Legalize / United Kingdom / Public General Act

Finance (No. 2) Act 2017

Type Public General Act

Publication 2017-11-16

Last updated 2025-03-20

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(3F) The Commissioners for Her Majesty’s Revenue and Customs may by regulations provide that sub-paragraph (3B)(a) applies to a specified class of persons as if the reference to 1 October 2020 were to such later date as is specified.

(3G) In sub-paragraph (3F) “specified” means specified in the regulations.

(4) This paragraph is subject to paragraphs 19 and 20 (accelerated payments).

(5) For the purposes of this paragraph, whether an amount of a loan or quasi-loan is outstanding at a particular time—

(a) is to be determined in accordance with the following provisions of this Schedule, and

(b) does not depend on the loan or quasi-loan subsisting at that time.

Meaning of “loan”, “quasi-loan” and “approved repayment date”

2

(1) In this Schedule “loan” includes—

(a) any form of credit;

(b) a payment that is purported to be made by way of a loan.

(2) For the purposes of paragraph 1, a person (“P”) makes a “quasi-loan” to T if (and when) P acquires a right (the “acquired debt”)—

(a) which is a right to a payment or a transfer of assets, and

(b) in respect of which the condition in sub-paragraph (3) is met.

(3) The condition is met in relation to a right if there is a connection (direct or indirect) between the acquisition of the right and—

(a) a payment made, by way of a loan or otherwise, to T, or

(b) a transfer of assets to T.

(4) Where a loan or a quasi-loan made to T is replaced, directly or indirectly, by another loan (the “replacement loan”), references in paragraph 1 to the loan are references to the replacement loan.

(5) Where a loan or a quasi-loan made to T is replaced, directly or indirectly, by another quasi-loan (the “replacement quasi-loan”), references in paragraph 1 to the quasi-loan are references to the replacement quasi-loan.

(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) In this paragraph and in paragraphs 3, 9, 10, 19 and 20—

(a) “T” is the person mentioned in section 23A(2) of ITTOIA 2005,

(b) references to T include references to a person who is or has been connected with T, and

(c) for that purpose, section 993 of ITA 2007 (meaning of “connected”) applies for the purposes of this Schedule but as if subsection (4) of that section were omitted.

Meaning of “outstanding”: loans

3

(1) An amount of a loan is “outstanding” for the purposes of paragraph 1 if the relevant principal amount exceeds the repayment amount.

(2) In sub-paragraph (1) “relevant principal amount”, in relation to a loan, means the total of—

(a) the initial principal amount lent, and

(b) any sums that have become principal under the loan, otherwise than by capitalisation of interest.

(3) In sub-paragraph (1) “repayment amount”, in relation to a loan, means the total of—

(a) the amount of principal under the loan that has been repaid before 5 December 2016, and

(b) payments in money made by T on or after 5 December 2016 by way of repayment of principal under the loan.

(4) A payment is to be disregarded for the purposes of sub-paragraph (3)(b) if there is any connection (direct or indirect) between the payment and a tax avoidance arrangement (other than the arrangement in pursuance of which the loan was made).

(5) In this paragraph and in paragraph 9, “tax avoidance arrangement” means an arrangement which has a tax avoidance purpose.

(6) For the purposes of sub-paragraph (5), an arrangement has a tax avoidance purpose if sub-paragraph (7) applies to a person who is a party to the arrangement.

(7) This sub-paragraph applies to a person if the main purpose, or one of the main purposes, of the person entering into the arrangement is the avoidance of tax.

(8) The following paragraphs apply for the purpose of determining whether any payment is connected with a tax avoidance arrangement—

(a) a payment is connected with a tax avoidance arrangement if (for example) the payment is made (wholly or partly) in pursuance of—

(i) the tax avoidance arrangement, or

(ii) an arrangement at one end of a series of arrangements with the tax avoidance arrangement being at the other end, and

(b) it does not matter whether the person making the payment is unaware of the tax avoidance arrangement.

Meaning of “outstanding”: loans in currencies other than sterling

4

(1) In paragraphs 5 to 8 “the loan currency”, in relation to a loan, means the currency in which the initial principal amount of the loan is denominated (whether or not that amount is paid in that currency).

(2) For the purposes of paragraphs 5 to 8, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.

5

(1) This paragraph applies in relation to a loan where the loan currency is a currency other than sterling.

(2) But this paragraph does not apply if paragraph 8 applies in relation to the loan.

(3) The amount of the loan that is outstanding, at the relevant time, is to be calculated in sterling as follows—

Step 1 Calculate, in the loan currency, the amount that is outstanding at that time.

Step 2 Take the value in sterling, at that time, of that amount.

(4) For the purposes of this paragraph and paragraph 8, the “relevant time” in relation to a loan is the time immediately before—

(a) the end of the approved repayment date, if the loan is an approved fixed term loan on 5 April 2019, or

(b) the end of 5 April 2019 in any other case.

(5) See paragraph 6 for provision about repayments made in a currency other than the loan currency.

Repayments in currencies other than the loan currency

6

(1) This paragraph applies in relation to a loan where—

(a) payments in money are made by way of repayment of principal under the loan, and

(b) some or all of the payments are made in a currency other than the loan currency.

(2) But this paragraph does not apply if paragraph 8 applies in relation to the loan.

(3) For the purposes of calculating the repayment amount in relation to the loan, the amount of each of the payments referred to in sub-paragraph (1)(b) is an amount equal to its value in the loan currency on the date it is made.

Loans made in a depreciating currency

7

(1) Paragraph 8 applies in relation to a loan where—

(a) the loan currency is a currency other than sterling, and

(b) it is reasonable to suppose that the main reason, or one of the main reasons, for the loan being made in that currency is that the loan currency is expected to depreciate as against sterling during the loan period.

(2) The “loan period”, in relation to a loan, is the period—

(a) beginning at the time the loan is made, and

(b) ending with the time by which, under the terms of the loan, the whole of the loan is to be repaid.

8

(1) Where this paragraph applies in relation to a loan—

(a) paragraphs 5 and 6 do not apply in relation to the loan, and

(b) sub-paragraphs (2) to (5) apply for the purposes of calculating the amount of the loan that is outstanding at the relevant time (as defined in paragraph 5(4)).

(2) The relevant principal amount, in relation to the loan, is an amount equal to the total of—

(a) the value in sterling, at the reference date, of the initial principal amount lent, and

(b) the value in sterling, at the reference date, of any sums that become principal under the loan, otherwise than by capitalisation of interest.

(3) The “reference date”—

(a) in relation to an amount within sub-paragraph (2)(a), means the date on which the loan is made, and

(b) in relation to a sum within sub-paragraph (2)(b), means the date on which the sum becomes principal.

(4) The repayment amount, in relation to the loan, is an amount equal to the total of—

(a) the amount of principal under the loan that has been repaid in sterling, and

(b) where payments are made, in a currency other than sterling, by way of repayment of principal under the loan, the amount equal to the sterling value of the payments.

(5) The “sterling value” of a payment is its value in sterling on the date it is made.

Meaning of outstanding: “quasi-loans”

9

(1) An amount of a quasi-loan is outstanding for the purposes of paragraph 1 if the initial debt amount exceeds the repayment amount.

(2) In sub-paragraph (1), “initial debt amount” means the total of—

(a) an amount equal to the value of the acquired debt (see paragraph 2(2)), and

(b) where P subsequently acquires a further right (the “additional debt”) to a payment, or transfer of assets, in connection with the payment mentioned in paragraph 2(3)(a) or (as the case may be) the transfer mentioned in paragraph 2(3)(b), an amount equal to the value of the additional debt.

(3) For the purposes of sub-paragraph (2)—

(a) where the acquired debt is a right to payment of an amount, the “value” of the debt is that amount,

(b) where the additional debt is a right to payment of an amount, the “value” of the debt is that amount, but is nil if the additional debt accrued to P by the capitalisation of interest on the acquired debt or another additional debt, and

(c) where the acquired debt or additional debt is a right to a transfer of assets, the “value” of the debt is an amount equal to—

(i) the market value of the assets at the time the right is acquired (or the value of the right at that time if the assets are non-fungible and not in existence at that time), or

(ii) if higher, the cost of the assets at that time.

(4) In sub-paragraph (1), “repayment amount”, in relation to a quasi-loan, means the total of—

(a) the amount (if any) by which the initial debt amount has been reduced (by way of repayment) before 5 December 2016,

(b) payments in money (if any) made by T on or after 5 December 2016 by way of repayment of the initial debt amount, and

(c) if the acquired debt or additional debt is a right to a transfer of assets, and the assets have been transferred, an amount equal to the market value of the assets at the time of the transfer.

(5) A payment or transfer is to be disregarded for the purposes of sub-paragraph (4)(b) or (c) if there is any connection (direct or indirect) between the payment or transfer and a tax avoidance arrangement (other than the arrangement under which the quasi-loan was made).

(6) In this paragraph, “market value” has the same meaning as it has for the purposes of TCGA 1992 by virtue of Part 8 of that Act.

Meaning of “outstanding”: quasi-loans in currencies other than sterling

10

(1) Paragraphs 11 to 14 apply where P makes a quasi-loan to T by reason of acquiring a right to a payment in a particular currency (the “quasi-loan currency”).

(2) For the purposes of paragraphs 11 to 14, the value of an amount in a particular currency is to be determined by reference to an appropriate spot rate of exchange.

11

(1) This paragraph applies in relation to the quasi-loan if the quasi-loan currency is a currency other than sterling.

(2) But this paragraph does not apply if paragraph 14 applies in relation to the quasi-loan.

(3) The amount of the quasi-loan that is outstanding, at the relevant time, is to be calculated in sterling as follows—

Step 1 Calculate, in the quasi-loan currency, the amount that is outstanding at that time.

Step 2 Take the value in sterling, at that time, of that amount.

(4) For the purposes of this paragraph and paragraph 14, the “relevant time” in relation to a quasi-loan is the time immediately before the end of 5 April 2019.

(5) See paragraph 12 for provision about repayments made in a currency other than the quasi-loan currency.

Repayments in currencies other than the quasi-loan currency

12

(1) This paragraph applies in relation to the quasi-loan if—

(a) payments in money are made by way of repayment of the initial debt amount, and

(b) some or all of the payments are made in a currency other than the quasi-loan currency.

(2) But this paragraph does not apply if paragraph 14 applies in relation to the quasi-loan.

(3) For the purposes of calculating the repayment amount in relation to the quasi-loan, the amount of each of the payments referred to in sub-paragraph (1)(b) is an amount equal to its value in the quasi-loan currency on the date it is made.

Quasi-loans made in a depreciating currency

13

(1) Paragraph 14 applies in relation to the quasi-loan if—

(a) the quasi-loan currency is a currency other than sterling, and

(b) it is reasonable to suppose that the main reason, or one of the main reasons, for the quasi-loan being made in that currency is that the quasi-loan currency is expected to depreciate as against sterling during the quasi-loan period.

(2) The “quasi-loan period”, in relation to a quasi-loan, is the period—

(a) beginning at the time the quasi-loan is made, and

(b) ending with the time by which, under the terms of the quasi-loan, the whole of the quasi-loan is to be repaid.

14

(1) Where this paragraph applies in relation to the quasi-loan—

(a) paragraphs 11 and 12 do not apply in relation to the quasi-loan, and

(b) sub-paragraphs (2) to (5) apply for the purposes of calculating the amount of the quasi-loan that is outstanding at the relevant time (as defined in paragraph 11(4)).

(2) The initial debt amount, in relation to the quasi-loan, is an amount equal to the total of—

(a) the value in sterling, at the reference date, of the acquired debt, and

(b) the value in sterling, at the reference date, of any additional debt.

(3) The “reference date”, in relation to a right within sub-paragraph (2)(a) or (2)(b), means the date on which P acquires it.

(4) The repayment amount, in relation to the quasi-loan, is an amount equal to the total of—

(a) the amount of the initial debt amount that has been repaid in sterling, and

(b) where payments are made, in a currency other than sterling, by way of repayment of the initial debt amount, the amount equal to the sterling value of the payments.

(5) The “sterling value” of a payment is its value in sterling on the date it is made.

Meaning of “approved fixed term loan”

15

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval: application to HMRC

16

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval: qualifying payments condition

17

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Approval: commercial terms condition

18

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Accelerated payments

19

(1) Paragraph 20(1) applies where—

(a) section 23E of ITTOIA 2005 would (ignoring paragraph 20) apply in relation to a relevant benefit arising to T,

(b) the relevant benefit is a loan or quasi-loan in relation to which paragraph 1(2) applies,

(c) an accelerated payment notice, or a partner payment notice, relating to a relevant charge (the “accelerated payment notice”) has been given under Chapter 3 of Part 4 of FA 2014,

(d) T makes a payment (the “accelerated payment”) in respect of the understated or disputed tax to which the notice relates,

(e) the accelerated payment is made on or before 5 April 2019, and

(f) the amount of the loan or quasi-loan that, at the end of 5 April 2019, is outstanding for the purposes of paragraph 1 (see paragraphs 3 to 14) is equal to or less than the amount of the accelerated payment.

(2) In sub-paragraph (1)(c), “relevant charge” means a charge to tax under section 23E of ITTOIA 2005 arising by reason of a relevant benefit which arises to T in pursuance of the relevant arrangement in pursuance of which the relevant benefit mentioned in sub-paragraph (1)(a) and (b) arises.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20

(1) T may make an application to the Commissioners for Her Majesty's Revenue and Customs to be treated—

(a) as if the relevant benefit mentioned in paragraph 19(1)(a) and (b) arises only if the condition in sub-paragraph (2) is met, and

(b) as if it arises immediately before the end of the 30 days beginning with the date on which the condition in sub-paragraph (2) becomes met.

(2) The condition is that, on the withdrawal of the accelerated payment notice or on the determination of an appeal, any part of the accelerated payment is repaid.

(3) Subject to sub-paragraph (4), an application under sub-paragraph (1) may be made in 2018.

(4) An application may be made after 2018 if an officer of Revenue and Customs considers it reasonable in all the circumstances for a late application to be made.

(5) An application 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.

(6) An officer of Revenue and Customs must notify the applicant of the decision on an application under this paragraph.

SCHEDULE 13

Liability to penalty

1

(1) A penalty is payable by a person (“P”) who—

(a) carries on an imported goods fulfilment business, and

(b) is not an approved person.

(2) In this Schedule references to a “contravention” are to acting as mentioned in sub-paragraph (1).

Amount of penalty

2

(1) If the contravention is deliberate and concealed, the amount of the penalty is the maximum amount (see paragraph 10).

(2) If the contravention is deliberate but not concealed, the amount of the penalty is 70% of the maximum amount.

(3) In any other case, the amount of the penalty is 30% of the maximum amount.

(4) The contravention is—

(a) “deliberate and concealed” if the contravention is deliberate and P makes arrangements to conceal the contravention, and

(b) “deliberate but not concealed” if the contravention is deliberate but P does not make arrangements to conceal the contravention.

Reductions for disclosure

3

(1) Paragraph 4 provides for reductions in penalties under this Schedule where P discloses a contravention.

(2) P discloses a contravention by—

(a) telling the Commissioners about it,

(b) giving the Commissioners reasonable help in identifying any other contraventions of which P is aware, and

(3) Disclosure of a contravention—

(a) is “unprompted” if made at a time when P has no reason to believe that the Commissioners have discovered or are about to discover the contravention, and

(b) otherwise, is “prompted”.

(4) In relation to disclosure, “quality” includes timing, nature and extent.

4

(1) Where P discloses a contravention, the Commissioners must reduce the penalty to one that reflects the quality of the disclosure.

(2) If the disclosure is prompted, the penalty may not be reduced below—

(a) in the case of a contravention that is deliberate and concealed, the maximum amount,

(b) in the case of a contravention that is deliberate but not concealed, 35% of the maximum amount, and

(3) If the disclosure is unprompted, the penalty may not be reduced below—

(a) in the case of a contravention that is deliberate and concealed, 30% of the maximum amount,

(b) in the case of a contravention that is deliberate but not concealed, 20% of the maximum amount, and

Special reduction

5

(1) If the Commissioners think it right because of special circumstances, they may reduce a penalty under this Schedule.

(2) In sub-paragraph (1) “special circumstances” does not include ability to pay.

(3) In sub-paragraph (1) the reference to reducing a penalty includes a reference to—

(a) staying a penalty, and

(b) agreeing a compromise in relation to proceedings for a penalty.

Assessment

6

(1) Where P becomes liable for a penalty under this Schedule, the Commissioners must—

(a) assess the penalty,

(b) notify P, and

(2) A penalty under this Schedule 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) A penalty under this Schedule is recoverable as a debt due to the Crown.

(4) An assessment of a penalty under this Schedule may not be made later than one year after evidence of facts sufficient in the opinion of the Commissioners to indicate the contravention comes to their knowledge.

(5) Two or more contraventions may be treated by the Commissioners as a single contravention for the purposes of assessing a penalty under this Schedule.

Reasonable excuse

7

(1) Liability to a penalty does not arise under this Schedule in respect of a contravention which is not deliberate if P satisfies the Commissioners or (on an appeal made to the appeal tribunal) the tribunal that there is a reasonable excuse for the contravention.

(2) For the purposes of sub-paragraph (1), where P relies on any other person to do anything, that is not a reasonable excuse unless P took reasonable care to avoid the contravention.

Companies: officer’s liability

8

(1) Where a penalty under this Schedule is payable by a company in respect of a contravention which was attributable to an officer of the company, the officer is liable to pay such portion of the penalty (which may be 100%) as the Commissioners may specify by written notice to the officer.

(2) Sub-paragraph (1) does not allow the Commissioners to recover more than 100% of a penalty.

(3) In the application of sub-paragraph (1) to a body corporate other than a limited liability partnership, “officer” means—

(a) a director (including a shadow director within the meaning of section 251 of the Companies Act 2006),

(b) a manager, and

(4) In the application of sub-paragraph (1) to a limited liability partnership, “officer” means a member.

(5) In the application of sub-paragraph (1) in any other case, “officer” means—

(a) a director,

(b) a manager,

(d) any other person managing or purporting to manage any of the company's affairs.

(6) Where the Commissioners have specified a portion of a penalty in a notice given to an officer under sub-paragraph (1)—

(a) paragraph 5 applies to the specified portion as to a penalty,

(b) the officer must pay the specified portion before the end of the period of 30 days beginning with the day on which the notice is given,

(d) paragraph 9 applies as if the officer were liable to a penalty.

(7) In this paragraph “company” means any body corporate or unincorporated association, but does not include a partnership.

Double jeopardy

9

P is not liable to a penalty under this Schedule in respect of a contravention in respect of which P has been convicted of an offence.

The maximum amount

10

(1) In this Schedule “the maximum amount” means £10,000.

(2) 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 sum for the time being specified in sub-paragraph (1) such other sum as appears to them to be justified by the change.

(3) In sub-paragraph (2), “relevant date” means—

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

(b) each date on which the power conferred by that sub-paragraph has been exercised.

(4) Regulations under this paragraph do not apply to any contravention which occurs wholly before the date on which they come into force.

Appeal tribunal

11

In this Schedule “appeal tribunal” has the same meaning as in Chapter 2 of Part 1 of the Finance Act 1994.

SCHEDULE 14

PART 1 — Amendments of TMA 1970

1

TMA 1970 is amended as follows.

2

(1) Section 7 (notice of liability) is amended as follows.

(2) In subsection (1A) for the words from “under section 8” to the end substitute “ to file under section 8 for the year of assessment ”.

(3) In subsection (1B)(a) for the words from “under section 8” to “gains” substitute “ to file under section 8 for the year of assessment ”.

(4) In subsection (7) for “section 9” substitute “ section 8 or 8A ”.

3

(1) Section 8 (personal return) is amended as follows.

(2) For the heading substitute “ Notices to file: persons other than trustees ”.

(3) For subsection (1) substitute—

(1) For the purpose of establishing— (a) the amounts in which a person is chargeable to income tax and capital gains tax for a year of assessment, and (b) the amount payable by the person by way of income tax for the year, an officer of Revenue and Customs may give the person a notice to file for the year of assessment.

(4) In subsection (1AA)(a) for “return” substitute “ information filed in response to the notice to file or in any end of period statement for the year of assessment provided to HMRC by the person ”.

(5) After subsection (1AA) insert—

(1AB) A notice to file for a year of assessment is a notice requiring the person concerned— (a) to file the following for that year (in addition to any end of period statement for the year that may be required by regulations under paragraph 8 of Schedule A1)— (i) such information as may reasonably be required in pursuance of the notice for the purpose mentioned in subsection (1), (ii) a self-assessment (but see section 9(2)), and (iii) a final declaration, and (b) to deliver to HMRC such accounts, statements, or other documents (relating to the information filed as mentioned in paragraph (a)(i) and (ii)) as may reasonably be required for the purpose mentioned in subsection (1). (1AC) The duty to file the things mentioned in subsection (1AB)(a) is to be complied with— (a) where the person is not required to provide an end of period statement for the year, by making and delivering to HMRC a return containing those things, and (b) where the person is required to provide such a statement, by— (i) making and delivering to HMRC a return containing those things, or (ii) providing those things to HMRC using the facility to file mentioned in paragraph 9 of Schedule A1. (1AD) It is immaterial that any of the information required as mentioned in subsection (1AB)(a)(i) in response to a notice to file has been provided to HMRC before the date of the notice.

(6) In subsection (1B)—

(a) for “a return under this section” substitute “ the information filed in response to a notice to file ”;

(b) after “relevant” insert “ partnership ”.

(7) In subsection (1C)—

(a) after “ “relevant” insert “ partnership ”;

(b) after “means a” insert “ partnership ”;

(8) For subsection (1D) substitute—

(1D) Where the method to be used for complying with a notice to file for a year of assessment (Year 1) is filing a return— (a) if the return is a non-electronic return, the person must comply with the notice on or before 31 October in Year 2, and (b) if the return is an electronic return, the person must comply with the notice on or before 31 January in Year 2.

(9) In subsection (1F) for “a return” substitute “ the return ”.

(10) In subsection (1G) for “a return” substitute “ the return ”.

(11) After subsection (1H) insert—

(1HA) Where the method to be used for complying with a notice to file for a year of assessment (Year 1) is using the facility mentioned in paragraph 9 of Schedule A1, the person must comply with the notice on or before— (a) 31 January in Year 2, or (b) if later, the last day of the period of 3 months beginning with the date of the notice.

(12) For subsection (2) substitute—

(2) The final declaration required by a notice to file is a declaration by the person concerned to the effect that to the best of the person's knowledge the information and self-assessment filed in response to the notice are (taken together) correct and complete.

(13) In subsections (3), (4) and (4A) for “under this section” substitute “ to file ”.

(14) In subsection (4B) for the words from “may” to “income” substitute “ to file may require the information filed in response ”.

(15) After subsection (5) insert—

(6) In this section “notice to file” means a notice to file under this section. (7) In the Taxes Acts, unless the contrary intention appears, a reference (whether specific or general)— (a) to a return under this section for a year of assessment, is to— (i) the information, self-assessment and final declaration filed for the year under this section, and (ii) any end of period statement for the year provided to HMRC; (b) to anything required to be included in a return under this section for a year of assessment, is to— (i) the information, self-assessment and final declaration required to be filed for the year under this section, and (ii) any end of period statement for the year required to be provided to HMRC, and (c) to making or delivering a return under this section, is to— (i) making or delivering a return as mentioned in subsection (1AC)(a) or (b)(i), or (ii) if the response to a notice to file is made using the facility mentioned in paragraph 9 of Schedule A1, making the final declaration required by the notice.

4

(1) Section 8A (trustee's return) is amended as follows.

(2) For the heading substitute “ Notices to file: trustees ”.

(3) For subsection (1) substitute—

(1) For the purpose of establishing— (a) the amounts in which the relevant trustees of a settlement, and the settlors and beneficiaries, are chargeable to income tax and capital gains tax for a year of assessment, and (b) the amount payable by them by way of income tax for the year, an officer of Revenue and Customs may give any relevant trustee a notice to file for the year of assessment. (1ZA) A notice to file may be given to any one trustee or separate notices may be given to each trustee or to such trustees as the officer giving the notice thinks fit.

(4) In subsection (1AA)(a) for “return” substitute “ information filed in response to the notice to file or in any end of period statement for the year of assessment provided to HMRC by the relevant trustees ”.

(5) After subsection (1AA) insert—

(1AB) A notice to file for a year of assessment is a notice requiring the trustee to whom it is given— (a) to file the following for that year (in addition to any end of period statement for the year that may be required by regulations under paragraph 8 of Schedule A1)— (i) such information as may reasonably be required in pursuance of the notice for the purpose mentioned in subsection (1), (ii) a self-assessment (but see section 9(2)), and (iii) a final declaration, and (b) to deliver to HMRC such accounts, statements, or other documents (relating to the information filed as mentioned in paragraph (a)(i) and (ii)) as may reasonably be required for the purpose mentioned in subsection (1). (1AC) The duty to file the things mentioned in subsection (1AB)(a) is to be complied with— (a) where the relevant trustees are not required to provide an end of period statement for the year, by the trustee making and delivering to HMRC a return containing those things, and (b) where the relevant trustees are required to provide such a statement, by the trustee— (i) making and delivering to HMRC a return containing those things, or (ii) providing those things to HMRC using the facility to file mentioned in paragraph 9 of Schedule A1. (1AD) It is immaterial that any of the information required as mentioned in subsection (1AB)(a)(i) in response to a notice to file has been provided to HMRC before the date of the notice.

(6) For subsection (1B) substitute—

(1B) Where the method to be used by the trustee for complying with a notice to file for a year of assessment (Year 1) is filing a return— (a) if the return is a non-electronic return, the trustee must comply with the notice on or before 31 October in Year 2, and (b) if the return is an electronic return, the trustee must comply with the notice on or before 31 January in Year 2.

(7) In subsection (1D) for “a return” substitute “ the return ”.

(8) In subsection (1E) for “a return” substitute “ the return ”.

(9) After subsection (1F) insert—

(1FA) Where the method to be used for complying with a notice to file for a year of assessment (Year 1) is using the facility mentioned in paragraph 9 of Schedule A1, the trustee must comply with the notice on or before— (a) 31 January in Year 2, or (b) if later, the last day of the period of 3 months beginning with the date of the notice.

(10) For subsection (2) substitute—

(2) The final declaration required by a notice to file is a declaration by the trustee to the effect that to the best of the trustee's knowledge the information and self-assessment filed in response to the notice are (taken together) correct and complete.

(11) In subsections (3) and (4) for “under this section” substitute “ to file ”.

(12) After subsection (5) insert—

(6) In this section “notice to file” means a notice to file under this section. (7) In the Taxes Acts, unless the contrary intention appears, a reference (whether specific or general)— (a) to a return under this section for a year of assessment, is to— (i) the information, self-assessment and final declaration filed for the year under this section, and (ii) any end of period statement for the year provided to HMRC, (b) to anything required to be included in a return under this section for a year of assessment, is to— (i) the information, self-assessment and final declaration required to be filed for the year under this section, and (ii) any end of period statement for the year required to be provided to HMRC, and (c) to making or delivering a return under this section, is to— (i) making or delivering a return as mentioned in subsection (1AC)(a) or (b)(i), or (ii) if the response to a notice to file is made using the facility mentioned in paragraph 9 of Schedule A1, making the final declaration required by the notice.

5

In section 8B (withdrawal of notice under section 8 or 8A)—

(a) in the heading after “notice” insert “ to file ”;

(b) in subsection (1) after “notice” insert “ to file ”.

6

(1) Section 9 (returns to include self-assessment) is amended as follows.

(2) For the heading substitute “ Self-assessment required by a notice to file ”.

(3) In subsection (1) for the words from the beginning to “say—” substitute “ Subject to subsection (1A), the self-assessment required by virtue of subsection (1AB)(a) of section 8 or 8A from a person given a notice to file for a year of assessment is— ”.

(4) In subsection (2) for “to comply with subsection (1) above” substitute “ by virtue of section 8 or 8A to make and file a self-assessment ”.

(5) In subsection (3) for the words from “, a person” to “above” substitute “ required by virtue of section 8 or 8A, a person does not include a self-assessment ”.

(6) In subsection (3A) after “self-assessment” insert “ under section 8 or 8A ”.

7

(1) Section 12ZH (NRCGT returns and self-assessment: section 8) is amended as follows.

(2) In subsection (3) for the words from “required” to “return” substitute “ given a notice to file ”.

(3) In subsection (4) after “(1G)” insert “ and (1HA) ”.

(4) In subsections (5) and (6) omit “, for the purposes set out in section 9(1),”.

(5) In subsection (8)(b) for “section 9” substitute “ section 8 ”.

(6) In subsection (10) for “section 9” substitute “ section 8 ”.

(7) In subsection (11) for “section 9” substitute “ section 8 ”.

8

(1) Section 12ZI (NRCGT returns and self-assessment: section 8A) is amended as follows.

(2) In subsection (3) for the words from “required” to “return” substitute “ given a notice to file ”.

(3) In subsection (4)(b) after “(1E)” insert “ and (1FA) ”.

(4) In subsections (5) and (6) omit “, for the purposes set out in section 9(1),”.

(5) In subsection (8)(b) for “section 9” substitute “ section 8A ”.

(6) In subsection (10) for “section 9” substitute “ section 8A ”.

(7) In subsection (11) for “section 9” substitute “ section 8A ”.

9

In section 12AA(10A) (definitions) for “ “partnership return”” substitute “ “section 12AA partnership return” ”.

10

In section 12AB(1) (partnership return to include partnership statement) in the words before paragraph (a) after “Every” insert “ section 12AA ”.

11

(1) Section 12ABA (amendment of partnership return by taxpayer) is amended as follows.

(2) In subsection (1)—

(a) omit the words from “by the” to “successor,”;

(b) at the end insert

given by— (a) in the case of a section 12AA partnership return, the partner who made and delivered the return or his successor, and (b) in the case of a Schedule A1 partnership return, the nominated partner.

(3) In subsection (4) after “date”” insert “ , in relation to a section 12AA partnership return, ”.

(4) After subsection (4) insert—

(5) In this section “the filing date”, in relation to a Schedule A1 partnership return for a year of assessment (Year 1), means 31 January of Year 2.

12

(1) Section 12ABB (HMRC power to correct partnership return) is amended as follows.

(2) In subsection (2), for the words from “by notice” to the end substitute—

(a) in the case of a section 12AA partnership return, by notice to the partner who made and delivered the return, or his successor, and (b) in the case of a Schedule A1 partnership return, by notice to the nominated partner.

(3) In subsection (4) for the words from “the person” to the end substitute

notice rejecting the correction is given— (a) in the case of a section 12AA partnership return, by the person to whom the notice of correction was given or his successor, and (b) in the case of a Schedule A1 partnership return, by the nominated partner.

13

(1) Section 12AC (notice of enquiry into partnership return) is amended as follows.

(2) In subsection (1)—

(a) after “return if” insert “ , within the time allowed, ”;

(b) at the beginning of paragraph (a) insert “ in the case of a section 12AA partnership return, ”;

(aa) in the case of a Schedule A1 partnership return, to the nominated partner.

;

(d) omit paragraph (b).

(3) In subsection (7)—

(a) the words from “the day” to the end become paragraph (a);

(b) at the beginning of that paragraph insert “ in relation to a section 12AA partnership return, ”;

(b) in relation to a Schedule A1 partnership return for a year of assessment (Year 1), means 31 January of Year 2.

14

(1) Section 12B (records to be kept for purposes of returns) is amended as follows.

(2) For subsection (1) substitute—

(1) This section applies to any person who may— (a) be given a notice to file under section 8 or 8A in respect of a year of assessment, (b) be required by a notice under section 12AA to make and deliver a partnership return in respect of a year of assessment or other period, or (c) be required by regulations under paragraph 10 of Schedule A1 to provide a partnership return for a year of assessment. (1A) The person must— (a) keep all such records as may be requisite for the purpose of enabling the person to make and deliver a correct and complete return, under that section or those regulations, for that year of assessment or period, and (b) preserve those records until the end of the relevant day (see subsections (2) to (2ZB)).

(3) In subsection (2) for “day referred to in subsection (1) above is” substitute “ relevant day is (subject to subsection (2ZB)) ”.

(4) After subsection (2) insert—

(2ZA) Subsection (2ZB) applies where, before the day mentioned in subsection (2), the person— (a) is given a notice under section 8, 8A or 12AA, or (b) becomes subject to a requirement imposed by regulations under paragraph 10 of Schedule A1. (2ZB) Where this subsection applies the relevant day is the later of the day mentioned in subsection (2), and— (a) if enquiries are made into the return, the day on which under section 28A(1B) or 28B(1B) those enquiries are completed, or (b) if no such enquiries are made, the day on which an officer no longer has power to make them.

(5) In subsection (2A)—

(a) in paragraph (a) for “(1)” substitute “ (1)(a) or (b) ”;

(b) in the words after paragraph (b)—

(i) omit “the relevant day, that is to say,”;

(ii) for “(1)” substitute “ (1A) ”.

(6) In subsection (3)(a) for “(1)” substitute “ (1A) ”.

(7) In subsection (4)—

(a) for “(1)” substitute “ (1A) ”;

(b) at the end insert “ and regulations under paragraph 11 of Schedule A1 ”.

(8) In subsection (5) for “(1)” substitute “ (1A) ”.

15

In section 28ZA(6) (referral of questions during enquiry)—

(a) in paragraph (b) after “of this Act” insert “ into a section 12AA partnership return ”;

(b) after paragraph (b) insert—

(c) in relation to an enquiry under section 12AC(1) of this Act into a Schedule A1 partnership return, the nominated partner.

16

In section 28B(8) (completion of enquiry into partnership return) for the words from “the person” to the end substitute—

(a) in relation to a section 12AA partnership return, the person to whom notice of enquiry was given or his successor, and (b) in relation to a Schedule A1 partnership return, the nominated partner.

17

In section 28C(3) (determination of tax where no return delivered) for “section 9” substitute “ section 8 or 8A ”.

18

In section 28H(2)(b) (simple assessments)—

(a) for the words “to make and deliver such a return” substitute “ imposed ”;

(b) after “notice” insert “ to file ”.

19

In section 28I(2)(b) (simple assessments for trustees)—

(a) for the words “to make and deliver such a return” substitute “ imposed ”;

(b) after “notice” insert “ to file ”.

20

(1) Section 29 (assessment where loss of tax discovered) is amended as follows.

(2) In subsection (2) at the end insert “(or, where the error or mistake is in an end of period statement forming part of the return, if that statement was provided on the basis of or in accordance with the practice generally prevailing at the time when it was provided).

(3) In subsection (6) after paragraph (a) insert—

(aa) it is contained in any information provided by the taxpayer to HMRC under regulations under paragraph 7 of Schedule A1 (periodic updates);

21

In section 30B(10) (amendment of partnership statement where loss of tax discovered) at the end insert “ or (in relation to a Schedule A1 partnership return) the nominated partner ”.

22

(1) Section 42 (procedure for making claims) is amended as follows.

(2) In subsection (2)—

(a) after “of this Act” insert “ , or where a partnership is required to provide a return by regulations under paragraph 10 of Schedule A1, ”;

(b) after “that section” insert “ or those regulations ”.

(3) In subsection (9) after “of this Act” insert “ or a Schedule A1 partnership return ”.

(4) In subsection (11)(a) after “of this Act” insert “ or a Schedule A1 partnership return ”.

23

(1) Section 59A (payments on account of income tax) is amended as follows.

(2) In subsection (1)(a) for “section 9” substitute “ section 8 or 8A ”.

(3) In subsection (4A)(a) for “section 9” substitute “ section 8 or 8A ”.

24

(1) Section 59B (payment of income tax and capital gains tax: assessments other than simple assessments) is amended as follows.

(2) In subsection (1)(a) for “section 9” substitute “ section 8 or 8A ”.

(3) In subsection (4A) for “section 9” substitute “ section 8 or 8A ”.

(4) In subsection (5A) for “section 9” substitute “ section 8 or 8A ”.

(5) In subsection (6) for “section 9” substitute “ section 8 or 8A ”.

25

(1) Section 106C (offence of failing to deliver a return) is amended as follows.

(2) In subsection (1)—

(a) for “required by a notice under section 8 to make and deliver a return” substitute “ given a notice to file under section 8 ”;

(b) in paragraph (a) for “the return” substitute “ a return under that section ”.

(3) In subsection (2) for “the return” substitute “ a return under section 8 ”.

26

In section 106D(1) (offence of making inaccurate return)—

(a) for “required by a notice under section 8 to make and deliver a return” substitute “ given a notice to file under section 8 ”;

(b) in paragraph (a) after “return” insert “ under that section ”.

27

In section 106E (exclusions from offences under sections 106B to 106D) for “or make and deliver the return” substitute “ under section 7, or is given the notice to file under section 8, ”.

28

In section 107A(2)(a) (trustee liability for penalties) after “section 12B of this Act” insert “ or paragraph 12 of Schedule A1 to this Act ”.

29

In section 118(1) (interpretation)—

(a) after the definition of “CTA 2010” insert—

“end of period statement” has the meaning given by paragraph 8(6) of Schedule A1, and references to an end of period statement for a tax year are to be read in accordance with that paragraph;

;

(b) after the definition of “ITA 2007” insert—

“nominated partner” has the meaning given by paragraph 5(5) of Schedule A1;

means (unless the context otherwise requires)— (a) a section 12AA partnership return, or (b) a Schedule A1 partnership return;

;

(d) after the definition of “partnership return” insert—

“partnership statement”— (a) in relation to a section 12AA partnership return, means the statement required by section 12AB; (b) in relation to a Schedule A1 partnership return, has the meaning given by paragraph 10(6) of that Schedule;

(e) after the definition of “return” insert—

“Schedule A1 partnership return” has the meaning given by paragraph 10(6) of Schedule A1; “section 12AA partnership return” has the meaning given by section 12AA(10A) of this Act;

;

(f) in the definition of “successor” after “delivered, a” insert “ section 12AA ”.

30

(1) Paragraph 3 of Schedule 1AB (recovery of overpaid tax) is amended as follows.

(2) In sub-paragraph (2)(a) after “of this Act” insert “ or a Schedule A1 partnership return ”.

(3) In sub-paragraph (3)(a) after “12AA” insert “ or a Schedule A1 partnership return ”.

(4) In sub-paragraph (4) at the end insert “ or a Schedule A1 partnership return ”.

PART 2 — Amendments of other Acts

TCGA 1992

31

In section 188J(2) of TCGA 1992 (the representative company of an NRCGT group) for “section 9(2)” substitute “ section 8(1AB)(a)(iii) ”.

FA 1998

32

In paragraph 12(2) of Schedule 18 to FA 1998 (information about business carried on in partnership) for “statement under section 12AB of” substitute “ partnership statement within the meaning of ”.

CAA 2001

33

In section 201(6) of CAA 2001 (elections) after “section 12AA of” insert “ or regulations under paragraph 10 of Schedule A1 to ”.

Tax Credits Act 2002

34

In section 19(4)(a) of the Tax Credits Act 2002 (power to enquire) for “by section 8 of the Taxes Management Act 1970 (c. 9) to make a return” substitute “ to make a return under section 8 of the Taxes Management Act 1970 ”.

ITTOIA 2005

35

In section 217(2) of ITTOIA 2005 (conditions for basis period to end with new accounting date)—

(a) in paragraph (a)—

(i) after “TMA 1970” insert “ , or of regulations under that Act, ” and

(ii) after “or 12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”;

(b) in paragraph (b) for “provision” substitute “ section or paragraph ”.

ITA 2007

36

In section 964(4)(b) (collection through self-assessment return) for “section 9 of that Act” substitute “ that section ”.

Crossrail Act 2008

37

In paragraph 44(1)(a) of Schedule 13 to the Crossrail Act 2008 (modification of transfer schemes: other persons and partnerships) after “12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

FA 2008

38

(1) Schedule 36 to FA 2008 (information and inspection powers) is amended as follows.

(2) In paragraph 21(1) (taxpayer notices) after “12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

(3) In paragraph 37(2)(a) (partnerships) after “section 12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

TIOPA 2010

39

TIOPA 2010 is amended as follows.

40

In section 94(3) (information made available) in each of paragraphs (a) and (b) after “section 12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

41

In section 95(8)(a) (interpretation of “tax return”) after “12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

42

In section 171(5) (tax returns where transfer pricing notice given), in paragraph (a) of the definition of “tax return”, after “12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

FA 2014

43

FA 2014 is amended as follows.

44

In section 253(6)(c) (definition of “tax return”) after “section 12AA of” insert “ , or regulations under paragraph 10 of Schedule A1 to, ”.

45

(1) Schedule 31 (follower notices and partnerships) is amended as follows.

(2) In paragraph 2 (interpretation)—

(a) in sub-paragraph (3)—

(i) the words from “in pursuance” to the end become paragraph (a);

(ii) at the end of that paragraph insert “ (a “section 12AA partnership return”), or ”;

(iii) after that paragraph insert—

(b) required by regulations under paragraph 10 of Schedule A1 to TMA 1970 (a “Schedule A1 partnership return”).

;

(b) in sub-paragraph (4) after “in relation to a” insert “ section 12AA ”;

(4A) “The nominated partner”, in relation to a Schedule A1 partnership return, has the meaning given by paragraph 5 of Schedule A1 to TMA 1970.

(3) In paragraph 3 (giving of follower notices in relation to partnership returns)—

(a) in sub-paragraph (1), after “in relation to a” insert “ section 12AA ”;

(b) after sub-paragraph (1) insert—

(1A) For the purposes of section 204 a Schedule A1 partnership return, or an appeal in respect of the return, is to be regarded as made by the person who is for the time being the nominated partner (if that would not otherwise be the case).

;

(d) in sub-paragraph (4)—

(i) in paragraph (a), after “or a successor of that partner,” insert “ or as the nominated partner of a partnership, ”;

(ii) in paragraph (b) after “successors of that partner” insert “ or to a nominated partner ”.

(4) In paragraph 5 (calculation of penalty etc) in sub-paragraph (10)—

(a) the words from “the representative partner” to the end become paragraph (a);

(b) at the end of that paragraph insert “ (in relation to a section 12AA partnership return), or ”;

(b) the nominated partner (in relation to a Schedule A1 partnership return).

46

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

(2) In paragraph 1 (interpretation)—

(a) in sub-paragraph (2)—

(i) the words from “in pursuance” to the end become paragraph (a);

(ii) at the end of that paragraph insert “ (a “section 12AA partnership return”), or ”;

(iii) after that paragraph insert—

(b) required by regulations under paragraph 10 of Schedule A1 to TMA 1970 (a “Schedule A1 partnership return”).

;

(b) in sub-paragraph (3) after “in relation to a” insert “ section 12AA ”;

(3A) “The nominated partner”, in relation to a Schedule A1 partnership return, has the meaning given by paragraph 5 of Schedule A1 to TMA 1970.

(3) In paragraph 2(2) (restriction on circumstances when accelerated payment notices can be given) after “a successor of that partner” insert “ (in relation to a section 12AA partnership return), or to the nominated partner of the partnership (in relation to a Schedule A1 partnership return) ”.

(4) In paragraph 3(5)(a) (circumstances in which partner payment notices can be given) after “or a successor of that partner” insert “ (in relation to a section 12AA partnership return), or the nominated partner (in relation to a Schedule A1 partnership return) ”.

(5) In paragraph 8(2)(aa) (withdrawal etc of partner payment notices), before “partnership return”, in both places, insert “section 12AA”.

FA 2016

47

FA 2016 is amended as follows.

48

(1) Schedule 18 (serial tax avoidance) is amended as follows.

(2) In paragraph 51(8)(b) (partnerships: information) after “TMA 1970” insert “ , or under equivalent provision made by regulations under paragraph 10 of Schedule A1 to that Act, ”.

(3) In paragraph 52 (partnerships: special provision about taxpayer emendations)—

(a) in sub-paragraph (1) for “subsection (1)(b) of section 12AB of that Act (partnership statement)” substitute “ section 12AB(1)(b) of that Act or under equivalent provision made by regulations under paragraph 10 of Schedule A1 to that Act (partnership statement) ”;

(b) in sub-paragraph (3)—

(i) in the words before paragraph (a), after “that person's successor” insert “ (in the case of a section 12AA partnership return) or the nominated partner (in the case of a Schedule A1 partnership return) ”;

(ii) for “subsection (1)(b) of section 12AB of TMA 1970 (partnership statement)” substitute “ section 12AB(1)(b) of TMA 1970 or under equivalent provision made by regulations under paragraph 10 of Schedule A1 to that Act (partnership statement) ”.

(4) In paragraph 53(1) (supplementary provision relating to partnerships)—

(a) in the definition of “the representative partner” after “in relation to a” insert “ section 12AA ”;

(b) after the definition of “successor” insert—

“the nominated partner”, in relation to a Schedule A1 partnership return, has the meaning given by paragraph 5 of Schedule A1 to TMA 1970.

(5) In paragraph 58(1) (general interpretation), for the definition of “partnership return” substitute—

“partnership return” means a return— (a) under section 12AA of TMA 1970 (a “section 12AA partnership return”), or (b) required by regulations made under paragraph 10 of Schedule A1 to TMA 1970 (a “Schedule A1 partnership return”);

49

(1) Schedule 19 (large businesses: tax strategies and sanctions) is amended as follows.

(2) In paragraph 12(5) (definition of “representative partner”)—

(a) the words from “the partner” to the end become paragraph (a);

(b) at the end of that paragraph insert “ , or ”;

(b) the nominated partner within the meaning of paragraph 5 of Schedule A1 to TMA 1970.

(3) In paragraph 13 (definition of “financial year”) in paragraph (c) for “under a return issued under section 12AB” substitute “ within the meaning of ”.

SCHEDULE 15

TMA 1970

1

TMA 1970 is amended as follows.

2

In section 9A (notice of enquiry), in subsection (5)—

(a) in paragraph (a), omit the final “or”;

(b) for paragraph (b) substitute—

(b) after a final closure notice has been issued in relation to an enquiry into the return, or (c) after a partial closure notice has been issued in such an enquiry in relation to the matters to which the amendment relates or which are affected by the amendment,

3

(1) Section 9B (amendment of return by taxpayer during enquiry) is amended as follows.

(2) In subsection (1), for “is in progress into the return” substitute “ into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(3) In subsection (3)—

(a) after “in progress” insert “ in relation to any matter to which the amendment relates or which is affected by the amendment ”;

(b) in paragraph (a), for “the closure notice” substitute “ a partial or final closure notice ”;

(c) in paragraph (b), for “the closure notice is issued” substitute “ a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued ”.

(4) In subsection (4)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

4

(1) Section 9C (amendment of self-assessment during enquiry to prevent loss of tax) is amended as follows.

(2) In subsection (1), for “is in progress into a return” substitute “ into a return is in progress in relation to any matter ”.

(3) In subsection (2), after “deficiency” insert “ so far as it relates to the matter ”.

(4) In subsection (4)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

5

In section 12ZM (NRCGT returns: notice of enquiry), in subsection (4)—

(a) in paragraph (a), omit the final “or”;

(b) for paragraph (b) substitute—

(b) after a final closure notice has been issued in relation to an enquiry into the return, or (c) after a partial closure notice has been issued in such an enquiry in relation to the matters to which the amendment relates or which are affected by the amendment,

6

(1) Section 12ZN (NRCGT returns: amendment of return by taxpayer during enquiry) is amended as follows.

(2) In subsection (1), for “is in progress into the return” substitute “ into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(3) In subsection (3)—

(a) after “in progress” insert “ in relation to any matter to which the amendment relates or which is affected by the amendment ”;

(b) in paragraph (a), for “the closure notice” substitute “ a partial or final closure notice ”;

(c) in paragraph (b), for “the closure notice is issued” substitute “ a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued ”.

(4) In subsection (4)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

7

In section 12AC (partnership return: notice of enquiry), in subsection (5)—

(a) in paragraph (a), omit the final “or”;

(b) for paragraph (b) substitute—

(b) after a final closure notice has been issued in relation to an enquiry into the return, or (c) after a partial closure notice has been issued in such an enquiry in relation to the matters to which the amendment relates or which are affected by the amendment,

8

(1) Section 12AD (amendment of partnership return by taxpayer during enquiry) is amended as follows.

(2) In subsection (1), for “is in progress into the return” substitute “ into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(3) In subsection (3)—

(a) after “in progress” insert “ in relation to any matter to which the amendment relates or which is affected by the amendment ”;

(b) in paragraph (a), for “the closure notice” substitute “ a partial or final closure notice ”;

(c) in paragraph (b), for “the closure notice is issued” substitute “ a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued ”.

(4) In subsection (4)(a), after “in progress” insert “ in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(5) In subsection (5)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

9

In section 12B (records), in subsection (1)(b)(i), for “28A(1) or 28B(1)” substitute “ 28A(1B) or 28B(1B) ”.

10

(1) Section 28ZA (referral of questions during enquiry) is amended as follows.

(2) In subsection (1), after “of this Act” insert “ in relation to any matter ”.

(3) In subsection (5)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

11

In section 28ZD (effect of referral on enquiry), in subsection (1)—

(a) for paragraph (a) substitute—

(a) no partial closure notice relating to the question referred shall be given, (aa) no final closure notice shall be given in relation to the enquiry, and

;

(b) in paragraph (b), for “such a notice” substitute “ a notice referred to in paragraph (a) or (aa) ”.

12

(1) Section 28A (completion of enquiry into personal, trustee or NRCGT return) is amended as follows.

(2) For subsection (1) substitute—

(1) This section applies in relation to an enquiry under section 9A(1) or 12ZM of this Act. (1A) Any matter to which the enquiry relates is completed when an officer of Revenue and Customs informs the taxpayer by notice (a “partial closure notice”) that the officer has completed his enquiries into that matter. (1B) The enquiry is completed when an officer of Revenue and Customs informs the taxpayer by notice (a “final closure notice”) — (a) in a case where no partial closure notice has been given, that the officer has completed his enquiries, or (b) in a case where one or more partial closure notices have been given, that the officer has completed his remaining enquiries.

(3) In subsection (2)—

(a) for “closure notice” substitute “ partial or final closure notice ”;

(b) for “either” substitute “ state the officer's conclusions and ”.

(4) In subsections (3) and (4), for “closure notice” substitute “ partial or final closure notice ”.

(5) In subsection (6), for “a closure notice” substitute “ the partial or final closure notice ”.

(6) After subsection (6) insert—

(7) In this section “the taxpayer” means the person to whom notice of enquiry was given. (8) In the Taxes Acts, references to a closure notice under this section are to a partial or final closure notice under this section.

13

(1) Section 28B (completion of enquiry into partnership return) is amended as follows.

(2) For subsection (1) substitute—

(1) This section applies in relation to an enquiry under section 12AC of this Act. (1A) Any matter to which the enquiry relates is completed when an officer of Revenue and Customs informs the taxpayer by notice (a “partial closure notice”) that the officer has completed his enquiries into that matter. (1B) The enquiry is completed when an officer of Revenue and Customs informs the taxpayer by notice (a “final closure notice”)— (a) in a case where no partial closure notice has been given, that the officer has completed his enquiries, or (b) in a case where one or more partial closure notices have been given, that the officer has completed his remaining enquiries.

(3) In subsection (2)—

(a) for “closure notice” substitute “ partial or final closure notice ”;

(b) for “either” substitute “ state the officer's conclusions and ”.

(4) In subsections (3) and (5), for “closure notice” substitute “ partial or final closure notice ”.

(5) In subsection (7), for “a closure notice” substitute “ the partial or final closure notice ”.

(6) After subsection (7) insert—

(8) In this section “the taxpayer” means the person to whom notice of enquiry was given or his successor. (9) In the Taxes Acts, references to a closure notice under this section are to a partial or final closure notice under this section.

14

In section 29 (assessment where loss of tax discovered), in subsection (5), for paragraph (b) substitute—

(b) in a case where a notice of enquiry into the return was given— (i) issued a partial closure notice as regards a matter to which the situation mentioned in subsection (1) above relates, or (ii) if no such partial closure notice was issued, issued a final closure notice,

15

In section 29A (NRCGT disposals: determination of amount which should have been assessed), in subsection (5), for paragraph (b) substitute—

(b) in a case where a notice of enquiry into the return was given— (i) issued a partial closure notice as regards a matter to which the situation mentioned in subsection (1) relates, or (ii) if no such partial closure notice was issued, issued a final closure notice,

16

In section 30 (recovery of overpayment of tax etc), in subsection (5)(b), for “28A(1)” substitute “ 28A(1B) ”.

17

In section 30B (amendment of partnership statement where loss of tax discovered), in subsection (6), for paragraph (b) substitute—

(b) in a case where a notice of enquiry into that return was given— (i) issued a partial closure notice as regards a matter to which the situation mentioned in subsection (1) above relates, or (ii) if no such partial closure notice was issued, issued a final closure notice,

18

In section 31 (appeals: right of appeal), in subsection (2)—

(a) after “in progress” insert “ in relation to any matter to which the amendment relates or which is affected by the amendment ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

19

In section 59AA (NRCGT disposals: payments on account of CGT), in subsection (8)(a), for “28A(1)” substitute “ 28A(1B) ”.

20

In section 59B (payment of income tax and capital gains tax), in subsection (4A)(a), for “28A(1)” substitute “ 28A(1B) ”.

21

(1) In Schedule 3ZA (date by which payment to be made after amendment etc of self-assessment), paragraph 2 is amended as follows.

(2) In sub-paragraph (3)(b)—

(a) for the first “the closure notice” substitute “ a partial or final closure notice ”;

(b) for “the day on which the closure notice was given” substitute “ the relevant day ”.

(3) After sub-paragraph (3) insert—

(4) In sub-paragraph (3)(b), “the relevant day” means— (a) in the case of an amount of tax that is payable, the day on which the partial or final closure notice was given; (b) in the case of an amount of tax that is repayable— (i) if the closure notice was a final closure notice, the day on which that notice was given, and (ii) if the closure notice was a partial closure notice, the day on which the final closure notice relating to the enquiry was given.

TCGA 1992

22

(1) Section 184I of TCGA 1992 (notices under sections 184G and 184H) is amended as follows.

(2) In subsection (4)—

(a) after “completed” insert “ in relation to any matters ”;

(b) after “relevant notice” insert “ relating to those matters ”.

(3) In subsection (5), for “into the return” substitute “ referred to in subsection (4) ”.

(4) In subsection (7)(a), after “period” insert “ (so far as relating to the matters in question) ”.

(5) After subsection (9) insert—

(9A) Subsection (9) does not apply to a partial closure notice which does not relate to any matter to which the relevant notice relates.

(6) In subsection (10), after “completed,” insert “ so far as relating to the matters to which the relevant notice relates, ”.

FA 1998

23

Schedule 18 to FA 1998 (company tax returns, assessments and related matters) is amended as follows.

24

(1) Paragraph 30 (amendment of self-assessment during enquiry to prevent loss of tax) is amended as follows.

(2) In sub-paragraph (1)—

(a) for “before the enquiry is completed” substitute “ while the enquiry is in progress in relation to a matter ”;

(b) after “deficiency” insert “ so far as it relates to the matter ”.

(3) After sub-paragraph (5) insert—

(6) For the purposes of this paragraph, the period during which an enquiry is in progress in relation to any matter is the whole of the period— (a) beginning with the day on which notice of enquiry is given, and (b) ending with the day on which a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued.

25

(1) Paragraph 31 (amendment of return by company during enquiry) is amended as follows.

(2) In sub-paragraph (1), for “is in progress into the return” substitute “ into the return is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(3) In sub-paragraph (3) for “until after the enquiry is completed” substitute “ while the enquiry is in progress in relation to any matter to which the amendment relates or which is affected by the amendment ”.

(4) In sub-paragraph (4)(a)—

(a) for “the closure notice” substitute “ a partial or final closure notice ”;

(b) for “on the completion of the enquiry” substitute “ when a partial closure notice is issued in relation to the matters to which the amendment relates or which are affected by the amendment or, if no such notice is issued, a final closure notice is issued ”.

(5) In sub-paragraph (5)—

(a) after “in progress” insert “ in relation to any matter ”;

(b) for “the enquiry is completed” substitute “ a partial closure notice is issued in relation to the matter or, if no such notice is issued, a final closure notice is issued ”.

26

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.

This text is published under legislation.gov.uk's own terms of reuse, not a Legalize or public-domain licence. legislation.gov.uk
Open Government Licence v3.0 (attribution required)
© Crown and database right. Derived from content available under the Open Government Licence v3.0 from legislation.gov.uk.