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Finance Act 2020

Current text a fecha 2023-07-11

PART 1 — Income tax, corporation tax and capital gains tax

Income tax charge, rates etc

Income tax charge for tax year 2020-21

1

Income tax is charged for the tax year 2020-21.

Main rates of income tax for tax year 2020-21

2

For the tax year 2020-21 the main rates of income tax are as follows—

Default and savings rates of income tax for tax year 2020-21

3

Starting rate limit for savings for tax year 2020-21

4

Section 21 of ITA 2007 (indexation) does not apply in relation to the starting rate limit for savings for the tax year 2020-21 (so that the starting rate limit for savings remains at £5,000 for that tax year).

Corporation tax charge and rates

Losses on disposal of shares: abolition of requirement to be UK business

5

Relief for certain cross-border transactions

6

Employment income and social security income

Workers’ services provided through intermediaries

7

Schedule 1 makes provision about workers' services provided through intermediaries.

Determining the appropriate percentage for a car: tax year 2020-21 onwards

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(2B) For the purpose of determining the car's CO₂ emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.

(2B) For the purpose of determining the car's CO₂ emissions figure in a case where the car is first registered on or after 6 April 2020, ignore any values specified in the EC certificate of conformity or UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.

(2) For the purposes of subsection (1) and the table— (a) if a CO₂ emissions figure is not a whole number, round it down to the nearest whole number, and (b) if an electric range figure is not a whole number, round it up to the nearest whole number.

, and

(5A) For the purpose of determining the electric range figure for a car first registered before 6 April 2020, ignore any WLTP (worldwide harmonised light vehicle test procedures) values specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate. (5B) For the purpose of determining the electric range figure for a car first registered on or after 6 April 2020, ignore any values specified in an EC certificate of conformity, an EC type-approval certificate or a UK approval certificate that are not WLTP (worldwide harmonised light vehicle test procedures) values.

Determining the appropriate percentage for a car: tax year 2020-21 only

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(za) section 139A (recently registered cars),

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(139A) In its application in relation to a car that is first registered on or after 6 April 2020, section 139 has effect as if— (a) for the table in subsection (1) there were substituted—

Car Appropriate percentage
Car with CO₂ emissions figure of 0 0%
Car with CO₂ emissions figure of 1 - 50
Car with electric range figure of 130 or more 0%
Car with electric range figure of 70 - 129 3%
Car with electric range figure of 40 - 69 6%
Car with electric range figure of 30 - 39 10%
Car with electric range figure of less than 30 12%
Car with CO₂ emissions figure of 51 - 54 13%
Car with CO₂ emissions figure of 55 - 59 14%
Car with CO₂ emissions figure of 60 - 64 15%
Car with CO₂ emissions figure of 65 - 69 16%
Car with CO₂ emissions figure of 70 - 74 17%

(b) in subsection (3)(a) for “20%” there were substituted “ 18% ”.

Determining the appropriate percentage for a car: tax year 2021-22 only

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(za) section 139A (recently registered cars),

.

(139A) In its application in relation to a car that is first registered on or after 6 April 2020, section 139 has effect as if— (a) for the table in subsection (1) there were substituted—

Car Appropriate percentage
Car with CO₂ emissions figure of 0 1%
Car with CO₂ emissions figure of 1 - 50
Car with electric range figure of 130 or more 1%
Car with electric range figure of 70 - 129 4%
Car with electric range figure of 40 - 69 7%
Car with electric range figure of 30 - 39 11%
Car with electric range figure of less than 30 13%
Car with CO₂ emissions figure of 51 - 54 14%
Car with CO₂ emissions figure of 55 - 59 15%
Car with CO₂ emissions figure of 60 - 64 16%
Car with CO₂ emissions figure of 65 - 69 17%
Car with CO₂ emissions figure of 70 - 74 18%

(b) in subsection (3)(a) for “20%” there were substituted “ 19% ”.

Apprenticeship bursaries paid to persons leaving local authority care

11

(254A) (1) No liability to income tax arises in respect of a care leaver's apprenticeship bursary payment. (2) A care leaver's apprenticeship bursary payment is a payment— (a) payable out of the public revenue, (b) to a care leaver (see subsection (3)), (c) made in connection with the person's employment as an apprentice (see subsection (4)), and (d) in respect of which any conditions specified in regulations made by the Treasury are met. (3) A person is a care leaver if they are a person— (a) who is, or was, a child looked after— (i) by a local authority in England within the meaning of section 22 of the Children Act 1989 (general duty of local authority in relation to children looked after by them); (ii) by a local authority in Wales within the meaning of the Social Services and Well-being (Wales) Act 2014 (anaw 4) (see section 74 of that Act (child or young person looked after by a local authority)); (iii) by a local authority in Scotland within the meaning of Chapter 1 of Part 2 of the Children (Scotland) Act 1995 (see section 17(6) of that Act (duty of local authority to child looked after by them)); (iv) by an authority in Northern Ireland within the meaning of the Children (Northern Ireland) Order 1995 (S.I. 1995/755 (N.I. 2)) (see Article 25 of that Order (children looked after by an authority: interpretation)), and (b) in respect of whom any other conditions specified in regulations made by the Treasury are met. (4) “Apprentice” has the meaning specified in regulations made by the Treasury. (5) Regulations under this section— (a) may make provision framed by reference to a scheme (however described or named), or document, as it has effect from time to time, (b) may make different provision for different purposes, (c) may make different provision for different areas, and (d) may make retrospective provision.

Tax treatment of certain Scottish social security benefits

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Disability assistance for children and young people SS(S)A 2018 Sections 24 and 31
Job start ETA 1973 Section 2
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Scottish child payment SS(S)A 2018 Section 79

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Power to exempt social security benefits from income tax

13

; section 13 of FA 2020 (power to exempt social security benefits from income tax).

Voluntary office-holders: payments in respect of expenses

14

(299B) (1) No liability to income tax arises in respect of a payment to a person who holds a voluntary office if the payment is in respect of reasonable expenses incurred in carrying out the duties of that office. (2) It does not matter whether— (a) the payment is an advance payment or a reimbursement; (b) the person who makes the payment is the person with whom the office is held. (3) Subsections (2) and (3) of section 299A apply for the purposes of subsection (1) of this section as they apply for the purposes of subsection (1) of that section.

Loan charge

Loan charge not to apply to loans or quasi-loans made before 9 December 2010

15

Election for loan charge to be split over three tax years

16

(6A) Sub-paragraph (4) is subject to paragraph 1A(5).

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(1A) (1) This paragraph applies where— (a) a person (“P”) is treated as taking a relevant step within paragraph 1 (“the initial step”) by reason of making a loan or quasi-loan, and (b) an election has been made by A for the purposes of this paragraph. (2) P is treated as taking two further relevant steps for the purposes of Part 7A of ITEPA 2003. (3) P is treated as taking one of the further steps on the first anniversary of the date on which P is treated as taking the initial step. (4) P is treated as taking one of the further steps on the second anniversary of the date on which P is treated as taking the initial step. (5) For the purposes of section 554Z3(1) of ITEPA 2003 (value of relevant step), the initial step and each of the further steps is to be treated as involving a sum of money equal to one third of the amount of the loan or quasi-loan that is outstanding at the time P is treated as taking the initial step. (6) References in this Schedule and in Part 7A of ITEPA 2003 to a relevant step within paragraph 1A of this Schedule are to be read as references to a relevant step which a person is treated by this paragraph as taking. (7) An election for the purposes of this paragraph— (a) may be made at any time before 1 October 2020, and (b) may be made at a later time if an officer of Revenue and Customs allows it. (8) But a person who is under a duty imposed by paragraph 35C of this Schedule or paragraph 22 of Schedule 12 may not make an election for the purposes of this paragraph until that duty has been complied with. (9) An election for the purposes of this paragraph may not be revoked. (10) A person who has made an election for the purposes of paragraph 1(3A) of Schedule 12 is to be treated as having made an election for the purposes of this paragraph. (11) The Commissioners for Her Majesty's Revenue and Customs may by regulations provide that sub-paragraph (7)(a) applies to a specified class of persons as if the reference to 1 October 2020 were to such later date as is specified. (12) In sub-paragraph (11) “specified” means specified in the regulations.

(b) where T ceases to carry on the relevant trade before the tax year in which the relevant benefit is treated as arising, as if section 23E(1)(b) were omitted and as if section 23E(1) provided that the relevant benefit amount is treated for income tax purposes as a post-cessation receipt of the trade received in that tax year.

, and

(3A) Where section 23E of ITTOIA 2005 applies in relation to a relevant benefit which is a loan or quasi-loan in relation to which sub-paragraph (2) applies and T has made an election for the purposes of this sub-paragraph, section 23E has effect— (a) as if the “relevant benefit amount” were one third of the amount of the loan or quasi-loan that is outstanding at the time the relevant benefit is treated as arising, (b) as if section 23E(1)(a) specified the tax year in which the relevant benefit is treated as arising and each of the two subsequent tax years, and (c) where T ceases to carry on the relevant trade before any tax year so specified in section 23E(1)(a), as if section 23E(1)(b) were omitted and as if section 23E(1) provided that the relevant benefit amount is to be treated for income tax purposes as a post-cessation receipt of the trade received in that tax year. (3B) An election for the purposes of sub-paragraph (3A)— (a) may be made at any time before 1 October 2020, and (b) may be made at a later time if an officer of Revenue and Customs allows it. (3C) But a person who is under a duty imposed by paragraph 22 of this Schedule or paragraph 35C of Schedule 11 may not make an election for the purposes of sub-paragraph (3A) until that duty has been complied with. (3D) An election for the purposes of sub-paragraph (3A) may not be revoked. (3E) A person who has made an election for the purposes of paragraph 1A of Schedule 11 is to be treated as having made an election for the purposes of sub-paragraph (3A) of this paragraph. (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.

Loan charge reduced where underlying liability disclosed but unenforceable

17

(1B) (1) This paragraph applies where— (a) a person is treated as taking a relevant step within paragraph 1 by reason of making a loan or quasi-loan, (b) a reasonable case could have been made that for a qualifying tax year (“the relevant year”) A was chargeable to income tax on an amount that was referable to the loan or quasi-loan, (c) at a time when an officer of Revenue and Customs had power to recover (from A or any other person) income tax for the relevant year in respect of that amount, a qualifying tax return or two or more qualifying tax returns of the same type taken together contained a reasonable disclosure of the loan or quasi-loan, and (d) as at 6 April 2019 an officer of Revenue and Customs had not taken steps to recover (from A or any other person) income tax for the relevant year in respect of that amount. (2) But this paragraph does not apply if— (a) a reasonable case could have been made that for a tax year other than the relevant year (“the alternative year”) A was chargeable to income tax on an amount within sub-paragraph (3), and (b) it is the case that— (i) on or before 5 April 2019 an officer of Revenue and Customs took steps to recover (from A or any other person) income tax for the alternative year in respect of that amount, or (ii) the alternative year is not a qualifying tax year. (3) An amount is within this sub-paragraph if — (a) it is the same amount as is mentioned in sub-paragraph (1), (b) it is part of the amount mentioned in sub-paragraph (1), or (c) it is derived from or represents the whole or part of the amount mentioned in sub-paragraph (1). (4) Where this paragraph applies, then for the purposes of paragraphs 1(4) and 1A(5) the amount of the loan or quasi-loan that is outstanding is to be taken to be reduced (but not below nil) by the amount mentioned in sub-paragraph (1). (5) For the purposes of sub-paragraph (1)(c) a qualifying tax return, or two or more qualifying tax returns taken together, contained a reasonable disclosure of the loan or quasi-loan if the return or returns taken together— (a) identified the loan or quasi-loan, (b) identified the person to whom the loan or quasi-loan was made in a case where the loan or quasi-loan was made to a person other than A, (c) identified the relevant arrangements in pursuance of which or in connection with which the loan or quasi-loan was made, and (d) provided such other information as was sufficient for it to be apparent that a reasonable case could be made that for the relevant year A was chargeable to income tax on an amount that was referable to the loan or quasi-loan. (6) A reference in sub-paragraph (1)(b), (2) or (5)(d) to A being chargeable to income tax does not include A being chargeable to income tax by reason of section 175 of ITEPA 2003 (benefit of taxable cheap loan treated as earnings). (7) In this paragraph— - “qualifying tax year” means the tax year 2015-16 and any earlier tax year, and - “qualifying tax return” means — 1. a return made by A or B under section 8 of TMA 1970 for a qualifying tax year, and any accompanying accounts, statements or documents, or 2. a return made by B under paragraph 3 of Schedule 18 to FA 1998 for an accounting period that commenced before 6 April 2016,

(1A) (1) This paragraph applies where— (a) a loan or quasi-loan is to be treated for the purposes of sections 23A to 23H of ITTOIA 2005 as a relevant benefit by reason of paragraph 1, (b) a reasonable case could have been made that for a qualifying tax year (“the relevant year”) T was chargeable to income tax on an amount that was referable to the loan or quasi-loan, (c) at a time when an officer of Revenue and Customs had power to recover (from T or any other person) income tax for the relevant year in respect of that amount, a qualifying tax return or two or more qualifying tax returns taken together contained a reasonable disclosure of the loan or quasi-loan, and (d) as at 6 April 2019 an officer of Revenue and Customs had not taken steps to recover (from T or any other person) income tax for the relevant year in respect of that amount. (2) But this paragraph does not apply if— (a) a reasonable case could have been made that for a tax year other than the relevant year (“the alternative year”) T was chargeable to income tax on an amount within sub-paragraph (3), and (b) it is the case that— (i) on or before 5 April 2019 an officer of Revenue and Customs took steps to recover (from T or any other person) income tax for the alternative year in respect of that amount, or (ii) the alternative year is not a qualifying tax year. (3) An amount is within this sub-paragraph if— (a) it is the same amount as is mentioned in sub-paragraph (1), (b) it is part of the amount mentioned in sub-paragraph (1), or (c) it is derived from or represents the whole or part of the amount mentioned in sub-paragraph (1). (4) Where this paragraph applies, then for the purposes of paragraph 1(3)(a) and (3A)(a) the amount of the loan or quasi-loan that is outstanding is to be taken to be reduced (but not below nil) by the amount mentioned in sub-paragraph (1). (5) For the purposes of sub-paragraph (1)(c) a qualifying tax return, or two or more qualifying tax returns taken together, contained a reasonable disclosure of the loan or quasi-loan if the return or returns taken together— (a) identified the loan or quasi-loan, (b) identified the person to whom the loan or quasi-loan was made in a case where the loan or quasi-loan was made to a person other than T, (c) identified the relevant arrangements in pursuance of which or in connection with which the loan or quasi-loan was made, and (d) provided such other information as was sufficient for it to be apparent that a reasonable case could be made that for the relevant year T was chargeable to income tax on an amount that was referable to the loan or quasi-loan. (6) In this paragraph— - “qualifying tax year” means the tax year 2015-16 and any earlier tax year, and - “qualifying tax return” means a return made by T under section 8 of TMA 1970 for a qualifying tax year, and any accompanying accounts, statements or documents.

Relief from interest on tax payable by a person subject to the loan charge

18

Minor amendments relating to the loan charge

19

Repaying sums paid to HMRC under agreements relating to certain loans etc

20

Operation of the scheme

21

Pensions

Annual allowance: tapered reduction

22

(1) If the individual is a high-income individual for the tax year, the amount of the annual allowance for the tax year in the case of the individual is the amount specified for the tax year by or under section 228 reduced (but not below £4,000) by— $$( AI − £ 240,000 ) × 1 2$where AI is the individual's adjusted income for the tax year.$

Chargeable gains

Entrepreneurs’ relief

23

Schedule 3 makes provision about relief under Chapter 3 of Part 5 of TCGA 1992.

Relief on disposal of private residence

24

(5A) But a notice or further notice under subsection (5)(a) determining which of 2 or more residences is an individual's main residence for any period may be given more than 2 years from the beginning of the period if during the period the individual has not held an interest of more than a negligible market value in more than one of the residences.

,

; or (c) an armed forces accommodation allowance for or towards costs of the accommodation is paid to, or in respect of, the person or the person's spouse or civil partner

, and

; and (c) “armed forces accommodation allowance” means an allowance which is exempt from income tax by reason of section 297D of ITEPA 2003.

(223ZA) (1) Subsection (4) below applies where— (a) a gain to which section 222 applies accrues to an individual on the disposal of, or of an interest in, a dwelling-house or part of a dwelling-house, (b) the time at which the dwelling-house or the part of the dwelling-house first became the individual's only or main residence (“the moving-in time”) was within the first 24 months of the individual's period of ownership, (c) at no time during the period beginning with the individual's period of ownership and ending with the moving-in time was the dwelling-house or the part of the dwelling-house another person's residence, and (d) during the period beginning with the individual's period of ownership and ending with the moving-in time a qualifying event occurred. (2) The following are qualifying events— (a) the completion of the construction, renovation, redecoration or alteration of the dwelling-house or the part of the dwelling-house mentioned in subsection (1); (b) the disposal by the individual of, or of an interest in, any other dwelling-house or part of a dwelling-house that immediately before the disposal was the individual's only or main residence. (3) In determining whether and, if so, when a qualifying event within subsection (2)(b) occurred, ignore section 28 (time of disposal where asset disposed of under contract). (4) For the purposes of subsections (1) and (2) of section 223, as they have effect in relation to the gain, the dwelling-house or the part of the dwelling-house mentioned in subsection (1) above is to be treated as having been the individual's only or main residence from the beginning of the individual's period of ownership until the moving-in time.

(223B) (1) Where— (a) a gain to which section 222 applies accrues to an individual on the disposal of, or of an interest in, a dwelling-house or part of a dwelling-house, and (b) at any time in the individual's period of ownership the condition in subsection (2) is met in respect of the dwelling-house, the part of the gain that is within subsection (3) is a chargeable gain only to the extent, if any, to which it exceeds the amount in subsection (4). (2) The condition is that— (a) part of the dwelling-house is the individual's only or main residence, and (b) another part of the dwelling-house is being let out by the individual as residential accommodation. (3) The part of the gain that is within this subsection is the part that (but for subsection (1)) would be a chargeable gain by reason of the fact that, at the times in the individual's period of ownership when the condition in subsection (2) is met, the individual's only or main residence does not include the part of the dwelling-house that is being let out as residential accommodation. (4) The amount is whichever is the lesser of— (a) the amount of the gain that is not a chargeable gain by virtue of section 223, and (b) £40,000. (5) Where by reason of section 222(7)(a) the individual's period of ownership mentioned in subsection (1) begins with the beginning of the period of ownership of another person, any question whether the condition in subsection (2) is met at a time that is within both those periods of ownership is to be determined as if the references in subsection (2) to the individual were to that other person.

Corporate capital losses

25

Schedule 4 makes provision relating to capital losses made by companies.

Quarterly instalment payments

26

(11) A company which— (a) is chargeable to corporation tax for an accounting period only because of a chargeable gain accruing to the company on the disposal of an asset, and (b) would, apart from this paragraph, be a very large company by virtue of this regulation in respect of the accounting period, is to be treated for the purposes of these regulations as if it were a large company by virtue of paragraph (1).

Relief from CGT for loans to traders

27

In section 253(1)(b) of TCGA 1992 (which provides that a loan qualifies for relief only if the borrower is UK resident), at the beginning insert “ if the loan is made before 24 January 2019, ”.

Reliefs for business

Research and development expenditure credit

28

Structures and buildings allowances: rate of relief

29

(aa) the period mentioned in section 270AA(2)(b)(ii) expires part way through the chargeable period,

.

(270GD) (1) This section applies if— (a) on the relevant date, a person is entitled to an allowance under this Part by reference to qualifying expenditure incurred in relation to a building or structure, (b) the person does not dispose of the relevant interest in the building or structure before the end of the period mentioned in section 270AA(2)(b)(ii) (the “allowance period”), and (c) at the end of the allowance period, the person is entitled to an allowance under this Part by reference to the qualifying expenditure mentioned in paragraph (a). (2) The person is entitled to an additional amount of allowance for the chargeable period in which the allowance period ends. (3) The additional amount of the allowance is 1% of the qualifying expenditure multiplied by the following fraction— $$D / 365$where D is the number of days during the period beginning with 29 October 2018 and ending with the relevant date in respect of which an allowance under this Part by reference to the qualifying expenditure was made to the person.$ (4) For the purposes of this section “the relevant date” means— (a) for income tax purposes, 5 April 2020, or (b) for corporation tax purposes, 31 March 2020.

and in subsection (7) references to the commencement date are to be read accordingly.

were separate chargeable periods.

Structures and buildings allowances: miscellaneous amendments

30

Schedule 5 makes miscellaneous amendments of CAA 2001 in relation to structures and buildings allowances.

Intangible fixed assets: pre-FA 2002 assets etc

31

(fb) Chapter 16A (debits in respect of assets that were pre-FA 2002 assets etc), (fc) Chapter 16B (fungible assets),

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, and (f) sections 900E and 900F (special rules in respect of assets that were pre-FA 2002 assets etc)

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, and (c) section 900F (special rules in respect of assets that were pre-FA 2002 assets etc)

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(1) The general rule is that this Part applies to an intangible fixed asset of a company (“the company”) only if one or more of the conditions in subsections (1A) to (1D) is met. (1A) The condition in this subsection is that the asset is created by the company on or after 1 April 2002. (1B) The condition in this subsection is that the asset is acquired by the company during the period beginning with 1 April 2002 and ending with 30 June 2020 and either— (a) it is acquired from a person who at the time of the acquisition is not a related party in relation to the company, or (b) it is acquired in case A (in subsection (3)), case B (in subsection (4)) or case C (in subsection (5)) from a person who at the time of the acquisition is a related party in relation to the company. (1C) The condition in this subsection is that the asset is acquired by the company on or after 1 July 2020. (1D) The condition in this subsection is that the asset is held by the company immediately before 1 July 2020 and at that time the company is not within the charge to corporation tax in respect of the asset. (1E) But the condition in subsection (1D) is to be treated as not met if— (a) at any time during the period beginning with 19 March 2020 and ending with 30 June 2020 the asset is a pre-FA 2002 asset in the hands of any company that is within the charge to corporation tax in respect of the asset, and (b) after that time but during that period the asset is not acquired by any other company from a person who at the time of the acquisition is not a related party in relation to that other company.

(3A) An intangible asset is treated as acquired on or after 1 July 2020 so far as expenditure on its acquisition is incurred on or after that date. (3B) An intangible asset is treated as acquired during the period beginning with 1 April 2002 and ending with 30 June 2020 so far as expenditure on its acquisition is incurred during that period. (3C) An intangible asset is treated as acquired during the period beginning with 19 March 2020 and ending with 30 June 2020 so far as expenditure on its acquisition is incurred during that period.

,

(5) If by reason of any of subsections (3) to (3C) of this section this Part would apply to an intangible fixed asset of a company to a limited extent only, the asset is to be treated as if it consisted of two separate assets— (a) one asset being an asset to which this Part applies, and (b) one asset being an asset to which the alternative enactments apply.

, and (d) section 171 of that Act (transfers within a group)

, and

(5) If the transfer mentioned in subsection (1) occurred before 1 July 2020, this section applies as if paragraph (d) of subsection (2) were omitted.

(900A) (1) This Chapter contains special rules affecting the debits to be brought into account by a company for tax purposes in respect of an intangible fixed asset that is a restricted asset. (2) Sections 900B to 900D make provision determining when an intangible fixed asset of a company is a restricted asset for the purposes of this Chapter. (3) Sections 900E and 900F contain the special rules. (4) The following sections contain supplementary provisions— (a) section 900G (meaning of relieving acquisition), (b) section 900H (when two persons are related), and (c) section 900I (acquisition of asset in pursuance of an unconditional obligation). (900B) (1) An intangible fixed asset of a company is a restricted asset if— (a) the company acquired the asset on or after 1 July 2020, (b) the company acquired the asset from a person who at the time of the acquisition was a related party in relation to the company, and (c) the asset is within subsection (2) or (3). (2) The asset is within this subsection if— (a) the asset was a pre-FA 2002 asset in the hands of any company on 1 July 2020, and (b) at no time on or after 1 July 2020 has the asset been the subject of a relieving acquisition. (3) The asset is within this subsection if— (a) the asset was created before 1 April 2002, (b) immediately before 1 July 2020 the asset was held by a person other than a company, and (c) at no time on or after 1 July 2020 has the asset been the subject of a relieving acquisition. (4) But the asset is not within subsection (3) if the person mentioned in that subsection (“the intermediary”) acquired the asset on or after 1 April 2002 from a person (“the third party”) who meets the conditions in subsections (5), (6) and (7). (5) The third party meets the condition in this subsection if— (a) the third party is not a company, or (b) the third party is a company in relation to which the intermediary is not a related party at the time of the intermediary's acquisition. (6) The third party meets the condition in this subsection if at the time of the intermediary's acquisition the third party is not a related party in relation to a company in relation to which the intermediary is a related party. (7) The third party meets the condition in this subsection if at the time of the acquisition of the asset by the company mentioned in subsection (1) the third party is not a related party in relation to that company. (900C) (1) An intangible fixed asset of a company (“the asset concerned”) is a restricted asset if— (a) the company acquired the asset concerned on or after 1 July 2020, (b) the company acquired the asset concerned from a person who at the time of the acquisition was a related party in relation to the company, and (c) the asset concerned is within subsection (2). (2) The asset concerned is within this subsection if— (a) the asset concerned was created on or after 1 July 2020, (b) at no time has the asset concerned been the subject of a relieving acquisition, (c) the value of the asset concerned derives in whole or in part from another asset (“the other asset”), and (d) the other asset was a pre-FA 2002 asset or a restricted asset in the hands of any company on the date the asset concerned was created. (3) The condition in subsection (2)(d) is to be treated as met if— (a) the other asset was held by a person other than a company on the date the asset concerned was created, (b) on the date the asset concerned was created that person was a related party in relation to a company, and (c) the other asset would have been a pre-FA 2002 asset or a restricted asset in the hands of that company on the date the asset concerned was created had that company acquired the other asset from that person immediately before that date. (4) For the purposes of this section the cases in which the value of an asset may be derived from any other asset include any case where— (a) assets have been merged or divided, (b) assets have changed their nature, or (c) rights or interests in or over assets have been created or extinguished. (900D) (1) An intangible fixed asset of a company (“the asset concerned”) is a restricted asset if— (a) the company acquired the asset concerned on or after 1 July 2020, and (b) the asset concerned is within subsection (2). (2) The asset concerned is within this subsection if— (a) the asset concerned was acquired by any company on or after 1 July 2020 directly or indirectly as a consequence of, or otherwise in connection with, the realisation by another person of an asset (“the other asset”), (b) that company and that other person were related parties at the time of the realisation of the other asset, (c) the other asset was a pre-FA 2002 asset or a restricted asset in the hands of any company at any time during the period beginning with 1 July 2020 and ending with the time of the realisation mentioned in paragraph (a), (d) the other asset was not the subject of a relieving acquisition at any time during the period beginning with 1 July 2020 and ending with the time of the realisation mentioned in paragraph (a), and (e) the asset concerned has not been the subject of a relieving acquisition at any time after the realisation mentioned in paragraph (a). (3) The condition in subsection (2)(c) is to be treated as met if— (a) immediately before 1 July 2020 the other asset was held by a person that was not a company, (b) immediately before 1 July 2020 that person was a related party in relation to a company, and (c) the other asset would have been a pre-FA 2002 asset in the hands of that company on 1 July 2020 had that company acquired the asset from that person immediately before that date. (4) For the purposes of subsection (2) it does not matter whether— (a) the other asset is the same as the asset concerned, (b) the asset concerned is acquired at the time of the realisation of the other asset, or (c) the asset concerned is acquired by merging assets or otherwise. (900E) (1) This section applies in respect of a restricted asset of a company if it is a restricted asset by reason of section 900B. (2) If the company was the first company to acquire the asset on or after 1 July 2020, the relevant Chapters of this Part have effect as if the company acquired the asset at no cost. (3) If the company was not the first company to acquire the asset on or after 1 July 2020, the relevant Chapters of this Part have effect as if the company acquired the asset for the adjusted amount. (4) The adjusted amount is— $$A − B$where—A is the amount of consideration—for which the company actually acquired the asset, orif different, for which it would (ignoring this section) be treated for the purposes of the Taxes Acts as having acquired the asset, andB is the market value of the asset on the date it was first acquired by a company on or after 1 July 2020.$ (5) Where B is greater than A the adjusted amount is nil. (6) In this section— - “market value”, in relation to an asset, means the price the asset might reasonably be expected to fetch on a sale in the open market, and - “the relevant Chapters of this Part” means— 1. Chapter 3 (debits in respect of intangible fixed assets), 2. Chapter 15 (adjustments on change of accounting policy), and 3. Chapter 5 (calculation of tax written-down value) in so far as it has effect for the purposes of Chapters 3 and 15. (900F) (1) This section applies in respect of a restricted asset of a company if it is a restricted asset by reason of section 900C or 900D. (2) The relevant Chapters of this Part have effect as if the company acquired the asset for the adjusted amount. (3) The adjusted amount is calculated as follows— - Step 1 Find the amount— 1. for which the company actually acquired the asset, or 2. if different, for which it would (ignoring this section) be treated for the purposes of the Taxes Acts as having acquired the asset. - Step 2 Deduct from the amount found at Step 1 such proportion of the notional deduction amount for the relevant other asset or each relevant other asset as is just and reasonable in the circumstances. (4) Where the deduction at Step 2 results in a negative value the adjusted amount is nil. (5) In subsection (3)— - “relevant other asset” means an asset by reference to which the conditions in paragraphs (c) and (d) of section 900C(2) or (as the case may be) the conditions in section 900D(2) were met, and - “the notional deduction amount”, in relation to a relevant other asset, means— 1. in a case where section 900E(2) would have applied had the company acquired the relevant other asset instead of the restricted asset, an amount equal to the market value of the relevant other asset at the time the restricted asset was acquired, and 2. in a case where section 900E(3) would have applied had the company acquired the relevant other asset instead of the restricted asset, an amount equal to the market value of the relevant other asset at the time it was first acquired by a company on or after 1 July 2020, and 3. in a case where subsection (2) of this section would have applied had the company acquired the relevant other asset instead of the restricted asset, the amount that would have been deducted at step 2 of subsection (3) of this section if the company had acquired the relevant other asset instead of the restricted asset. (6) In this section “market value” and “the relevant Chapters of this Part” have the same meaning as in section 900E. (900G) For the purposes of this Chapter, an asset is the subject of a relieving acquisition if it is acquired by a company from a person who at the time of the acquisition is not a related party in relation to the company. (900H) (1) References in this Chapter to one person being a related party in relation to another person are to be read as including references to the participation condition being met as between those persons. (2) References in subsection (1) to a person include a firm in a case where, for section 1259 purposes, references in this Chapter to a company are read as references to the firm. (3) In subsection (2) “section 1259 purposes” means the purposes of determining under section 1259 the amount of profits or losses to be allocated to a partner in a firm. (4) Section 148 of TIOPA 2010 (when the participation condition is met) applies for the purposes of subsection (1) as it applies for the purposes of section 147(1)(b) of TIOPA 2010. (900I) (1) A company that acquires an intangible fixed asset in pursuance of an unconditional obligation under a contract is to be treated for the purposes of this Chapter as having acquired the asset on the date on which the company became subject to that obligation or (if later) the date on which that obligation became unconditional. (2) An obligation is unconditional if it may not be varied or extinguished by the exercise of a right (whether under contract or otherwise). (900J) (1) For the purposes of this Part— (a) fungible assets of the same kind that are held by the same person in the same capacity are treated as indistinguishable parts of a single asset, (b) that asset is treated as growing as additional assets of the same kind are created or acquired, and (c) that asset is treated as diminishing as some of the assets are realised. (2) In this Part “fungible assets” means assets of a nature to be dealt in without identifying the particular assets involved. (900K) (1) For the purposes of section 900J— (a) pre-FA 2002 assets, (b) restricted assets, and (c) standard intangible fixed assets, are to be regarded as assets of different kinds. (2) If section 900J applies (whether or not it is a case where subsection (1) of this section has effect)— (a) a single asset comprising pre-FA 2002 assets is treated as itself being a pre-FA 2002 asset, (b) a single asset comprising restricted assets is treated as itself being a restricted asset, and (c) a single asset comprising standard intangible fixed assets is treated as itself being a standard intangible fixed asset. (900L) (1) This section applies if— (a) a company realises a fungible asset, and (b) apart from subsection (1) of section 900K, the asset would be treated as part of a single asset comprising more than one of the kinds of asset referred to in that subsection. (2) The realisation is treated— (a) as diminishing a single asset of the company comprising pre-FA 2002 assets in priority to diminishing a single asset of the company comprising restricted assets or a single asset of the company comprising standard intangible fixed assets, and (b) as diminishing a single asset of the company comprising restricted assets in priority to diminishing a single asset of the company comprising standard intangible fixed assets. (900M) (1) Fungible assets acquired by a company that would not otherwise be treated as pre-FA 2002 assets are so treated so far as they are identified, in accordance with the following rules, with pre-FA 2002 assets realised by the company. (2) Fungible assets acquired by a company that would not otherwise be treated as pre-FA 2002 assets or restricted assets are to be treated as restricted assets so far as they are identified, in accordance with the following rules, with restricted assets realised by the company. (3) Rule 1 is that assets acquired are identified with pre-FA 2002 assets or restricted assets of the same kind realised by the company within the period beginning 30 days before and ending 30 days after the date of the acquisition. (4) The reference in subsection (3) to assets “of the same kind” is to assets that are, or but for section 900K(1) would be, treated as part of a single asset because of section 900J. (5) Rule 2 is that assets realised earlier are identified before assets realised later. (6) Rule 3 is that assets acquired earlier are identified before assets acquired later. (900N) (1) This section applies in respect of a single asset of a company that comprises restricted assets (and is itself treated as a restricted asset by reason of section 900K(2)(b)). (2) The relevant Chapters of this Part have effect as if the company acquired the single asset for the sum of the amounts for which the company would have been treated for the purposes of those Chapters as having acquired each of the restricted assets that comprises the single asset. (3) In this section “the relevant Chapter of this Part” has the meaning given by section 900E(6). (900O) In this Chapter— - “restricted asset” has the same meaning as in Chapter 16A, and - “standard intangible fixed asset” means an intangible fixed asset that is neither a pre-FA 2002 asset nor a restricted asset.

Miscellaneous measures affecting companies

Non-UK resident companies carrying on UK property businesses etc

32

Schedule 6 makes minor amendments (which arise in consequence of the provision made by Schedule 1 or 5 to FA 2019) in relation to non-UK resident companies that carry on UK property businesses or have other income relating to land in the United Kingdom.

Surcharge on banking companies: transferred-in losses

33

(4A) Section 269DCA defines “non-banking transferred-in loss relief” for the purposes of calculating a company's surcharge profits.

“NBTILR” is the amount (if any) of non-banking transferred-in loss relief (see section 269DCA);

.

(269DCA) (1) In section 269DA(2), “non-banking transferred-in loss relief” means the sum of any amounts that are deducted under section 2A of TCGA 1992 in determining the taxable total profits of the company of the chargeable accounting period in respect of an allowable loss, or any part of an allowable loss, that accrued to the company as a result of a non-banking loss transfer. (2) A “non-banking loss transfer” is a transfer to the company of the whole or any part of an allowable loss, by an election under section 171A of TCGA 1992 (reallocation within group), from a non-banking company. (3) In this section “non-banking company” means a company that is not a banking company at the time that the allowable loss, or such part of it as the election transfers, is treated as accruing by virtue of the election (see, in particular, section 171B(3) of TCGA 1992).

CT payment plans for tax on certain transactions with EEA residents

34

Schedule 7 makes provision for the deferral of the payment of corporation tax arising in connection with certain transactions involving companies resident in an EEA state.

Changes to accounting standards affecting leases

35

(1) This paragraph applies if the first period of account for which the right-of-use asset falls (or would fall) to be recognised for accounting purposes in the accounts of the lessee begins on or after 1 January 2019 (referred to in the following provisions of this paragraph as “the first period of account”).

(14) (1) This paragraph applies if the first period of account for which the right-of-use asset falls (or would fall) to be recognised for accounting purposes in the accounts of the lessee begins before 1 January 2019. (2) The change of basis provisions and this Part of this Schedule have effect— (a) as if there were a change of accounting policy with respect of the accounts of the lessee for the first period of account beginning on or after 1 January 2019, and (b) as if that period of account were the first period of account for which the right-of-use asset falls (or would fall) to be recognised for accounting purposes in the accounts of the lessee.

Investments

Enterprise investment scheme: approved investment fund as nominee

36

(d) the amounts which the managers have, as nominee for the individual, subscribed for shares issued within 24 months after the closing of the fund represent at least 90% of the individual's investment in the fund, (e) within that 24 month period at least 80% of the individual's investment in the fund is represented by shares in companies which are knowledge-intensive companies at the time the shares are issued, and (f) the managers have met such conditions with respect to the provision of information to HMRC Commissioners as the Commissioners consider appropriate for the purposes of this section.

, and

(1A) In this section “the managers of an approved knowledge-intensive fund” means the person or persons having the management of an investment fund— (a) which is, in the opinion of HMRC Commissioners, a fund established for the purpose of investing wholly, or substantially wholly, in shares in companies which are knowledge-intensive companies at the time the shares are issued, and (b) which is, having met such other conditions as HMRC Commissioners consider appropriate for the purposes of this section, approved by them for those purposes.

(2A) Accordingly, in a case where section 158 has effect with the modifications in subsection (2), the reference in section 158(4) to the issue of the shares in the preceding tax year is to the issue of the shares in the tax year preceding the tax year in which the fund closes (and references elsewhere in this Part to the issue of shares in a previous tax year are to be read accordingly).

(8) In this section “HMRC Commissioners” means the Commissioners for Her Majesty's Revenue and Customs.

Gains from contracts for life insurance etc: top slicing relief

37

(8) For the purposes of the calculations mentioned in subsection (1)— (a) section 25(2) of ITA 2007 (deductions of reliefs and allowances in most beneficial way for taxpayer) does not apply, and (b) reliefs and allowances are available for deduction from an amount that, for the purposes of those calculations, is the highest part of the individual's total income for the tax year only so far as they cannot be deducted from other amounts.

(iii) in determining the amount of the individual's personal allowance under section 35 of ITA 2007 (but not the amount of any other relief or allowance), it is assumed that the gain from the chargeable event is equal to the amount of the annual equivalent, and

.

(iii) in determining the amount of the individual's personal allowance under section 35 of ITA 2007 (but not the amount of any other relief or allowance), it is assumed that the total gains from the chargeable events are equal to the amount of the total annual equivalent, and

.

Losses on disposal of shares: abolition of requirement to be UK business

38

PART 2 — Digital services tax

Introduction

Digital services tax: introduction

39

Digital services revenues, UK digital services revenues etc

Meaning of “digital services revenues”

40

Meaning of “UK digital services revenues”

41

This is subject to subsection (10).

UK digital services revenues: accommodation and land

42

Meaning of “digital services activity” etc

43

Meaning of “user” and “UK user”

44

Exclusion for online financial marketplaces

45

Charge to tax

Meaning of “the threshold conditions”

46

Charge to DST

47

Alternative basis of charge

48

Section 48: meaning of “relevant operating expenses”

49

the expenses are to be treated as relevant operating expenses to such extent as is just and reasonable.

Relief for certain cross-border transactions

50

When DST is due and payable

51

Digital services tax in respect of an accounting period is due and payable on the day following the end of 9 months from the end of the accounting period.

Duty to submit returns etc

Meaning of “the responsible member”

52

The revocation has effect when the notification is issued.

Continuity of obligations etc where change in the responsible member

53

Duty to notify HMRC when threshold conditions are met

54

In paragraph (b) “relevant accounting period” means the accounting period specified in the direction or any subsequent accounting period.

Duty to notify HMRC of change in relevant information

55

Duty to file returns

56

Groups, parents and members

Meaning of “group”, “parent” etc

57

Section 57: meaning of “relevant entity”

58

Continuity of a group over time

59

Treatment of stapled entities

60

Accounting periods, accounts etc

Accounting periods and meaning of “a group’s accounts”

61

This is subject to subsection (4) (rule for groups coming into existence after 1 April 2020).

Apportionment of revenues or expenses to accounting period

62

Meaning of revenues arising, or expenses recognised, in a period

63

Meaning of “the applicable accounting standards” etc

64

“UK companies” here means companies incorporated or formed under the law of a part of the United Kingdom.

issued or adopted, from time to time, by the International Accounting Standards Board.

Supplementary

Anti-avoidance

65

Notice requiring payment from other group members

66

Interest on overdue DST

67

Interest on overpaid DST etc

68

until the due date.

the interest that ought not to have been paid may be recovered from the person.

whether or not any previous assessment or determination has been made.

Recovery of DST liability

69

Minor and consequential amendments

70

Schedule 10 contains minor and consequential amendments.

Review of DST

71

General

Interpretation of Part

72

In this Part—

PART 3 — Other taxes

Inheritance tax

Excluded property etc

73

(3F) If— (a) an amount is payable in respect of property (“the existing property”) comprised in a settlement, and (b) the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement, subsections (3)(a), (3A)(a) and (3E) have effect, in the case of the amount, as if any reference to the time it became comprised in the settlement were to the time the existing property became comprised in the settlement.

(48A) In this Act any reference to the commencement of a settlement is to the time when property first becomes comprised in it.

(1BA) If— (a) an amount is payable in respect of property (“the existing property”) comprised in a settlement, and (b) the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement, subsection (1B) has effect, in the case of the amount, as if any reference to the time it became comprised in the settlement were to the time the existing property became comprised in the settlement.

(8A) If— (a) an amount is payable in respect of property (“the existing property”) comprised in a settlement, and (b) the amount represents an accumulation of income which (once accumulated) becomes comprised in the settlement, subsection (8) has effect, in the case of the amount, as if any reference to the time it became comprised in the settlement were to the time the existing property became comprised in the settlement.

“commencement” of a settlement has the meaning given by section 48A;

, and

Section 2(3) of IHTA 1984 applies for the purposes of this subsection.

Transfers between settlements etc

74

(81B) (1) This section applies to property to which section 80 (initial interest of settlor etc) applies. (2) If the property would apart from this section be excluded property by virtue of section 48(3)(a) or (3A)(a), the property is at any time in a tax year to be regarded as excluded property for the purposes of this Chapter, except sections 78 and 79, only if Conditions A and B are met. (3) Section 65(8) has effect in relation to the property only if Condition A is met (in addition to any condition mentioned in that provision). (4) Condition A is that the actual settlor was not domiciled in the United Kingdom at the time of the occasion first referred to in section 80(1). (5) Condition B is that the actual settlor is not a formerly domiciled resident for the tax year. (6) In this section “the actual settlor” means the person who is the settlor of the property in relation to the settlement first mentioned in section 80(1). (7) Where the occasion first referred to in section 80(1) occurred before the day on which the Finance Act 2020 was passed, this section has effect as if, in subsection (2), “or (3A)(a)” were omitted.

(5) This section does not apply in relation to a case to which section 82A applies.

, and

(82A) (1) This section— (a) applies where, at any time on or after the day on which the Finance Act 2020 is passed, property ceases to be comprised in a settlement (“the first settlement”) but is treated as a result of section 81 as remaining comprised in that settlement for the purposes of this Chapter, and (b) applies whether or not at any subsequent time the property is comprised in the first settlement without regard to that section. (2) If the property would apart from this section be excluded property by virtue of section 48(3)(a) or (3A)(a), the property is to be regarded as excluded property for the purposes of this Chapter, except sections 78 and 79, at any time only if the non-domicile condition is met in relation to each qualifying transfer occurring on or before that time. (3) Section 65(8) has effect in relation to the property at any time only if (in addition to the condition mentioned there) the non-domicile condition is met in relation to each qualifying transfer occurring on or before that time; but, for the purposes of this subsection, the non-domicile condition has effect with the omission of subsection (6)(a)(ii). (4) For the purposes of this section each of the following is a “qualifying transfer”— (a) the occasion on which section 81 applies to the property; and (b) any subsequent occasion on which the property would, if the effect of section 81 were ignored, become comprised in a settlement to which this Chapter applies (including the first settlement). (5) But a qualifying transfer does not occur as a result of— (a) an assignment by a beneficiary of an interest in a settlement, or (b) an exercise of a general power of appointment, unless the time of the assignment or exercise of the power falls on or after the day on which the Finance Act 2020 is passed. (6) For the purposes of this section “the non-domicile condition” is— (a) in a case where a qualifying transfer occurs as a result of an assignment by a beneficiary of an interest in a settlement or an exercise of a general power of appointment, that the beneficiary or the person exercising the power— (i) was not domiciled in the United Kingdom at the time of the assignment or exercise of the power, and (ii) is not a formerly domiciled resident for the tax year in which the time mentioned in subsection (2) falls; (b) in a case in which section 81 applies which is not within paragraph (a), that the person who was the settlor of the property in relation to the first settlement was not domiciled in the United Kingdom immediately before the time when the property ceased to be comprised in the first settlement; (c) in any other case, that the person who was the settlor of the property in relation to the first settlement was not domiciled in the United Kingdom immediately before the time of the subsequent occasion. (7) If— (a) the settlor mentioned in subsection (6)(b) or (c) has died before the time mentioned there, and (b) the death does not give rise to a qualifying transfer, the non-domicile condition is treated as met. (8) In this section any reference to a qualifying transfer occurring as a result of— (a) an assignment by a beneficiary of an interest in a settlement, or (b) an exercise of a general power of appointment, includes the transfer occurring partly as a result of the assignment or exercise of the power. (9) In this section any reference to an assignment includes an assignation.

Section 2(3) of IHTA 1984 applies for the purposes of this subsection.

Relief for payments to victims of persecution during Second World War era

75

(8A) Regulations under this section may have effect in relation to deaths occurring before the regulations are made.

(10) A one-off payment of a fixed amount from the Kindertransport Fund established by the Government of the Federal Republic of Germany.

Stamp duty land tax

Exceptional circumstances preventing disposal of interest in three year period

76

(7A) For the purposes of sub-paragraph (7)(b), the permitted periods are— (a) the period of three years beginning with the day after the effective date of the transaction concerned, or (b) if HMRC are satisfied that the purchaser or the purchaser's spouse or civil partner would have disposed of the major interest in the sold dwelling within that three year period but was prevented from doing so by exceptional circumstances that could not reasonably have been foreseen, such longer period as HMRC may allow in response to an application made in accordance with sub-paragraph (7B). (7B) An application for the purposes of sub-paragraph (7A)(b) must— (a) be made within the period of 12 months beginning with the effective date of the transaction disposing of the major interest in the sold dwelling, and (b) be made in such form and manner, and contain such information, as may be specified by HMRC. (7C) Schedule 11A (claims not included in returns) does not apply in relation to an application made in accordance with sub-paragraph (7B).

(5) Where HMRC grant an application made in accordance with paragraph 3(7B)— (a) the land transaction return in respect of the transaction concerned is treated as having been amended to take account of the application of paragraph 3(7) by virtue of paragraph 3(7A)(b), and (b) HMRC must notify the purchaser accordingly.

Stamp duty and stamp duty reserve tax

Stamp duty: transfers of unlisted securities and connected persons

77

After section 47 of FA 2019 insert—

(47A) (1) This section applies if— (a) an instrument transfers unlisted securities to a company or a company's nominee for consideration, (b) the person transferring the securities is connected with the company or is the nominee of a person connected with the company, and (c) some or all of the consideration consists of the issue of shares. (2) In this section “unlisted securities” means stock or marketable securities that are not listed securities within the meaning of section 47 (stamp duty: transfers of listed securities and connected persons). (3) For the purposes of the enactments relating to stamp duty 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 value of the unlisted securities. (4) For the purposes of subsection (3) “the enactments relating to stamp duty” means the Stamp Act 1891 and any enactment amending that Act or that is to be construed as one with that Act. (5) For the purposes of this section— (a) the value of unlisted securities is to be taken to be the market value of the securities at the date the instrument is executed; (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). (6) Section 1122 of CTA 2010 (connected persons) has effect for the purposes of this section. (7) This section is to be construed as one with the Stamp Act 1891. (8) This section has effect in relation to instruments executed on or after the date on which FA 2020 is passed.

SDRT: unlisted securities and connected persons

78

After section 48 of FA 2019—

(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

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).

(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.

(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.

Value added tax

Call-off stock arrangements

80

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

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

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.

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

.

(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.

(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).

Alcohol liquor duties

Post-duty point dilution of wine or made-wine

81

(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).

Tobacco products duty

Rates of tobacco products duty

82
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

Vehicle taxes

Rates for light passenger or light goods vehicles, motorcycles etc

83
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

.

(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 ”.

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

.

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

.

Applicable CO2 emissions figure determined using WLTP values

84

, 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

.

Electric vehicles: extension of exemption

85

Motor caravans

86

(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.

(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

(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.

HGV road user levy

88

(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

Gaming duty

Amounts of gross gaming yield charged to gaming duty

91
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%

.

Environmental taxes

Rates of climate change levy until 1 April 2021

92
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

.

(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

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.

Rates of climate change levy from 1 April 2021

93
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

.

Rates of landfill tax

94

Carbon emissions tax

95

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

Charge for allocating allowances under emissions reduction trading scheme

96

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

(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.

(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.

(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.

HMRC debts: regulations

99

Joint and several liability

Joint and several liability of company directors etc

100

General anti-abuse rule

Amendments relating to the operation of the GAAR

101

Schedule 14 makes—

Compensation schemes etc

Tax relief for scheme payments etc

102

Schedule 15 makes provision for tax relief in respect of—

Administration

HMRC: exercise of officer functions

103

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

104

(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.

(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) ”.

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

105

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.

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

Coronavirus

Taxation of coronavirus support payments

106

Enterprise management incentives: disqualifying events

107

, 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).

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

108

, 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.

(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.

Modifications of the statutory residence test in connection with coronavirus

109

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

(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).

(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.

(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).

(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

;

(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).

(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).

(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.

(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.

(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).

“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

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

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

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.

(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

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

.

(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—

(60A) (1) For the purposes of this Chapter, a company qualifies as small for a tax year if one of the following conditions is met (but this is subject to section 60C). (2) The first condition is that the company's first financial year is not relevant to the tax year. (3) The second condition is that the small companies regime applies to the company for its last financial year that is relevant to the tax year. (4) For the purposes of this section, a financial year of a company is “relevant to” a tax year if the period for filing the company's accounts and reports for the financial year ends before the beginning of the tax year. (5) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. (60B) (1) This section applies when determining for the purposes of section 60A(3) whether the small companies regime applies to a company for a financial year in a case where— (a) at the end of the financial year the company is jointly controlled by two or more other persons, and (b) one or more of those other persons are undertakings (“the joint venturer undertakings”). (2) If the company is a parent company, the joint venturer undertakings are to be treated as members of the group headed by the company. (3) If the company is not a parent company, the company and the joint venturer undertakings are to be treated as constituting a group of which the company is the parent company. (4) In this section the expression “jointly controlled” is to be read in accordance with those provisions of international accounting standards which relate to joint ventures. (5) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. (60C) (1) A company does not qualify as small for a tax year by reason of the condition in section 60A(3) being met if— (a) the company is a member of a group at the end of its last financial year that is relevant to the tax year, (b) the company is not the parent undertaking of that group at the end of that financial year, and (c) the undertaking that is the parent undertaking of that group at that time does not qualify as small in relation to its last financial year that is relevant to the tax year. (2) Where the parent undertaking mentioned in subsection (1)(c) is not a company, sections 382 and 383 of the Companies Act 2006 have effect for determining whether the parent undertaking qualifies as small in relation to its last financial year that is relevant to the tax year as if references in those sections to a company and a parent company included references to an undertaking and a parent undertaking. (3) For the purposes of subsections (1)(c) and (2) a financial year of an undertaking that is not a company is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year. (4) For the purposes of this section, a financial year of a company is “relevant to” a tax year if the period for filing the company's accounts and reports for the financial year ends before the beginning of the tax year. (5) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. (60D) (1) Sections 60A to 60C apply in relation to a relevant undertaking as they apply in relation to a company, subject to any necessary modifications. (2) In this section “relevant undertaking” means an undertaking in respect of which regulations have effect under— (a) section 15(a) of the Limited Liability Partnerships Act 2000, (b) section 1043 of the Companies Act 2006 (unregistered companies), or (c) section 1049 of the Companies Act 2006 (overseas companies). (3) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. (60E) (1) An undertaking that is not a company or a relevant undertaking qualifies as small for a tax year if one of the following conditions is met. (2) The first condition is that the undertaking's first financial year is not relevant to the tax year. (3) The second condition is that the undertaking's turnover for its last financial year that is relevant to the tax year is not more than the amount for the time being specified in the second column of item 1 of the Table in section 382(3) of the Companies Act 2006. (4) For the purposes of this section a financial year of an undertaking is “relevant to” a tax year if it ends at least 9 months before the beginning of the tax year. (5) In this section— - “relevant undertaking” has the meaning given by section 60D, and - “turnover”, in relation to an undertaking, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts so derived. (6) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. (60F) (1) For the purposes of this Chapter, a person who is not a company, relevant undertaking or other undertaking qualifies as small for a tax year if the person's turnover for the last calendar year before the tax year is not more than the amount for the time being specified in the second column of item 1 of the Table in section 382(3) of the Companies Act 2006. (2) In this section— - “company” and “undertaking” have the same meaning as in the Companies Act 2006, - “relevant undertaking” has the meaning given by section 60D, and - “turnover”, in relation to a person, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts so derived. (60G) (1) This section applies where— (a) it is necessary for the purposes of determining whether a person qualifies as small for a tax year (“the tax year concerned”) to first determine the person's turnover for a financial year or calendar year (“the assessment year”), and (b) at the end of the assessment year the person is connected with one or more other persons (“the connected persons”). (2) For the purposes of determining whether the person qualifies as small for the tax year concerned the person's turnover for the assessment year is to be taken to be the sum of— (a) the person's turnover for the assessment year, and (b) the relevant turnover of each of the connected persons. (3) In subsection (2)(b) “the relevant turnover” of a connected person means— (a) in a case where the connected person is a company, relevant undertaking or other undertaking, its turnover for its last financial year that is relevant to the tax year concerned, and (b) in a case where the connected person is not a company, relevant undertaking or other undertaking, the turnover of the connected person for the last calendar year ending before the tax year concerned. (4) For the purposes of subsection (3)(a)— (a) a financial year of a company or relevant undertaking is relevant to the tax year concerned if the period for filing accounts and reports for the financial year ends before the beginning of the tax year concerned, and (b) a financial year of any other undertaking is relevant to the tax year concerned if it ends more than 9 months before the beginning of the tax year concerned. (5) In a case where— (a) the person mentioned in subsection (1)(a) is a company or relevant undertaking, and (b) at the end of the assessment period the person is a member of a group, the person is to be treated for the purposes of this section as not being connected with any person that is a member of that group. (6) In this section— - “turnover”, in relation to a person, means the amounts derived from the provision of goods or services after the deduction of trade discounts, value added tax and any other taxes based on the amounts so derived, and - “relevant undertaking” has the meaning given by section 60D. (7) For provision determining whether one person is connected with another, see section 718 (connected persons). (8) Expressions used in this section and in the Companies Act 2006 have the same meaning in this section as in that Act. (60H) (1) This section applies if, in the case of an engagement that meets conditions (a) to (b) in section 49(1), the client receives from the client's agent or the worker a request to state whether in the client's opinion the client qualifies as small for a tax year specified in the request. (2) The client must provide to the person who made the request a statement as to whether in the client's opinion the client qualifies as small for the tax year specified in the request. (3) If the client fails to provide the statement by the time mentioned in subsection (4) the duty to do so is enforceable by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988. (4) The time is whichever is the later of— (a) the end of the period of 45 days beginning with the date the client receives the request, and (b) the beginning of the period of 45 days ending with the start of the tax year specified in the request. (5) In this section “the client's agent” means a person with whom the client entered into a contract as part of the arrangements mentioned in paragraph (b) of section 49(1). (60I) (1) For the purposes of this Chapter, a person has a UK connection for a tax year if (and only if) immediately before the beginning of that tax year the person— (a) is resident in the United Kingdom, or (b) has a permanent establishment in the United Kingdom. (2) In this section “permanent establishment”— (a) in relation to a company, is to be read (by virtue of section 1007A of ITA 2007) in accordance with Chapter 2 of Part 24 of CTA 2010, and (b) in relation to any other person, is to be read in accordance with that Chapter but as if references in that Chapter to a company were references to that person. Interpretation

6

In section 61(1) (interpretation), in the definition of company, before “means” insert “ (except in sections 60A to 60G) ”.

PART 2 — Amendments to Chapter 10 of Part 2 of ITEPA 2003

7

Chapter 10 of Part 2 of ITEPA 2003 (workers' services provided to public sector through intermediaries) is amended as follows.

8

For the heading of the Chapter substitute “Workers' services provided through intermediaries to public authorities or medium or large clients”.

9

through an intermediary in a case where the services are provided to a person who— (a) is a public authority, or (b) qualifies as medium or large and has a UK connection for a tax year

.

(3) For the purposes of this Chapter a person qualifies as medium or large for a tax year if the person does not qualify as small for the tax year for the purposes of Chapter 8 of this Part (see sections 60A to 60G). (4) Section 60I (when a person has a UK connection for a tax year) applies for the purposes of this Chapter.

10

In section 61L (meaning of “public authority”) in subsection (1)—

(aa) a body specified in section 23(3) of the Freedom of Information Act 2000,

,

, or (g) a company connected with any person mentioned in paragraphs (a) to (f).

11

(ca) the client— (i) is a public authority, or (ii) is a person who qualifies as medium or large and has a UK connection for one or more tax years during which the arrangements mentioned in paragraph (c) have effect, and

.

(1A) But sections 61N to 61R do not apply if— (a) the client is an individual, and (b) the services are provided otherwise than for the purposes of the client's trade or business.

12

(5) Unless and until the client gives a status determination statement to the worker (see section 61NA), subsections (3) and (4) have effect as if for any reference to the fee-payer there were substituted a reference to the client; but this is subject to section 61V. (5A) Subsections (6) and (7) apply, subject to sections 61T, 61TA and 61V, if— (a) the client has given a status determination statement to the worker, (b) the client is not the fee-payer, and (c) the fee-payer is not a qualifying person.

(za) has been given by the person immediately above them in the chain the status determination statement given by the client to the worker,

.

(8A) If the client is not a public authority, a person is to be treated by subsection (3) as making a deemed direct payment to the worker only if the chain payment made by the person is made in a tax year for which the client qualifies as medium or large and has a UK connection.

13

After section 61N insert—

(61NA) (1) For the purposes of section 61N “status determination statement” means a statement by the client that— (a) states that the client has concluded that the condition in section 61M(1)(d) is met in the case of the engagement and explains the reasons for that conclusion, or (b) states (albeit incorrectly) that the client has concluded that the condition in section 61M(1)(d) is not met in the case of the engagement and explains the reasons for that conclusion. (2) But a statement is not a status determination statement if the client fails to take reasonable care in coming to the conclusion mentioned in it. (3) For further provisions concerning status determination statements, see section 61T (client-led status disagreement process) and section 61TA (duty for client to withdraw status determination statement if it ceases to be medium or large).

14

In section 61O(1) (conditions where intermediary is a company) for paragraph (b) substitute—

(b) it is the case that— (i) the worker has a material interest in the intermediary, (ii) the worker has received a chain payment from the intermediary, or (iii) the worker has rights which entitle, or which in any circumstances would entitle, the worker to receive a chain payment from the intermediary.

15

In section 61R (application of Income Tax Acts in relation to deemed employment) omit subsection (7).

16

For section 61T substitute—

(61T) (1) This section applies if, before the final chain payment is made in the case of an engagement to which this Chapter applies, the worker or the deemed employer makes representations to the client that the conclusion contained in a status determination statement is incorrect. (2) The client must either— (a) give a statement to the worker or (as the case may be) the deemed employer that— (i) states that the client has considered the representations and has decided that the conclusion contained in the status determination statement is correct, and (ii) states the reasons for that decision, or (b) give a new status determination statement to the worker and the deemed employer that— (i) contains a different conclusion from the conclusion contained in the previous status determination statement, (ii) states the date from which the client considers that the conclusion contained in the new status determination statement became correct, and (iii) states that the previous status determination statement is withdrawn. (3) If the client fails to comply with the duty in subsection (2) before the end of the period of 45 days beginning with the date the client receives the representations, section 61N(3) and (4) has effect from the end of that period until the duty is complied with as if for any reference to the fee-payer there were substituted a reference to the client; but this is subject to section 61V. (4) A new status determination statement given to the deemed employer under subsection (2)(b) is to be treated for the purposes of section 61N(8)(za) as having been given to the deemed employer by the person immediately above the deemed employer in the chain. (5) In this section— - “the deemed employer” means the person who, assuming one of conditions A to C in section 61N were met, would be treated as making a deemed direct payment to the worker under section 61N(3) on the making of a chain payment; - “status determination statement” has the meaning given by section 61NA. (61TA) (1) This section applies if in the case of an engagement to which this Chapter applies— (a) the client is not a public authority, (b) the client gives a status determination statement to the worker, the client's agent or both, and (c) the client does not (but for this section) qualify as medium or large for a tax year beginning after the status determination statement is given. (2) Before the beginning of the tax year the client must give a statement to the relevant person, or (as the case may be) to both of the relevant persons, stating— (a) that the client does not qualify as medium or large for the tax year, and (b) that the status determination statement is withdrawn with effect from the beginning of the tax year. (3) If the client fails to comply with that duty the following rules apply in relation to the engagement for the tax year— (a) the client is to be treated as medium or large for the tax year, and (b) section 61N(3) and (4) have effect as if for any reference to the fee-payer there were substituted a reference to the client. (4) For the purposes of subsection (2)— (a) the worker is a relevant person if the status determination statement was given to the worker, and (b) the deemed employer is a relevant person if the status determination statement was given to the client's agent. (5) In this section— - “client's agent” means a person with whom the client entered into a contract as part of the arrangements mentioned in section 61M(1)(c); - “the deemed employer” means the person who, assuming one of conditions A to C in section 61N were met, would be treated as making a deemed direct payment to the worker under section 61N(3) on the making of a chain payment; - “status determination statement” has the meaning given by section 61NA.

17

PART 3 — Consequential and miscellaneous amendments

18

In section 61D of ITEPA 2003 (managed service companies: worker treated as receiving earnings from employment) for subsection (4A) substitute—

(4A) This section does not apply where the provision of the relevant services gives rise (directly or indirectly) to an engagement to which Chapter 10 applies and either— (a) the client for the purposes of section 61M(1) is a public authority, or (b) the client for the purposes of section 61M(1)— (i) qualifies as medium or large for the tax year in which the payment or benefit mentioned in subsection (1)(b) is received, and (ii) has a UK connection for the tax year in which the payment or benefit mentioned in subsection (1)(b) is received. (4B) Sections 60I (when a person has a UK connection for a tax year), 61K(3) (when a person qualifies as medium or large for a tax year) and 61L (meaning of public authority) apply for the purposes of subsection (4A). (4C) It does not matter for the purposes of subsection (4A) whether the client for the purposes of this Chapter is also “the client” for the purposes of section 61M(1).

19

After section 688A of ITEPA 2003 insert—

(688AA) (1) PAYE Regulations may make provision for, or in connection with, the recovery of a deemed employer PAYE debt from a relevant person. (2) “A deemed employer PAYE debt” means an amount— (a) that a person (“the deemed employer”) is liable to pay under PAYE regulations in consequence of being treated under section 61N(3) as having made a deemed direct payment to a worker, and (b) that an officer of Revenue and Customs considers there is no realistic prospect of recovering from the deemed employer within a reasonable period. (3) “Relevant person”, in relation to a deemed employer PAYE debt, means a person who is not the deemed employer and who— (a) is the highest person in the chain identified under section 61N(1) in determining that the deemed employer is to be treated as having made the deemed direct payment, or (b) is the second highest person in that chain and is a qualifying person (within the meaning given by section 61N(8)) at the time the deemed employer is treated as having made that deemed direct payment.

20

In section 60 of FA 2004 (construction industry scheme: meaning of contract payments) after subsection (3) insert—

(3A) This exception applies in so far as— (a) the payment can reasonably be taken to be for the services of an individual, and (b) the provision of those services gives rise to an engagement to which Chapter 10 of Part 2 of ITEPA 2003 applies (workers' services provided through intermediaries to public authorities or medium or large clients). (3B) But the exception in subsection (3A) does not apply if, in the case of the engagement mentioned in paragraph (b) of that subsection, the client for the purposes of section 61M(1) of ITEPA 2003— (a) is not a public authority, and (b) either— (i) does not qualify as medium or large for the tax year in which the payment concerned is made, or (ii) does not have a UK connection for the tax year in which the payment concerned is made. (3C) Sections 60I (when a person has a UK connection for a tax year), 61K(3) (when a person qualifies as medium or large for a tax year) and 61L (meaning of public authority) of ITEPA 2003 apply for the purposes of subsection (3B).

21

For the italic heading before section 141A of CTA 2009 substitute “ Worker's services provided through intermediary to public authority or medium or large client ”.

22

In the heading of section 141A of CTA 2009 for “public sector” substitute “ public authority or medium or large client ”.

23

(4A) In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under— (a) section 61S of ITEPA 2003, (b) regulation 19 of the Social Security Contributions (Intermediaries) Regulations 2000, or (c) regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.

(3) In subsection (2) the reference to the staff provision payment is to that payment before any deduction is made from the payment under— (a) section 61S of ITEPA 2003, (b) regulation 19 of the Social Security Contributions (Intermediaries) Regulations 2000, or (c) regulation 19 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.

(1131A) (1) This section applies if— (a) a company makes a staff provision payment, (b) the company is treated as making a payment of deemed direct earnings the amount of which is calculated by reference to the amount of the staff provision payment, and (c) the company pays a secondary Class 1 national insurance contribution in respect of the payment of deemed direct earnings. (2) In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) or section 1131(2) the amount of the staff payment provision is to be treated as increased by the amount of the contribution. (3) In determining the company's qualifying expenditure on externally provided workers in accordance with section 1129(2) the aggregate of the relevant expenditure of each staff controller is to be treated as increased by the amount of the contribution. (4) But subsection (2) does not apply to the extent that the expenditure incurred by the company in paying the contribution is met directly or indirectly by a staff controller. (5) “A payment of deemed direct earning” means a payment the company is treated as making by reason of regulation 14 of the Social Security Contributions (Intermediaries) Regulations 2000 or regulation 14 of the Social Security Contributions (Intermediaries) (Northern Ireland) Regulations 2000.

PART 4 — Commencement and transitional provisions

Commencement

24

The amendments made by Part 1 of this Schedule have effect for the tax year 2021-22 and subsequent tax years.

25

The amendments made by Part 2 of this Schedule have effect in relation to deemed direct payments treated as made on or after 6 April 2021.

26

The amendment made by paragraph 18 of this Schedule has effect for the purposes of determining whether section 61D of ITEPA 2003 applies in a case where the payment or benefit mentioned in subsection (1)(b) of that section is received on or after 6 April 2021.

27

The amendment made by paragraph 20 of this Schedule has effect in relation to payments made under a construction contract on or after 6 April 2021.

28

The amendments made by paragraph 23 of this Schedule have effect in relation to expenditure incurred on or after 6 April 2021.

29

Sections 101 to 103 of FA 2009 (interest) come into force on 6 April 2021 in relation to amounts payable or paid to Her Majesty's Revenue and Customs under regulations made by virtue of section 688AA of ITEPA 2003 (as inserted by paragraph 19 of this Schedule).

Transitional provisions

30
31
32
33

For the purposes of section 61N(5), (5A)(a) and (8)(za) of ITEPA 2003 it does not matter whether the status determination statement concerned is given before 6 April 2021 or on or after that date.

34

For the purposes of section 61T of ITEPA 2003—

SCHEDULE 2

PART 1 — Amendments to F(No.2)A 2017 in consequence of section 15

1

Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

2

In paragraph 1 (application of Part 7A of ITEPA 2003: relevant step) in sub-paragraph (2) for the words from “before” to the end substitute “ before the end of 5 April 2019. ”

3

For the italic heading before paragraph 2 substitute “Meaning of “ loan ” and “quasi loan” ”.

4

In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”) omit sub-paragraph (6).

5
6

In paragraph 5 (meaning of “outstanding”: loans where A or B acquires a right to payment of the loan) in sub-paragraph (1)(b) for “6 April 1999” substitute “ 9 December 2010 ”.

7

In paragraph 13 (meaning of “outstanding”: quasi-loans where A or B acquires a right to the payment or transfer of assets) in sub-paragraph (1)(b) for “6 April 1999” substitute “ 9 December 2010 ”.

8

Omit paragraph 19 (meaning of “approved fixed term loan”) and the italic heading before that paragraph.

9

For the heading of Part 2 substitute “ Accelerated payments ”.

10

Omit paragraphs 20 to 22 and the italic headings before each of those paragraphs.

11

Omit the italic heading before paragraph 23.

12
13
14

In paragraph 35B (duty of appropriate third party to provide information to A) in sub-paragraph (1) omit “Q,”.

15
16
17

Schedule 12 to F(No.2)A 2017 (trading income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

18

For the italic heading before paragraph 2 substitute “Meaning of “ loan ” and “quasi loan” ”.

19

In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”) omit sub-paragraph (6).

20

Omit paragraphs 15 to 18 and the italic heading before each of those paragraphs.

21
22

In paragraph 23 (meaning of “loan charge information”) in sub-paragraph (2) omit paragraph (a).

PART 2 — Amendments in consequence of section 16

ITEPA 2003

23

ITEPA 2003 is amended as follows.

24

(4) Chapter 2 does not apply by reason of— (a) a relevant step taken on or after A's death if— (i) the relevant step is within section 554B, or (ii) the relevant step is within section 554C by virtue of subsection (1)(ab) of that section, (b) a relevant step within paragraph 1 of Schedule 11 to F(No.2)A 2017 which is treated as being taken on or after A's death, or (c) a relevant step within paragraph 1A of Schedule 11 to F(No.2)A 2017 in a case where the initial step (within the meaning given by sub-paragraph (1)(a) of that paragraph) is treated as being taken on or after A's death.

25

In section 554Z (interpretation: general) in subsection (10)(d) after “paragraph 1” insert “ or 1A ”.

F(No.2)A 2017

26

Schedule 11 to F(No.2)A 2017 (employment income provided through third parties: loans etc outstanding on 5 April 2019) is amended as follows.

27

In paragraph 2 (meaning of “loan”, “quasi-loan” and “approved repayment date”)—

28

In paragraph 3(1) (meaning of “outstanding”: loans) for “paragraph 1” substitute “ paragraphs 1 and 1A ”.

29

In paragraph 4 (when an amount of a loan is outstanding: certain repayments to be disregarded) in sub-paragraph (6) for “the relevant step treated as taken by paragraph 1” substitute “ a relevant step treated as taken by paragraph 1 or 1A ”.

30

In paragraph 5 (meaning of “outstanding”: loans where A or B acquires a right to payment of the loan) in sub-paragraph (2)(b) for “paragraph 1(4)” substitute “ paragraphs 1(4) and 1A(5) ”.

31

In paragraph 7 (meaning of “outstanding”: loans in currencies other than stirling) in sub-paragraph (3) after “relevant step” insert “ within paragraph 1 ”.

32

In paragraph 10 (meaning of “outstanding”: loans made in a depreciating currency) in sub-paragraph (1)(b) after “relevant step” insert “ within paragraph 1 ”.

33

In paragraph 11(1) (meaning of “outstanding”: quasi-loans) for “paragraph 1” substitute “ paragraphs 1 and 1A ”.

34

In paragraph 12 (certain payments or transfers to be disregarded for the purposes of paragraph 11) in sub-paragraph (5) for “the relevant step treated as taken by paragraph 1” substitute “ a relevant step treated as taken by paragraph 1 or 1A ”.

35

In paragraph 13 (meaning of “outstanding”: quasi-loans where A or B acquires a right to the payment or transfer of assets) in sub-paragraph (2)(b) for “paragraph 1(4)” substitute “ paragraphs 1(4) and 1A(5) ”.

36

In paragraph 15 (meaning of “outstanding”: quasi-loans in currencies other than sterling) in sub-paragraph (3) after “relevant step” insert “ within paragraph 1 ”.

37

In paragraph 18 (meaning of “outstanding”: quasi-loans made in a depreciating currency) in sub-paragraph (1)(b) after “relevant step” insert “ within paragraph 1 ”.

38

After paragraph 35 insert—

(35ZA) Chapter 2 of Part 7A of ITEPA 2003 does not apply by reason of a relevant step within paragraph 1A if that Chapter does not apply by reason of the initial step (within the meaning given by sub-paragraph (1)(a) of paragraph 1A).

Social Security (Contributions) Regulations 2001

39

SCHEDULE 3

PART 1 — Reduction in lifetime limit

Reduction in lifetime limit

1

In section 169N of TCGA 1992 (entrepreneurs' relief: amount of relief)—

Commencement

2

The amendments made by paragraph 1 have effect in relation to disposals made on or after 11 March 2020.

Anti-forestalling: unconditional contracts

3

Anti-forestalling: reorganisations of share capital

4

Anti-forestalling: exchanges of securities etc

5

Interpretation

6

PART 2 — Re-naming the relief

7
8

This Part of this Schedule has effect for the tax year 2020-21 and subsequent tax years.

SCHEDULE 4

PART 1 — Corporate capital loss restriction

Restriction on deduction from chargeable gains: main provisions

1

Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions) is amended as follows.

2

After section 269ZB insert—

(269ZBA) (1) This section has effect for determining the taxable total profits of a company for an accounting period. (2) The sum of any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods) may not exceed the relevant maximum. But this is subject to subsection (7). (3) In this section the “relevant maximum” means the sum of— (a) 50% of the company's relevant chargeable gains for the accounting period, and (b) the amount of the company's chargeable gains deductions allowance for the accounting period. (4) Section 269ZF contains provision for determining a company's relevant chargeable gains for an accounting period. (5) A company's “chargeable gains deductions allowance” for an accounting period— (a) is so much of the company's deductions allowance for the period as is specified in the company's tax return as its chargeable gains deductions allowance for the period, and (b) accordingly, is nil if no amount of the company's deductions allowance for the period is so specified. (6) An amount specified under subsection (5)(a) as a company's chargeable gains deductions allowance for an accounting period may not exceed the difference between— (a) the amount of the company's deductions allowance for the period, and (b) the total of any amounts specified for the period under— (i) section 269ZB(7)(a) (trading profits deductions allowance), (ii) section 269ZC(5)(a) (non-trading income profits deductions allowance), and (iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance). (7) Subsection (2) does not apply in relation to a company for an accounting period where, in determining the company's qualifying chargeable gains for the period, the amount given by step 1 in section 269ZF(3) is not greater than nil.

3

(3) In this section the “relevant maximum” means the sum of— (a) 50% of the company's total relevant non-trading profits for the accounting period, and (b) the amount of the company's total non-trading profits deductions allowance for the accounting period. (3A) A company's “total non-trading profits deductions allowance” for the accounting period is the sum of— (a) the company's non-trading income profits deductions allowance (see subsection (5)), and (b) the company's chargeable gains deductions allowance (see section 269ZBA(5)).

(b) the total of any amounts specified for the period under— (i) section 269ZB(7)(a) (trading profits deductions allowance), (ii) section 269ZBA(5)(a) (chargeable gains deductions allowance), and (iii) in the case of an insurance company, section 269ZFC(5)(a) (BLAGAB deductions allowance).

4

In section 269ZD (restriction on deductions from total profits), in subsection (2)(b), after sub-paragraph (i) (before the “and”) insert—

(ia) any deductions made by the company for the accounting period under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods),

.

5

In section 269ZF (relevant profits), after subsection (2) insert—

(2A) A company's “relevant chargeable gains” for an accounting period are— (a) the company's qualifying chargeable gains for the accounting period (see subsection (3)), less (b) the company's chargeable gains deductions allowance for the accounting period (see section 269ZBA(5)). But if the allowance mentioned in paragraph (b) exceeds the qualifying chargeable gains mentioned in paragraph (a), the company's “relevant chargeable gains” for the accounting period are nil. (2B) A company's “total relevant non-trading profits” for an accounting period are— (a) the sum of— (i) the company's qualifying non-trading income profits for the period, and (ii) the company's qualifying chargeable gains for the period, less (b) the company's total non-trading profits deductions allowance for the period (see section 269ZC(3A)).

6

In section 269ZF, in subsection (3), for steps 3 to 5 substitute—

Step 3 - trading profits, non-trading income profits and chargeable gains Divide the company's total profits for the accounting period (as modified under step 1(2)) into— (a) profits of a trade of the company (the company's “trading profits”), (b) profits, other than chargeable gains, that are not profits of a trade of the company (the company's “non-trading income profits”), and (c) chargeable gains included in the total profits (the company's “chargeable gains”). Step 4 - apportionment of the step 2 amount (1) Allocate the whole of the step 2 amount to one of, or between two or all of, the following— (a) the company's trading profits, (b) the company's non-trading income profits, and (c) the company's chargeable gains. (2) Reduce, but not below nil, each of the company's trading profits, non-trading income profits and chargeable gains by the amount (if any) allocated to it under paragraph (1). Step 5 - amount of qualifying trading profits, qualifying non-trading income profits and qualifying chargeable gains The amounts resulting from step 3, after any reduction under step 4, are— (a) in the case of the amount in step 3(a), the company's qualifying trading profits, (b) in the case of the amount in step 3(b), the company's qualifying nontrading income profits, and (c) in the case of the amount in step 3(c), the company's qualifying chargeable gains.

7

In section 269ZF(4) (calculation of modified total profits)—

; and (h) make no deductions under section 2A(1)(b) of TCGA 1992 (allowable losses accruing in earlier accounting periods).

Insolvent companies

8

After section 269ZW insert—

(269ZWA) (1) This section applies in relation to a company if— (a) the company has gone into insolvent liquidation (see subsection (4)), or (b) a corresponding situation exists in relation to the company in a country or territory outside the United Kingdom. (2) The company's deductions allowance for a winding up accounting period (as determined in accordance with section 269ZR or 269ZW) is to be treated (for all purposes) as increased by— (a) the amount of chargeable gains accruing to the company in the accounting period after deducting any allowable losses accruing to the company in the period, or (b) if lower, the amount of any allowable losses previously accruing to the company, so far as not previously deducted under section 2A(1) of TCGA 1992. (3) In determining the amount of chargeable gains accruing to the company in a winding up accounting period for the purposes of subsection (2), ignore— (a) any chargeable gains (but not any allowable losses) accruing to the company on the disposal of an asset if— (i) section 171(1) of TCGA 1992 (transfers within a group: no gain no loss) applied in relation to the disposal by which the company acquired the asset (the “no gain/no loss disposal”), (ii) the asset was acquired by the company, by virtue of the no gain/no loss disposal, in a winding up accounting period, and (iii) the company making the no gain/no loss disposal has not, at that time, gone into insolvent liquidation, and (b) any chargeable gains (but not any allowable losses) transferred to the company in accordance with an election made under section 171A of TCGA 1992 (election to reallocate gain or loss to another member of the group) if— (i) the election is made in a winding up accounting period, and (ii) the company from which the chargeable gain is transferred has not, at the time the election is made, gone into insolvent liquidation. (4) For the purposes of this section, a company has gone into insolvent liquidation if— (a) it has gone into liquidation, within the meaning of section 247(2) of the Insolvency Act 1986 or article 6(2) of the Insolvency (Northern Ireland) Order 1989 (SI 1989/2405 (NI 19), and (b) at the time it goes into liquidation, its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up. (5) In this section a “winding up accounting period” means— (a) the accounting period of the company that begins when the winding up starts (within the meaning of section 12(7) of CTA 2009), and (b) each subsequent accounting period.

9

In section 269ZZ (company tax return to specify amount of deductions allowance), in subsection (1), after paragraph (a) (but before the “and”) insert—

(aa) if section 269ZWA (increase of deductions allowance for insolvent companies) applies, what that amount would be without the increase provided for by subsection (2) of that section,

.

Companies without a source of chargeable income

10

After section 269ZY of CTA 2010 insert—

(269ZYA) (1) This section applies in relation to a company and a financial year (“the relevant financial year”) if— (a) the company has no source of chargeable income (see subsection (2)) throughout the relevant financial year, and (b) if the company is a member of a group (see section 269ZZB) at any time during the relevant financial year, each other company that is, at any time during the relevant financial year, a member of the group has no source of chargeable income throughout the relevant financial year. (2) For the purposes of this section and section 269ZYB, a company “has no source of chargeable income” if the company is either— (a) not within the charge to corporation tax, or (b) chargeable to corporation tax only because of a chargeable gain accruing to the company on the disposal of an asset. (3) A company may make a claim under this section in respect of an accounting period if— (a) the accounting period falls wholly within the relevant financial year, and (b) the company is chargeable to corporation tax for the accounting period only because of a chargeable gain accruing to the company on the disposal of an asset. (4) If a claim is made by a company under this section in respect of an accounting period (a “claim AP”), the company's deductions allowance for the claim AP is the lower of— (a) the available deductions allowance amount (see subsection (9)), (b) the total amount of allowable losses accruing to the company in any previous accounting period, so far as not previously deducted under section 2A(1)(a) or (b) of TCGA 1992, and (c) the chargeable gains accruing to the company in the claim AP. (5) A claim under this section in respect of an accounting period— (a) must be made within the period of two years after the end of the accounting period, but (b) may not be made before the end of the relevant financial year. (6) Sections 269ZR to 269ZY (deductions allowances) do not apply to a claim AP. (7) Subsection (8) applies if— (a) there is at least one claim AP falling wholly within the relevant financial year, and (b) there is at least one accounting period falling wholly within the relevant financial year in respect of which no claim is made under this section (an “alternative AP”). (8) The company's deductions allowance for an alternative AP is the lower of— (a) the deductions allowance that would be available, ignoring the effect of this section (see sections 269ZR to 269ZY), and (b) the available deductions allowance amount (see subsection (9)). (9) For the purposes of this section, the “available deductions allowance amount” is— (a) £5,000,000, less (b) the total of the deductions allowance amounts (if any) already claimed by— (i) the company, and (ii) if the company is a member of a group at any time during the relevant financial year, each other company that is, at any time during the relevant financial year, a member of the group, in respect of each claim AP and alternative AP that falls wholly within the relevant financial year. (10) In this section, references to the deductions allowance amounts claimed by a company in respect of an accounting period— (a) for a claim AP, are references to any deductions allowance claimed by the company under this section in respect of the period, and (b) for an alternative AP, are references to any other amount specified in the company's tax return as its chargeable gains deductions allowance for the period. (11) For the purposes of subsection (9)(b), in the cases listed in the first column of the table below, the rules in the second column apply to determine the order in which deductions allowance amounts are to be treated as claimed in respect of the accounting periods—

Case Rule
1. There is a claim AP and another claim AP starting on the same day or a different day. The order in which the claims under this section are made.
2. There is an alternative AP (“AP1”) and another alternative AP (“AP2”) starting on a later day. AP1 before AP2.
3. There is an alternative AP and another alternative AP starting on the same day. The order in which the tax returns for the alternative APs are delivered.
4. There is a claim AP and an alternative AP starting on the same day, an earlier day or a later day. The claim AP before the alternative AP.

(269ZYB) (1) This section applies in relation to a company and an accounting period if— (a) the conditions in section 269ZYA(3)(a) and (b) are met in relation to the accounting period, and (b) the company's tax return for the accounting period is delivered before the end of the financial year in which the accounting period falls (“the relevant financial year”). (2) The company may make a declaration in the return for the accounting period that— (a) at all earlier times in the relevant financial year— (i) the company had no source of chargeable income (see section 269ZYA(2)), and (ii) if the company is a member of a group, each other member of the group had no source of chargeable income, and (b) the person intends to make a claim under section 269ZYA(3) in respect of the accounting period. (3) Until the declaration ceases to have effect, section 269ZYA has effect as if the company had made a claim under that section. (4) The declaration ceases to have effect if— (a) it is withdrawn, (b) it is superseded by a claim made under section 269ZYA, or (c) the company or, if the company is a member of a group, another member of the group, acquires a source of chargeable income before the end of the relevant financial year. (5) So far as not previously ceasing to have effect under subsection (4), the declaration ceases to have effect two years after the end of the accounting period in respect of which it is made. (6) If the declaration ceases to have effect, all necessary adjustments must be made, by assessment, amendment of returns or otherwise. (7) Subsection (6) applies despite any limitation on the time within which assessments or amendments may be made.

Offshore collective investment vehicles

11

In section 269ZZB of CTA 2010 (meaning of “group”), at the end insert—

(9) For the purposes of the application of this Part in relation to a collective investment vehicle to which paragraph 4 of Schedule 5AAA to TCGA 1992 applies, the reference in paragraph 4(2) of that Schedule to “relevant purposes” is to be treated as including a reference to the purposes of this section.

Insurance companies: ring fence

12

(2A) The following deductions may be made from the shareholders' share of the BLAGAB chargeable gains accruing to the company in an accounting period— (a) any available non-BLAGAB allowable losses accruing to the company in the period may be deducted under section 2A(1)(a), and (b) after making any deductions within paragraph (a), any available non-BLAGAB allowable losses previously accruing to the company, which have not been allowed as a deduction from chargeable gains accruing in the period or in any previous accounting period, may (subject to section 269ZFC of CTA 2010) be deducted under section 2A(1)(b). (2B) But those deductions may not reduce the shareholders' share of BLAGAB chargeable gains below nil. (2C) The amount of “available non-BLAGAB allowable losses” accruing to a company in an accounting period is the amount by which the non-BLAGAB allowable losses accruing to the company in the accounting period exceed the non-BLAGAB chargeable gains so accruing.

(9) If there are BLAGAB allowable losses accruing to the company in the subsequent accounting period, the amount arrived at under subsection (7)(a) is increased by the shareholders' share of the amount of those allowable losses.

13

After section 269ZFB of CTA 2010 insert—

(269ZFC) (1) This section has effect for determining the taxable total profits of an insurance company for an accounting period. (2) The sum of any deductions of non-BLAGAB allowable losses from the shareholders' share of BLAGAB chargeable gains made by an insurance company for an accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act, may not exceed the relevant maximum. (3) In this section, the “relevant maximum” means the sum of— (a) 50% of the company's relevant BLAGAB chargeable gains for the accounting period, and (b) the amount of the company's BLAGAB deductions allowance for the accounting period. (4) A company's “relevant BLAGAB chargeable gains” for an accounting period are— (a) the shareholders' share of the BLAGAB chargeable gains for the accounting period, after any reduction under section 210A(2A)(a) of TCGA 1992, less (b) the amount of the company's BLAGAB deductions allowance for the accounting period. But if the allowance mentioned in paragraph (b) exceeds the shareholders' share of the BLAGAB chargeable gains mentioned in paragraph (a), the company's “relevant BLAGAB chargeable gains” for the accounting period are nil. (5) A company's “BLAGAB deductions allowance” for an accounting period— (a) is so much of the company's deductions allowance for the period as is specified in the company's tax return as its BLAGAB deductions allowance for the period, and (b) accordingly, is nil if no amount of the company's deductions allowance for the period is so specified. (6) An amount specified under subsection (5)(a) as the company's BLAGAB deductions allowance for an accounting period may not exceed the difference between— (a) the amount of the company's deductions allowance for the period, and (b) the total of any amounts specified for the period under section 269ZB(7)(a) (trading profits deductions allowance), section 269ZBA(5)(a) (chargeable gains deductions allowance) and section 269ZC(5)(a) (non-trading income profits deductions allowance). (7) In this section, “BLAGAB chargeable gains”, “insurance company” and “the shareholders' share of BLAGAB chargeable gains” have the same meaning as in section 210A of TCGA 1992.

14

and (iia) any deductions of non-BLAGAB allowable losses from the shareholders' share of BLAGAB chargeable gains made for the accounting period under section 2A(1)(b) of TCGA 1992, as permitted by section 210A(2A)(b) of that Act.

15

In section 95 of FA 2012 (use of non-BLAGAB allowable losses to reduce I-E profit) for “in accordance with section 210A(2) of TCGA 1992” substitute “ under section 2A(1) of TCGA 1992, as permitted by section 210A(2) and (2A) of that Act, ”.

Oil activities: ring fence

16

In section 197 of TCGA 1992 (disposals of interests in oil fields etc: ring fence provisions), after subsection (4) insert—

(4A) A deduction in respect of an aggregate loss accruing in a chargeable period that is (in accordance with subsection (4)(b) and (c)) allowable as a deduction against an aggregate gain treated as accruing in a later period is to be ignored for the purposes of section 269ZBA of CTA 2010 (corporate capital loss restriction: restriction on deductions from chargeable gains).

Clogged losses

17

In section 18 of TCGA 1992 (transactions between connected persons) at the end insert—

(9) If deductible clogged losses have accrued to a company, the company may make a claim in respect of an accounting period for— (a) an amount of the deductible clogged losses to be treated, for the purposes of section 2A(1)(a), as allowable losses accruing in the accounting period, and (b) the same amount of allowable losses accruing to the company in the period to be treated, for the purposes of section 2A(1)(b), as allowable losses previously accruing to the company while it was within the charge to corporation tax. (10) The amount in respect of which the claim is made may not exceed the total amount of any allowable losses accruing to the company in the accounting period for which the claim is made. (11) In subsection (9), “deductible clogged losses” means losses which would, apart from Part 7ZA of CTA 2010, be deductible under subsection (3) from chargeable gains accruing to the company in an accounting period. (12) A claim under subsection (9) must be made by being included in the company's tax return for the accounting period for which the claim is made.

Pre-entry losses

18

(1A) Sub-paragraph (1B) applies, in respect of an accounting period, if the amount of chargeable gains accruing to the company in the period exceeds the total of— (a) the amount of pre-entry losses accruing to the company in the period that are deductible under sub-paragraph (1)(a), and (b) the amount of allowable losses, other than pre-entry losses, accruing to the company in the period. (1B) Where this sub-paragraph applies in respect of an accounting period— (a) the sum of any deductions under sub-paragraph (1)(b) may not exceed the total of— (i) the amount of pre-entry losses that, on the assumption in sub-paragraph (1C), would be deductible under sub-paragraph (1)(b), and (ii) the amount of allowable losses (other than pre-entry losses) that, on the assumption in sub-paragraph (1C), would be deductible under section 2A(1), and (b) for the purposes of sub-paragraph (1)(c), the deductions made under section 2A(1) may not exceed the difference between— (i) the total of the amounts mentioned in paragraph (a)(i) and (ii), and (ii) the amount of pre-entry losses deducted under sub-paragraph (1)(b). (1C) The assumption is that deductions under sub-paragraph (1)(b) are treated for the purposes of Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions) as if they were made under section 2A(1)(b) of this Act.

Real estate investment trusts

19

Part 12 of CTA 2010 (real estate investment trusts) is amended as follows.

20

In section 535B (use of pre-April 2019 residual business losses or deficits) at the end insert—

(4) In determining, for the purposes of subsection (2)(a), the amount of allowable losses accruing on disposals made before 6 April 2019 which would otherwise have been deducted from gains accruing to residual business of the company, section 269ZBA (restriction on deductions) is to be ignored.

21

In section 550 (attribution of distributions) at the end insert—

(4) In determining the amount of relevant non-chargeable gains for the purposes of this section, section 269ZBA (restriction on deductions) is to be ignored.

22

In section 556 (disposal of assets) in subsection (7), for “and 535A” substitute “ , 535A and 535B ”.

Counteraction of avoidance arrangements

23

(za) section 2A(1) of TCGA 1992 (allowable capital losses);

.

(13) In the case of a tax advantage as a result of a deduction (or increased deduction) under section 2A(1) of TCGA 1992, subsections (10) and (11) have effect as if the references to 1 April 2017 were to 1 April 2020.

Minor and consequential amendments to Part 7ZA of CTA 2010

24

Part 7ZA of CTA 2010 is amended as follows.

25

(b) the total of— (i) the amount of the company's total non-trading profits deductions allowance for the period (see section 269ZC(3A)), and (ii) in the case of an insurance company, any amount specified for the period under section 269ZFC(5)(a) (BLAGAB deductions allowance).

26

In section 269ZC (restriction on deductions from non-trading profits) omit subsection (7) (meaning of a company's “deductions allowance”).

27

In section 269ZD (restriction on deductions from total profits) omit subsection (6) (meaning of a company's “deductions allowance”).

28

After section 269ZD insert—

(269ZDA) (1) This section applies for the purposes of sections 269ZB to 269ZD and 269ZFC. (2) A company's “deductions allowance” for an accounting period is to be determined in accordance with section 269ZR where, at any time in that period— (a) the company is a member of a group (see section 269ZZB), and (b) one or more other companies within the charge to corporation tax are members of that group. (3) Otherwise, a company's “deductions allowance” for an accounting period is to be determined in accordance with section 269ZW. (4) But subsections (2) and (3) are subject to section 269ZYA (deductions allowance for company without a source of chargeable income).

29
30
31

In section 269ZG (general insurance companies: excluded accounting periods), in subsection (1), for “269ZE” substitute “ 269ZD ”.

32

In section 269ZR (deductions allowance for company in a group), at the end insert—

(5) See section 269ZYA for further provision about the deductions allowance for a company without a source of chargeable income which is a member of a group.

33

In section 269ZW (deductions allowance for company not in a group), at the end insert—

(4) See section 269ZYA for further provision about the deductions allowance for a company without a source of chargeable income.

34

In section 269ZZ (company tax return to specify amount of deductions allowance), in subsection (2)—

35

(ba) the company's chargeable gains deductions allowance for the period,

.

(da) the company's BLAGAB deductions allowance for the period.

Minor and consequential amendments to Part 7A of CTA 2010

36

Part 7A of CTA 2010 (banking companies: restrictions on obtaining certain deductions) is amended as follows.

37
38

In section 269CN (definitions)—

“total relevant non-trading profits”, in relation to a company, has the meaning given by section 269ZF(2B).

PART 2 — Corporate capital loss deductions: miscellaneous provision

Companies without a source of chargeable income: carry back of losses

39

In section 2A of TCGA 1992 (company's total profits to include chargeable gains), after subsection (2) insert—

(3) Subsection (4) applies if— (a) a company has two or more accounting periods that fall wholly within the same financial year, (b) the company is chargeable to corporation tax for each of those accounting periods only because of a chargeable gain accruing to the company on the disposal of asset, and (c) in the period (if any) between each of those accounting periods, the company is not within the charge to corporation tax. (4) For the purposes of determining the amount of chargeable gains to be included in the company's total profits for each of the accounting periods by reference to which this subsection applies, subsection (1) has effect as if after paragraph (a) (before the “and”) there were inserted— (aa) so far as not otherwise deducted under this section, any allowable losses accruing to the company in another accounting period that falls wholly within the same financial year as the period mentioned in paragraph (a),

Insurance companies: minor amendments to TCGA 1992 and FA 2012

40

In section 210A of TCGA 1992, in subsection (10C), for the words from “In determining” to “an accounting period” substitute “ For the purposes of subsections (10A) and (10B) ”.

41

In section 93 of FA 2012 (minimum profits test), at the end insert—

(6) For the purposes of this section, assume that non-BLAGAB allowable losses cannot be deducted to any extent from BLAGAB chargeable gains (and, accordingly, assume that section 95 is not included in this Act).

PART 3 — Commencement and anti-forestalling provision

Commencement

42

The amendments made by this Schedule have effect in relation to accounting periods beginning on or after 1 April 2020.

43
44
45

Anti-forestalling provision

46

SCHEDULE 5

Introduction

1

CAA 2001 is amended as follows.

Research and development allowances

2

In Part 2A (structures and buildings allowances), for section 270EC substitute—

(270EC) (1) This section applies if, at any time, a person sells the relevant interest in a building or structure to another. (2) The total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest is reduced (but not below nil) by the amount of any Part 6 allowance to which the person is entitled by reference to the building or structure. (3) There is another restriction on the total amount of those allowances which applies if— (a) the sale in question, or a sale of the relevant interest at an earlier time, is by a person entitled to a Part 6 allowance by reference to the building or structure, and (b) the amount paid for the relevant interest on any of those sales is less than the ordinary Part 2A amount (see subsection (6)). (4) The other restriction is that the total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest may not exceed the permitted maximum. (5) For this purpose “the permitted maximum” is— (a) the lowest sum paid for the relevant interest on the sale in question or any earlier sale within subsection (3)(a), less (b) the total amount of the allowances under this Part arising by reference to the building or structure since the earliest sale identified for the purposes of paragraph (a) of this subsection. (6) In this section “the ordinary Part 2A amount” means— (a) the amount of the qualifying expenditure, by reference to which an allowance can be made under this Part, incurred in relation to the building or structure before the time of the sale in question, less (b) the total amount of the allowances under this Part arising before that time by reference to the building or structure. (7) In this section any reference to allowances under this Part is to allowances to which an entitlement has arisen under this Part or would have arisen under this Part if the building or structure had been in continuous qualifying use since it was first brought into non-residential use. (8) In this section “Part 6 allowance”, in relation to a person and a building or structure, means an allowance under Part 6 in respect of expenditure incurred by the person on its construction or acquisition.

Contribution allowances

3

(b) the building or structure were brought into qualifying use, for the purposes of the allowance in relation to the contribution, on— (i) the day on which R first brought the building or structure into qualifying use, or (ii) if R is a public body, the earlier of the day mentioned in sub-paragraph (i) and the day on which R first brought the building or structure into non-residential use.

(4) If, at any time in the period beginning with the day on which C made the contribution and ending with the day on which R first brought the building or structure into non-residential use, C did not have a relevant interest in the building or structure— (a) C is to be treated for the purposes of allowances under Part 2A as having had a relevant interest in the building or structure when that period begins, and (b) C is not to be treated for those purposes as ceasing to have that interest on any subsequent sale of R's relevant interest in the building or structure.

(7) In determining, for the purposes of this section, the day on which R first brings a building or structure into non-residential use, ignore any use of the building or structure which is insignificant.

Minor amendments

4

In section 270AA(2) (entitlement to structures and buildings allowances), at the beginning of paragraph (b)(i) insert “ on or ”.

5

In section 270BB (capital expenditure incurred on construction), in subsection (2)(a), for “qualifying use” substitute “ non-residential use ”.

6

In section 270BL (apportionment of sums partly referable to non-qualifying assets), for “qualifying expenditure” substitute “ expenditure for which an allowance can be made under this Part ”.

7

In section 270IA (evidence of qualifying expenditure etc), in subsection (4)(a), omit “written”.

Commencement

8

The amendment made by paragraph 2 has effect in the case of any sale within subsection (1) of the substituted section 270EC(1) of CAA 2001 that takes place on or after 11 March 2020.

9

The amendments made by paragraph 3 have effect in relation to contributions made on or after 11 March 2020.

10

Part 2A of CAA 2001 has effect, and is to be deemed always to have had effect, with the amendments made by paragraphs 4 to 7.

SCHEDULE 6

Calculation of non-trading profits and deficits from loan relationships or derivative contracts

1

In section 301 of CTA 2009 (calculation of non-trading profits and deficits from loan relationships), for the subsection (1A) inserted into that section by paragraph 15(3) of Schedule 5 to FA 2019 substitute—

(1A) In the case of a non-UK resident company, subsections (4) to (7) need to be read with section 5(3), (3A)(b) and (3B)(b) (territorial scope of charge to corporation tax).

2

In section 574 of CTA 2009 (derivative contracts: non-trading credits and debits to be brought into account), for the subsection (2A) inserted into that section by paragraph 18 of Schedule 5 to FA 2019 substitute—

(2A) In the case of a non-UK resident company, subsection (2) needs to be read with section 5(3), (3A)(b) and (3B)(b) (territorial scope of charge to corporation tax).

Debits referable to times before UK property business etc is carried on

3

After section 330 of CTA 2009 insert—

(330ZA) (1) This section applies if— (a) a non-UK resident company has debits in respect of a loan relationship to which it is a party for the purposes of its UK property business, (b) the debits are referable to times (“the pre-rental times”) before (but not more than 7 years before) the date on which it starts to carry on the business, and (c) the debits are not otherwise brought into account for tax purposes. (2) If, on the assumption that the company had been carrying on the business at the pre-rental times, the debits— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, and (b) would have been brought into account for the purposes of this Part, the debits are (so far as they exceed relevant credits) treated for the purposes of this Part as if they were debits for the accounting period in which it started to carry on the business. (3) For this purpose “relevant credits” means credits of the company in respect of the loan relationship which, on the assumption that the company had been carrying on the business at the pre-rental times— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, (b) would have been brought into account for the purposes of this Part, and (c) would not otherwise have been brought into account for tax purposes. (4) This section is subject to section 327 (disallowance of imported losses etc). (5) This section also applies in relation to a non-UK resident company which is a party to a loan relationship for the purpose of enabling it to generate other UK property income (within the meaning given by section 5(6)).

4

After section 607 of CTA 2009 insert—

(607ZA) (1) This section applies if— (a) a non-UK resident company has debits in respect of a derivative contract to which it is a party for the purposes of its UK property business, (b) the debits are referable to times (“the pre-rental times”) before (but not more than 7 years before) the date on which it starts to carry on the business, and (c) the debits are not otherwise brought into account for tax purposes. (2) If, on the assumption that the company had been carrying on the business at the pre-rental times, the debits— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, and (b) would have been brought into account for the purposes of this Part, the debits are (so far as they exceed relevant credits) treated for the purposes of this Part as if they were debits for the accounting period in which it started to carry on the business. (3) For this purpose “relevant credits” means credits of the company in respect of the derivative contract which, on the assumption that the company had been carrying on the business at the pre-rental times— (a) would have been recognised in determining its profit or loss for a period consisting of or including those times, (b) would have been brought into account for the purposes of this Part, and (c) would not otherwise have been brought into account for tax purposes. (4) This section also applies in relation to a non-UK resident company which is a party to a derivative contract for the purpose of enabling it to generate other UK property income (within the meaning given by section 5(6)).

5

In paragraph 40 of Schedule 5 to FA 2019 (transitional provision: imported losses in respect of derivative contracts), at the end insert—

(7) Section 607ZA of CTA 2009 (debits referable to times before UK property business carried on) has effect subject to this paragraph.

Duty to notify chargeability to corporation tax: exceptions

6

In paragraph 2 of Schedule 18 to FA 1998 (duty of company to notify HMRC that it is chargeable for an accounting period if it has not received a notice requiring a company tax return), in sub-paragraph (1A) (which provides an exception to that duty), as inserted into that paragraph by paragraph 6(2) of Schedule 5 to FA 2019—

, and (c) having deducted the income tax mentioned in paragraph (a) at the fourth step in paragraph 8 (calculation of tax payable), the amount of tax payable for the period is nil.

7

In section 55A(1) of FA 2004 (exception to duty of company to give notice of coming within the charge to corporation tax), as inserted by paragraph 7 of Schedule 5 to FA 2019—

, and (c) in consequence of the deduction of the income tax mentioned in paragraph (a) at the fourth step in paragraph 8 of Schedule 18 to the Finance Act 1998 (calculation of tax payable), the amount of tax payable for the period will be nil.

Period for making election under regulation 6A of the Disregard Regulations

8

In regulation 6A of the Loan Relationships and Derivative Contracts (Disregard and Bringing into Account of Profits and Losses) Regulations 2004—

(6) For the purposes of the definition of “the first relevant period” an accounting period of a company is to be ignored if— (a) the accounting period begins solely as a result of a disposal of an asset by the company, and (b) any gain accruing to the company on the disposal would be chargeable to corporation tax as a result of section 2B(4) of the Taxation of Chargeable Gains Act 1992.

9

In paragraph 44 of Schedule 5 to FA 2019, at the end insert—

(4) In determining for the purposes of this paragraph whether, on the commencement date, a company comes within the charge to corporation tax by reason of this Schedule, no account is to be taken of any disposal made by the company before that date where any gain accruing to the company on the disposal would be chargeable to corporation tax as a result of section 2B(4) of TCGA 1992.

Commencement

10

Schedule 5 to FA 2019 has effect as if the amendments made by paragraphs 1 to 7 had at all times been incorporated into the provision made by that Schedule.

11

The amendments made by paragraphs 8 and 9 have effect in relation to disposals made on or after 6 April 2019.

SCHEDULE 7

CT payment plans

1

In TMA 1970, after section 59FA insert—

(59FB) Schedule 3ZC makes provision enabling a company that is liable to pay corporation tax arising in connection with certain transactions to defer payment of the tax by entering into a CT payment plan.

2

After Schedule 3ZB to TMA 1970 insert—

SCHEDULE 3ZC (1) This Schedule makes provision enabling a company that is liable to pay qualifying corporation tax for an accounting period to defer payment of the tax by entering into a CT payment plan. (2) (1) For the purposes of this Schedule a company is liable to pay qualifying corporation tax for an accounting period if CT1 is greater than CT2 where— - CT1 is the corporation tax which the company is liable to pay for the accounting period, and - CT2 is the corporation tax which the company would be liable to pay for the accounting period if any gains, credits, losses or debits arising in respect of qualifying transactions of the company were ignored. (CT2 will be zero if the company would not be liable to pay any corporation tax for the period). (2) The amount of qualifying corporation tax which the company is liable to pay is the difference between CT1 and CT2. (3) (1) For the purposes of this Schedule each of the following is a qualifying transaction of a company (“the company concerned”)— (a) a disposal within sub-paragraph (2), (b) a transaction within sub-paragraph (3), (c) a transaction within sub-paragraph (4), and (d) a transfer within sub-paragraph (5). (2) A disposal is within this sub-paragraph if— (a) it is a disposal by the company concerned of an asset, (b) it is a disposal to a company (“the transferee”) that at the time of the disposal is resident outside the United Kingdom in an EEA state, and (c) it is a disposal to which section 139 or 171 of TCGA 1992 would apply were the transferee resident at the time of the disposal in the United Kingdom instead. (3) A transaction is within this sub-paragraph if— (a) it is a transaction, or the first in a series of transactions, as a result of which the company concerned is directly or indirectly replaced as a party to a loan relationship by another company (“the transferee”), (b) at the time of the transaction the transferee is resident outside the United Kingdom in an EEA state, and (c) it is a transaction to which section 340(3) of CTA 2009 would apply were the transferee resident at the time of the transaction in the United Kingdom instead. (4) A transaction is within this sub-paragraph if— (a) it is a transaction, or the first in a series of transactions, as a result of which the company concerned is directly or indirectly replaced as a party to a derivative contract by another company (“the transferee”), (b) at the time of the transaction the transferee is resident outside the United Kingdom in an EEA state, and (c) it is a transaction to which section 625(3) of CTA 2009 would apply were the transferee resident at the time of the transaction in the United Kingdom instead. (5) A transfer is within this sub-paragraph if— (a) it is a transfer from the company concerned of an intangible fixed asset, (b) it is a transfer to a company (“the transferee”) that immediately after the transfer is resident outside the United Kingdom in an EEA state, and (c) it is a transfer to which section 775(1) of CTA 2009 would apply were the transferee resident immediately after the transfer in the United Kingdom instead. (6) In this Schedule “transferee”, in relation to a qualifying transaction of a company, means the transferee referred to in sub-paragraph (2), (3), (4) or (5) (as the case may be). (4) (1) A company that is liable to pay qualifying corporation tax for an accounting period may enter into a CT payment plan in respect of the tax in accordance with this Schedule. (2) The CT payment plan may relate to— (a) all of the qualifying corporation tax that the company is liable to pay for the accounting period, or (b) only part of the qualifying corporation tax that the company is liable to pay for the accounting period. (3) In this Schedule “deferred tax”, in relation to a CT payment plan, means the qualifying corporation tax to which the plan relates. (5) A company that is liable to pay qualifying corporation tax for an accounting period may enter into a CT payment plan in respect of the tax only if— (a) an application to enter into the plan is made to HMRC before the end of the period of 9 months beginning immediately after the accounting period, and (b) the application contains details of all the matters which are required by paragraph 7 to be specified in the plan. (6) (1) A company enters into a CT payment plan if— (a) the company agrees to pay, and an officer of Revenue and Customs agrees to accept payment of, the deferred tax in accordance with paragraphs 9 to 12, (b) the company agrees to pay interest on the deferred tax in accordance with paragraph 8(3) and (5), and (c) the plan meets the requirements of paragraph 7 as to the matters that must be specified in it. (2) The CT payment plan may, in the circumstances mentioned in sub-paragraph (3), contain appropriate provision regarding security for HMRC in respect of the payment of the deferred tax. (3) Those circumstances are where an officer of Revenue and Customs considers that agreeing to accept payment of the deferred tax in accordance with paragraphs 9 to 12 would present a serious risk as to collection of the tax in the absence of provision regarding security in respect of its payment. (4) A CT payment plan is void if any information furnished by the company in connection with the plan does not fully and accurately disclose all facts and considerations material to the decision of the officer of Revenue and Customs to accept payment of the deferred tax in accordance with paragraphs 9 to 12. (7) (1) A CT payment plan entered into by a company must— (a) specify the accounting period to which the plan relates (“the accounting period concerned”), (b) specify the amount of qualifying corporation tax which, in the company's opinion, is payable by it in respect of the accounting period concerned, (c) specify the amount of the deferred tax, (d) identify each qualifying transaction of the company in respect of which gains or credits arose in the accounting period concerned, and (e) specify in relation to each of those qualifying transactions— (i) the name of the transferee, (ii) the EEA state in which the transferee was resident at the time of the transaction, and (iii) the amount of the deferred tax that is attributable to the transaction. (2) The amount of the deferred tax that is attributable to a qualifying transaction of the company in respect of which a gain or credit arose in the accounting period concerned is— $$A B × T$where—A is the gain or credit that arose in the accounting period concerned in respect of the qualifying transaction,B is the total gains or credits that arose in the accounting period concerned in respect of all qualifying transactions of the company,T is the amount of the deferred tax.$ (8) (1) This paragraph applies where a CT payment plan is entered into by a company in accordance with this Schedule. (2) As regards when the deferred tax is payable— (a) the CT payment plan does not prevent the deferred tax becoming due and payable under section 59D or 59E, but (b) the Commissioners for Her Majesty's Revenue and Customs— (i) may not seek payment of the deferred tax otherwise than in accordance with paragraphs 9 to 12; (ii) may make repayments in respect of any amount of the deferred tax paid, or any amount paid on account of the deferred tax, before the CT payment plan is entered into. (3) As regards interest— (a) the deferred tax carries interest in accordance with Part 9 as if the CT payment plan had not been entered into, and (b) each time a payment is made in accordance with paragraphs 9 to 12, it is to be paid together with any interest payable on it. (4) As regards penalties, the company will be liable to penalties for late payment of the deferred tax only if it fails to make payments in accordance with paragraphs 9 to 12 (see item 6ZAA of the Table at the end of paragraph 1 of Schedule 56 to the Finance Act 2009). (5) Any of the deferred tax which is for the time being unpaid may be paid at any time before it becomes payable under paragraphs 9 to 12 together with interest payable on it to the date of payment. (9) (1) Where a CT payment plan is entered into by a company, the deferred tax is due in 6 instalments of equal amounts as follows— (a) the first instalment is due on the first day after the period of 9 months beginning immediately after the end of the accounting period to which the plan relates, and (b) the other 5 instalments are due one on each of the first 5 anniversaries of that day. (2) But see paragraphs 10 to 12 for circumstances in which all or part of the outstanding balance of the deferred tax becomes due otherwise than by those instalments. (10) (1) Where at any time after a CT payment plan is entered into by a company an event mentioned in sub-paragraph (2) occurs the outstanding balance of the deferred tax is due on the date on which the next instalment of that tax would otherwise be due. (2) The events are— (a) the company becoming insolvent or entering administration; (b) the appointment of a liquidator in respect of the company; (c) an event under the law of a country or territory outside the United Kingdom corresponding to an event in paragraph (a) or (b); (d) the company failing to pay any amount of the deferred tax for a period of 12 months after the date on which the amount becomes due; (e) the company ceasing to be within the charge to corporation tax. (11) (1) This paragraph applies where— (a) a CT payment plan is entered into by a company, (b) during the instalments period a trigger event occurs in relation to a qualifying transaction identified in the plan, and (c) a trigger event has not previously occurred in relation to that qualifying transaction during the instalments period. (2) A trigger event occurs in relation to a qualifying transaction if the transferee ceases to be resident in an EEA state and, on so ceasing, does not become resident another EEA state. (3) A trigger event occurs in relation to a qualifying transaction if the company and the transferee cease to be members of the same group as one another. (4) A trigger event occurs in relation to a qualifying transaction within sub-paragraph (2) or (5) of paragraph 3 if the transferee disposes of the asset that is the subject of the transaction. (5) A trigger event occurs in relation to a qualifying transaction within sub-paragraph (3) or (4) of paragraph 3 if the transferee ceases to be a party to the loan relationship or derivative contract concerned. (6) On the occurrence of the trigger event an amount of the deferred tax is due. (7) The amount due is— $$( A − B ) × O T$where—“A” is the amount of the deferred tax that is attributable to the qualifying transaction (see paragraph 7(2)),“B” is the amount of the deferred tax that has previously become due under paragraph 12 by reason of a partial trigger event occurring in relation to the qualifying transaction,“O” is the amount of the deferred tax that is outstanding at the time of the trigger event, and“T” is the amount of the deferred tax.$ (8) In this paragraph “the instalments period” means the period— (a) beginning with the time the CT payment plan is entered into, and (b) ending with the day on which the final instalment of the deferred tax is due under paragraph 9. (12) (1) This paragraph applies where— (a) a CT payment plan is entered into by a company, (b) during the instalments period a partial trigger event occurs in relation to a qualifying transaction listed in the plan, and (c) a trigger event has not previously occurred in relation to that qualifying transaction during the instalments period. (2) A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (2) of paragraph 3 if the transferee disposes of part (but not all) of the asset that is the subject of the transaction. Section 21(2)(b) of TCGA 1992 (meaning of part disposal of an asset) applies for the purposes of this sub-paragraph as it applies for the purposes of that Act. (3) A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (3) or (4) of paragraph 3 if there is a disposal by the transferee of a right or liability under the loan relationship or derivative contract concerned which amounts to a related transaction (as defined in section 304 or 596 of CTA 2009 as the case may be). (4) A partial trigger event occurs in relation to a qualifying transaction within sub-paragraph (5) of paragraph 3 if the transferee enters into a subsequent transaction which results in a reduction in the accounting value of the intangible fixed asset that is the subject of the qualifying transaction but does not result in the intangible fixed asset ceasing to be recognised in the transferee's balance sheet. (5) In relation to an intangible fixed asset that has no balance sheet value (or no longer has a balance sheet value) sub-paragraph (4) applies as if, immediately before the subsequent transaction, it did have a balance sheet value. (6) On the occurrence of the partial trigger event an amount of the deferred tax is due. (7) The amount due is the amount that is just and reasonable having regard to the amount that would have been due had a trigger event occurred in relation to the qualifying transaction instead. (8) In this paragraph “the instalments period” and “trigger event” have the same meaning as in paragraph 11.

Penalties

3
6ZAA Corporation tax Amount payable under a CT payment plan entered into in accordance with Schedule 3ZC to TMA 1970 The later of—the first day after the period of 12 months beginning immediately after the accounting period to which the CT payment plan relates, andthe date on which the amount is payable under the plan.

Commencement

4

Power of repeal

5

SCHEDULE 8

PART 1 — Introduction

1

PART 2 — DST returns

DST returns

2

Amendment of return by responsible member

3

PART 3 — Duty to keep and preserve records

Duty to keep and preserve records

4

Preservation of information etc

5

The duty under paragraph 4 to preserve records may be satisfied—

subject to any conditions or exceptions specified in a notice published by HMRC.

PART 4 — Enquiry into return

Notice of enquiry

6

The quarter days are 31 January, 30 April, 31 July and 31 October.

Scope of enquiry

7

This is subject to the following exception.

the enquiry into the return is limited to matters to which the amendment relates or that are affected by the amendment.

Amendment of self-assessment during enquiry to prevent loss of tax

8

the officer may by notice in writing to the responsible member amend the assessment to make good the deficiency.

Amendment of return by responsible member during enquiry

9

the amendment takes effect when the closure notice is issued (see paragraph 14);

Referral of questions to the tribunal during enquiry

10

Withdrawal of notice of referral

11

An officer of Revenue and Customs or the responsible member may withdraw a notice of referral under paragraph 10.

Effect of referral on enquiry

12

Effect of determination

13

Completion of enquiry

14

Direction to complete enquiry

15

PART 5 — HMRC determinations

Determination of tax chargeable if no return delivered

16

Determination to have effect as a self-assessment

17

Determination superseded by actual self-assessment

18

whichever is the later.

the proceedings may be continued as if they were proceedings for the recovery of so much of the tax charged by the self-assessment as is due and payable and has not been paid.

that action may be continued as if it were an action for the recovery of so much of the tax charged by the self-assessment as is due and payable, has not been paid and does not exceed the original amount.

PART 6 — HMRC assessments

Assessments where loss of tax discovered

19

the officer may make an assessment (a “discovery assessment”) in the amount or further amount which ought in the officer's opinion to be charged in order to make good to the Crown the loss of tax.

Restrictions on assessments

20

could not have been reasonably expected, on the basis of the information made available to the officer before that time, to be aware of the situation mentioned in paragraph 19(1).

Time limits for discovery assessments

21

may be made at any time not more than 20 years after the end of the accounting period to which it relates.

Assessment procedure etc

22

the officer may entrust to some other officer of Revenue and Customs the responsibility for completing the assessing procedure, whether by means involving the use of a computer or otherwise, including responsibility for serving notice of the assessment.

Liability to amounts charged by way of discovery assessment

23

PART 7 — Relief in case of overpaid tax

Claim for relief for overpaid tax

24

Making a claim

25

Cases in which Commissioners not liable to give effect to claim

26

Power to enquire into claims

27

The quarter days are 31 January, 30 April, 31 July and 31 October.

Completion of enquiry into claim etc

28

Assessment for excessive repayment etc

29

Supplementary assessments

30

Further provision about assessments under paragraphs 29 and 30

31

Time limits for assessments

32

An assessment under paragraph 29 or 30 may not be made more than 4 years after the end of the accounting period in which evidence of facts sufficient in the opinion of the Commissioners to justify making the assessment comes to their knowledge.

PART 8 — Appeals against HMRC decisions on tax

Right of appeal

33

Notice of appeal

34

Late notice of appeal

35

Steps that may be taken following notice of appeal

36

Right of appellant to require review

37

Offer of review by HMRC

38

Nature of review

39

Effect of conclusions of review

40

Notifying appeal to tribunal after appellant has required review

41

Notifying appeal to tribunal after HMRC have offered review

42

Interpretation of paragraphs 36 to 42

43

Settling of appeals by agreement

44

Appeal does not postpone recovery of tax

45

Application for payment of tax to be postponed

46

An application under paragraph (a) must state the amount believed to be overcharged to tax and the grounds for that belief.

Agreement to postpone payment of tax

47

This is without prejudice to the making of a further agreement or further direction.

Assessments and self-assessments

48

Payment of tax where appeal has been determined

49

Payment of tax where there is a further appeal

50

Tribunal determinations

51

The determination of the tribunal in relation to any proceedings under this Part of this Schedule is final and conclusive except as otherwise provided in sections 9 to 14 of the Tribunals, Courts and Enforcement Act 2007 (or in this Part of this Act).

PART 9 — Penalties

Failure to deliver return: flat-rate penalty

52

The person may also be liable to a penalty under paragraph 53 (tax-related penalties).

Failure to deliver return: tax-related penalty

53

This is in addition to any penalty under paragraph 52 (flat-rate penalty).

Failure to deliver a return: reasonable excuse

54

Failure to keep and preserve records: penalty

55

Assessment of penalty, etc

56

Special reduction

57

Right to appeal against penalty

58

A person may appeal against—

Procedure on appeal against penalty

59

Payments in respect of penalties

60

SCHEDULE 9

Introduction

1

Payment notice: effect

2

Payment notice: appeals

3

Payment notices: effect of making payment etc

4

SCHEDULE 10

Provisional Collection of Taxes Act 1968

1

In section 1(1) of the Provisional Collection of Taxes Act 1968 (temporary statutory effect of House of Commons resolutions affecting income tax etc) after “the apprenticeship levy,” insert “ digital services tax, ”.

FA 1989

2

(w) sections 67 and 68 of the Finance Act 2020.

FA 2007

3
Digital services tax DST return under paragraph 2 of Schedule 8 to FA 2020.

FA 2008

4

FA 2008 is amended as follows.

5

(cc) digital services tax,

.

6
Digital services tax Obligation under section 54 of FA 2020 (obligation to notify HMRC when threshold conditions for digital services tax are met).

(4B) In the case of a relevant obligation relating to digital services tax and an accounting period, the potential lost revenue is so much of any digital services tax payable by members of the group for the accounting period as by reason of the failure is unpaid 12 months after the end of the accounting period.

SCHEDULE 11

Amendments of HODA 1979

1

HODA 1979 is amended as follows.

2

In section 6AB(4A) after “vehicles” insert “ etc ”.

3

(2A) For provision relating to private pleasure craft that corresponds to subsection (2), and for the meaning of “private pleasure craft”, see section 14E.

4

In section 13ZB(5), in paragraph (b) of the definition of “prohibited use” after “vehicle” insert “ or as fuel for a private pleasure craft ”.

5

In section 14A for subsection (4) substitute—

(4) For the meaning of “private pleasure craft”, see section 14E.

6

(ia) used as fuel for propelling a private pleasure craft,

;

7
8

For section 14E substitute—

(14E) (1) Restricted fuel must not— (a) be used as fuel for propelling a private pleasure craft, (b) be used as an additive or extender in any substance so used, or (c) be taken into the fuel supply of an engine provided for propelling a vessel that is being used as a private pleasure craft. (2) “Restricted fuel” means— (a) rebated fuel, or (b) marked oil that is not rebated fuel. (3) “Rebated fuel” means rebated heavy oil, rebated biodiesel or rebated bioblend. (4) “Marked oil” means any hydrocarbon oil in which a marker is present which is for the time being designated by regulations made by the Commissioners under subsection (5) below, other than marked oil which is in the fuel supply of an engine provided for propelling a vessel having been taken in to that supply in accordance with the law of the place where it was taken in. (5) The Commissioners may for the purposes of this section designate any marker which appears to them to be used for the purposes of the law of any place (whether within or outside the United Kingdom) for identifying hydrocarbon oil that is not to be used as fuel for propelling private pleasure craft. (6) In this Act “private pleasure craft” has the same meaning as in Article 14(1)(c) of Council Directive 2003/96/EC (taxation of energy products etc). (7) The Treasury may by regulations provide for cases in which a vessel is treated as not being a private pleasure craft for the purposes of this Act (which may include cases in which the vessel is used in accordance with instructions given by an officer of HMRC for the purposes of removing restricted fuel from the vessel).

9

For section 14F substitute—

(14F) (1) Conduct within any of the following paragraphs attracts a penalty under section 9 of the Finance Act 1994 (civil penalties)— (a) using restricted fuel in contravention of section 14E(1); (b) becoming liable for restricted fuel being taken into the fuel supply of an engine— (i) in contravention of section 14E(1), or (ii) having reason to believe that it will be put to a particular use that is a prohibited use; (c) supplying restricted fuel, having reason to believe that it will be put to a particular use that is a prohibited use. (2) An offence is committed if— (a) a person intentionally uses restricted fuel in contravention of section 14E(1), (b) a person is liable for restricted fuel being taken into the fuel supply of an engine, and the restricted fuel was taken in with the intention by the person that restrictions imposed by section 14E(1) should be contravened, or (c) a person supplies restricted fuel, intending that it will be put to a particular use that is a prohibited use. (3) A person guilty of an offence under this section is liable— (a) on summary conviction, to a fine not exceeding the maximum fine or imprisonment for a term not exceeding the maximum term (or both); (b) on conviction on indictment, to a fine or imprisonment for a term not exceeding 7 years (or both). (4) For the purposes of subsection (3)(a) the “maximum fine” is— (a) in England and Wales, £20,000 or (if greater) 3 times the value of the heavy oil, biodiesel or bioblend in question; (b) in Scotland or Northern Ireland, the statutory maximum or (if greater) 3 times the value of the heavy oil, biodiesel or bioblend in question. (5) For the purposes of subsection (3)(a) the “maximum term” is— (a) in England or Wales (subject to subsection (6)) or Scotland, 12 months; (b) in Northern Ireland, 6 months. (6) In relation to an offence committed before 2 May 2022, subsection (5)(a) has effect in England and Wales as if for “12 months” there were substituted “ 6 months ”. (7) Restricted fuel is liable to forfeiture if it is— (a) taken into the fuel supply of an engine as mentioned in section 14E(1), (b) supplied as mentioned in subsection (1)(c) or (2)(c) above, or (c) taken into the fuel supply of an engine provided for propelling a vessel at a time when it is not a private pleasure craft and remains in the vessel as part of that fuel supply at a later time when it becomes a private pleasure craft. (8) If rebated fuel is used or taken into the fuel supply of an engine in contravention of section 14E(1), the Commissioners may— (a) assess an amount equal to the rebate on like fuel at the rate in force at the time of the contravention as being excise duty due from any person who— (i) used the rebated fuel, or (ii) was liable for it being taken into the fuel supply, and (b) notify the person or the person's representative accordingly. (9) In this section— - “prohibited use” means a use that contravenes section 14E(1); - “rebated fuel” has the meaning given by section 14E(3); - “restricted fuel” has the meaning given by section 14E(2).

10

In section 20AAA(4)(a) after “vehicle” insert “ or as fuel for propelling a private pleasure craft ”.

11

In section 24 (control of use of duty-free and rebated oil) after subsection (3) insert—

(3A) Subsection (3) does not apply to heavy oil, biodiesel or bioblend used for propelling a private pleasure craft if it is proved to the satisfaction of the Commissioners that the heavy oil, biodiesel or bioblend was taken into the vessel in accordance with the laws of the place where it was taken in.

12

In section 27(1) at the appropriate place insert—

“private pleasure craft” has the meaning given by section 14E;

.

13

(2) In this paragraph “premises” includes any floating structure. (3) Nothing in sub-paragraph (1) enables regulations to be made authorising the examination of the interior of part of a vessel if that part is used as a dwelling.

14

(6A) In sub-paragraphs (5) and (6) “land” includes any floating structure.

Other amendments

15

In Schedule 7A to VATA 1994, in Group 1, in Note 1(3) omit paragraph (b) (and the “or” immediately before it).

16

In Schedule 41 to FA 2008, in the table in paragraph 3(1) for the entry relating to section 14F(2) of HODA 1979 substitute—

HODA 1979 section 14F(8) Rebated heavy oil, biodiesel or bioblend

.

17

In Schedule 9 to TCTA 2018, in paragraph 6 omit sub-paragraphs (3) and (4).

General

18

Paragraphs 1 to 17 of this Schedule come into force on such day or days as the Treasury may by regulations appoint.

19

Different days may be appointed for different purposes or different areas.

20

The Treasury may by regulations make such transitional, transitory or saving provision as they consider appropriate in connection with the coming into force of any of those paragraphs (including provision conferring functions on the Commissioners for Her Majesty's Revenue and Customs).

21

The Treasury may by regulations make such amendments of any enactment , including Schedule 21 to FA 2021 and Schedule 11 to FA 2022, as they consider appropriate in consequence of the coming into force of any of paragraphs 1 to 17.

22

A statutory instrument containing regulations under paragraph 21 is subject to annulment in pursuance of a resolution of the House of Commons.

23

Any power to make regulations under this Schedule is exercisable by statutory instrument.

SCHEDULE 12

Introduction

1

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

Power to set emissions allowance

2

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

Power to make further provision by regulations

3

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

4

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

5

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

6

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

Interpretation

7

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

Commencement and transitional provision

8

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

Penalty for failure to make payments on time

9

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

Commencement

10

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

SCHEDULE 13

Introduction

1

A notice under paragraph 2(1), 3(1) or 5(1) is referred to in this Schedule as a “joint liability notice”.

Tax avoidance and tax evasion cases

2

at a time when the individual was a director or shadow director of the company or a participator in it, or

This is subject to paragraph 9 (interaction with penalties).

Repeated insolvency and non-payment cases

3

In sub-paragraphs (ii) and (iii) “relevant” means relevant to the question whether the company had a tax liability or how much its tax liability was.

4

Cases involving penalty for facilitating avoidance or evasion

5

“Tax-avoidance arrangements”

6

that a proposal for the arrangements is notifiable;

that the arrangements are notifiable;

that a proposal for the arrangements is to be treated as notifiable;

that the arrangements are to be treated as notifiable.

In that section as it so applies—

“Tax-evasive conduct”

7

In this Schedule “tax-evasive conduct” means—

“Insolvency procedure” etc

8

otherwise than by way of a members' voluntary winding up,

unless an order has been made in relation to that notice under sub-paragraph (7)(c) of that paragraph.

Interaction with penalties

9

The amount for which an individual is jointly and severally liable under paragraph 2 or 3 in respect of a company's tax liability is reduced by the amount of any penalty that the individual has paid in relation to that liability under any of the following provisions—

Withdrawal or modification of notice

10

if it seems to them that the amount so specified is, or has become, too much or not enough.

Right of review

11

HMRC must review the decision to give the notice.

Reviews under paragraph 11

12

Right of appeal

13

may appeal against the notice to the First-tier Tribunal.

This is subject to sub-paragraphs (3) to (5).

Appeals under paragraph 13

14

(But see paragraph 15, under which the individual may in certain circumstances pursue an appeal in place of the company.)

Appeal in respect of liability of company

15

the individual is entitled to be a party to the proceedings, and may continue the appeal if the company is unable or unwilling to do so.

an appeal in respect of that liability may be made in the name of the individual.

Proceedings for determination of penalty to be imposed on company

16

Where an individual is given a notice under paragraph 5(1) in a case where paragraph 5(2)(b) applies (proceedings commenced before First-tier Tribunal for penalty to be imposed on company), the individual is entitled to be a party to the proceedings referred to in that provision.

Cases where company has ceased to exist

17

Application to limited liability partnerships

18

Interpretation

19

In this Schedule—

SCHEDULE 14

Introduction

1

Part 5 of FA 2013 (the general anti-abuse rule) is amended as follows.

Protecting adjustments under the GAAR before time limits expire

2

In section 209 (counteracting the tax advantage), for subsection (6) substitute—

(6) But— (a) the effect of adjustments made by an officer of Revenue and Customs by virtue of this section is suspended until the procedural requirements of Schedule 43, 43A or 43B have been complied with, and (b) the power to make adjustments by virtue of this section is subject to any time limit imposed by or under any enactment other than this Part. The provision made by this subsection needs to be read with sections 209AA to 209AC and has no effect on adjustments so far as made otherwise than by virtue of this section.

3

After section 209 insert—

(209AA) (1) An officer of Revenue and Customs may give a written notice (a “protective GAAR notice”) to a person stating that the officer considers— (a) that a tax advantage might have arisen to the person from tax arrangements that are abusive, and (b) that, on the assumption that the advantage does arise from tax arrangements that are abusive, it ought to be counteracted under section 209. (2) The protective GAAR notice must be given within the ordinary assessing time limit applicable to the proposed adjustments. (3) But if— (a) a tax enquiry is in progress into a return made by the person, and (b) the return relates to the tax in respect of which the specified adjustments under the protective GAAR notice are made, the protective GAAR notice must instead be given no later than the time when the enquiry is completed. (4) The protective GAAR notice must— (a) specify the arrangements and the tax advantage, and (b) specify the adjustments that, on the assumption that the advantage does arise from tax arrangements that are abusive, the officer proposes ought to be made. (5) The adjustments specified in the protective GAAR notice have effect as if they are made by virtue of section 209. (6) Notice of appeal may be given against the adjustments specified in the protective GAAR notice (whether or not the adjustments are also made otherwise than by virtue of section 209). (7) Any appeal against the specified adjustments (whether made by virtue of section 209 or otherwise) is, as a result of this subsection, stayed— (a) for a period of 12 months beginning with the day on which the protective GAAR notice is given, or (b) if a final GAAR counteraction notice is given before the end of that period, for a period ending with the day on which the final GAAR counteraction notice is given. (8) If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)— (a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and (b) no final GAAR counteraction notice is given, the protective GAAR notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with). (9) In any case not falling within subsection (8)— (a) the specified adjustments have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but (b) the giving of the protective GAAR notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.

4

After section 209AA (as inserted by paragraph 3) insert—

(209AB) (1) This section applies in the case of any particular adjustments in respect of a particular period or matter (“the adjustments concerned”) if— (a) a person is given a notice under paragraph 3 of Schedule 43 or a pooling notice or notice of binding under Schedule 43A (“the Schedule 43 or 43A notice”) that specifies the adjustments concerned (whether or not other adjustments are specified), (b) the Schedule 43 or 43A notice is given within the relevant time limit applicable to the adjustments concerned, and (c) the adjustments concerned have not been specified in a provisional counteraction notice under section 209A, or a protective GAAR notice under section 209AA, given before the time at which the Schedule 43 or 43A notice is given. (2) The Schedule 43 or 43A notice is given within the relevant time limit if— (a) it is given within the ordinary assessing time limit applicable to the adjustments concerned, or (b) if a tax enquiry is in progress into a return made by the person and the particular adjustments concerned relate to the matters contained in the return, it is given no later than the time when the enquiry is completed. (3) The adjustments concerned have effect as if they are made by virtue of section 209. (4) If, in the case of the specified adjustments (whether made by virtue of section 209 or otherwise)— (a) notice of appeal is not given or notice of appeal is given but the appeal is subsequently withdrawn or determined by agreement, and (b) no final GAAR counteraction notice is given, the Schedule 43 or 43A notice has effect for all purposes (other than the purposes of section 212A) as if it had been given as a final GAAR counteraction notice (and, accordingly, as if the GAAR procedural requirements had been complied with). (5) In any case not falling within subsection (4)— (a) the adjustments concerned have no effect (so far as they are made by virtue of section 209) unless they (or lesser adjustments) are subsequently specified in a final GAAR counteraction notice, but (b) the giving of the Schedule 43 or 43A notice is treated as meeting the requirements of section 209(6)(b) in the case of that final GAAR counteraction notice.

5

After section 209AB (as inserted by paragraph 4) insert—

(209AC) (1) In sections 209AA and 209AB— - “final GAAR counteraction notice” means a notice given under— 1. paragraph 12 of Schedule 43, 2. paragraph 8 or 9 of Schedule 43A, or 3. paragraph 8 of Schedule 43B, - “GAAR procedural requirements” means the procedural requirements of Schedule 43, 43A or 43B, - “lesser adjustments” means adjustments specified in the final GAAR counteraction notice which assume a smaller tax advantage than was assumed in the protective GAAR notice or (as the case may be) the Schedule 43 or 43A notice, and - “ordinary assessing time limit”, in relation to any adjustments, means the time limit imposed by or under any enactment other than this Part for the making of the adjustments. (2) Expressions which are used in section 202 of FA 2014 (“tax enquiry”, and its being “in progress”, and “return”) have the same meaning in sections 209AA and 209AB as they have in that section (and references to completing a tax enquiry are to be read accordingly).

6

Omit sections 209A to 209F (provisional counteraction notices).

7

In section 214(1) (interpretation of Part 5 of FA 2013), omit—

Minor amendments

8

In paragraph 11 of Schedule 43A (meaning of “equivalent arrangements”), omit “For the purposes of paragraph 1,”.

9

In paragraph 5 of Schedule 43C (penalty under section 212A), for sub-paragraphs (5) and (6) substitute—

(5) An assessment of a penalty under this paragraph must be made before the end of the period of 12 months beginning with the date (or the latest of the dates) on which the counteraction mentioned in section 212A(1)(d) becomes final (within the meaning of section 210(8)).

Commencement

10

The amendment made by paragraph 2 has effect in relation to adjustments made by an officer of Revenue and Customs by virtue of section 209 of FA 2013 on or after the commencement date.

11

The amendment made by paragraph 3 has effect in relation to notices given under section 209AA of FA 2013 on or after the commencement date (whenever the arrangements are entered into) but no notice may be given under that section in relation to any adjustments if a provisional counteraction notice has been given under section 209A of that Act before that date in respect of those adjustments.

12

The amendment made by paragraph 4 has effect in relation to notices given under Schedule 43 or 43A to FA 2013 on or after the commencement date (whenever the arrangements are entered into).

13

The amendment made by paragraph 6 does not affect the operation of sections 209A to 209F of FA 2013 in relation to provisional counteraction notices given under section 209A of that Act before the commencement date.

14

The amendment made by paragraph 9 has effect in relation to cases where a person becomes liable to a penalty under section 212A of FA 2013 on or after the commencement date.

15

In paragraphs 10 to 14 “the commencement date” means the date on which this Act is passed.

SCHEDULE 15

Introductory

1

Qualifying payments

2

Exemption from income tax

3

Exemptions from capital gains tax

4

Relief from inheritance tax

5

SCHEDULE 16

Accounting for coronavirus support payments referable to a business

1

Amounts not referable to activities of a business which is being carried on

2

the amount brought into account under paragraph 1(2) by virtue of sub-paragraph (5) is to be reduced by the amount of those expenses.

Amounts referable to businesses in certain cases

3

Exemptions, reliefs and deductions

4

Charge where employment costs deductible by another

5

Charge where no business carried on

6

Modification of the Tax Acts

7

The Treasury may by regulations modify the application of any provision of the Tax Acts that affects (or that otherwise would affect) the treatment of—

Charge if person not entitled to coronavirus support payment

8

Assessments of income tax chargeable under paragraph 8

9

Calculation of income tax liability

10

Calculation of tax liability: companies chargeable to corporation tax

11

(but see paragraph 13(5) of this Schedule which has the effect that paragraph 7 of that Schedule does not apply in certain circumstances).

Notification of liability under paragraph 8

12

Penalty for failure to notify: knowledge of non-entitlement to payment

13

Penalties: partnerships

14

Liability of officers of insolvent companies

15

For provision under which the amount so specified may be varied, see—

Main rates of income tax for tax year 2020-21

Determining the appropriate percentage for a car: tax year 2020-21 only

Determining the appropriate percentage for a car: tax year 2021-22 only

Tax treatment of certain Scottish social security benefits

Voluntary office-holders: payments in respect of expenses

Loan charge not to apply to loans or quasi-loans made before 9 December 2010

Election for loan charge to be split over three tax years

Relief from interest on tax payable by a person subject to the loan charge

Operation of the scheme

Relief on disposal of private residence

Quarterly instalment payments

Relief from CGT for loans to traders

Research and development expenditure credit

Structures and buildings allowances: rate of relief

Intangible fixed assets: pre-FA 2002 assets etc

Surcharge on banking companies: transferred-in losses

Changes to accounting standards affecting leases

Meaning of “digital services revenues”

Duty to notify HMRC of change in relevant information

Excluded property etc

Transfers between settlements etc

Exceptional circumstances preventing disposal of interest in three year period

SDRT: unlisted securities and connected persons

Rates of tobacco products duty

Applicable CO2 emissions figure determined using WLTP values

Electric vehicles: extension of exemption

Exemption in respect of medical courier vehicles

HGV road user levy : exempt period

Amounts of gross gaming yield charged to gaming duty

Rates of climate change levy from 1 April 2021

Rates of landfill tax

Carbon emissions tax

HMRC debts: priority on insolvency

HMRC debts: regulations

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

Taxation of coronavirus support payments

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

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

Future Fund: EIS and SEIS relief

Interpretation

Commencement

Transitional provisions

ITEPA 2003

F(No.2)A 2017

Social Security (Contributions) Regulations 2001

Reduction in lifetime limit

Commencement

Anti-forestalling: unconditional contracts

Anti-forestalling: reorganisations of share capital

Anti-forestalling: exchanges of securities etc

Interpretation

Restriction on deduction from chargeable gains: main provisions

Insolvent companies

Companies without a source of chargeable income

Offshore collective investment vehicles

Insurance companies: ring fence

Oil activities: ring fence

Clogged losses

Pre-entry losses

Real estate investment trusts

Counteraction of avoidance arrangements

Minor and consequential amendments to Part 7ZA of CTA 2010

Minor and consequential amendments to Part 7A of CTA 2010

Companies without a source of chargeable income: carry back of losses

Insurance companies: minor amendments to TCGA 1992 and FA 2012

Commencement

Anti-forestalling provision

Introduction

Research and development allowances

Contribution allowances

Minor amendments

Commencement

Calculation of non-trading profits and deficits from loan relationships or derivative contracts

Debits referable to times before UK property business etc is carried on

Duty to notify chargeability to corporation tax: exceptions

Period for making election under regulation 6A of the Disregard Regulations

Commencement

CT payment plans

Penalties

Commencement

Power of repeal

DST returns

Amendment of return by responsible member

Duty to keep and preserve records

Preservation of information etc

Notice of enquiry

Scope of enquiry

Amendment of self-assessment during enquiry to prevent loss of tax

Amendment of return by responsible member during enquiry

Referral of questions to the tribunal during enquiry

Withdrawal of notice of referral

Effect of referral on enquiry

Effect of determination

Completion of enquiry

Direction to complete enquiry

Determination of tax chargeable if no return delivered

Determination to have effect as a self-assessment

Determination superseded by actual self-assessment

Assessments where loss of tax discovered

Restrictions on assessments

Time limits for discovery assessments

Assessment procedure etc

Liability to amounts charged by way of discovery assessment

Claim for relief for overpaid tax

Making a claim

Cases in which Commissioners not liable to give effect to claim

Power to enquire into claims

Completion of enquiry into claim etc

Assessment for excessive repayment etc

Supplementary assessments

Further provision about assessments under paragraphs 29 and 30

Time limits for assessments

Right of appeal

Notice of appeal

Late notice of appeal

Steps that may be taken following notice of appeal

Right of appellant to require review

Offer of review by HMRC

Nature of review

Effect of conclusions of review

Notifying appeal to tribunal after appellant has required review

Notifying appeal to tribunal after HMRC have offered review

Interpretation of paragraphs 36 to 42

Settling of appeals by agreement

Appeal does not postpone recovery of tax

Application for payment of tax to be postponed

Agreement to postpone payment of tax

Assessments and self-assessments

Payment of tax where appeal has been determined

Payment of tax where there is a further appeal

Tribunal determinations

Failure to deliver return: flat-rate penalty

Failure to deliver return: tax-related penalty

Failure to deliver a return: reasonable excuse

Failure to keep and preserve records: penalty

Assessment of penalty, etc

Special reduction

Right to appeal against penalty

Procedure on appeal against penalty

Payments in respect of penalties

Introduction

Payment notice: effect

Payment notice: appeals

Payment notices: effect of making payment etc

Provisional Collection of Taxes Act 1968

FA 1989

FA 2007

FA 2008

Amendments of HODA 1979

Other amendments

General

Introduction

Power to set emissions allowance

Power to make further provision by regulations

Interpretation

Commencement and transitional provision

Penalty for failure to make payments on time

Commencement

Introduction

Tax avoidance and tax evasion cases

Repeated insolvency and non-payment cases

Cases involving penalty for facilitating avoidance or evasion

“Tax-avoidance arrangements”

“Tax-evasive conduct”

“Insolvency procedure” etc

Interaction with penalties

Withdrawal or modification of notice

Right of review

Reviews under paragraph 11

Right of appeal

Appeals under paragraph 13

Appeal in respect of liability of company

Proceedings for determination of penalty to be imposed on company

Cases where company has ceased to exist

Application to limited liability partnerships

Interpretation

Introduction

Protecting adjustments under the GAAR before time limits expire

Minor amendments

Commencement

Introductory

Qualifying payments

Exemption from income tax

Exemptions from capital gains tax

Relief from inheritance tax

Accounting for coronavirus support payments referable to a business

Amounts not referable to activities of a business which is being carried on

Amounts referable to businesses in certain cases

Exemptions, reliefs and deductions

Charge where employment costs deductible by another

Charge where no business carried on

Modification of the Tax Acts

Charge if person not entitled to coronavirus support payment

Assessments of income tax chargeable under paragraph 8

Calculation of income tax liability

Calculation of tax liability: companies chargeable to corporation tax

Notification of liability under paragraph 8

Penalty for failure to notify: knowledge of non-entitlement to payment

Penalties: partnerships

Liability of officers of insolvent companies

Editorial notes

[^key-7f1e7fb8e46f67918df138d5375b17ec]: Sch. 16 para. 3 applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Taxation of Coronavirus Support Payments Regulations 2021 (S.I. 2021/92), regs. 1(1), 3(1)

[^key-38c769553b07b6b268d21901c052158b]: Sch. 16 para. 8(2) applied (with modifications) (with effect in accordance with reg. 1(2) of the amending S.I.) by The Taxation of Coronavirus Support Payments Regulations 2021 (S.I. 2021/92), regs. 1(1), 3(2)

[^key-144f5939728620dc46b9ab60f7b97c97]: Words in Sch. 16 para. 8(3) inserted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2021 (c. 26), s. 32(3)(a)(i)

[^key-ea12cbbcb89472c6748cc341e2b18d40]: Words in Sch. 16 para. 8(3)(b) inserted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2021 (c. 26), s. 32(3)(a)(ii)

[^key-f65683587f55e0a994e70823e4cfcf3f]: Words in Sch. 16 para. 8(4)(a) inserted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2021 (c. 26), s. 32(3)(b)

[^key-66f4daf13e54b3e4f553dce4f3bf93c0]: Words in s. 106(3) inserted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2021 (c. 26), s. 32(1)(a)

[^key-87a5a06297d2a3ed7369ec50ba5f6124]: Word in s. 106(3) substituted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2021 (c. 26), s. 32(1)(b)

[^key-f32606c415056dfd153fa0c6a72f880b]: Words in Sch. 16 para. 3(3) substituted (with effect in accordance with s. 32(4) of the amending Act) by Finance Act 2021 (c. 26), s. 32(2)

[^key-e68e3c6a27fb56ff704c437ab5a58e2b]: Sch. 12 omitted (10.6.2021) by virtue of Finance Act 2021 (c. 26), s. 112(2)

[^key-2af8dab5535634073bed5634333d04c3]: S. 95 omitted (10.6.2021) by virtue of Finance Act 2021 (c. 26), s. 112(2)

[^key-3c865df2bc0767f67430939d54044b48]: S. 107 substituted (10.6.2021) by Finance Act 2021 (c. 26), s. 24

[^key-3080e45dc71d44662d910e29f616a0f6]: Words in Sch. 11 para. 21 inserted (10.6.2021) by Finance Act 2021 (c. 26), s. 102(7)

[^key-c08efaa2b42a544d659d3898ad975a88]: Sch. 11 para. 8 in force at 29.6.2021 for specified purposes for N.I. by S.I. 2021/740, reg. 2 (with reg. 1(2))

[^key-a642e4e136aaf082199890e2d8797724]: Sch. 11 para. 13 in force at 29.6.2021 for specified purposes for N.I. by S.I. 2021/740, reg. 2 (with reg. 1(2))

[^key-a1eef92cc3661b8df7764e94f951aac6]: Sch. 11 para. 1 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-b5826aa8d4fde8674513e4fca98813ab]: Sch. 11 para. 2 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-18df997f4a31550a1d3b6704591efd65]: Sch. 11 para. 3 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-0ed8e9656d7fe8ab17e5cd6b3983b593]: Sch. 11 para. 4 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-ef9cb20d5a1089f43ad6b3678c3f518b]: Sch. 11 para. 5 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-9c90a393d1caa39945780ef7789c68a6]: Sch. 11 para. 6 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-37311f20197cd9377d6ec46a123fd4c1]: Sch. 11 para. 7 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-7eaebb5fce79019db589c29145956bcb]: Sch. 11 para. 8 in force at 1.10.2021 for N.I. in so far as not already in force by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-3ea31b84f2a909cfe561aaaf052d5e54]: Sch. 11 para. 9 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-a2afe68ef836b9a61a4f0a08e815cbaf]: Sch. 11 para. 10 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-c9964dbaa70a6bb540fbf38a0f37c0c2]: Sch. 11 para. 11 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-10ddc5a46ac9afb30750d258832cea8e]: Sch. 11 para. 12 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-63c397f6045dcead8e816d166f23c1bb]: Sch. 11 para. 13 in force at 1.10.2021 for N.I. in so far as not already in force by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-c79847046a00cb7e36f81fe4fd3cb328]: Sch. 11 para. 14 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-92fab45ffd5a05649d14f261f95aa1ae]: Sch. 11 para. 15 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-6d33bebac1d7d4e9b2abdefee579ec31]: Sch. 11 para. 16 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-c6ddafc93fba6740e3a513df3058219c]: Sch. 11 para. 17 in force at 1.10.2021 for N.I. by S.I. 2021/740, reg. 3 (with reg. 1(2))

[^key-bee9ce22b3521adfb943479863bcf48d]: Word in s. 88(3) substituted (24.2.2022) by Finance Act 2022 (c. 3), s. 80(1)

[^key-a261cc4a214d33ff100ae742e6551a62]: Words in Sch. 11 para. 21 inserted (24.2.2022) by Finance Act 2022 (c. 3), s. 76(7)

[^key-631306a2168d514979526219a2c21248]: Sch. 13 para. 5(6)(f) inserted (24.2.2022) by Finance Act 2022 (c. 3), s. 91(2)

[^key-8c6a1d6c74443c6a2a359d59eb21873a]: Words in Sch. 16 para. 12(4) substituted (with effect in accordance with s. 98(5) of the amending Act) by Finance Act 2022 (c. 3), s. 98(4)

[^key-95d83891508434c4488e9df4fd0e6e90]: Words in Sch. 11 para. 9 substituted (28.4.2022) by virtue of The Criminal Justice Act 2003 (Commencement No. 33) and Sentencing Act 2020 (Commencement No. 2) Regulations 2022 (S.I. 2022/500), regs. 1(2), 5(1), Sch. Pt. 1

[^key-bad993e91e9f69ecf539a8a243d6b953]: S. 112 in force at 12.5.2022 by S.I. 2022/531, reg. 2

[^key-8ccea64a197f26b72141a1da247f0647]: Sch. 15 para. 2 modified (6.4.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 (S.I. 2023/113), regs. 1(2), 44(2) (with reg. 1(3))

[^key-60087b9405dddde41e688a4ab2a48341]: Sch. 15 para. 3 modified (6.4.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 (S.I. 2023/113), regs. 1(2), 44(3) (with reg. 1(3))

[^key-e170f79c93cdaa85469f11cd26e83f73]: Sch. 15 para. 4 modified (6.4.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 (S.I. 2023/113), regs. 1(2), 44(4) (with reg. 1(3))

[^key-47ff61c84845eaeabcb11f7a79d506a3]: Sch. 15 para. 5 modified (6.4.2023) by The Public Service Pension Schemes (Rectification of Unlawful Discrimination) (Tax) Regulations 2023 (S.I. 2023/113), regs. 1(2), 44(5) (with reg. 1(3))

[^key-e952b28b0c1aade7ae06a9c1d9173ae0]: Words in s. 88 heading inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 326(1)(a)

[^key-ea88dfbc99bc866b1d471baa76eedd3d]: S. 88A inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 326(2)

[^key-de09263df67545ba79b52dd5a6c370a3]: Words in s. 88(1) inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 326(1)(b)

[^key-f30004a1f5015265107ed5cd93d0bb4d]: Words in s. 88(3) inserted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 326(1)(c)

88A

$$L×M12$where—L is the yearly rate of HGV road user levy applicable in relation to the vehicle on the first day of the transitional liability period, andM is the number of whole months during the transitional liability period.$

Rebated fuel: private pleasure craft

Amounts of gross gaming yield charged to gaming duty

Rates of climate change levy from 1 April 2021

Rates of landfill tax

Carbon emissions tax

HMRC debts: priority on insolvency

HMRC debts: regulations

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

Taxation of coronavirus support payments

Modifications of the statutory residence test in connection with coronavirus

Future Fund: EIS and SEIS relief

Interpretation