Finance Act 2020

(48A) (1) This section applies if a person is connected with a company and— (a) the person or the person's nominee— (i) agrees to transfer unlisted securities to the company or the company's nominee for consideration in money or money's worth, or (ii) transfers such securities to the company or the company's nominee for consideration in money or money's worth, and (b) some or all of the consideration consists of the issue of shares. (2) In this section “unlisted securities” means chargeable securities that are not listed securities within the meaning of section 48 (SDRT: listed securities and connected persons). (3) For the purposes of stamp duty reserve tax chargeable under section 87 of FA 1986 (the principal charge), the amount or value of the consideration is to be treated as being equal to— (a) the amount or value of the consideration for the transfer, or (b) if higher, the market value of the unlisted securities at the time the agreement is made. (4) Subsection (5) has effect for the purposes of stamp duty reserve tax chargeable under section 93 of FA 1986 (depositary receipts) or section 96 of that Act (clearance services). (5) If the amount or value of the consideration for any transfer of unlisted securities is less than the value of those securities at the time they are transferred, the transfer is to be treated as being for an amount of consideration in money equal to that value. (6) For the purposes of this section— (a) the value of unlisted securities is to be taken to be their market value; (b) “market value” has the same meaning as in TCGA 1992 and is to be determined in accordance with sections 272 and 273 of that Act (valuation). (7) Section 1122 of CTA 2010 (connected persons) has effect for the purposes of this section. (8) This section is to be construed as one with Part 4 of FA 1986. (9) This section has effect— (a) in relation to the charge to tax under section 87 of FA 1986 where— (i) the agreement to transfer securities is conditional and the condition is satisfied on or after the relevant date, or (ii) in any other case, the agreement is made on or after that date; (b) in relation to the charge to tax under section 93 or 96 of that Act, where the transfer is on or after the relevant date (whenever the arrangement was made). In this subsection “the relevant date” is the day on which FA 2020 is passed.

Stamp duty: acquisition of target company’s share capital

79

• (1) Section 77A of FA 1986 (disqualifying arrangements) is amended as follows.

• (2) In subsection (2), after paragraph (b) insert—

but a person who has held at least 25% of the issued share capital of the target company at all times during the relevant period is not within paragraph (a) or (b).

• (3) After that subsection insert—

(2A) For the purposes of subsection (2) the “relevant period” is the period of 3 years ending immediately before the time at which the shares in the acquiring company are issued (or first issued) as consideration for the acquisition.

• (4) In subsection (3) omit “But”.

• (5) After subsection (5) insert—

(5A) The Treasury may by regulations amend subsection (2) or (2A) so as to alter the percentage or length of the period for the time being specified there. (5B) The power to make regulations under subsection (5A) is exercisable by statutory instrument subject to annulment in pursuance of a resolution of the House of Commons.

• (6) The amendments made by this section have effect in relation to instruments executed on or after the day on which this Act is passed.

Value added tax

Call-off stock arrangements

80

• (1) VATA 1994 is amended as follows.

• (2) After section 14 insert—

(14A) Schedule 4B (call-off stock arrangements) has effect.

• (3) In section 69 (breaches of regulatory provisions)—

• (a) in subsection (1)(a) for “or paragraph 5 of Schedule 3A” substitute “ , paragraph 5 of Schedule 3A or paragraph 9(1) or (2)(a) of Schedule 4B ”, and

• (b) in subsection (2) after “under” insert “ paragraph 8 or 9(2)(b) of Schedule 4B or ”.

• (4) In Schedule 4 (matters to be treated as a supply of goods or services) in paragraph 6, after sub-paragraph (2) insert—

(3) Sub-paragraph (1) above is subject to paragraph 2 of Schedule 4B (call-off stock arrangements).

• (5) After Schedule 4A insert—

SCHEDULE 4B (1) (1) This Schedule applies where— (a) on or after 1 January 2020 goods forming part of the assets of any business are removed — (i) from the United Kingdom for the purpose of being taken to a place in a member State, or (ii) from a member State for the purpose of being taken to a place in the United Kingdom, (b) the goods are removed in the course or furtherance of that business by or under the directions of the person carrying on that business (“the supplier”), (c) the goods are removed with a view to their being supplied in the destination State, at a later stage and after their arrival there, to another person (“the customer”), (d) at the time of the removal the customer is entitled to take ownership of the goods in accordance with an agreement existing between the customer and the supplier, (e) at the time of the removal the supplier does not have a business establishment or other fixed establishment in the destination State, (f) at the time of the removal the customer is identified for the purposes of VAT in accordance with the law of the destination State and both the identity of the customer and the number assigned to the customer for the purposes of VAT by the destination State are known to the supplier, (g) as soon as reasonably practicable after the removal the supplier records the removal in the register provided for in Article 243(3) of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax, and (h) the supplier includes the number mentioned in paragraph (f) in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC. (2) In this Schedule— - “the destination State” means— 1. in a case within paragraph (i) of sub-paragraph (1)(a), the member State concerned, and 2. in a case within paragraph (ii) of sub-paragraph (1)(a), the United Kingdom, and - “the origin State” means— 1. in a case within paragraph (i) of sub-paragraph (1)(a), the United Kingdom, and 2. in a case within paragraph (ii) of sub-paragraph (1)(a), the member State concerned. (2) The removal of the goods from the origin State is not to be treated by reason of paragraph 6(1) of Schedule 4 as a supply of goods by the supplier. (3) (1) The rules in sub-paragraph (2) apply if— (a) during the period of 12 months beginning with the day the goods arrive in the destination State the supplier transfers the whole property in the goods to the customer, and (b) during the period beginning with the day the goods arrive in the destination State and ending immediately before the time of that transfer no relevant event occurs. (2) The rules are that— (a) a supply of the goods in the origin State is deemed to be made by the supplier, (b) the deemed supply is deemed to involve the removal of the goods from the origin State at the time of the transfer mentioned in sub-paragraph (1), (c) the consideration given by the customer for the transfer mentioned in sub-paragraph (1) is deemed to have been given for the deemed supply, and (d) an acquisition of the goods by the customer in pursuance of the deemed supply is deemed to take place in the destination State. (3) For the meaning of a “relevant event”, see paragraph 7. (4) (1) The rules in sub-paragraph (2) apply (subject to paragraph 6) if— (a) during the period of 12 months beginning with the day the goods arrive in the destination State a relevant event occurs, and (b) during the period beginning with the day the goods arrive in the destination State and ending immediately before the time that relevant event occurs the supplier does not transfer the whole property in the goods to the customer. (2) The rules are that— (a) a supply of the goods in the origin State is deemed to be made by the supplier, (b) the deemed supply is deemed to involve the removal of the goods from the origin State at the time the relevant event occurs, and (c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination State. (3) For the meaning of a “relevant event”, see paragraph 7. (5) (1) The rules in sub-paragraph (2) apply (subject to paragraph 6) if during the period of 12 months beginning with the day the goods arrive in the destination State the supplier does not transfer the whole property in the goods to the customer and no relevant event occurs. (2) The rules are that— (a) a supply of the goods in the origin State is deemed to be made by the supplier, (b) the deemed supply is deemed to involve the removal of the goods from the origin State at the beginning of the day following the expiry of the period of 12 months mentioned in sub-paragraph (1), and (c) an acquisition of the goods by the supplier in pursuance of the deemed supply is deemed to take place in the destination State. (3) For the meaning of a “relevant event”, see paragraph 7. (6) The rules in paragraphs 4(2) and 5(2) do not apply if during the period of 12 months beginning with the day the goods arrive in the destination State— (a) the goods are returned to the origin State by or under the direction of the supplier, and (b) the supplier records the return of the goods in the register provided for in Article 243(3) of Council Directive 2006/112/EC. (7) (1) For the purposes of this Schedule each of the following events is a relevant event— (a) the supplier forms an intention not to supply the goods to the customer (but see sub-paragraph (2)), (b) the supplier forms an intention to supply the goods to the customer otherwise than in the destination State, (c) the supplier establishes a business establishment or other fixed establishment in the destination State, (d) the customer ceases to be identified for the purposes of VAT in accordance with the law of the destination State, (e) the goods are removed from the destination State by or under the directions of the supplier otherwise than for the purpose of being returned to the origin State, or (f) the goods are destroyed, lost or stolen. (2) But the event mentioned in paragraph (a) of sub-paragraph (1) is not a relevant event for the purposes of this Schedule if— (a) at the time that the event occurs the supplier forms an intention to supply the goods to another person (“the substitute customer”), (b) at that time the substitute customer is identified for the purposes of VAT in accordance with the law of the destination State, (c) the supplier includes the number assigned to the substitute customer for the purposes of VAT by the destination State in the recapitulative statement provided for in Article 262(2) of Council Directive 2006/112/EC, and (d) as soon as reasonably practicable after forming the intention to supply the goods to the substitute customer the supplier records that intention in the register provided for in Article 243(3) of Council Directive 2006/112/EC. (3) In a case where sub-paragraph (2) applies, references in this Schedule to the customer are to be then read as references to the substitute customer. (4) In a case where the goods are destroyed, lost or stolen but it is not possible to determine the date on which that occurred, the goods are to be treated for the purposes of this Schedule as having been destroyed, lost or stolen on the date on which they were found to be destroyed or missing. (8) In a case where the origin State is the United Kingdom, any record made by the supplier in pursuance of paragraph 1(1)(g), 6(b) or 7(2)(d) must be preserved for such period not exceeding 6 years as the Commissioners may specify in writing. (9) (1) In a case where the destination State is the United Kingdom, the customer must as soon as is reasonably practicable make a record of the information relating to the goods that is specified in Article 54A(2) of Council Implementing Regulation (EU) No. 282/2011 of 15 March 2011 laying down implementing measures for Directive 2006/112/EC on the common system of value added tax. (2) A record made under this paragraph must— (a) be made in a register kept by the customer for the purposes of this paragraph, and (b) be preserved for such period not exceeding 6 years as the Commissioners may specify in writing.

• (6) In Schedule 6 (valuation of supplies: special cases) in paragraph 6(1) in paragraph (c) after “that Schedule” insert

; or (d) paragraph 4(2)(a) or 5(2)(a) of Schedule 4B

.

• (7) The Value Added Tax Regulations 1995 (S.I. 1995/2518) are amended as follows.

• (8) In regulation 21 (interpretation of Part 4)—

• (a) the existing text becomes paragraph (1), and

• (b) after that paragraph insert—

(2) For the purposes of this Part— (a) goods are removed from the United Kingdom under call-off stock arrangements if they are removed from the United Kingdom in circumstances where the conditions in paragraphs (a) to (g) of paragraph 1(1) of Schedule 4B to the Act are met, (b) references to “the customer” or “the destination State”, in relation to goods removed from the United Kingdom under call-off stock arrangements, are to be construed in accordance with paragraph 1 of Schedule 4B to the Act, and (c) “call-off stock goods”, in relation to a taxable person, means goods that have been removed from the United Kingdom under call-off stock arrangements by or under the directions of the taxable person.

• (9) After regulation 22 insert—

(22ZA) (1) A taxable person must submit a statement to the Commissioners if any of the following events occurs— (a) goods are removed from the United Kingdom under call-off stock arrangements by or under the directions of the taxable person; (b) call-off stock goods are returned to the United Kingdom by or under the directions of the taxable person at any time during the period of 12 months beginning with their arrival in the destination State; (c) the taxable person forms an intention to supply call-off stock goods to a person (“the substitute”) other than the customer in circumstances where— (i) the taxable person forms that intention during the period of 12 months beginning with the arrival of the goods in the destination State, and (ii) the substitute is identified for VAT purposes in accordance with the law of the destination State. (2) The statement must— (a) be made in the form specified in a notice published by the Commissioners, (b) contain, in respect of each event mentioned in paragraph (1) which has occurred within the period in respect of which the statement is made, such information as may from time to time be specified in a notice published by the Commissioners, and (c) contain a declaration that the information provided in the statement is true and complete. (3) Paragraphs (3), (4) and (6) of regulation 22 have effect for the purpose of determining the period in respect of which the statement must be made, but as if— (a) in paragraph (3)(a) of regulation 22, for “paragraphs (4) to (6)” there were substituted “ paragraphs (4) and (6) ”, (b) in paragraph (3)(a) of regulation 22, for “the EU supply of goods is made” there were substituted “ the event occurs ”, (c) in paragraph (4)(a) of regulation 22, for “the supply is made” there were substituted “ the event occurs ”, and (d) in paragraph (6) of regulation 22, the reference to paragraph (1) of that regulation were a reference to paragraph (1) of this regulation. (4) In determining the period in respect of which the statement must be made, the time at which an event mentioned in paragraph (1)(a) of this regulation is to be taken to occur is the time the goods concerned are removed from the United Kingdom (rather than the time the condition mentioned in paragraph (g) of paragraph 1(1) to Schedule 4B to the Act is met in respect of the removal).

• (10) In regulation 22B (EC sales statements: supplementary)—

• (a) in paragraph (1) for the words from “statements”, in the first place it occurs, to “and” substitute “ more than one statement is to be submitted under regulations 22 to ”,

• (b) in paragraph (2) after “22” insert “ , 22ZA ”, and

• (c) in paragraph (3), in the words before paragraph (a), after “22” insert “ , 22ZA ”.

• (11) Regulation 22ZA of the Value Added Tax Regulations 1995 (as inserted by subsection (9)) is to be treated for the purposes of sections 65 and 66 of VATA 1994 as having been made under paragraph 2(3) of Schedule 11 to that Act.

Alcohol liquor duties

Post-duty point dilution of wine or made-wine

81

• (1) After section 55 of ALDA 1979 insert—

(55ZA) (1) This section applies if— (a) wine or made-wine is imported into the United Kingdom or produced in the United Kingdom for sale, (b) excise duty is chargeable on the wine or made-wine as a result of section 54 or 55, (c) after the excise duty point in relation to that charge, a person mixes or otherwise adds, at any place in the United Kingdom, water or any other substance to the wine or made-wine in a case where what results (“the new product”) is intended for sale, and (d) if the addition had taken place immediately before that duty point, the amount of the excise duty would have been greater than the amount actually payable. (2) The addition attracts a penalty under section 9 of the Finance Act 1994 (civil penalties), and the new product is liable to forfeiture. (3) This section has effect, despite section 8 of the Isle of Man Act 1979, as if a removal of wine or made-wine to the United Kingdom from the Isle of Man constituted its importation into the United Kingdom (and references to the charge to excise duty as a result of section 54 or 55 and to the excise duty point are to be read accordingly).

• (2) The amendment made by this section has effect in relation to any addition of water or any other substance on or after 1 April 2020.

Tobacco products duty

Rates of tobacco products duty

82

• (1) In Schedule 1 to TPDA 1979 (table of rates of tobacco products duty), for the Table substitute—

1 Cigarettes	An amount equal to the higher of—16.5% of the retail price plus £237.34 per thousand cigarettes, or£305.23 per thousand cigarettes.
2 Cigars	£296.04 per kilogram
3 Hand-rolling tobacco	£253.33 per kilogram
4 Other smoking tobacco and chewing tobacco	£130.16 per kilogram
5 Tobacco for heating	£243.95 per kilogram

• (2) The amendment made by this section is treated as having come into force at 6pm on 11 March 2020.

Vehicle taxes

Rates for light passenger or light goods vehicles, motorcycles etc

83

• (1) Schedule 1 to VERA 1994 (annual rates of vehicle excise duty) is amended as follows.

• (2) In paragraph 1 (general rate)—

• (a) in sub-paragraph (2) (vehicle not covered elsewhere in Schedule with engine cylinder capacity exceeding 1,549cc), for “£265” substitute “ £270 ”, and

• (b) in sub-paragraph (2A) (vehicle not covered elsewhere in Schedule with engine cylinder capacity not exceeding 1,549cc), for “£160” substitute “ £165 ”.

• (3) In paragraph 1B (graduated rates for light passenger vehicles registered before 1 April 2017), for the Table substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate	Rate
(1)	(2)	(3)	(4)
Exceeding	Not exceeding	Reduced rate	Standard rate
g/km	g/km	£	£
100	110	10	20
110	120	20	30
120	130	115	125
130	140	140	150
140	150	155	165
150	165	195	205
165	175	230	240
175	185	255	265
185	200	295	305
200	225	320	330
225	255	555	565
255		570	580

.

• (4) In the sentence immediately following the Table in that paragraph, for paragraphs (a) and (b) substitute—

(a) in column (3), in the last two rows, “320” were substituted for “555” and “ 570 ”, and (b) in column (4), in the last two rows, “330” were substituted for “565” and “ 580 ”.

• (5) In paragraph 1GC (graduated rates for first licence for light passenger vehicles registered on or after 1 April 2017), for Table 1 (vehicles other than higher rate diesel vehicles) substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate	Rate
(1)	(2)	(3)	(4)
Exceeding	Not exceeding	Reduced rate	Standard rate
g/km	g/km	£	£
0	50	0	10
50	75	15	25
75	90	100	110
90	100	125	135
100	110	145	155
110	130	165	175
130	150	205	215
150	170	530	540
170	190	860	870
190	225	1295	1305
225	255	1840	1850
255		2165	2175

.

• (6) In that paragraph, for Table 2 (higher rate diesel vehicles) substitute—

CO₂ emissions figure	CO₂ emissions figure	Rate
(1)	(2)	(3)
Exceeding	Not exceeding	Rate
g/km	g/km	£
0	50	25
50	75	110
75	90	135
90	100	155
100	110	175
110	130	215
130	150	540
150	170	870
170	190	1305
190	225	1850
225	255	2175
255		2175

.

• (7) In paragraph 1GD(1) (rates for any other licence for light passenger vehicles registered on or after 1 April 2017)—

• (a) in paragraph (a) (reduced rate), for “£135” substitute “ £140 ”, and

• (b) in paragraph (b) (standard rate), for “£145” substitute “ £150 ”.

• (8) In paragraph 1GE(2) (rates for light passenger vehicles registered on or after 1 April 2017 with a price exceeding £40,000)—

• (a) in paragraph (a), for “£440” substitute “ £465 ”, and

• (b) in paragraph (b), for “£450” substitute “ £475 ”.

• (9) In paragraph 1J(a) (rates for light goods vehicles that are not pre-2007 or post-2008 lower emission vans), for “£260” substitute “ £265 ”.

• (10) In paragraph 2(1) (rates for motorcycles)—

• (a) in paragraph (b) (motorbicycles with engine cylinder capacity exceeding 150cc but not exceeding 400cc), for “£43” substitute “ £44 ”,

• (b) in paragraph (c) (motorbicycles with engine cylinder capacity exceeding 400cc but not exceeding 600cc), for “£66” substitute “ £67 ”, and

• (c) in paragraph (d) (other cases), for “£91” substitute “ £93 ”.

• (11) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2020.

Applicable CO2 emissions figure determined using WLTP values

84

• (1) In Schedule 1 to VERA 1994 (annual rates of duty) in paragraph 1GA(5) (meaning of “the applicable CO₂ emissions figure”)—

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

• (b) in paragraph (b)—

• (i) after “figure” insert “ of a vehicle first registered before 1 April 2020 ”,

• (ii) for “light-duty” substitute “ light ”, and

• (iii) after “EU certificate of conformity” insert “ or UK approval certificate ”, and

• (c) at the end of paragraph (b) insert

, and (c) for the purpose of determining the applicable CO₂ emissions figure of a vehicle first registered on or after 1 April 2020, ignore any values specified in an EU certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values

.

• (2) The amendments made by this section have effect in relation to licences taken out on or after 1 April 2020.

Electric vehicles: extension of exemption

85

• (1) VERA 1994 is amended as follows.

• (2) In paragraph 25 of Schedule 2 (exempt vehicles: light passenger vehicles with low CO₂ emissions) omit sub-paragraphs (5) and (6) (no exemption if vehicle price exceeds £40,000 etc).

• (3) As a consequence, Part 1AA of Schedule 1 (annual rates of duty: light passenger vehicles registered on or after 1 April 2017) is amended as follows.

• (4) In paragraph 1GB (exemption from paying duty on first vehicle licence for certain vehicles)—

• (a) in sub-paragraph (1) omit “(2) or”, and

• (b) omit sub-paragraph (2).

• (5) In paragraph 1GD (rates of duty payable on any other vehicle licence for vehicle), in sub-paragraph (2) omit “or (4)”.

• (6) In paragraph 1GE (higher rates of duty: vehicles with a price exceeding £40,000)—

• (a) omit sub-paragraphs (3) and (4), and

• (b) in sub-paragraph (5) for “sub-paragraphs (2) and (4) do” substitute “ Sub-paragraph (2) does ”.

• (7) In paragraph 1GF (calculating the price of a vehicle), in sub-paragraph (1) omit “and (3)(a)”.

• (8) The amendments made by this section come into force on 1 April 2020 but do not apply in relation to licences in force immediately before that date.

Motor caravans

86

• (1) In VERA 1994, in Part 1AA of Schedule 1 (annual rates of duty: light passenger vehicles registered on or after 1 April 2017), paragraph 1GA is amended as follows.

• (2) After sub-paragraph (1) insert—

(1A) But this Part of this Schedule does not apply to a motor caravan which is first registered, under this Act or under the law of a country or territory outside the United Kingdom, on or after 12 March 2020.

• (3) After sub-paragraph (2) insert—

(2A) For the purposes of sub-paragraph (1A) a vehicle is a “motor caravan” if the certificate mentioned in sub-paragraph (1)(b) identifies the vehicle as a motor caravan within the meaning of Annex II to Directive 2007/46/EC.

Exemption in respect of medical courier vehicles

87

• (1) Schedule 2 to VERA 1994 (exempt vehicles) is amended as follows.

• (2) In the heading before paragraph 6, after “Ambulances” insert “ , medical courier vehicles ”.

• (3) After paragraph 6 insert—

(6A) (1) A vehicle is an exempt vehicle if— (a) it is used primarily for the transportation of medical items, (b) it is readily identifiable as a vehicle used for the transportation of medical items by being marked “Blood” on both sides, and (c) it is registered under this Act in the name of a charity whose main purpose is to provide services for the transportation of medical items. (2) In this paragraph— - “charity” means a charity as defined by paragraph 1 of Schedule 6 to the Finance Act 2010; - “medical items” means items intended for use for medical purposes, including in particular— 1. blood; 2. medicines and other medical supplies; 3. items relating to people who are undergoing medical treatment; - “item” includes any substance.

• (4) The amendments made by this section come into force on 1 April 2020.

HGV road user levy

88

• (1) Subject to section 88A, section 5(2) of the HGV Road User Levy Act 2013 (HGV road user levy charged for all periods for which a UK heavy goods vehicle is charged to vehicle excise duty) does not apply where the period for which a UK heavy goods vehicle is charged to vehicle excise duty is a period that begins in the exempt period.

• (2) Section 6(2) of the 2013 Act (HGV road user levy charged in respect of non-UK heavy goods vehicle for each day on which the vehicle is used or kept on a road to which the Act applies) does not apply in respect of any day in the exempt period.

• (3) For the purposes of this section and section 88A, the exempt period is the period of 36 months beginning with 1 August 2020.

• (4) Section 7 of the 2013 Act (rebate of levy) has effect as if, after subsection (2A), there were inserted—

(2B) A rebate entitlement also arises where HGV road user levy has been paid in respect of a non-UK heavy goods vehicle in accordance with section 6(2) in respect of any part of the exempt period within the meaning of section 88(3) of the Finance Act 2020.

Hydrocarbon oil duties

Rebated fuel: private pleasure craft

89

Schedule 11 makes provision about the use of rebated fuel in private pleasure craft.

Air passenger duty

Rates of air passenger duty from 1 April 2021

90

• (1) In section 30(4A) of FA 1994 (air passenger duty: long haul rates)—

• (a) in paragraph (a), for “£80” substitute “ £82 ”, and

• (b) in paragraph (b), for “£176” substitute “ £180 ”.

• (2) The amendments made by this section have effect in relation to the carriage of passengers beginning on or after 1 April 2021.

Gaming duty

Amounts of gross gaming yield charged to gaming duty

91

• (1) In section 11(2) of FA 1997 (rates of gaming duty), for the table substitute—

Part of gross gaming yield	Rate
The first £2,471,000	15%
The next £1,703,500	20%
The next £2,983,000	30%
The next £6,296,500	40%
The remainder	50%

.

• (2) The amendment made by this section has effect in relation to accounting periods beginning on or after 1 April 2020.

Environmental taxes

Rates of climate change levy until 1 April 2021

92

• (1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.

• (2) In sub-paragraph (1), for the table substitute—

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00811 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00406 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.03174 per kilogram

.

• (3) In sub-paragraph (1)—

• (a) in paragraph (ba) (reduced-rate supplies of electricity), for “7” substitute “ 8 ”,

• (b) after that paragraph insert—

(bb) if the supply is a reduced-rate of supply of any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state, 23 per cent of the amount that would be payable if the supply were a supply to which paragraph (a) applies;

, and

• (c) in paragraph (c) (other reduced-rate supplies), for “22” substitute “ 19 ”.

• (4) In consequence of the amendment made by subsection (3), in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, for the definition of “r” substitute—

r= 0.92 in the case of electricity; 0.77 in the case of any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state; and 0.81 in any other case.

• (5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2020.

Rates of climate change levy from 1 April 2021

93

• (1) Paragraph 42 of Schedule 6 to FA 2000 (climate change levy: amount payable by way of levy) is amended as follows.

• (2) In sub-paragraph (1), for the table substitute—

Taxable commodity supplied	Rate at which levy payable if supply is not a reduced-rate supply
Electricity	£0.00775 per kilowatt hour
Gas supplied by a gas utility or any gas supplied in a gaseous state that is of a kind supplied by a gas utility	£0.00465 per kilowatt hour
Any petroleum gas, or other gaseous hydrocarbon, supplied in a liquid state	£0.02175 per kilogram
Any other taxable commodity	£0.03640 per kilogram

.

• (3) In sub-paragraph (1)(c), as amended by section 92(3)(c), for “19” substitute “ 17 ”.

• (4) In consequence of the amendment made by subsection (3), in the definition of “r” in the Notes to paragraph 2 of Schedule 1 to the Climate Change Levy (General) Regulations 2001, as amended by section 92(4), for “0.81” substitute “ 0.83 ”.

• (5) The amendments made by this section have effect in relation to supplies treated as taking place on or after 1 April 2021.

Rates of landfill tax

94

• (1) Section 42 of FA 1996 (amount of landfill tax) is amended as follows.

• (2) In subsection (1)(a) (standard rate), for “£91.35” substitute “ £94.15 ”.

• (3) In subsection (2) (reduced rate for certain disposals), in the words after paragraph (b)—

• (a) for “£91.35” substitute “ £94.15 ”, and

• (b) for “£2.90” substitute “ £3 ”.

• (4) The amendments made by this section have effect in relation to disposals made (or treated as made) on or after 1 April 2020.

Carbon emissions tax

95

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

Charge for allocating allowances under emissions reduction trading scheme

96

• (1) The Treasury may impose charges by providing in regulations for emissions allowances to be allocated in return for payment.

• (2) Regulations under subsection (1) may in particular include provision—

• (a) for persons other than persons to whom a trading scheme applies to be allocated emissions allowances in return for payment;

• (b) as to the imposition of fees and the making and forfeiting of deposits;

• (c) as to the person by whom allocations in return for payment are to be conducted;

• (d) for allocations in return for payment to be overseen by an independent person appointed by the Treasury;

• (e) for the imposition of penalties for failure to comply with the terms of the regulations or of a scheme under subsection (3);

• (f) for the imposition of interest in respect of any charges, fees or penalties due under the regulations;

• (g) for and in connection with the recovery of any charges, fees, penalties or interest due under the regulations;

• (h) conferring rights of appeal against decisions made in allocations in return for payment, the forfeiting of deposits and the imposition of penalties (including specifying the person, court or tribunal to hear and determine appeals).

• (3) The Treasury may make schemes about the conduct and terms of allocations of emissions allowances in return for payment (the schemes having effect subject to any regulations under this section).

• (4) Schemes under subsection (3) may in particular include provision about—

• (a) who may participate in allocations in return for payment,

• (b) the allowances to be allocated in return for payment, and

• (c) where and when allocations in return for payment are to take place.

• (5) Regulations under this section are to be made by statutory instrument.

• (6) A statutory instrument containing the first regulations under this section may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, the House of Commons.

• (7) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of the House of Commons (unless a draft of the instrument has been laid before, and approved by a resolution of, that House).

• (8) In this section—

• “emissions allowance” means an allowance under paragraph 5 of Schedule 2 to the Climate Change Act 2008 relating to a trading scheme;

• “trading scheme” means a trading scheme dealt with under Part 1 of that Schedule (schemes limiting activities relating to emissions of greenhouse gas).

Import duty

International trade disputes

97

In section 15(1)(b) of TCTA 2018 (import duty: international disputes etc), for “is authorised under international law” substitute “ considers that (having regard to the matters set out in section 28 and any other relevant matters) it is appropriate ”.

PART 4 — Miscellaneous and final

Insolvency

HMRC debts: priority on insolvency

98

• (1) In section 386 of the Insolvency Act 1986 (preferential debts)—

• (a) in subsection (1) after “other deposits” insert “ ; certain HMRC debts ”;

• (b) in subsection (1B) for “or 15BB” substitute “ , 15BB or 15D ”.

• (2) In Schedule 6 to that Act (preferential debts) after paragraph 15C insert—

(15D) (1) Any amount owed at the relevant date by the debtor to the Commissioners in respect of— (a) value added tax, or (b) a relevant deduction. (2) In sub-paragraph (1), the reference to “any amount” is subject to any regulations under section 99(1) of the Finance Act 2020. (3) For the purposes of sub-paragraph (1)(b) a deduction is “relevant” if— (a) the debtor is required, by virtue of an enactment, to make the deduction from a payment made to another person and to pay an amount to the Commissioners on account of the deduction, (b) the payment to the Commissioners is credited against any liabilities of the other person, and (c) the deduction is of a kind specified in regulations under section 99(3) of the Finance Act 2020. (4) In this paragraph “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

• (3) In section 129(2) of the Bankruptcy (Scotland) Act 2016 (asp 21) (priority in distribution: meaning of certain expressions) in the definition of “secondary preferred debt” for “paragraph 7 or 8” substitute “ any of paragraphs 7 to 8A ”.

• (4) In Part 1 of Schedule 3 to that Act (list of preferred debts) after paragraph 8 insert—

(8A) (1) Any amount owed at the relevant date by the debtor to the Commissioners in respect of— (a) value added tax, or (b) a relevant deduction. (2) In sub-paragraph (1), the reference to “any amount” is subject to any regulations under section 99(1) of the Finance Act 2020. (3) For the purposes of sub-paragraph (1)(b) a deduction is “relevant” if— (a) the debtor is required, by virtue of an enactment, to make the deduction from a payment made to another person and to pay an amount to the Commissioners on account of the deduction, (b) the payment to the Commissioners is credited against any liabilities of the other person, and (c) the deduction is of a kind specified in regulations under section 99(3) of the Finance Act 2020. (4) In this paragraph “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

• (5) In Article 346 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (preferential debts)—

• (a) in paragraph (1) after “other deposits” insert “ ; certain HMRC debts ”;

• (b) in paragraph (1B) for “or 20” substitute “ , 20 or 22 ”.

• (6) In Schedule 4 to that Order (preferential debts) after paragraph 21 insert—

(22) (1) Any amount owed at the relevant date by the debtor to the Commissioners in respect of— (a) value added tax, or (b) a relevant deduction. (2) In sub-paragraph (1), the reference to “any amount” is subject to any regulations under section 99(1) of the Finance Act 2020. (3) For the purposes of sub-paragraph (1)(b) a deduction is “relevant” if— (a) the debtor is required, by virtue of an enactment, to make the deduction from a payment made to another person and to pay an amount to the Commissioners on account of the deduction, (b) the payment to the Commissioners is credited against any liabilities of the other person, and (c) the deduction is of a kind specified in regulations under section 99(3) of the Finance Act 2020. (4) In this paragraph “the Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

• (7) The amendments made by this section do not apply in relation to any case where the relevant date is before 1 December 2020.

HMRC debts: regulations

99

• (1) The Treasury may by regulations provide that only the following amounts are secondary preferential debts (or, in relation to Scotland, secondary preferred debts) for the purpose of a relevant provision—

• (a) in the case of amounts owed in respect of value added tax, amounts referable to such period as is specified in the regulations;

• (b) in the case of amounts owed in respect of a relevant deduction, amounts owed in respect of a deduction from a payment made during such period as is specified in the regulations.

• (2) In subsection (1) “relevant provision” means—

• (a) paragraph 15D(1) of Schedule 6 to the Insolvency Act 1986 (preferential debts: certain HMRC debts);

• (b) paragraph 8A(1) of Schedule 3 to the Bankruptcy (Scotland) Act 2016 (asp 21) (list of preferred debts: certain HMRC debts);

• (c) paragraph 22(1) of Schedule 4 to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (preferential debts: certain HMRC debts).

• (3) The Treasury may by regulations specify kinds of deductions for the purposes of—

• (a) paragraph 15D(3)(c) of Schedule 6 to the Insolvency Act 1986;

• (b) paragraph 8A(3)(c) of Schedule 3 to the Bankruptcy (Scotland) Act 2016 (asp 21);

• (c) paragraph 22(3)(c) of Schedule 4 to the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).

• (4) Regulations under this section may contain transitional or supplementary provision.

• (5) Regulations under this section—

• (a) are to be made by statutory instrument;

• (b) are subject to annulment in pursuance of a resolution of the House of Commons.

Joint and several liability

Joint and several liability of company directors etc

100

• (1) Schedule 13 makes provision for individuals to be jointly and severally liable, in certain circumstances involving insolvency or potential insolvency, for amounts payable to the Commissioners for Her Majesty's Revenue and Customs by bodies corporate or unincorporate.

• (2) A reference in Schedule 13 to a tax liability of a company does not include—

• (a) any tax liability that relates to a period ending before the day on which this Act is passed;

• (b) any tax liability (other than one that relates to a period) arising from an event or default occurring before that day.

• (3) For the purposes of subsection (2), a tax liability relates to a period if—

• (a) the liability arises in respect of a particular tax year, accounting period or other period, or

• (b) the amount of the liability is calculated by reference to a particular period.

• (4) A reference in paragraph 5 of Schedule 13 to a penalty does not include any penalty in respect of which the determination to impose the penalty, or (as the case may be) the commencement of proceedings before the tribunal for the penalty to be imposed, occurs before the day on which this Act is passed.

General anti-abuse rule

Amendments relating to the operation of the GAAR

101

Schedule 14 makes—

• (a) provision about the procedural requirements and time limits for the making of adjustments by virtue of section 209 of FA 2013, and

• (b) provision amending paragraph 5 of Schedule 43C to that Act.

Compensation schemes etc

Tax relief for scheme payments etc

102

Schedule 15 makes provision for tax relief in respect of—

• (a) payments made under or otherwise referable to the Windrush Compensation Scheme,

• (b) payments under the Troubles Permanent Disablement Payment Scheme, ...

• (ba) payments made under or otherwise referable to compensation schemes established in connection with certain matters relating to Post Office Limited, and

• (c) other compensation payments made by or on behalf of a government, public authority or local authority.

Administration

HMRC: exercise of officer functions

103

• (1) Anything capable of being done by an officer of Revenue and Customs by virtue of a function conferred by or under an enactment relating to taxation may be done by HMRC (whether by means involving the use of a computer or otherwise).

• (2) Accordingly, it follows that HMRC may (among other things)—

• (a) give a notice under section 8, 8A or 12AA of TMA 1970 (notice to file personal, trustee or partnership return);

• (b) amend a return under section 9ZB of that Act (correction of personal or trustee return);

• (c) make an assessment to tax in accordance with section 30A of that Act (assessing procedure);

• (d) make a determination under section 100 of that Act (determination of penalties);

• (e) give a notice under paragraph 3 of Schedule 18 to FA 1998 (notice to file company tax return);

• (f) make a determination under paragraph 2 or 3 of Schedule 14 to FA 2003 (SDLT: determination of penalties).

• (3) Anything done by HMRC in accordance with subsection (1) has the same effect as it would have if done by an officer of Revenue and Customs (or, where the function is conferred on an officer of a particular kind, an officer of that kind).

• (4) In this section—

• “HMRC” means Her Majesty's Revenue and Customs;

• references to an officer of Revenue and Customs include an officer of a particular kind, such as an officer authorised for the purposes of an enactment.

• (5) This section is treated as always having been in force.

• (6) However, this section does not apply in relation to anything mentioned in subsection (1) done by HMRC if—

• (a) before 11 March 2020, a court or tribunal determined that the relevant act was of no effect because it was not done by an officer of Revenue and Customs (or an officer of a particular kind), and

• (b) at the beginning of 11 March 2020, the order of the court or tribunal giving effect to that determination had not been set aside or overturned on appeal.

Returns relating to LLP not carrying on business etc with view to profit

104

• (1) In TMA 1970 after section 12ABZA insert—

(12ABZAA) (1) This section applies where— (a) a person delivers a purported partnership return (“the relevant return”) in respect of a period (“the relevant period”), (b) the relevant return— (i) is made on the basis that the activities of a limited liability partnership (“the LLP”) are treated, under section 863 of ITTOIA 2005 or section 1273 of CTA 2009, as carried on in partnership by its members (“the purported partnership”), and (ii) relates to the purported partnership, but (c) the LLP does not carry on a business with a view to profit in the relevant period (and, accordingly, its activities are not treated as mentioned in paragraph (b)(i)). (2) For the purposes of the relevant enactments, treat the relevant return as a partnership return (and, accordingly, anything done under a relevant enactment in connection with the relevant return has the same effect as it would have if done in connection with a partnership return in a corresponding partnership case). (3) “Relevant enactment” means— (a) any of the following— (i) sections 12AC and 28B (enquiries into partnership returns), (ii) Part 4 of FA 2014 (follower notices and accelerated payment notices), and (b) any enactment relating to, or applying for the purposes of, an enactment within paragraph (a). (4) In relation to the relevant return, the relevant enactments apply with the necessary modifications, including in particular the following— (a) “partner” includes purported partner, and (b) “partnership” includes the purported partnership. (5) In this section— - “business” includes trade or profession; - “corresponding partnership case” means a corresponding case in which the limited liability partnership in question carries on a business with a view to profit in the relevant period; - “purported partner” means any person who was a member of the LLP in the relevant period; - “purported partnership return” means anything that— 1. purports to be a partnership return, and 2. is in a form, and is delivered in a way, that a partnership return could have been made and delivered in a corresponding partnership case.

• (2) The amendment made by subsection (1) is treated as always having been in force.

• (3) However, that amendment does not apply in relation to a purported partnership return if—

• (a) before 11 March 2020, a court or tribunal determined, in proceedings to which a limited liability partnership was a party, that the purported partnership return was not a return under section 12AA of TMA 1970, and

• (b) at the beginning of 11 March 2020, the order of the court or tribunal giving effect to that determination had not been set aside or overturned on appeal.

• (4) In Part 1 of Schedule 14 to F(No.2)A 2017 (digital reporting and record-keeping for income tax etc: amendments of TMA 1970), after paragraph 10B insert—

(10BA) (1) Section 12ABZAA (returns relating to LLP not carrying on business etc with view to profit) is amended as follows. (2) For subsection (2) substitute— (2) For the purposes of the relevant enactments— (a) where the relevant return purports to be a section 12AA partnership return, treat it as a section 12AA partnership return; (b) where the relevant return purports to be a Schedule A1 partnership return, treat it as a Schedule A1 partnership return, (and, accordingly, anything done under a relevant enactment in connection with the relevant return has the same effect as it would have if done in connection with a section 12AA or Schedule A1 partnership return (as the case may be) in a corresponding partnership case). (3) In subsection (5), in the definition of “purported partnership return”— (a) in paragraph (a), for “partnership return” substitute “ section 12AA or Schedule A1 partnership return ”; (b) in paragraph (b), for “partnership return” substitute “ section 12AA or Schedule A1 partnership return (as the case may be) ”.

• (5) The reference in section 61(6) of F(No.2)A 2017 (commencement) to Schedule 14 to that Act is to be read as a reference to that Schedule as amended by subsection (4) of this section.

Interest on unpaid tax in case of disaster etc of national significance

105

• (1) Section 135 of FA 2008 (interest on unpaid tax in case of disaster etc of national significance) is amended as follows.

• (2) In subsection (2), for the words from “arising” to the end substitute

that— (a) arises under or by virtue of an enactment or a contract settlement, and (b) is of a description (if any) specified in the order.

• (3) In subsection (4)—

• (a) after “relief period” insert “ , in relation to a deferred amount, ”;

• (b) in paragraph (b), after “revoked” insert “ or amended so that it ceases to have effect in relation to the deferred amount ”.

• (4) In subsection (10)—

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

• (b) at the end of paragraph (b) insert

, and (c) may specify different dates in relation to liabilities of different descriptions.

• (5) The amendments made by this section have effect from 20 March 2020.

Coronavirus

Taxation of coronavirus support payments

106

• (1) Schedule 16 makes provision about the taxation of coronavirus support payments.

• (2) In this section, and in that Schedule, “coronavirus support payment” means a payment made (whether before or after the passing of this Act) under any of the following schemes—

• (a) the coronavirus job retention scheme;

• (b) the self-employment income support scheme;

• (c) any other scheme that is the subject of a direction given under section 76 of the Coronavirus Act 2020 (functions of Her Majesty's Revenue and Customs in relation to coronavirus or coronavirus disease);

• (d) the coronavirus statutory sick pay rebate scheme;

• (e) a coronavirus business support grant scheme;

• (f) any scheme specified or described in regulations made under this section by the Treasury.

• (3) The Treasury may by regulations make provision about (including provision modifying) the application of Schedule 16 to a scheme falling within subsection (2)(b) to (f) (including provision modifying paragraph 8 of that Schedule so that it applies to payments made under a coronavirus business support grant scheme).

• (4) Regulations under this section may make provision about coronavirus support payments made before (as well as after) the making of the regulations.

• (5) In this section, and in that Schedule—

• “coronavirus” and “coronavirus disease” have the meaning they have in the Coronavirus Act 2020 (see section 1 of that Act);

• “coronavirus business support grant scheme” means any scheme (whether announced or operating before or after the passing of this Act), other than a scheme within subsection (2)(a) to (d), under which a public authority makes grants to businesses with the object of providing support to those businesses in connection with any effect or anticipated effect (direct or indirect) of coronavirus or coronavirus disease;

• “the coronavirus job retention scheme” means the scheme (as it has effect from time to time) that is the subject of the direction given by the Treasury on 15 April 2020 under section 76 of the Coronavirus Act 2020;

• “the coronavirus statutory sick pay rebate scheme” means the scheme (as it has effect from time to time) given effect to by the Statutory Sick Pay (Coronavirus) (Funding of Employers' Liabilities) Regulations 2020 (S.I. 2020/512);

• “employment-related scheme” means the coronavirus job retention scheme or the coronavirus statutory sick pay rebate scheme;

• “the self-employment income support scheme” means the scheme (as it has effect from time to time) that is the subject of the direction given by the Treasury on 30 April 2020 under section 76 of the Coronavirus Act 2020.

• (6) Examples of coronavirus business support grant schemes as at 24 June 2020 include—

• (a) the small business grant fund that is the subject of the guidance about that scheme and the retail, hospitality and leisure grant fund published by the Department for Business, Energy & Industrial Strategy on 1 April 2020;

• (b) the retail, hospitality and leisure grant fund that is the subject of that guidance;

• (c) the local authority discretionary grants fund that is the subject of the guidance about that scheme published by the Department for Business, Energy & Industrial Strategy on 13 May 2020;

• (d) the schemes corresponding to the small business grant fund, retail and hospitality grant fund and local authority discretionary grants fund in Scotland, Wales and Northern Ireland.

Enterprise management incentives: disqualifying events

107

• (1) Schedule 5 to ITEPA 2003 (enterprise management incentives) is modified in accordance with subsections (2) and (3).

• (2) Paragraph 26 (requirement as to commitment of working time) has effect as if, in sub-paragraph (3)—

• (a) the “or” at the end of paragraph (c) were omitted, and

• (b) at the end of paragraph (d), there were inserted

, or (e) not being required to work for reasons connected with coronavirus disease (within the meaning given by section 1(1) of the Coronavirus Act 2020).

• (3) Paragraph 27 (meaning of “working time”) has effect as if, in sub-paragraph (1)(b), for “(d)” there were substituted “ (e) ”.

• (4) Section 535 of ITEPA 2003 (disqualifying events relating to employee in relation to enterprise management incentives) has effect as if, in the closing words of subsection (3), for “(d)” there were substituted “ (e) ”.

• (5) The modifications made by this section have effect in relation to the period—

• (a) beginning with 19 March 2020, and

• (b) ending with 5 April 2022.

Protected pension age of members re-employed as a result of coronavirus

108

• (1) In FA 2004, in Schedule 36 (pension schemes etc), paragraph 22 (rights to take benefit before normal minimum pension age) is amended as follows.

• (2) In sub-paragraph (7F), at the end of paragraph (b) insert

, and (c) that the member is or was employed as mentioned in sub-paragraph (7B)(a) where— (i) the employment began at any time during the coronavirus period, and (ii) the only or main reason that the member was taken into employment was to help the employer to respond to the public health, social, economic or other effects of coronavirus.

• (3) After sub-paragraph (7J) insert—

(7K) In sub-paragraph (7F)(c)— - “coronavirus” has the same meaning as in the Coronavirus Act 2020 (see section 1(1) of that Act); - “the coronavirus period” means the period beginning with 1 March 2020 and ending with 1 November 2020. (7L) The Treasury may by regulations amend the definition of “the coronavirus period” in sub-paragraph (7K) so as to replace the later of the dates specified in it with another date falling before 6 April 2021. (7M) The power in sub-paragraph (7L) may be exercised on more than one occasion.

• (4) The amendments made by this section are treated as having come into force on 1 March 2020.

Modifications of the statutory residence test in connection with coronavirus

109

• (1) This section applies for the purposes of determining—

• (a) whether an individual was or was not resident in the United Kingdom for the tax year 2019-20 for the purposes of relevant tax, and

• (b) if an individual was not so resident in the United Kingdom for the tax year 2019-20 (including as a result of this section), whether the individual was or was not resident in the United Kingdom for the tax year 2020-21 for the purposes of relevant tax.

“Relevant tax” has the meaning given by paragraph 1(4) of Schedule 45 to FA 2013 (statutory residence test).

• (2) That Schedule is modified in accordance with subsections (3) to (13).

• (3) Paragraph 8 (second automatic UK test: days at overseas homes) has effect as if after sub-paragraph (5) there were inserted—

(5A) For the purposes of sub-paragraphs (1)(b) and (4), a day does not count as a day when P is present at a home of P's in the UK if it is a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of it).

• (4) Paragraph 22 (key concepts: days spent) has effect as if—

• (a) in sub-paragraph (2), for “two cases” there were substituted “ three cases ”;

• (b) after sub-paragraph (6) there were inserted—

(7) The third case is where— (a) that day falls within the period beginning with 1 March 2020 and ending with 1 June 2020, (b) on that day P is present in the UK for an applicable reason related to coronavirus disease, and (c) in the tax year in question, P is resident in a territory outside the UK (“the overseas territory”). (8) The following are applicable reasons related to coronavirus disease— (a) that P is present in the UK as a medical or healthcare professional for purposes connected with the detection, treatment or prevention of coronavirus disease; (b) that P is present in the UK for purposes connected with the development or production of medicinal products (including vaccines), devices, equipment or facilities related to the detection, treatment or prevention of coronavirus disease. (9) For the purposes of sub-paragraph (7)(c), P is resident in an overseas territory in the tax year in question if P is considered for tax purposes to be a resident of that territory in accordance with the laws of that territory. (10) The Treasury may by regulations made by statutory instrument— (a) amend sub-paragraph (7)(a) so as to replace the later of the dates specified in it with another date falling before 6 April 2021; (b) amend this paragraph so as to add one or more applicable reasons related to coronavirus disease. (11) The powers under sub-paragraph (10) may be exercised on more than one occasion. (12) A statutory instrument containing regulations under sub-paragraph (10) is subject to annulment in pursuance of a resolution of the House of Commons.

• (5) Paragraph 23 (key concepts: days spent and the deeming rule) has effect as if after sub-paragraph (5) there were inserted—

(5A) For the purposes of sub-paragraphs (3)(b) and (4), a day does not count as a qualifying day if it is a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of it).

• (6) Paragraph 28(2) (rules for calculating the reference period) has effect as if—

• (a) in paragraph (b) the “and” at the end were omitted;

• (b) after paragraph (b) there were inserted—

(ba) absences from work at times during the period specified in an emergency volunteering certificate issued to P under Schedule 7 to the Coronavirus Act 2020 (emergency volunteering leave), and

;

• (c) in paragraph (c), for “or (b)” there were substituted “ , (b) or (ba) ”.

• (7) Paragraph 29 (significant breaks from UK or overseas work) has effect as if in sub-paragraphs (1)(b) and (2)(b), for “or parenting leave” there were substituted “ , parenting leave or emergency volunteering leave under Schedule 7 to the Coronavirus Act 2020 ”.

• (8) Paragraph 32 (family tie) has effect as if after sub-paragraph (4) there were inserted—

(4A) But a day does not count as a day on which P sees the child if the day on which P sees the child would be a day falling within the third case in paragraph 22(7) (if P were present in the UK at the end of it).

• (9) Paragraph 34 (accommodation tie) has effect as if after sub-paragraph (1) there were inserted—

(1A) For the purposes of sub-paragraph (1)— (a) if the place is available to P on a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of that day), that day is to be disregarded for the purposes of sub-paragraph (b), and (b) a night spent by P at the place immediately before or after a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of that day) is to be disregarded for the purposes of sub-paragraph (c).

• (10) Paragraph 35 (work tie) has effect as if after sub-paragraph (2) there were inserted—

(3) But a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of it) does not count as a day on which P works in the UK.

• (11) Paragraph 37 (90-day tie) has effect as if—

• (a) the existing text were sub-paragraph (1);

• (b) after that sub-paragraph, there were inserted—

(2) For the purposes of sub-paragraph (1), a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of it) does not count as a day P has spent in the UK in the year in question.

• (12) Paragraph 38 (country tie) has effect as if after sub-paragraph (3) there were inserted—

(4) For the purposes of sub-paragraph (3), P is to be treated as not being present in the UK at the end of a day that would fall within the third case in paragraph 22(7) (if P were present in the UK at the end of that day).

• (13) Paragraph 145 (interpretation) has effect as if at the appropriate place there were inserted—

“coronavirus disease” has the same meaning as in the Coronavirus Act 2020 (see section 1(1) of that Act);

.

Future Fund: EIS and SEIS relief

110

• (1) This section applies if an individual to whom shares in a company have been issued—

• (a) enters into a convertible loan agreement with the company under the Future Fund on or after 20 May 2020, and

• (b) subsequently receives value from the company under the terms of the agreement.

• (2) If, as a result of the receipt of value, any EIS relief attributable to shares issued before the relevant time would (apart from this subsection) be withdrawn or reduced under section 213 of ITA 2007, the value received is to be ignored for the purposes of that section.

• (3) If, as a result of the receipt of value, any SEIS relief attributable to shares issued before the relevant time would (apart from this subsection) be withdrawn or reduced under section 257FE of ITA 2007, the value received is to be ignored for the purposes of that section.

• (4) If, as a result of the receipt of value, shares issued before the relevant time would (apart from this subsection) cease to be eligible shares by reason of paragraph 13(1)(b) of Schedule 5B to TCGA 1992, the value received is to be ignored for the purposes of that paragraph.

• (5) In this section—

• “the Future Fund” means the scheme of that name operated from 20 May 2020 by the British Business Bank plc on behalf of the Secretary of State;

• “the relevant time” means the time when the individual enters into the convertible loan agreement.

Preparing for new tax

Preparing for a new tax in respect of certain plastic packaging

111

The Commissioners for Her Majesty's Revenue and Customs may make preparations for the introduction of a new tax to be charged in respect of certain plastic packaging.

Local loans

Limits on local loans

112

• (1) In section 4(1) of the National Loans Act 1968 (which sets a limit on local loans made in pursuance of section 3 of that Act)—

• (a) for “£85 billion” substitute “ £115 billion ”, and

• (b) for “£95 billion” substitute “ £135 billion ”.

• (2) The Local Loans (Increase of Limit) Order 2019 (SI 2019/1317) is revoked.

• (3) This section comes into force on such day as the Treasury may by regulations made by statutory instrument appoint.

Other

Interpretation

113

In this Act the following abbreviations are references to the following Acts—

Short title

114

This Act may be cited as the Finance Act 2020.

SCHEDULE 1

PART 1 — Amendments to Chapter 8 of Part 2 of ITEPA 2003

1

Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers under arrangements made by intermediaries) is amended as follows.

2

For the heading of the Chapter substitute “Workers' services provided through intermediaries to small clients”.

3

• (1) Section 48 (scope of Chapter) is amended as follows.

• (2) In subsection (1) for the words from “, but” to the end substitute

in a case where the services are provided to a person who is not a public authority and who either— (a) qualifies as small for a tax year, or (b) does not have a UK connection for a tax year.

• (3) After subsection (3) insert—

(4) For provisions determining when a person qualifies as small for a tax year, see sections 60A to 60G. (5) For provision determining when a person has a UK connection for a tax year, see section 60I.

4

• (1) Section 50 (worker treated as receiving earnings from employment) is amended as follows.

• (2) In subsection (1) before paragraph (a) insert—

(za) the client qualifies as small or does not have a UK connection,

.

• (3) After subsection (4) insert—

(5) The condition in paragraph (za) of subsection (1) is to be ignored if— (a) the client concerned is an individual, and (b) the services concerned are performed otherwise than for the purposes of the client's business. (6) For the purposes of paragraph (za) of subsection (1) the client is to be treated as not qualifying as small for the tax year concerned if the client is treated as medium or large for that tax year by reason of section 61TA(3)(a).

5

After section 60 insert—