Finance Act 2016

[^key-6ffa69522c50a7c6fadabb4a7c8817ca]: Words in Sch. 4 para. 14(3)(b) inserted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2024 (c. 3), Sch. 9 paras. 93(5), 124 (with Sch. 9 paras. 125-132)

[^key-8249fe8b264d9ba0391744d7f740eed6]: Sch. 20 para. 1(4)(e) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 47(2); S.I. 2024/440, reg. 2

[^key-e165cd5edb95f24ea4e338c3fbf2952c]: Word in Sch. 20 para. 3(3)(b) omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 47(3)(a); S.I. 2024/440, reg. 2

[^key-43cf05fbafb8b0e7fa4ea8002a9337ce]: Sch. 20 para. 3(3)(d) and word inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 47(3)(b); S.I. 2024/440, reg. 2

[^key-a4b04467d52cd6820870ea8a599e6fc0]: Words in Sch. 20 para. 3(3) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 47(3)(c); S.I. 2024/440, reg. 2

[^key-118a4f022a89995d51b980cc4c39f13f]: Words in Sch. 20 para. 4(3)(b) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 47(4); S.I. 2024/440, reg. 2

[^key-ed7608f8018ec37bf6574534af46e7f9]: Sch. 20 para. 5(5) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 47(5); S.I. 2024/440, reg. 2

[^key-bd69e4c6f431f02e1bb3baf50b65fe04]: Sch. 22 para. 2(4B) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(2)(c); S.I. 2024/440, reg. 2

[^key-b2de86107d4de16c38cb4afb42df0efe]: Words in Sch. 22 para. 2(1) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(2)(a); S.I. 2024/440, reg. 2

[^key-063161e65f664327bad4c5aa07ff7a03]: Word in Sch. 22 para. 2(4A) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(2)(b); S.I. 2024/440, reg. 2

[^key-f2c0e86e08f2f0cb56d2dc65338ef0d1]: Sch. 22 para. 3(4A) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(3); S.I. 2024/440, reg. 2

[^key-d083a7f01e6ade8dddfe0752a78cc463]: Words in Sch. 22 para. 5(1)(b) inserted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(4)(a); S.I. 2024/440, reg. 2

[^key-272a76350527e6975cc9945f0f1bc578]: Words in Sch. 22 para. 5(2)(a) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(4)(b); S.I. 2024/440, reg. 2

[^key-d061981102a12da66c2ac1c3544ee6e0]: Words in Sch. 22 para. 19(2) substituted (6.4.2024 for specified purposes) by Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 48(5); S.I. 2024/440, reg. 2

[^key-b5c3d9376a353c6accc0ec10e6e37e27]: Sch. 23 para. 9 omitted (6.4.2024 for specified purposes) by virtue of Finance Act 2021 (c. 26), s. 118(2), Sch. 27 para. 49; S.I. 2024/440, reg. 2

[^key-021ecf9b24f3d8ad889cbe5aecf356ef]: Sch. 4 para. 1(2)(3) substituted for Sch. 4 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), 16(2)

[^key-2cab8a72aff0cb772d217152b312f4da]: Sch. 4 para. 9(2)-(2B) substituted for Sch. 4 para. 9(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), 16(3)(b)

[^key-881b72e06fd0a0aa195befce8c864920]: Words in Sch. 4 para. 9(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), 16(3)(a)(i)

[^key-f1127b10e65ad3f1ec8f0844c978430f]: Sum in Sch. 4 para. 9(1)(b) 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), 16(3)(a)(ii)

[^key-33717e2376699f9e68916bd1c9a6564a]: S. 73(5) repealed (for the purposes of income tax in relation to the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), Sch. 5 paras. 4(d), 12(1) (with Sch. 5 paras. 15, 18(4), 19)

[^key-389909e8c83d4dc199c1c3ef1278e795]: S. 73(7) repealed (for the purposes of corporation tax in relation to accounting periods beginning on or after 1.4.2025) by Finance Act 2025 (c. 8), Sch. 5 paras. 7(d), 12(2) (with Sch. 5 paras. 15, 18(4), 19)

[^key-49ccee29804c40816dda21714dfbd6f2]: Sch. 4 modified (24.4.2025 for the tax year 2024-25 and subsequent tax years) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2025 (S.I. 2025/419), regs. 1(2)(6), 19 (with reg. 18(2))

8A

• (1) For the purposes of this Schedule arrangements are “disclosable VAT arrangements” at any time if at that time sub-paragraph (2) or (3) applies.

• (2) This sub-paragraph applies if the arrangements are disclosable Schedule 11A VAT arrangements (see paragraph 9).

• (3) This paragraph applies if—

• (a) the arrangements are notifiable arrangements for the purposes of Schedule 17 to FA 2017,

• (b) the main benefit, or one of the main benefits that might be expected to arise from the arrangements is the obtaining of a tax advantage in relation to VAT (within the meaning of paragraph 6 of that Schedule), and

• (c) a person—

• (i) has provided information about the arrangements under paragraph 12(1), 17(2) or 18(2) of that Schedule, or

• (ii) has failed to comply with any of those provisions in relation to the arrangements.

• (4) But for the purposes of this Schedule arrangements in respect of which HMRC have given notice under paragraph 23(6) of Schedule 17 (notice that promoters not under duty to notify client of reference number) are not to be regarded as “disclosable VAT arrangements”.

• (5) For the purposes of sub-paragraph (3)(c) a person who would be required to provide information under paragraph 12(1) of Schedule 17 to FA 2017—

• (a) but for the fact that the arrangements implement a proposal in respect of which notice has been given under paragraph 11(1) of that Schedule, or

• (b) but for paragraph 13, 14 or 15 of that Schedule,

is treated as providing the information at the end of the period referred to in paragraph 12(1).

“Disclosable indirect tax arrangements”

9A

• (1) For the purposes of this Schedule arrangements are “disclosable indirect tax arrangements” at any time if at that time—

• (a) the arrangements are notifiable arrangements for the purposes of Schedule 17 to FA 2017,

• (b) the main benefit, or one of the main benefits that might be expected to arise from the arrangements is the obtaining of a tax advantage in relation to an indirect tax other than VAT (within the meaning of paragraph 7 of that Schedule), and

• (c) a person—

• (i) has provided information about the arrangements under paragraph 12(1), 17(2) or 18(2) of that Schedule, or

• (ii) has failed to comply with any of those provisions in relation to the arrangements.

• (2) But for the purposes of this Schedule arrangements in respect of which HMRC have given notice under paragraph 23(6) of Schedule 17 to FA 2016 (notice that promoters not under duty to notify client of reference number) are not to be regarded as “disclosable indirect tax arrangements”.

• (3) For the purposes of sub-paragraph (1)(c) a person who would be required to provide information under paragraph 12(1) of Schedule 17—

• (a) but for the fact that the arrangements implement a proposal in respect of which notice has been given under paragraph 11(1) of that Schedule, or

• (b) but for paragraph 13, 14 or 15 of that Schedule,

is treated as providing the information at the end of the period referred to in paragraph 12(1).

Condition F

16A

• (1) Condition F is that—

• (a) the arrangements are indirect tax arrangements,

• (b) P has relied on the arrangements (see sub-paragraph (2),

• (c) the arrangements have been counteracted, and

• (d) the counteraction is final.

• (2) For the purpose of sub-paragraph (1) P relies on the arrangements if—

• (a) P makes a return, claim, declaration or application for approval on the basis that a relevant tax advantage arises, or

• (b) P fails to discharge a relevant obligation (“the disputed obligation”) and there is reason to believe that P’s failure to discharge that obligation is connected with the arrangements.

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

• (4) For the purposes of sub-paragraph (2) an obligation is a relevant obligation if the arrangements might be expected to have the result that the obligation does not arise.

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

• (a) adjustments, other than taxpayer emendations, are made in respect of P’s tax position —

• (i) on the basis that the whole or part of the relevant tax advantage mentioned in sub-paragraph (2)(a) does not arise, or

• (ii) on the basis that the disputed obligation does (or did) arise, or

• (b) an assessment to tax is made, or any other action is taken by HMRC, on the basis mentioned in paragraph (a)(i) or (ii) (otherwise than by way of an adjustment).

• (6) For the purposes of this paragraph a “counteraction” is final when the adjustments, assessment or action in question, and any amounts arising from the adjustments, assessment or action, can no longer be varied, on appeal or otherwise.

• (7) For the purposes of sub-paragraph (1) the time at which it falls to be determined whether or not the arrangements are disclosable indirect tax arrangements is when the counteraction becomes final.

• (8) The following are “taxpayer emendations” for the purposes of sub-paragraph (5)—

• (a) an adjustment made by P at a time when P had no reason to believe that HMRC had begun or were about to begin enquiries into P’s affairs in relation to the tax in question;

• (b) an adjustment made by HMRC with respect to P’s tax position (whether by way of an assessment or otherwise) as a result of a disclosure by P which meets the conditions in sub-paragraph (9).

• (9) The conditions are that the disclosure—

• (a) is a full and explicit disclosure of an inaccuracy in a return or other document or of a failure to comply with an obligation, and

• (b) was made at a time when P had no reason to believe that HMRC were about to begin enquiries into P’s affairs in relation to the tax in question.

6A

Where—

• (a) a penalty has been imposed on a person under paragraph 1 of Schedule 18 to FA 2017, and

• (b) the potential loss of revenue threshold has been met,

only one asset-based penalty is payable by the person in relation to any given asset.

SDLT higher rate: properties occupied by certain employees etc

ATED: regulated home reversion plans

ATED: properties occupied by certain employees etc

Stamp duty: acquisition of target company's share capital

Stamp duty: transfers to depositaries or providers of clearance services

Petroleum revenue tax: rate

Insurance premium tax: standard rate

Landfill tax: rates from 1 April 2018

APD: rates from 1 April 2016

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

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

VED: extension of old vehicles exemption from 1 April 2017

General anti-abuse rule: binding of tax arrangements to lead arrangements

General anti-abuse rule: penalty

Serial tax avoidance

Large businesses: tax strategies and sanctions for persistently unco-operative behaviour

HMRC power to withdraw notice to file a tax return

HMRC power to withdraw notice to file a tax return

Detention and seizure under CEMA 1979: notice requirements etc

Extension of provisions about set-off to Scotland

Interpretation

Short title

Office of Tax Simplification

Taxable benefits: application of Chapters 5 to 7 of Part 3 of ITEPA 2003

Cars: appropriate percentage for 2019-20 and subsequent tax years

Cars which cannot emit CO2: appropriate percentage for 2017-18 and 2018-19

Exemption for trivial benefits provided by employers

Standard lifetime allowance from 2016-17

Pensions bridging between retirement and state pension

Netherlands Benefit Act for Victims of Persecution 1940-1945

Averaging profits of farmers etc

Relief for finance costs related to residential property businesses

Individual investment plans of deceased investors

EIS, SEIS and VCTs: exclusion of energy generation

VCTs: requirements for giving approval

Income tax relief for irrecoverable peer-to-peer loans

Distributions in a winding up

Income-based carried interest: persons coming to the UK

Tax treatment of supplementary welfare payments: Northern Ireland

Rate of corporation tax for financial year 2020

Cap on R&D aid

Loans to participators etc: rate of tax

Tax relief for production of orchestral concerts

Banking companies: excluded entities

Banking companies: restrictions on loss relief etc

Reduction in rate of supplementary charge

Investment allowance: disqualifying conditions

Investment allowance: power to expand meaning of “relevant income”

Cluster area allowance: disqualifying conditions

Profits from the exploitation of patents etc

Power to make regulations about the taxation of securitisation companies

Insurance companies carrying on long-term business

Taking over payment obligations as lessee of plant or machinery

Capital allowances: designated assisted areas

Replacement and alteration of tools

Corporation tax: territorial scope etc

Corporation tax: transactions in UK land

Income tax: territorial scope etc

Income tax: transactions in UK land

Commencement and transitional provision: sections 76, 77 and 80

Reduction in rate of capital gains tax

Entrepreneurs' relief: associated disposals

Entrepreneurs' relief: disposal of goodwill

Investors' relief

Disposals of UK residential property by non-residents etc

Addition of CGT to Provisional Collection of Taxes Act 1968

Inheritance tax: gifts for national purposes etc

Estate duty: objects of national, scientific, historic or artistic interest

Charge to apprenticeship levy

Connected companies

Tax agents: dishonest conduct

Charities which are “connected” with one another

VAT: joint and several liability of operators of online marketplaces

SDLT: calculating tax on non-residential and mixed transactions

SDLT: higher rates for additional dwellings etc

SDLT higher rate: properties occupied by certain employees etc

SDLT: minor amendments of section 55 of FA 2003

ATED: alternative property finance - land in Scotland

Stamp duty: acquisition of target company's share capital

Stamp duty: transfers to depositaries or providers of clearance services

Insurance premium tax: standard rate

Landfill tax: rates from 1 April 2017

CCL: abolition of exemption for electricity from renewable sources

CCL: main rates from 1 April 2018

Fuel duties: aqua methanol etc

Fuel duties: aqua methanol etc

General anti-abuse rule: binding of tax arrangements to lead arrangements

General anti-abuse rule: penalty

Promoters of tax avoidance schemes

Penalties for enablers of offshore tax evasion or non-compliance

Time limit for self assessment tax returns

Time limit for self assessment tax returns

Rate of interest applicable to judgment debts etc: Northern Ireland

Detention and seizure under CEMA 1979: notice requirements etc

Data-gathering powers: daily penalties for extended default

Extension of provisions about set-off to Scotland

Power to publish state aid information

Interpretation

Enterprise management incentives exemptions and reliefs

VAT: joint and several liability of operators of online marketplaces

VAT: Isle of Man charities

SDLT: higher rates for additional dwellings etc

SDLT higher rate: land purchased for commercial use

SDLT: minor amendments of section 55 of FA 2003

ATED: regulated home reversion plans

ATED: alternative property finance - land in Scotland

Stamp duty: transfers to depositaries or providers of clearance services

SDRT: transfers to depositaries or providers of clearance services

CCL: main rates from 1 April 2018

APD: rates from 1 April 2016

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

VED: extension of old vehicles exemption from 1 April 2017

General anti-abuse rule: penalty

Promoters of tax avoidance schemes

Penalties for enablers of offshore tax evasion or non-compliance

Offences relating to offshore income, assets and activities

Extension of provisions about set-off to Scotland

Raw tobacco approval scheme