, after an assessment of a penalty is made under this paragraph, HMRC amends the assessment, or makes a supplementary assessment, in respect of the original penalty, it must also at the same time amend the assessment, or make a supplementary assessment, in respect of the penalty under paragraph 1(1) to ensure that it is based on the correct amount of the original penalty.

(6) In this paragraph—

(a) a reference to an assessment to tax, in relation to inheritance tax, is to a determination, and

(b) “tax period” means a tax year, accounting period or other period in respect of which tax is charged.

Appeal

8

(1) A person may appeal against a decision of HMRC that a penalty is payable by the person.

(2) An appeal under this paragraph is to be treated in the same way as an appeal against an assessment to, or determination of, the tax concerned (including by the application of any provision about bringing the appeal by notice to HMRC, about HMRC review of the decision or about determination of the appeal by the First-tier Tribunal or Upper Tribunal).

(3) Sub-paragraph (2) does not apply in respect of a matter expressly provided for by this Schedule.

(4) On an appeal under this paragraph, the tribunal may affirm or cancel HMRC's decision.

Commencement and transitionals

9

(1) This Schedule has effect in relation to relevant offshore asset moves occurring after the day on which this Act is passed.

(2) For the purposes of this Schedule, it does not matter if liability for the original penalty first arose on or before that day, unless the case is one to which sub-paragraph (3) applies.

(3) The original penalty is to be ignored if P's liability for it for arose before the day on which this Act is passed and before that day—

(a) if the original penalty was under Schedule 24 to FA 2007, any tax which was unpaid as a result of the inaccuracy has been assessed or determined;

(b) if the original penalty was under Schedule 41 to FA 2008 or Schedule 55 to FA 2009, the failure to which it related was remedied and any tax which was unpaid as a result of the failure has been assessed or determined.

Charge and rates for 2015-16

Personal allowances for 2015-16

Basic rate limit from 2016

Charge for financial year 2016

Cars: the appropriate percentage for subsequent tax years

Diesel cars: the appropriate percentage for 2015-16

Zero-emission vans

Exemption for board or lodging provided to carers

Lump sums provided under armed forces early departure scheme

Bereavement support payment: exemption from income tax

Arrangements offering a choice of capital or income return

Intermediaries and Gift Aid

Disguised investment management fees

Exceptions from duty to deduct tax: qualifying private placements

Loan relationships: repeal of certain provisions relating to late interest etc

Amount of relief for expenditure on research and development

Expenditure on research and development: consumable items

Television tax relief

Entrepreneurs' relief: exclusion of goodwill in certain circumstances

Television tax relief

Restrictions applying to certain deductions made by banking companies

Entrepreneurs' relief: exclusion of goodwill in certain circumstances

Entrepreneurs' relief: trading company etc

Plant and machinery allowances: anti-avoidance

Supplementary charge: investment allowance

Reduction in rate of petroleum revenue tax

Rates of alcoholic liquor duties

Wholesaling of controlled liquor

Rates of tobacco products duty

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

Rates of gaming duty

Climate change levy: main rates from 1 April 2016

Landfill tax: rates from 1 April 2016

Landfill tax: material consisting of fines

VAT: refunds to strategic highways companies

SDLT: alternative property finance relief

ATED: returns

Inheritance tax: exemption for decorations and other awards

The bank levy: rates from 1 April 2015

Introduction to the tax

“The insufficient economic substance condition”

“Excepted loan relationship outcome”

“Transaction” and “series of transactions”

Commencement and transitional provision

Disclosure of tax avoidance schemes

Commencement and transitional provision

FA 1998

CTA 2009

CTA 2010

TIOPA 2010

Commencement

Anti-forestalling provision

Introductory

Nominees' annuities and successors' annuities to be authorised payments

Nominees' annuities and successors' annuities: definitions

Dependants' and nominees' annuities: testing against deceased member's lifetime allowance

Minor and consequential amendments

Consequential repeal

Exemption in certain cases for annuities for dependants, nominees and successors

Exemption from tax under Part 9 of ITEPA 2003 not to give rise to tax under other provisions

Annuity for dependant purchased before 6 April 2006 jointly with annuity for member

Minor and consequential amendments

Income tax: trade profits

Income tax: profits of a property business

Corporation tax: trading income and trade profits

Corporation tax: profits of a property business

Corporation tax: investment business

Commencement

Introductory

Generation of electricity involving contracts for difference

Application

Introductory

Generation of electricity involving contracts for difference

Application

Parts 5 and 6: certain community-based activities to be excluded activities

Part 5B: subsidised generation or export of electricity to cease to be excluded activity

Application of Part

Introduction

“Relevant high value disposal”

Threshold amount for the tax year 2015-16

Threshold amount from 6 April 2016

Restriction of losses

Calculation of gains and losses

Transfer and long funding leaseback: restrictions on lessee's allowances

Restriction on qualifying expenditure on sale, hire purchase (etc) and assignment

Transfer followed by hire-purchase etc: restrictions on hirer's allowances

Restriction on qualifying expenditure on sale, hire purchase (etc) and assignment: VAT

Amendments of Chapter 5 of Part 8 of CTA 2010

Abolition of extended ring fence expenditure supplement for onshore activities

Commencement

Investment allowance

Interpretation

General rules for commencement

Unactivated field allowance to become unactivated investment allowance

Activated field allowance to become activated investment allowance

Cluster area allowance

Restriction of field allowances

Proposed determinations of cluster areas

Option to exclude certain fields from cluster area allowance

Cases in which this Part applies

Meaning of “the relevant period”

Notice requiring payment of unpaid tax

Time limit for giving notice

Amount payable in consortium case

Part 2: supplementary

Requirement to update DOTAS information

Arrangements to be given reference number

Notification of employees

Employers' duty of disclosure

Identifying scheme users

Additional information

Protection of persons making voluntary disclosures

Publication of DOTAS information

Increase in penalties for failure to comply with section 313 of FA 2004

Transitional provisions

Amendments of Part 4 of FA 2014

Consequential amendment

Transitional provision

Treating persons as meeting a threshold condition

Failure to comply with Part 7 of FA 2004

Disciplinary action in relation to professionals etc

Power to amend Schedule 34

Commencement

Penalties for errors

Penalties for failure to notify

Penalties for failure to make returns etc

Penalty linked to offshore asset moves

Original penalties triggering penalties under this Schedule

“Deliberate failure”

“Relevant offshore asset move”

“Relevant time”

Amount of the penalty

Assessment

Appeal

Commencement and transitionals

Editorial notes

[^c22528941]: S. 15 wholly in force at 1.4.2015; s. 15(2) in force at Royal Assent; s. 15(1) in force at 1.4.2015; see s. 15(2)

[^c22528951]: S. 124 partly in force; s. 124(1)-(4)(6)(7) in force at Royal Assent; see s. 124(6)(7)

[^key-07c9e1c45a118e667b5cacf15db97f26]: S. 29 having effect as specified (2.10.2015) by The Finance Act 2015, Section 29 (Film Tax Relief) (Specified Day) Regulations 2015 (S.I. 2015/1741), reg. 2

[^key-90c416fa70769255fc836bc126f39b1b]: S. 113(1)-(5) modified (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 17(3)

[^key-47ad113d87cdf754648557f35f7b8629]: Words in s. 107(8) inserted (with effect in accordance with Sch. 3 Pt. 3 of the commencing Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 13

[^key-be38f9d4f8423097c085ed3534e4cf1f]: S. 26 omitted (with effect in accordance with s. 33(9)(10) of the commencing Act) by virtue of Finance (No. 2) Act 2015 (c. 33), s. 33(8)

[^key-44f881ee6bde08f4101f60e7b060c39b]: Word in s. 4(1)(a) substituted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 6(a)

[^key-9e09216b00fde9c5cdcb009ba978affa]: Word in s. 5(1)(a) substituted (18.11.2015) by Finance (No. 2) Act 2015 (c. 33), s. 5(a)

[^key-35ed5cf093449bbf643a2de899661a16]: S. 79(3A) inserted (with effect in accordance with Sch. 3 Pt. 3 of the commencing Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 12(4)

[^key-76906ac69151789ad756cef460599cfe]: Words in s. 79(2) substituted (with effect in accordance with Sch. 3 Pt. 3 of the commencing Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 12(2)

[^key-c6701769259769f126038e527070d5d2]: Word in s. 79(3) substituted (with effect in accordance with Sch. 3 Pt. 3 of the commencing Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 12(3)

[^key-541b2e8a48799aead79f619d3df0aaa1]: Words in s. 79(5) inserted (with effect in accordance with Sch. 3 Pt. 3 of the commencing Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 12(5)(a)

[^key-6cc530c366620fd0237e00b1cfe66bf0]: Words in s. 79(5) inserted (with effect in accordance with Sch. 3 Pt. 3 of the commencing Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 3 para. 12(5)(b)

[^key-3a4c026b94a5df262b611be958ffe7cc]: Sch. 2 para. 6 omitted (with effect in accordance with s. 36(3)-(5) of the commencing Act) by virtue of Finance (No. 2) Act 2015 (c. 33), s. 36(2)(c)

[^key-85933e121617bd7c089d394215dd2b82]: Sch. 2 para. 8 omitted (with effect in accordance with s. 36(3)-(5) of the commencing Act) by virtue of Finance (No. 2) Act 2015 (c. 33), s. 36(2)(c)

[^key-7715580d5060489a08c15cb8ea0c243f]: Sch. 6 para. 10 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(a)

[^key-5b3788096d7dfbba6be6d668c064b720]: Sch. 6 para. 11 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(b)

[^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

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