Finance Act 2017

In section 554Z12(1) (relevant step taken after A's death etc.), after “554C” insert “ , by virtue of subsection (1)(a) or (b) to (e) of that section, ”.

Exclusions: relevant repayments

8

After section 554R insert—

(554RA) (1) This section applies (subject to subsection (5)) if— (a) a right to repayment of principal under a relevant loan (the “repayment right”) is held by or on behalf of a person (“P”), and (b) on or after 9 December 2010, a sum of money (the “repayment sum”) is acquired by or on behalf of P by way of repayment of principal under the relevant loan. (2) In this section “relevant loan” means a loan made on or after 6 April 1999. (3) Subsection (4) applies if— (a) on its acquisition, the repayment sum is the subject of a relevant step within section 554B taken by P, or (b) for the sole purpose of the acquisition, the making of the payment of the repayment sum is a relevant step within section 554C(1)(a). (4) Chapter 2 does not apply by reason of the relevant step if, on its acquisition, the repayment sum is held by or on behalf of P on the same basis as that on which the repayment right was held by or on behalf of P immediately before the acquisition. (5) This section does not apply where there is any connection (direct or indirect) between the acquisition by or on behalf of P of the repayment sum and a tax avoidance arrangement (other than the arrangement under which the relevant loan was made).

Exclusions: payments in respect of a tax liability

9

After section 554X insert—

(554XA) (1) Chapter 2 does not apply by reason of a relevant step which is the payment of a sum of money if— (a) the payment is a relevant tax payment, or (b) where the payment is not a relevant tax payment— (i) the payment is made to a person for the purpose of the person making a relevant tax payment, (ii) the person makes a relevant tax payment of an amount equal to the amount of the first payment, and (iii) the relevant tax payment is made before the end of the period of 60 days beginning with the day on which the first payment is made. (2) “Relevant tax payment” means a payment made to Her Majesty's Revenue and Customs in respect of a relevant liability for— (a) income tax, (b) national insurance contributions, (c) inheritance tax, or (d) corporation tax. (3) But a provisional payment of tax (see section 554Z11D) is not a relevant tax payment. (4) A liability is a “relevant liability” if— (a) under the terms of an agreement for the discharge of the liability, or (b) by way of a decision on an application under this section, an officer of Revenue and Customs agrees that the liability is to be treated as arising in respect of the relevant arrangement concerned. (5) A person may make an application to Her Majesty's Revenue and Customs for a liability to be treated, for the purposes of this section, as arising in respect of the relevant arrangement concerned. (6) An application under this section must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty's Revenue and Customs. (7) An officer of Revenue and Customs must notify the applicant of the decision on an application under this section.

Double taxation

10

For section 554Z5 (overlap with earlier relevant step) substitute—

(554Z5) (1) This section applies if there is overlap between— (a) the sum of money or asset (“sum or asset P”) which is the subject of the relevant step, and (b) a sum of money or asset (“sum or asset Q”) by reference to which, on an occasion that occurred before the relevant step is taken, A became subject to a liability for income tax (“the earlier tax liability”). (2) But this section does not apply where— (a) the earlier tax liability arose by reason of a step within section 554B taken in a tax year before 6 April 2011, and (b) the value of the relevant step is (or if large enough would be) reduced under paragraph 59 of Schedule 2 to FA 2011. (3) Where either the payment condition or the liability condition is met, the value of the relevant step is reduced (but not below nil) by an amount equal to so much of the sum of money, or (as the case may be) the value of so much of the asset, as is within the overlap. (4) The payment condition is that, at the time the relevant step is taken— (a) the earlier tax liability has become due and payable, and (b) either— (i) it has been paid in full, or (ii) the person liable for the earlier tax liability has agreed terms with an officer of Revenue and Customs for the discharge of that liability. (5) The liability condition is that, at the time the relevant step is taken, the earlier tax liability is not yet due and payable. (6) For the purposes of this section there is overlap between sum or asset P and sum or asset Q so far as it is just and reasonable to conclude that— (a) they are the same sum of money or asset, or (b) sum or asset P directly, or indirectly, represents sum or asset Q. (7) Subsection (8) applies where— (a) the earlier tax liability arose by virtue of the application of this Chapter by reason of an earlier relevant step (the “earlier relevant step”), and (b) reductions were made under this section to the value of the earlier relevant step. (8) Where this subsection applies, sum or asset P is treated as overlapping with any other sum of money or asset so far as the other sum of money or asset was treated as overlapping with sum or asset Q for the purposes of this section. (9) In subsection (1)(b)— (a) the reference to A includes a reference to any person linked with A, and (b) the reference to a liability for income tax does not include a reference to a liability for income tax arising by reason of section 175 (benefit of taxable cheap loan treated as earnings). (10) In subsection (3) the reference to the value of the relevant step is a reference to that value— (a) after any reductions made to it under section 554Z4, this section or 554Z7, but (b) before any reductions made to it under section 554Z6 or 554Z8. (11) For the purposes of subsection (4)(b)(i) a person is not to be regarded as having paid any tax by reason only of making— (a) a payment on account of income tax, (b) a payment that is treated as a payment on account under section 223(3) of FA 2014 (accelerated payments), or (c) a payment pending determination of an appeal made in accordance with section 55 of TMA 1970.

11

After section 554Z11A insert—

(554Z11B) (1) Section 554Z11C applies if the conditions in subsections (2) and (3) are met. (2) The first condition is that there is overlap between— (a) the sum of money or asset (“sum or asset P”) which is the subject of the relevant step, and (b) a sum of money or asset (“sum or asset Q”) by reference to which, on an occasion that occurred before the relevant step is taken, A became subject to a liability for income tax (“the earlier tax liability”). (3) The second condition is that at the time the relevant step is taken— (a) an amount is payable by a person (the “liable person”) in respect of the earlier tax liability, but the whole or part of that amount is unpaid and not otherwise accounted for, and (b) the liable person has not agreed any terms with an officer of Revenue and Customs for the discharge of the earlier tax liability. (4) For the purposes of this section there is overlap between sum or asset P and sum or asset Q so far as it is just and reasonable to conclude that— (a) they are the same sum of money or asset, or (b) sum or asset P directly, or indirectly, represents sum or asset Q. (5) In subsection (2)(b)— (a) the reference to A includes a reference to any person linked with A, and (b) the reference to a liability for income tax does not include a reference to a liability for income tax arising by reason of section 175 (benefit of taxable cheap loan treated as earnings). (554Z11C) (1) In this section— (a) “the earlier charge” means so much of the earlier tax liability as relates to the overlap between sum or asset P and sum or asset Q, and (b) “the Chapter 2 overlap charge” means so much of the Chapter 2 tax liability as relates to the overlap between sum or asset P and sum or asset Q. (2) The amount of a tax liability that relates to the overlap between sum or asset P and sum or asset Q is to be determined on a just and reasonable basis. (3) Subsection (4) applies where, after the relevant step is taken, an amount (the “earlier charge paid amount”) is paid in respect of all or part of— (a) the earlier charge, or (b) any late payment interest in respect of the charge. (4) An amount equal to the earlier charge paid amount is treated as a payment on account of— (a) the Chapter 2 overlap charge, or (b) if that charge has been paid in full, any late payment interest payable in respect of the charge. (5) Except where subsection (10) applies, subsection (6) applies where an amount (the “Chapter 2 paid amount”) is paid in respect of all or part of— (a) the Chapter 2 overlap charge, or (b) any late payment interest in respect of the charge. (6) An amount equal to the Chapter 2 paid amount is treated as a payment on account of— (a) the earlier charge, or (b) if the earlier charge has been paid in full, any late payment interest payable in respect of the charge. (7) Subsection (10) applies where— (a) the condition in 554Z11B(2) is met because there is overlap between sum or asset P and each of two or more items within section 554Z11B(2)(b), and (b) an amount (the “Chapter 2 aggregate paid amount”) is paid in respect of all or part of— (i) two or more relevant Chapter 2 overlap charges, or (ii) any late payment interest in respect of any of those charges. (8) In subsection (7)(b), “relevant Chapter 2 overlap charge” means so much of the Chapter 2 tax liability as relates to the overlap between sum or asset P and one of those items within section 554Z11B(2)(b). (9) For the purposes of subsection (10)— (a) in the case of each of those items, the “earlier charge” in respect of the overlap between sum or asset P and the item is so much of the liability mentioned in section 554Z11B(2)(b) in the case of the item as relates to the overlap, and (b) the Chapter 2 aggregate paid amount is to be allocated, in such proportions as are just and reasonable in all the circumstances, between the earlier charges given by paragraph (a). (10) The amount allocated to an earlier charge under subsection (9) is treated as a payment on account of— (a) the earlier charge to which it is allocated, and (b) if the earlier charge has been paid in full, any late payment interest payable in respect of the charge. (11) In this section— - “late payment interest” means interest payable under— 1. section 86 of TMA 1970, 2. section 101 of FA 2009, or 3. regulation 82 of the Income Tax (Pay As You Earn) Regulations 2003 (S.I. 2003/2682); - “Chapter 2 tax liability” means the liability for income tax arising by virtue of the application of Chapter 2 by reason of the relevant step. (554Z11D) (1) Subsection (2) applies for the purposes of— (a) section 554Z11B(3)(a), and (b) section 554Z11C(3), (4)(b), (7)(b) and (10)(b). (2) A person is not to be regarded as having paid, or otherwise accounted for, any tax by reason only of making a provisional payment of tax, except in accordance with an application granted under section 554Z11E. (3) In this Part, “provisional payment of tax” means— (a) a payment on account of income tax, (b) a payment that is treated as a payment on account under section 223(3) of FA 2014 (accelerated payments), or (c) a payment pending determination of an appeal made in accordance with section 55 of TMA 1970. (4) The reference in subsection (3)(a) to a payment on account of income tax does not include a reference to a payment treated under section 554Z11C as a payment on account of a tax liability. (554Z11E) (1) A person may make an application to Her Majesty's Revenue and Customs for a provisional payment of tax to be treated for the purposes of section 554Z11C as— (a) an earlier charge paid amount, (b) a Chapter 2 paid amount, or (c) a Chapter 2 aggregate paid amount. (2) Where an application under subsection (1) is granted, the provisional payment of tax to which it relates may not be repaid. (3) An application for approval must be made in such form and manner, and contain such information, as may be specified by, or on behalf of, the Commissioners for Her Majesty's Revenue and Customs. (4) An officer of Revenue and Customs must notify the applicant of the decision on an application. (554Z11F) (1) This section applies in a case to which section 554Z11C applies (see section 554Z11B(1)). (2) If a provisional payment of tax is made in respect of an earlier charge in relation to an overlap, it is to be treated as also being made in respect of the Chapter 2 overlap charge in relation to the overlap. (3) If a provisional payment of tax is made in respect of a Chapter 2 overlap charge in relation to an overlap, it is to be treated as also being made in respect of the earlier charge in relation to the overlap. (4) If section 554Z11C(10) applies in a case (see section 554Z11C(7)) and a provisional payment of tax is made in respect of two or more relevant Chapter 2 overlap charges— (a) the amount of the provisional payment of tax is to be allocated, in such proportions as are just and reasonable in all the circumstances, between those relevant Chapter 2 overlap charges, and (b) a provisional payment of tax, equal to the amount allocated to the relevant Chapter 2 overlap charge relating to any particular overlap, is to be treated as also being made in respect of the earlier charge given by section 554Z11C(9) in respect of that overlap. (5) Subsection (6) applies if— (a) the provisional payment of tax is repaid, and (b) late payment interest on the earlier charge or the Chapter 2 overlap charge would have accrued during the relevant period if the provisional payment of tax had not been made. (6) The late payment interest mentioned in subsection (5) is treated as having accrued as if the provisional payment of tax had not been made. (7) For the purposes of subsection (5), the “relevant period” is the period beginning on the day on which the provisional payment of tax is made and ending with the day on which the repayment is made. (554Z11G) (1) This section applies in a case to which section 554Z11C applies (see section 554Z11B(1)). (2) Subsection (3) applies where an employer is treated by virtue of section 687A or 695A as making a payment of income (“the notional payment”) by reason of the value of the relevant step, of which sum or asset P is the subject, counting as employment income. (3) The reference in section 222 (payments by employer on account of tax where deduction not possible) to the notional payment is to be treated as a reference to that payment reduced by an amount equal to so much of the sum of money or (as the case may be) the value of so much of the asset— (a) as is within the overlap, and (b) in relation to which an amount is treated under section 554Z11C as a payment on account of either the earlier charge or the Chapter 2 overlap charge. (3) Subsection (4) applies for the purposes of sections 65(5)(b) and 70(3)(b) of the Inheritance Tax Act 1984 (tax relief for payments which are income of a person for income tax purposes etc). (4) The value of the relevant step of which sum or asset P is the subject is to be treated as reduced by an amount equal to so much of the sum of money or (as the case may be) the value of so much of the asset — (a) as is within the overlap, and (b) in relation to which an amount is treated under section 554Z11C as a payment on account of either the earlier charge or the Chapter 2 overlap charge.

Amendments to Schedule 2 to FA 2011

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• (1) Paragraph 59 of Schedule 2 to FA 2011 (transitional provision relating to Part 7A of ITEPA 2003) is amended as follows.

• (2) In sub-paragraph (1)(f), after “554Z4” insert “ and 554Z6 ”.

• (3) In the opening words of sub-paragraph (2), after “554Z4” insert “ and 554Z6 ”.

Commencement

13

Subject to paragraphs 14 to 16, the amendments made by this Schedule to Part 7A of ITEPA 2003 have effect in relation to relevant steps taken on or after 6 April 2017.

14

Section 554RA of ITEPA 2003, inserted by paragraph 8 of this Schedule, has effect in relation to relevant steps taken on or after 9 December 2010.

15

• (1) Paragraph 13 does not apply in relation to the amendment made by paragraph 11 of this Schedule (new sections 554Z11B to 554Z11G of ITEPA 2003).

• (2) Sections 554Z11B to 554Z11D and 554Z11G of ITEPA 2003, inserted by paragraph 11 of this Schedule, have effect in relation to relevant steps taken on or after 6 April 2011.

• (3) Where—

• (a) a relevant step (the “early step”) is taken on or after 9 December 2010 but before 6 April 2011, and

• (b) Chapter 2 of Part 7A of ITEPA 2003 would have applied by reason of the early step had it been taken on or after 6 April 2011 but before 6 April 2017,

sections 554Z11B to 554Z11D and 554Z11G of ITEPA 2003 have effect in relation to the early step as they have effect in relation to relevant steps taken on or after 6 April 2011.

16

The amendments made by paragraph 12 of this Schedule to paragraph 59 of Schedule 2 to FA 2011 have effect in relation to chargeable steps (as defined in that paragraph) taken on or after 6 April 2017.

SCHEDULE 7

Adaptation of a qualifying motor vehicle

1

• (1) In Schedule 8 to VATA 1994 (zero-rating), Group 12 (drugs, medicines, aids for the handicapped etc) is amended as follows.

• (2) For item 2A substitute—

(2A) (1) The supply of a motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a person (“P”) if— (a) the motor vehicle is a qualifying motor vehicle by virtue of paragraph (2) or (3), (b) P is a disabled person to whom paragraph (4) applies, and (c) the vehicle is supplied for domestic or P's personal use. (2) A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if it is designed to enable a person to whom paragraph (4) applies to travel in it. (3) A motor vehicle is a “qualifying motor vehicle” by virtue of this paragraph if— (a) it has been substantially and permanently adapted to enable a person to whom paragraph (4) applies to travel in it, and (b) the adaptation is necessary to enable P to travel in it. (4) This paragraph applies to a disabled person— (a) who usually uses a wheelchair, or (b) who is usually carried on a stretcher. (2B) (1) The supply of a qualifying motor vehicle (other than a motor vehicle capable of carrying more than 12 persons including the driver) to a charity for making available, by sale or otherwise to a person to whom paragraph (3) applies, for domestic or the person's personal use. (2) A motor vehicle is a “qualifying motor vehicle” for the purposes of this item if it is designed or substantially and permanently adapted to enable a disabled person to whom paragraph (3) applies to travel in it. (3) This paragraph applies to a disabled person— (a) who usually uses a wheelchair, or (b) who is usually carried on a stretcher.

Three year rule, reporting and certification

2

In Schedule 8 to VATA 1994, in Group 12—

• (a) omit Note (5L), and

• (b) before Note (6) insert—

(5M) For the purposes of Notes (5N) to (5S), the supply of a motor vehicle is a “relevant supply” if it is a supply of goods (which is made in the United Kingdom). (5N) In the case of a relevant supply of a motor vehicle to a disabled person (“the new supply”), items 2(f) and 2A do not apply if, in the period of 3 years ending with the day on which the motor vehicle is made available to the disabled person— (a) a reckonable zero-rated supply of another motor vehicle has been made to that person, or (b) that person has made a reckonable zero-rated acquisition, or reckonable zero-rated importation, of another motor vehicle. (5O) If a relevant supply of a motor vehicle is made to a disabled person and— (a) any reckonable zero-rated supply of another motor vehicle has previously been made to the person, or (b) any reckonable zero-rated acquisition or importation of another motor vehicle has previously been made by the person, the reckonable zero-rated supply or (as the case may be) reckonable zero-rated importation or acquisition is treated for the purposes of Note (5N) as not having been made if either of the conditions in Note (5P) is met. (5P) The conditions mentioned in Note (5O) are that— (a) at the time of the new supply (see Note (5N)) the motor vehicle mentioned in Note (5O)(a) or (b) is unavailable for the disabled person's use because— (i) it has been stolen, or (ii) it has been destroyed or damaged beyond repair (accidentally, or otherwise in circumstances beyond the disabled person's control), or (b) the Commissioners are satisfied that (at the time of the new supply) the motor vehicle mentioned in Note (5O)(a) or (b) has ceased to be suitable for the disabled person's use because of changes in the person's condition. (5Q) In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless the supplier— (a) gives to the Commissioners, before the end of the period of 12 months beginning with the day on which the supply is made, any information and supporting documentary evidence that may be specified in a notice published by them, and (b) in doing so complies with any requirements as to method set out in the notice. (5R) In the case of a relevant supply of a motor vehicle to a disabled person, items 2(f) and 2A cannot apply unless, before the supply is made, the person making the supply has been given a certificate in the required form which— (a) states that the supply will not fall within Note (5N), and (b) sets out any other matters, and is accompanied by any supporting documentary evidence, that may be required under a notice published by the Commissioners for the purposes of this Note. (5S) The information that may be required under Note (5Q)(a) includes— (a) the name and address of the disabled person and details of the person's disability, and (b) any other information that may be relevant for the purposes of that Note, (and the matters that may be required under Note (5R)(b) include any information that may be required for the purposes of Note (5Q)). (5T) In Notes (5N) to (5S)— - “in the required form” means complying with any requirements as to form that may be specified in a notice published by the Commissioners; - “reckonable zero-rated acquisition”, in relation to a motor vehicle, means an acquisition of the vehicle from another member State in a case where— 1. VAT is not chargeable on the acquisition as a result of item 2(f) or 2A, and 2. the acquisition takes place on or after 1 April 2017; - “reckonable zero-rated importation”, in relation to a motor vehicle, means an importation of the vehicle from a place outside the member States in a case where— 1. VAT is not chargeable on the importation as a result of item 2(f) or 2A, and 2. the importation takes place on or after 1 April 2017; - “reckonable zero-rated supply”, in relation to a motor vehicle, means a supply of the vehicle which— 1. is a supply of goods, 2. is zero-rated as a result of item 2(f) or 2A, and 3. is made on or after 1 April 2017. (5U) In items 2A and 2B references to design, or adaptation, of a motor vehicle to enable a person (or a person of any description) to travel in it are to be read as including a reference to design or, as the case may be, adaptation of the motor vehicle to enable the person (or persons of that description) to drive it.

Penalty

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• (1) Section 62 of VATA 1994 (incorrect certificates as to zero-rating etc) is amended as follows.

• (2) After subsection (1A) insert—

(1B) Where— (a) a person gives a certificate for the purposes of Note (5R) to Group 12 of Schedule 8 with respect to a supply of a motor vehicle, and (b) the certificate is incorrect, the person giving the certificate is to be liable to a penalty.

• (3) In subsection (2), at the end insert—

(c) in a case where it is imposed by virtue of subsection (1B), the difference between— (i) the amount of the VAT which would have been chargeable on the supply if the certificate had been correct, and (ii) the amount of VAT actually chargeable.

Minor amendments

4

Schedule 8 to VATA 1994 is amended as follows.

5

In Part 1 (index to zero-rated supplies of goods and services)—

• (a) in the entry relating to Group 12, for “handicapped” substitute “ disabled ”;

• (b) in the entry relating to Group 4, for “handicapped” substitute “ disabled ”.

6

In Group 4 (talking books for the blind and handicapped and wireless sets for the blind)—

• (a) in item 1, for each occurrence of “handicapped” substitute “ disabled ”;

• (b) in the heading, for “handicapped” substitute “ disabled ”.

7

In Group 12 (drugs, medicines, aids for the handicapped etc)—

• (a) in items 2 to 19 and Notes (1) and (5B) to (9), for each occurrence of “handicapped” substitute “ disabled ”;

• (b) for Note (3) substitute—

(3) Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.

;

• (c) in the heading, for “handicapped,” substitute “ disabled, ”.

8

In Group 15 (charities etc)—

• (a) in item 5 and Notes (1C) to (4A), (5A) and (5B), for “handicapped” substitute “ disabled ”;

• (b) for Note (5) substitute—

(5) Any person who is chronically sick or disabled is “disabled” for the purposes of this Group.

Commencement

9

The amendments made by this Schedule have effect in relation to supplies made, and acquisitions and importations taking place, on or after 1 April 2017.

SCHEDULE 8

Part 1 — Recovery

Recovery as debt due

1

Soft drinks industry levy is recoverable as a debt due to the Crown.

Assessments

2

• (1) Sub-paragraph (2) applies where it appears to the Commissioners—

• (a) that any period is an accounting period by reference to which a person is liable to account for soft drinks industry levy,

• (b) that an amount of soft drinks industry levy for which that person is liable to account by reference to that period has become due (but the amount due cannot be ascertained), and

• (c) that there has been a relevant default by the person (see sub-paragraph (3)).

• (2) The Commissioners may—

• (a) assess the amount of soft drinks industry levy due from the person to the best of their judgment, and

• (b) notify the amount to the person.

• (3) The following are “relevant defaults”—

• (a) a failure to comply with a requirement of section 44 (notification of liability to register) or of regulations under section 48 (correction of the register);

• (b) a failure to make a return required by regulations under section 52;

• (c) a failure to keep documents, or provide facilities, necessary to verify returns required by those regulations;

• (d) the making, in purported compliance with a requirement of the regulations, of an incomplete or incorrect return;

• (e) a failure to comply with a requirement of regulations under section 53(1) (keeping and preserving records);

• (f) an unreasonable delay in complying with a requirement, where the failure to comply would be a default within any of paragraphs (a) to (e).

3

• (1) Sub-paragraph (2) applies where—

• (a) the Commissioners have made an assessment for an accounting period as a result of a person's failure to make a return for that period,

• (b) the levy assessed has been paid but no proper return has been made for that period, and

• (c) as a result of a failure to make a return for a later accounting period, the Commissioners make another assessment (the “later assessment”) under paragraph 2 in relation to the later period.

• (2) The Commissioners may, if they consider it appropriate in the light of the absence of a return for the earlier period, specify in the later assessment an amount of soft drinks industry levy due that is greater than the amount that they would have considered to be appropriate had they had regard only to the later period.

4

• (1) Sub-paragraph (2) applies where it appears to the Commissioners that—

• (a) any period is an accounting period by reference to which a person is liable to account for soft drinks industry levy,

• (b) an amount of soft drinks industry levy for which that person is liable to account by reference to that period has become due, and

• (c) the amount due can be ascertained by the Commissioners.

• (2) The Commissioners may—

• (a) assess the amount of soft drinks industry levy due from the person, and

• (b) notify the amount to the person.

Supplementary assessments

5

• (1) Sub-paragraph (2) applies where—

• (a) an assessment has been notified to a person under paragraph 2(2) or 4(2), and

• (b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.

• (2) The Commissioners may—

• (a) make a supplementary assessment of the amount of soft drinks industry levy due from the person to the best of their judgment, and

• (b) notify the amount to that person.

Further provision about assessments under paragraphs 2, 4 and 5

6

• (1) Where an amount has been assessed and notified to a person under paragraph 2, 4 or 5, it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person.

• (2) But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.

Time limits for assessments

7

• (1) An assessment under paragraph 2, 4 or 5 may not be made after the end of the relevant period.

• (2) Except in a case within sub-paragraph (3), the relevant period is the period of 4 years from the end of the accounting period to which the assessment relates.

• (3) Where an assessment of an amount due from a person is made in a case involving loss of soft drinks industry levy—

• (a) brought about deliberately by the person, or

• (b) attributable to a failure by the person to comply with a requirement of section 44 (notification of liability to be registered) or a requirement of regulations under section 48 (correction of the register),

the relevant period is the period of 20 years from the end of the accounting period to which the assessment relates.

• (4) In sub-paragraph (3)(a) the reference to loss brought about deliberately by a person includes a reference to a loss brought about as a result of the deliberate inaccuracy in a document given to HMRC by the person.

• (5) In sub-paragraphs (3) and (4) references to a loss brought about by a person include references to a loss brought about by another person acting on behalf of that person.

Part 2 — Overpayments

Repayments of overpaid levy

8

• (1) This paragraph applies where a person (P) has paid an amount to the Commissioners by way of soft drinks industry levy which was not levy due.

• (2) The Commissioners are liable, on the making of a claim by P, to repay the amount.

• (3) The Commissioners may by regulations make provision about—

• (a) the form and manner of a claim;

• (b) the information required in support of a claim.

• (4) Except as provided by this paragraph, the Commissioners are not liable to repay any amount paid by way of soft drinks industry levy by reason of the fact that it was not levy due.

• (5) This paragraph is subject to paragraph 9.

Supplementary provisions about repayment etc.

9

• (1) The Commissioners are not liable, on a claim for a repayment of soft drinks industry levy, to repay any amount paid more than 4 years before the making of the claim.

• (2) It is a defence to any claim for repayment of an amount of soft drinks industry levy that the repayment of that amount would unjustly enrich the claimant.

10

• (1) This paragraph applies where—

• (a) an amount has been paid by way of soft drinks industry levy which (apart from paragraph 9(2)) would fall to be repaid to a person (P), and

• (b) the whole or a part of the cost of the payment of that amount to the Commissioners has, for practical purposes, been borne by a person other than P.

• (2) Where loss or damage has been, or may be, incurred by P as a result of mistaken assumptions made in P's case about the operation of any provision relating to soft drinks industry levy, that loss or damage is to be disregarded, except to the extent of the quantified amount, in the making of a relevant determination.

• (3) In sub-paragraph (2) “the quantified amount” means the amount (if any) which is shown by P to constitute the amount that would appropriately compensate P for loss or damage shown by P to have resulted from the making of the mistaken assumptions.

• (4) A “relevant determination” means a determination for the purposes of paragraph 9(2) as to—

• (a) whether or to what extent the repayment of an amount would enrich P, or

• (b) whether or to what extent an enrichment of P would be unjust.

• (5) The reference in sub-paragraph (2) to provision relating to soft drinks industry levy is a reference to any provision made by or under any enactment which relates to the levy or to any matter connected with it.

Reimbursement arrangements

11

• (1) The Commissioners may by regulations make provision for reimbursement arrangements to be disregarded for the purposes of paragraph 9(2) except where the arrangements—

• (a) contain such provision as may be required by the regulations, and

• (b) are supported by such undertakings to comply with the arrangements as may be required by the regulations to be given to the Commissioners.

• (2) In this paragraph “reimbursement arrangements” means arrangements for the purposes of a claim to a repayment of soft drinks industry levy which—

• (a) are made by a person for the purpose of securing that the person is not unjustly enriched by the repayment of any amount in pursuance of the claim, and

• (b) provide for the reimbursement of a person who has for practical purposes borne the whole or any part of the cost of the original payment of that amount to the Commissioners.

• (3) Regulations under this paragraph may include provision requiring reimbursement arrangements to contain provision—

• (a) requiring a reimbursement for which the arrangements provide to be made within a specified period after the repayment to which it relates;

• (b) for the repayment of amounts to the Commissioners where those amounts are not reimbursed in accordance with the arrangements;

• (c) requiring interest paid by the Commissioners on any amount repaid by them to be treated in the same way as that amount for the purposes of any requirement under the arrangements to reimburse or repay the Commissioners;

• (d) requiring records of a specified description relating to the arrangements to be kept and produced to the Commissioners, or to an officer of Revenue and Customs;

• (e) imposing obligations on specified persons for the purposes of provision made under paragraphs (a) to (d).

• (4) Regulations under this paragraph may—

• (a) make provision about the form, manner and timing of undertakings given to the Commissioners in accordance with the regulations, and

• (b) provide for those matters to be determined by the Commissioners in accordance with the regulations.

Assessment for excessive repayment

12

• (1) Sub-paragraph (3) applies where—

• (a) an amount has been paid at any time to a person by way of a repayment of soft drinks industry levy, and

• (b) the amount paid exceeded the amount which the Commissioners were liable at that time to repay to that person.

• (2) Sub-paragraph (3) also applies where a person is liable to pay any amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 11(3)(b), (c) or (e).

• (3) The Commissioners may—

• (a) to the best of their judgment, assess the amount of the excess (in a case within sub-paragraph (1)) or the amount due (in a case within sub-paragraph (2)), and

• (b) notify the amount to the person.

• (4) Subject to sub-paragraph (5), where—

• (a) an assessment is made on any person under this paragraph in respect of a repayment of soft drinks industry levy, and

• (b) the Commissioners have power under Part 1 of this Schedule to make an assessment on that person as to an amount of the levy due from that person,

the assessments may be combined and notified to the person as one assessment.

• (5) A notice of a combined assessment under sub-paragraph (4) must separately identify the amount being assessed in respect of repayments of soft drinks industry levy.

Supplementary assessments

13

• (1) Sub-paragraph (2) applies where—

• (a) an assessment has been notified to a person under paragraph 12, and

• (b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.

• (2) The Commissioners may—

• (a) on or before the last day on which the assessment under paragraph 12 could have been made, make a supplementary assessment of the amount of soft drinks industry levy due from the person, and

• (b) notify the amount to that person.

Further provision about assessments under paragraphs 12 and 13

14

• (1) Where an amount has been assessed and notified to a person under paragraph 12 or 13, it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person.

• (2) But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.

Time limits for assessments

15

An assessment under paragraph 12 or 13 may not be made more than 2 years after evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.

Part 3 — Further provision about notices etc.

Notifications to a person’s representative

16

• (1) A notice of an assessment under paragraph 2, 5, 12 or 13 given to a person's representative is to be treated for the purposes of this Schedule as a notice given to the person in relation to whom the representative acts.

• (2) In sub-paragraph (1), “representative”, in relation to a person, means—

• (a) any of that person's personal representatives;

• (b) that person's trustee in bankruptcy, interim or permanent trustee or liquidator;

• (c) any person holding office as receiver in relation to that person or any of that person's property;

• (d) any other person acting in a representative capacity in relation to that person.

Service of notices

17

A notice under this Schedule may be given to a person by sending it to that person by post, addressed to the person's last known address.

SCHEDULE 9

Part 1 — Penalties

Sections 48(2) and 53(1): requirements imposed by regulations

1

• (1) A person who fails to comply with a requirement imposed by regulations under section 48(2) or 53(1)(a) is liable to a penalty.

• (2) The amount of the penalty is equal to the relevant amount multiplied by the number of days on which the failure continues (up to a maximum of 100 days) or, if it is greater, to a penalty of £50.

• (3) In relation to a failure by a person to comply with the requirement, the amount of the penalty is to be determined by reference to the number of occasions in the period of 2 years preceding the beginning of the failure on which the person has previously failed to comply with that requirement.

• (4) But—

• (a) a continuing failure to comply with a requirement is to be regarded as one occasion of failure occurring on the date on which the failure began;

• (b) if the same omission gives rise to a failure to comply with more than one such requirement, it is to be regarded as the occasion of only one failure.

• (5) The relevant amount is—

• (a) if there has been no previous occasion of failure in the period mentioned in sub-paragraph (3), £5;

• (b) if there has been only one such occasion in that period, £10; and

• (c) in any other case, £15.

• (6) A person who fails to comply with a requirement to preserve records imposed by regulations under section 53(1)(b) is liable to a penalty of £500.

• (7) If by reason of conduct falling within sub-paragraph (1) or (6) a person is assessed to a penalty for a deliberate inaccuracy under Schedule 24 to FA 2007, that conduct does not also give rise to a penalty under this paragraph.

Section 53(2): requirements imposed by directions

2

• (1) A person who fails to comply with a requirement imposed under section 53(2)(a) is liable to a penalty.

• (2) The amount of the penalty is equal to £200 multiplied by the number of days on which the failure continues (up to a maximum of 30 days).

• (3) A person who fails to comply with a requirement imposed under section 53(3)(b) is liable to a penalty of £500.

• (4) If by reason of conduct falling within sub-paragraph (1) or (3) a person is assessed to a penalty for a deliberate inaccuracy under Schedule 24 to FA 2007, that conduct does not also give rise to a penalty under this paragraph.

Power to alter amounts specified in paragraphs 1 and 2

3

• (1) If it appears to the Treasury that there has been a change in the value of money since the last relevant date, they may by regulations substitute for the sums specified in paragraph 1(2), (5)(a) to (c) and (6) and paragraph 2(2) and (3) such other sums as appear to them to be justified by the change.

• (2) But regulations under sub-paragraph (1) may not apply to a failure which began before the date on which the regulations come into force.

• (3) The “relevant date”, in relation to a specified sum, means—

• (a) the date on which this Act is passed, and

• (b) each date on which the power conferred by sub-paragraph (1) has been exercised in relation to that sum.

Reasonable excuse

4

• (1) A failure by any person to comply with any requirement mentioned in paragraph 1 or 2 does not give rise to a liability to a penalty under this Schedule if the person concerned satisfies—

• (a) the Commissioners, or

• (b) on appeal, a tribunal,

that there is a reasonable excuse for the failure.

• (2) A failure for which there is a reasonable excuse is to be disregarded for the purposes of paragraph 1(5).

• (3) For the purposes of this paragraph, in the case of a person (P)—

• (a) an insufficiency of funds is not a reasonable excuse unless attributable to events outside P's control;

• (b) where P relies on another person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the relevant failure;

• (c) where P had a reasonable excuse for the failure but the excuse has ceased, P is to be treated as having continued to have the excuse if the failure is remedied without unreasonable delay after the excuse ceased.

Part 2 — Assessments

Power to make assessments

5

• (1) Where a person becomes liable for a penalty under this Schedule—

• (a) the Commissioners may assess the penalty, and

• (b) if they do so, they must notify the amount to that person.

• (2) Where a person is liable to a penalty under paragraph 1 for failure to comply with a requirement imposed by regulations under section 48(2) or 53, no assessment of the penalty may be made under this paragraph unless—

• (a) the Commissioners have given the person written notice of the consequences of a continuing failure to comply with that requirement, and

• (b) the notice has been given during the period of 2 years preceding the assessment.

• (3) A notice under sub-paragraph (1) must specify a date, being not later than the date of the notice, to which the amount of the penalty is calculated.

• (4) If the penalty continues to accrue after that date, a further assessment or assessments may be made under this paragraph in respect of the accrued amounts.

• (5) If, within such period as may be notified by the Commissioners to the person liable to a penalty, the failure to comply with a requirement imposed by regulations under section 48(2), or by regulations or a direction under 53, is remedied, it is to be treated as remedied on the date specified under sub-paragraph (3).

Supplementary assessments

6

• (1) Sub-paragraph (2) applies where—

• (a) an assessment has been notified to a person under paragraph 5, and

• (b) it appears to the Commissioners that the amount which ought to have been assessed as due exceeds the amount that has already been assessed.

• (2) The Commissioners may—

• (a) make a supplementary assessment of the amount due from the person, and

• (b) notify the amount to that person.

Further provision about assessments under this Schedule

7

• (1) Where an amount has been assessed and notified to a person under paragraph 5 or 6, it is recoverable on the basis that it is an amount of soft drinks industry levy due from that person.

• (2) But sub-paragraph (1) does not have effect if, or to the extent that, the assessment has been withdrawn or reduced.

Time limits for assessments

8

• (1) An assessment under paragraph 5 may not be made after the end of the relevant period.

• (2) Except in a case within sub-paragraph (3), the relevant period is the period of 4 years from the end of the accounting period to which the assessment relates.

• (3) Where an assessment of an amount due from a person in a case involving loss of soft drinks industry levy—

• (a) brought about deliberately by the person, or

• (b) attributable to a failure by the person to comply with a requirement imposed by regulations under section 53 (records),

the relevant period is the period of 20 years from the end of the accounting period to which the assessment relates.

• (4) In sub-paragraph (3)(a) the reference to loss brought about deliberately by a person includes a reference to a loss brought about as a result of the deliberate inaccuracy in a document given to HMRC by the person.

• (5) In sub-paragraphs (3) and (4) references to a loss brought about by a person include references to a loss brought about by another person acting on behalf of that person.

Further provision about notices

9

• (1) A notice of an assessment under paragraph 5 or 6 given to a person's representative is to be treated for the purposes of this Schedule as a notice given to the person in relation to whom the representative acts.

• (2) In this paragraph “representative”, in relation to a person, has the meaning given by paragraph 16(2) of Schedule 8.

10

A notice under this Schedule may be given to a person by sending it to that person by post, addressed to the person's last known address.

SCHEDULE 10

Part 1 — Appealable decisions

Appealable decisions

1

A person may appeal against a decision of the Commissioners or an officer of Revenue and Customs in respect of any of the following matters—

• (a) whether or not a person is liable to pay an amount of soft drinks industry levy;

• (b) whether or not the Commissioners are liable to repay an amount to a person under paragraph 8(2) of Schedule 8 (overpaid levy);

• (c) whether or not the repayment of an amount under that paragraph is excessive (see paragraph 12 of that Schedule);

• (d) whether or not a person is liable to pay an amount to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 11(3)(b), (c) or (e) of Schedule 8 (reimbursement arrangements);

• (e) whether or not a person is liable to a penalty under paragraph 1(1) or (6) or 2(1) or (3) of Schedule 9 (requirements to keep records etc: penalties);

• (f) the amount of soft drinks industry levy payable by a person;

• (g) the amount that the Commissioners are liable to repay to a person under paragraph 8(2) of Schedule 8;

• (h) where repayment of an amount under that paragraph is excessive, the amount of the excess;

• (i) the amount that a person is liable to pay to the Commissioners in pursuance of an obligation imposed by regulations under paragraph 11(3)(b), (c) and (e) of Schedule 8;

• (j) the amount of a penalty payable under paragraph 1(1) or (6) or 2(1) or (3) of Schedule 9;

• (k) the determination of a dilution ratio under section 27(2)(b);

• (l) the registration, or cancellation of registration, of a person under this Part for the purposes of soft drinks industry levy;

• (m) the period by reference to which payments of soft drinks industry levy are to be made;

• (n) a person's entitlement to a tax credit, the withdrawal of a tax credit, the amount of a tax credit or the period for which a tax credit is to be brought into account under regulations under section 39;

• (o) the giving of a direction by the Commissioners under section 53(2) (keeping and preserving records).

Part 2 — Reviews

Offer of review

2

• (1) HMRC must offer a person (P) a review of a decision that has been notified to P if an appeal in respect of the decision may be brought under paragraph 1.

• (2) The offer of the review must be made by notice given to P at the same time as the decision is notified to P.

• (3) This paragraph does not apply to the notification of the conclusions of a review.

Right to require review

3

• (1) Any person (other than P) who has the right of appeal under paragraph 1 against a decision may require HMRC to review that decision if that person has not appealed to the appeal tribunal.

• (2) A notification that such a person requires a review must be made within 30 days of that person becoming aware of the decision.

Review by HMRC

4

• (1) HMRC must review a decision if—

• (a) they have offered a review of the decision under paragraph 2, and

• (b) P notifies HMRC accepting the offer within 30 days from the date of the document containing the notification of the offer.

• (2) But P may not notify acceptance of the offer if P has already appealed to the appeal tribunal under paragraph 1.

• (3) HMRC must review a decision if a person other than P notifies them under paragraph 3.

• (4) HMRC may not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.

Extensions of time

5

• (1) If under paragraph 2 HMRC have offered P a review of a decision, HMRC may within the relevant period notify P that the relevant period is extended.

• (2) If under paragraph 3 another person may require HMRC to review a matter, HMRC may within the relevant period notify the other person that the relevant period is extended.

• (3) If notice is given the relevant period is extended to the end of 30 days from—

• (a) the date of the notice, or

• (b) any other date set out in the notice or a further notice.

• (4) In this paragraph “relevant period” means—

• (a) the period of 30 days referred to in—

• (i) paragraph 4(1)(b) (in a case falling within sub-paragraph (1)), or

• (ii) paragraph 3(2) (in a case falling within sub-paragraph (2)), or

• (b) if notice has been given under sub-paragraph (1) or (2), that period as extended (or as most recently extended) in accordance with sub-paragraph (3).

Review out of time

6

• (1) This paragraph applies if—

• (a) HMRC have offered a review of a decision under paragraph 2 and P does not accept the offer within the time allowed under paragraph 4(1)(b) or 5(3), or

• (b) a person who requires a review under paragraph 3 does not notify HMRC within the time allowed under that paragraph or paragraph 5(3).

• (2) HMRC must review the decision under paragraph 4 if—

• (a) after the time allowed, P, or the other person, notifies HMRC in writing requesting a review out of time,

• (b) HMRC are satisfied that P, or the other person, had a reasonable excuse for not accepting the offer or requiring review within the time allowed, and

• (c) HMRC are satisfied that P, or the other person, made the request without unreasonable delay after the excuse had ceased to apply.

• (3) HMRC may not review a decision if P, or another person, has appealed to the appeal tribunal under paragraph 1 in respect of the decision.

Nature of review etc.

7

• (1) This paragraph applies if HMRC are required to undertake a review under paragraph 4 or 6.

• (2) The nature and extent of the review are to be such as appear appropriate to HMRC in the circumstances.

• (3) For the purposes of sub-paragraph (2), HMRC must, in particular, have regard to steps taken before the beginning of the review—

• (a) by HMRC in reaching the decision, and

• (b) by any person in seeking to resolve disagreement about the decision.

• (4) The review must take account of any representations made by P, or the other person, at a stage which gives HMRC a reasonable opportunity to consider them.

• (5) The review may conclude that the decision is to be—

• (a) upheld,

• (b) varied, or

• (c) cancelled.

• (6) HMRC must give P, or the other person, notice of the conclusions of the review and their reasoning within—

• (a) a period of 45 days beginning with the relevant date, or

• (b) such other period as HMRC and P, or the other person, may agree.

• (7) In sub-paragraph (6) “relevant date” means—

• (a) the date HMRC received P's notification accepting the offer of a review (in a case falling within paragraph 2), or

• (b) the date HMRC received notification from another person requiring review (in a case falling within paragraph 3), or

• (c) the date on which HMRC decided to undertake the review (in a case falling within paragraph 6).

• (8) Where HMRC are required to undertake a review but do not give notice of the conclusions within the period specified in sub-paragraph (6), the review is to be treated as having concluded that the decision is upheld.

• (9) If sub-paragraph (8) applies HMRC must notify P, or the other person, of the conclusion which the review is treated as having reached.

Service of notices

8

A notice under this Schedule may be given to a person by sending it to that person by post, addressed to the person's last known address.

Part 3 — Appeals

“Appeal tribunal”

9

In this Schedule “appeal tribunal” means the First-tier Tribunal or, where determined by or under Tribunal Procedure Rules, the Upper Tribunal.

Bringing of appeals

10

• (1) An appeal under paragraph 1 is to be made to the appeal tribunal before—

• (a) the end of the period of 30 days beginning with—

• (i) in a case where P is the appellant, the date of the document notifying the decision to which the appeal relates, or

• (ii) in a case where a person other than P is the appellant, the date that person becomes aware of the decision, or

• (b) if later, the end of the relevant period (within the meaning of paragraph 5).

• (2) But that is subject to sub-paragraphs (3) to (5).

• (3) In a case where HMRC are required to undertake a review under paragraph 4—

• (a) an appeal may not be made until the conclusion date, and

• (b) any appeal is to be made within the period of 30 days beginning with the conclusion date.

• (4) In a case where HMRC are requested to undertake a review by virtue of paragraph 6—

• (a) an appeal may not be made to the appeal tribunal—

• (i) unless HMRC have notified P, or the other person, as to whether or not a review will be undertaken, and

• (ii) if HMRC have notified P, or the other person, that a review will be undertaken, until the conclusion date;

• (b) any appeal where paragraph (a)(ii) applies is to be made within the period of 30 days beginning with the conclusion date;

• (c) if HMRC have notified P, or the other person, that a review will not be undertaken, an appeal may be made only if the appeal tribunal gives permission to do so.

• (5) In a case where paragraph 7(8) applies, an appeal may be made at any time from the end of the period specified in paragraph 7(6) to the date 30 days after the conclusion date.

• (6) An appeal may be made after the end of the period specified in sub-paragraph (1), (3)(b), (4)(b) or (5) if the appeal tribunal gives permission to do so.

• (7) In this paragraph “conclusion date” means the date of the document notifying the conclusions of the review.

Appeals: further provision

11

• (1) An appeal relating to a decision that an amount of soft drinks industry levy is due from a person may not be considered by the appeal tribunal unless the amount which HMRC have determined to be due has been paid or deposited with them.

• (2) In a case where the amount determined to be payable as soft drinks industry levy has not been paid or deposited an appeal may be considered—

• (a) if HMRC are satisfied (on the application of the appellant), or

• (b) if HMRC are not satisfied, the appeal tribunal decides,

that the requirement to pay or deposit the amount determined would cause the appellant to suffer hardship.

• (3) Notwithstanding the provisions of sections 11 and 13 of the Tribunals, Courts and Enforcement Act 2007 (rights of appeal) the decision of the appeal tribunal as to the issue of hardship is final.

Determinations on appeal

12

On an appeal against a decision mentioned in paragraph 1(a) or (c) to (e), the appeal tribunal may affirm or cancel the decision.

13

On an appeal against a decision mentioned in paragraph 1(f) to (j), the appeal tribunal may—

• (a) affirm the decision, or

• (b) substitute for that decision another decision that the Commissioners had power to make.

14

Subject to paragraph 15, on an appeal against a decision mentioned in paragraph 1(b) or (k) to (o), the appeal tribunal may—

• (a) affirm or cancel the decision;

• (b) substitute for that decision another decision that the Commissioners, or (as the case may be) an officer of Revenue and Customs had power to make;

• (c) vary the decision;

• (d) direct that the decision, so far as it remains in force, is to cease to have effect from such time as the tribunal may direct;

• (e) require HMRC to conduct a review, or a further review, of the decision.

15

• (1) On an appeal against a decision mentioned in paragraph 1(k), (n) or (o), the appeal tribunal may allow the appeal only if it considers that—

• (a) the Commissioners could not reasonably have been satisfied that there were grounds for the decision, or

• (b) if information brought to the attention of the appeal tribunal had been available to the Commissioners at the time the decision was made, the Commissioners could not reasonably have been satisfied that there were grounds for the decision.

• (2) Where sub-paragraph (1) applies in relation to a decision mentioned in paragraph 1(o) (giving of a direction), the direction has effect pending the determination of the appeal.

SCHEDULE 11

HMRC powers to obtain information etc.

1

• (1) Schedule 36 to FA 2008 (powers to obtain information etc.) is amended as follows.

• (2) In paragraph 10 (power to inspect business premises etc.), at the end insert—

(5) In sub-paragraph (1), the reference to a person's tax position does not include a reference to a person's position as regards soft drinks industry levy.

• (3) In paragraph 63(1) (meaning of “tax”), after paragraph (i) insert—

(ia) soft drinks industry levy,

.

Penalties: failure to notify etc.

2

• (1) Schedule 41 to FA 2008 (penalties: failure to notify etc.) is amended as follows.

• (2) In the Table in paragraph 1, after the entries relating to insurance premium tax, insert—

Soft drinks industry levy	Obligation under section 44 of FA 2017 (obligation to give notice of liability to be registered).

• (3) In the heading before paragraph 4, at the end insert “ etc ”.

• (4) In paragraph 4, after sub-paragraph (1) insert—

(1A) A penalty is payable by a person (P) where— (a) after a charge to soft drinks industry levy has arisen in respect of chargeable soft drinks, P acquires possession of them or is concerned with carrying, removing, depositing, keeping or otherwise dealing with them, and (b) at the time when P acquires possession of the chargeable soft drinks or is so concerned, a payment of soft drinks industry levy in respect of the chargeable soft drinks is due or payable and has not been paid.

• (5) In that paragraph, in sub-paragraph (2)—

• (a) for “sub-paragraph (1)” substitute “ this paragraph ”;

• (b) at the end insert—

• (6) In paragraph 5(4), after “deferred” insert “ or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid ”.

• (7) In paragraph 10, after “deferred” insert “ or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid ”.

• (8) In paragraph 11(2)(d), after “deferred” insert “ or (as the case may be) chargeable soft drinks in respect of which a payment of soft drinks industry levy is due and payable and has not been paid ”.

• (9) In paragraph 21—

• (a) in sub-paragraph (4), for “paragraph 4” substitute “ paragraph 4(1) ”;

• (b) after that sub-paragraph insert—

(5) In paragraph 4(1A) the reference to P acquiring possession of, or being concerned in dealing with, chargeable soft drinks in respect of which a payment of soft drinks industry levy is payable but has not been paid includes a person who acts on P's behalf in doing so; but P is not liable to a penalty in respect of any action by P's agent where P satisfies HMRC or (on appeal) the First-tier Tribunal that P took reasonable care to avoid it.

Penalties: failure to comply with requirements relating to returns

3

In Schedule 24 to FA 2007 (penalties for errors), in the Table in paragraph 1, after the entry relating to the statement under section 1(1)(a) of the Petroleum Revenue Tax Act 1980, insert—

Soft drinks industry levy	Return under regulations under section 52 of FA 2017

4

• (1) Schedule 55 to FA 2009 (penalty for failure to make returns etc) is amended in accordance with this paragraph.

• (2) In paragraph 1(4), in the definition of “penalty date”, for “13” substitute “ 13A ”.

• (3) In the Table in paragraph 1, after item 13 insert—

13A	Soft drinks industry levy	Return under regulations under section 52 of FA 2017

• (4) In subsections (2) and (4) of section 106 of FA 2009 (penalties for failure to make returns: commencement) references to Schedule 55 to that Act have effect as references to that Schedule as amended by this paragraph.

5

• (1) Schedule 56 to FA 2009 (penalty for failure to make payments on time) is amended in accordance with this paragraph.

• (2) In the Table in paragraph 1, after item 11 insert—

11ZA	Soft drinks industry levy	Amount payable under regulations under section 52 of FA 2017 or paragraphs 6 or 14 of Schedule 8 to that Act	The date determined by or under regulations under section 52 of FA 2017

• (3) In subsections (2) and (4) of section 107 of FA 2009 (penalties for failure to pay tax) references to Schedule 56 to that Act have effect as references to that Schedule as amended by this paragraph.

6

• (1) Schedule 23 to FA 2011 (data-gathering powers) is amended in accordance with this paragraph.

• (2) After paragraph 24 insert—

(24A) (1) A person who is involved (in any capacity) in any of the following activities is a relevant data-holder— (a) producing chargeable soft drinks; (b) packaging chargeable soft drinks; (c) carrying on a business involving the sale of chargeable soft drinks. (2) For the purposes of sub-paragraph (1), “chargeable soft drinks”, “producing” and “packaging” have the same meaning as in Part 2 of FA 2017.

• (3) In paragraph 45(1) (meaning of “tax”), after paragraph (i) insert—

(ia) soft drinks industry levy,

.

Interest

7

In Schedule 53 to FA 2009 (late payment interest) after paragraph 11B insert—

(11C) (1) This paragraph applies where an amount of soft drinks industry levy is due from a person (P) in respect of a period during which P meets the liability condition (as defined for the purposes of section 46(2) of FA 2017) but was not registered. (2) The late payment interest start date in respect of the amount is the date which would have been the late payment interest date in respect of that amount if P had been registered when P had first become liable to be registered.

Main rates of income tax for tax year 2017-18

Workers' services provided to public sector through intermediaries

Pensions: offshore transfers

Employee shareholder shares: abolition of CGT exemption

Employment income provided through third parties

Air passenger duty: rates from 1 April 2017

Vehicle excise duty: rates

Alcoholic liquor duties: rates

Tobacco products duty: minimum excise duty

Promoters of tax avoidance schemes: threshold conditions etc

“Soft drink” and “package”

Interpretation of Part 2

Short title

Optional remuneration arrangements

Benefits in kind: amount treated as earnings

Exemptions

Other amendments

Commencement and transitional provision

UK residents to be taxed on 100%, not 90%, of foreign pension income

Superannuation funds to which section 615(3) of ICTA applies

Introductory

Employer-financed retirement benefit schemes: ending of foreign-service relief

Lump sums under other foreign schemes

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

Amendments of Schedule 34 to FA 2004

Consequential amendments in ITEPA 2003

Tax charge on transfers to qualifying recognised overseas pension schemes

Further amendments in Part 4 of FA 2004.

Other amendments

Commencement and transitional provision

Further amendment

Commencement

Introductory

Meaning of “relevant step”

Loans: transferring, releasing or writing off

Exclusions: relevant repayments

Exclusions: payments in respect of a tax liability

Double taxation

Amendments to Schedule 2 to FA 2011

Commencement

Adaptation of a qualifying motor vehicle

Three year rule, reporting and certification

Penalty

Minor amendments

Commencement

Recovery as debt due

Assessments

Supplementary assessments

Further provision about assessments under paragraphs 2, 4 and 5

Time limits for assessments

Repayments of overpaid levy

Supplementary provisions about repayment etc.

Reimbursement arrangements

Assessment for excessive repayment

Supplementary assessments

Further provision about assessments under paragraphs 12 and 13

Time limits for assessments

Notifications to a person's representative

Service of notices

Sections 48(2) and 53(1): requirements imposed by regulations

Section 53(2): requirements imposed by directions

Power to alter amounts specified in paragraphs 1 and 2

Reasonable excuse

Power to make assessments

Supplementary assessments

Further provision about assessments under this Schedule

Time limits for assessments

Further provision about notices

Appealable decisions

Offer of review

Right to require review

Review by HMRC

Extensions of time

Review out of time

Nature of review etc.

Service of notices

“Appeal tribunal”

Bringing of appeals

Appeals: further provision

Determinations on appeal

HMRC powers to obtain information etc.

Penalties: failure to notify etc.

Penalties: failure to comply with requirements relating to returns

Interest

Editorial notes

[^key-16cd487eafe8b310be6f0c953d765a22]: S. 27 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-9db6a05b38cb2409c6593f6f964fcee6]: S. 29 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-a7eb1f8b9422f952866f1a4419460bdf]: S. 30 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-d19cc89be2b3af064d6a4a46e9bd6c68]: S. 34 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-e9cb9148e730e6a3db4c3ec452a5ed5e]: S. 39 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-3bdf35f29c15e0d195c43447daae7805]: S. 48 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-ecbdf391e2624f55946216c31b66b71f]: S. 49 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-75cba5f7c1012465c7e20180f4e60713]: S. 52 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-37a44dcf162793f3446d69d1ca1a5d5b]: S. 53 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-317993a456271abf20c702e3a55312a8]: S. 54 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-00473fcb9410bacb51b36b89de2ec834]: S. 57 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-fd9341f6aa4c3ce37db381f2ffd85787]: S. 59 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-c94fb7958bdaab3a38a79610ebd297bd]: S. 60 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-51b1ff5d3e355b2983cc2c669f002691]: S. 61 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-b6a72ca89a2931345a0ce962bf108650]: Sch. 8 para. 8 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-7f9044e10b54ebde3c135dc037a9dd4b]: Sch. 8 para. 11 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-e0f45eefb899ff356ac515101136559e]: Sch. 9 para. 3 in force at 13.1.2018 for specified purposes by S.I. 2018/32, reg. 2

[^key-e7449625b31a04225e22138ce9a716a8]: S. 31 in force at 6.4.2018 in relation to chargeable events occurring in relation to chargeable soft drinks packaged in, or imported into, the United Kingdom on or after that date by S.I. 2018/464, art. 2(a)

[^key-57c5a062bc739ced1eba3711ebd1b5e5]: S. 41(1) in force at 6.4.2018 in relation to a person who packages chargeable soft drinks in the United Kingdom on or after that date by S.I. 2018/464, art. 2(b)

[^key-805af7d29567d0cbdbf813b15ec689bd]: S. 42(1)(2) in force at 6.4.2018 in relation to a person who produces chargeable soft drinks that are packaged in the United Kingdom on or after that date by S.I. 2018/464, art. 2(c)

[^key-07a461984493571aeb3689ea780b2458]: S. 43(1) in force at 6.4.2018 in relation to a person who is a first recipient or first seller of chargeable soft drinks that are imported into the United Kingdom on or after that date by S.I. 2018/464, art. 2(d)

[^key-dac94f0dfd528ec6df69020f7da0367b]: S. 25 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-ca46bc305a7fc6af1d387abf77b21403]: S. 26 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-f3b59608bc4ea6b325c70382e5ae0deb]: S. 27 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)

[^key-e7369d992002b5690186686ebf24c377]: S. 28 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-ec6b0d5f242c95da81be55f9630f6a50]: S. 29 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)

[^key-c41677eeb4ea10fb6d19a3226ade704c]: S. 30 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)

[^key-98d0adc19a46f1b1cabe575469fa6c69]: S. 32 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-85d2623fd1299acb79d5be06e8ef4a34]: S. 33 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-541191e6719570ea378c5ee42d1e8800]: S. 34 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)

[^key-ba068b3ad246f5150914141b2fd4c51e]: S. 35 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-0365fb06352b0340a91cce55443560cd]: S. 36 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-0467decd7afcd87c9c24d7e9c3113d04]: S. 37 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-e6892b5e8acb6125f1f25acf919b69fe]: S. 38 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-bc9d919e406a10c5a0d08c28a66740d4]: S. 39 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)

[^key-b3c896146c1a966addb9e9f29adbc95f]: S. 40 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-d21e3b661b9fbb9a173622cf1aa65f6e]: S. 41(2)-(6) in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-d589f892d06236473076514dcb3dbe61]: S. 42(3)(4) in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-f3f671c1eaf06c4512a8179282096972]: S. 43(2) in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-2a3dbc4bf6bc504c541f3ebf42b5a3d6]: S. 44 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-0d55dfd3da6145dd05436244eff7c969]: S. 45 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-6493577d269a77e3b57f9569bb1af3e5]: S. 46 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-a9a87b14db84bb9d4805a799a1b32a0a]: S. 47 in force at 6.4.2018 by S.I. 2018/464, art. 2(e)

[^key-33c55912a935db8a14117ae5d41c9c83]: S. 48 in force at 6.4.2018 in so far as not already in force by S.I. 2018/464, art. 2(e)